RDB Infrastructure and Power Limited

Real Estate — Real Estate Services · BSE

₹16.09−₹0.66 (−3.94%)

DalalBaazaar Score

64 / 100

🟢 Good

Verdict

NEUTRAL

Risk

Moderate

Driven by negative free cash flow, micro-cap size, which brings thin liquidity.

In simple words: The business is earning a fairly low return on the money invested in it, but sales are shrinking. Cash generation is currently the main factor to watch.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 7:01 pm

Understanding the Business

Company site ↗

The 60-second version of RDB Infrastructure and Power Limited — what it does, how it earns, and who it competes with, before any of the numbers below.

What does this company do?

RDB Infrastructure and Power Limited, together with its subsidiaries, operates as a real estate company in India.

IndustryReal Estate Services

SectorReal Estate

Employees12

Annual revenue₹128 Cr

How does it make money?

Turns over ₹128 Cr a year. Of every ₹100 of sales, about ₹10 reaches shareholders as profit, with ₹14 left at the operating level before interest, tax and depreciation. Each of its 12 employees supports ₹10.64 Cr of revenue a year, the signature of a capital- or asset-led business.

Revenue / employee₹10.64 Cr

Who are its competitors?

The closest listed comparisons in its industry are DLF LIMITED, GODREJ PROPERTIES LTD, OBEROI REALTY LIMITED. These are the companies its valuation and returns are measured against elsewhere in this report.

Compared side by side in Peers ↓

What is its competitive advantage?Little sign of one

Returns on capital of 6.2% are at or below what the capital likely costs. That is the financial pattern of a business competing largely on price, where advantage has to come from execution rather than position.

Peer median ROE10.3%

What has been driving growth?

Profit has moved mainly because margins changed, not because the business sold much more. Over 3 years revenue moved +75% while net margin moved +157% relative to itself. What this cannot tell you is which products, customers or geographies did the work — that lives in the segment disclosures of the annual report.

Revenue effect+75%

Margin effect+157%

DalalBaazaar Score

64/ 100

Good

Weighted across six categories. Every point is explained below.

✓ Beta of 0.18 — historically steadier than the index
✗ Micro Cap: thinner liquidity and sharper drawdowns are normal
✗ Profits have swung sharply from year to year — earnings are hard to forecast
✗ Negative free cash flow means dependence on external funding

Quality vs. Valuation

Company Quality

64/ 100

Average

How good the business is, ignoring the share price entirely.

Valuation

76/ 100

Cheap

What you are being asked to pay, ignoring how good the business is.

A reasonable business at a reasonable price — neither the quality nor the valuation stands out in either direction.

Historical Valuation

Current P/E

22.0x

3Y Median

115.7x

40 monthly readings · mean 156.1x · range 23.2x–371.7x

Sector Median

30.2x

median of 3 sector peers

🟢Current valuation is approximately 81% below its 3y median of 115.7x. Cheaper than its own history, which is worth a reason too: the market may be pricing in something the backward-looking numbers do not show.

🟢Against its sector it trades 27% below the peer median of 30.2x.

vs. its own history

Cheap

115.7x median over 40 months · -81%

vs. sector peers

Cheap

30.2x median of 3 peers · -27%

vs. generic bands

Fair

15x–35x

EV/EBITDA

22.7x

PEG

0.34

What's Good / What's Bad

🟢 What's Going Well3

Margins are improving
EBITDA margin is up from 5.2% to 14.4% over 3 years.
Very low debt
Debt/Equity of 0.21x leaves the balance sheet with plenty of headroom.
Consistently profitable
Profitable in every one of the last 4 reported years.

🔴 What Needs Attention2

Return on equity is falling
ROE has dropped from 8.0% to 4.7% — each rupee of shareholder capital earns less than it did.
Return on capital is falling
ROCE has declined from 8.8% to 6.2% — often a sign of competition or overexpansion.

Red Flags

4 items require attention · 3 high · 1 watch

🔴Free cash flow negative for 4 yearsFinancial
The business has not covered its capital spending from operations for several years running, which has to be funded externally.
🔴Profit up while operating cash flow fallsFinancial
Reported profit rose but cash generated by operations declined — worth checking whether earnings are being supported by non-cash items or working capital.
🔴Receivables growing faster than salesFinancial
Receivables up 841% against revenue up 75% — sales are being booked faster than they are collected.
🟡Shareholders have been dilutedOwnership
Shares outstanding are up 22% over 3 years — each existing share owns a smaller slice of the company.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Margin expansion has further to run
EBITDA margin has risen from 5.2% to 14.4%. If that holds, profit compounds faster than sales and today's multiple looks cheaper in hindsight than it does now.
Priced below its own history
The stock trades 81% below its own median multiple. If the business performs as it has and simply re-rates back to normal, that gap is return on its own.
Cheaper than its peers
It trades 27% below the sector median. Either the market sees a problem the numbers do not show, or the discount closes.
Earnings have proved durable
Profitable in every one of the last 4 reported years. Consistency lowers the risk that any single bad year is structural rather than cyclical.

🔴 Bear CaseWhat could go wrong?

The debt load needs earnings to hold up
Debt is 3.1x EBITDA. At that level a downturn in earnings turns a manageable balance sheet into a refinancing problem, and lenders get paid before shareholders.
Sales are being booked faster than collected
Receivables are up 841% against revenue up 75%. If customers keep taking longer to pay, reported profit will not turn into cash — and write-offs follow if some never do.
Returns on shareholder capital are falling
ROE has dropped from 8.0% to 4.7%. Each rupee of equity earns less than it did, so profit growth increasingly depends on raising more capital rather than on the existing base working harder.
Earnings are hard to forecast
Profit has swung sharply from year to year, so any single year — good or bad — is a weak guide to the next. Cyclical earnings deserve lower multiples for that reason.
Size brings its own risk
Micro Cap businesses are thinly traded, so exits are harder in a falling market and single events move the price more than they would for a larger company.

🟡 Key Things to WatchMeasurable tripwires, set against where this company stands today

1Revenue growth stays above 15% a year✓ 20.6% CAGR
Latest reported year was -57.9%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
2EBITDA margin holds above 12%✓ 14.4%
Two points below today's level — enough room for noise, tight enough to catch real compression.
3Debt / EBITDA falls below 3x✗ 3.1x
Already stretched, so this is a reduction target rather than a level to hold. Around 3x is where lenders typically start attaching conditions.
4Free cash flow remains positive✗ -₹88 Cr
Profit that never becomes cash eventually stops being profit.
5ROCE stays above 8%✗ 6.2%
Falling returns on capital are usually competition arriving, and show up here before they reach the margin.

Investment Checklist

7 / 11 checks passed

✗ Strong return on equity (ROE ≥ 15%)
✗ Strong return on capital employed (ROCE ≥ 15%)
✓ Healthy net margin (≥ 10%)
✗ Generates positive free cash flow
✓ Manageable leverage (Debt/Equity < 1.0)
✓ Adequate short-term liquidity (Current Ratio ≥ 1.0)
✗ Revenue growing year-over-year
✓ Profit growing year-over-year
✓ Not trading at an extreme valuation (P/E < 40x)
✓ Not buying right at the 52-week high
✓ Short-term technical trend isn't bearish

Price history

Quick Metrics

4 good · 3 neutral · 4 weak

Market Cap

₹360 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

22.0x

Fair

Fairly valued against the generic band

P/B Ratio

1.14x

Reasonable

Reasonable against the company's book value

EPS (TTM)

₹0.73

Profitable

Profitable on a per-share basis

ROE

4.7%

Weak

Weak capital efficiency

ROCE

6.2%

Weak

Low return on total capital employed

Debt/Equity

0.21x

Low

Conservative leverage

Revenue Growth (YoY)

-57.9%

Shrinking

Sales are contracting

Profit Growth (YoY)

50.0%

Healthy

Profits growing at a healthy clip

Dividend Yield

None

No dividend yield reported — usually means no payout, but verify if one was recently initiated

Free Cash Flow

-₹88 Cr

Cash burning

Spending more cash than the operations bring in

More Metrics

Operating Margin

7.3%

Average

Average margins

Net Margin

16.0%

Good

Strong bottom-line conversion

Current Ratio

4.72

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

0.18

Defensive

Steadier than the market

52W Range Position

Near low

Near its 52-week low

Technical Snapshot

SMA 20 / SMA 50

16.1 / 16.0

Bullish alignment (short > long)

Price vs SMA 200

Below

Long-term downtrend

RSI (14)

49.5

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹73 Cr	₹67 Cr	₹107 Cr	₹128 Cr	+20.6%
EBITDA	₹4 Cr	₹4 Cr	₹12 Cr	₹18 Cr	+69.3%
EBITDA Margin	5.2%	5.6%	10.9%	14.4%	—
PAT (Net Profit)	₹3 Cr	₹3 Cr	₹6 Cr	₹12 Cr	+65.2%
EPS	₹0.16	₹0.16	₹0.32	₹0.63	+57.9%
ROE	8.0%	7.2%	3.8%	4.7%	—
ROCE	8.8%	9.3%	7.9%	6.2%	—
Total Debt	₹63 Cr	₹100 Cr	₹77 Cr	₹57 Cr	-3.3%
Free Cash Flow	-₹29 Cr	-₹37 Cr	-₹82 Cr	-₹88 Cr	—

🟢 Revenue has grown at 20.6% a year over 3 years.

🟢 EBITDA has grown at 69.3% a year over 3 years.

🟢 EBITDA Margin has risen from 5.2% to 14.4% over 3 years (+9.2 pts).

🟢 PAT (Net Profit) has grown at 65.2% a year over 3 years.

🟢 EPS has grown at 57.9% a year over 3 years.

🔴 ROE has fallen from 8.0% to 4.7% over 3 years (-3.3 pts).

🔴 ROCE has fallen from 8.8% to 6.2% over 3 years (-2.6 pts).

🟢 Total Debt has shrunk at 3.3% a year over 3 years.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹369 Cr

Total Liabilities

₹102 Cr

Cash & Equivalents

₹0 Cr

Operating Cash Flow

-₹88 Cr

Capex

-₹0 Cr

Shareholding (proxy)

Institutional Holding

0.0%

Insider Holding

72.0%

Corporate Actions

Ex-Dividend Date

27 Aug 2015

Peer Comparison

Company	P/E	ROE
DLF LIMITED	36.6x	10.3%
GODREJ PROPERTIES LTD	30.2x	8.4%
OBEROI REALTY LIMITED	23.5x	14.7%

Recent News

1 positive2 mixed3 general

RDB Infrastructure And Power - 10 penny stocks plunge up to 75% in six months

The Economic Times, 18 Oct

RDB Infrastructure and Power standalone net profit rises 63.24% in the June 2026 quarter

Business Standard, 10 AugResults

🟢Potentially positiveReported improvement. Check whether it came from volume, price or a one-off item before treating it as a trend.

Raju Singh exits RDB Infrastructure and Power board after AGM

scanx.trade, 07 Oct

Up over 4000% in 5 years! RDB Infrastructure and Power share price jumps over 4% after NSE listing move

Livemint, 04 FebPrice move

🟡Mixed / dependsA price move, which is not by itself a change in the business. Worth finding the cause before reading it as either good or bad.

RDB Infrastructure And Power Share Price Rises After NSE Listing Approval | Stock Market Today

Samco, 04 FebPrice move

🟡Mixed / dependsA price move, which is not by itself a change in the business. Worth finding the cause before reading it as either good or bad.

Solar company-RDB Infrastructure & Power plans to debut on NSE

Dalal Street Investment Journal, 04 Feb

Watch Items

Revenue growth is negative (-57.9%) on the latest reported period — check if this is one-off or a trend.
Trading very close to its 52-week low — worth checking whether this reflects a temporary setback or a structural problem.
Cross-check against the company's latest quarterly filing / investor presentation before acting.

DalalBaazaar Thesis

StrongFinancial Health · Growth · Valuation

MiddlingBusiness Quality · Profitability

WeakRisk

Points for each in the Score ↑

Unremarkable in both directions

A reasonable business at a reasonable price. Nothing here is alarming and nothing is compelling, which usually means the decision rests on things this data cannot see — the industry's direction, management's intent, and what else is available to you. 3 high-severity red flags sit above this conclusion and should be read first.

3 of 5 tripwires tripped — Debt / EBITDA falls below 3x; Free cash flow remains positive; ROCE stays above 8% · see Key things to watch ↑