RDB Rasayans Limited

Consumer Cyclical — Packaging & Containers · BSE

₹150.80−₹7.15 (−4.53%)

DalalBaazaar Score

69 / 100

🟢 Good

Verdict

REASONABLE

Risk

Moderate

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

In simple words: Strong business and financial position, with both sales and profits growing well. Cash generation is currently the main factor to watch.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 6:58 pm

Understanding the Business

Company site ↗

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

What does this company do?

RDB Rasayans Limited manufactures and sells polymer-based woven bags and flexible intermediate bulk container jumbo bags in India. The company operates through Manufacturing Activity and Trading segments.

IndustryPackaging & Containers

SectorConsumer Cyclical

Employees87

Annual revenue₹118 Cr

How does it make money?

Turns over ₹118 Cr a year. Of every ₹100 of sales, about ₹29 reaches shareholders as profit, with ₹39 left at the operating level before interest, tax and depreciation. Each of its 87 employees supports ₹1.35 Cr of revenue a year, the signature of a capital- or asset-led business.

Revenue / employee₹1.35 Cr

Who are its competitors?

The closest listed comparisons in its industry are MARUTI SUZUKI INDIA LTD., TITAN COMPANY LIMITED, TRENT LTD, AVENUE SUPERMARTS 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?Some evidence

ROCE of 18.3% is above what capital typically costs, which suggests some pricing power, though not yet the sustained, wide gap that marks a durable advantage.

Peer median ROE25.9%

What has been driving growth?

Profit has moved mainly because margins changed, not because the business sold much more. Over 3 years revenue moved +8% while net margin moved +30% 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+8%

Margin effect+30%

DalalBaazaar Score

69/ 100

Good

Weighted across six categories. Every point is explained below.

✗ Revenue CAGR of only 2.5% — barely ahead of inflation
• Profit CAGR of 11.7%

Quality vs. Valuation

Company Quality

67/ 100

Good

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

Valuation

88/ 100

Cheap

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

A good business currently available at an undemanding price — the combination this framework is built to look for.

Historical Valuation

Current P/E

7.2x

3Y Median

10.6x

40 monthly readings · mean 10.4x · range 7.6x–13.5x

Sector Median

69.2x

median of 4 sector peers

🟢Current valuation is approximately 32% below its 3y median of 10.6x. 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 90% below the peer median of 69.2x.

vs. its own history

Cheap

10.6x median over 40 months · -32%

vs. sector peers

Cheap

69.2x median of 4 peers · -90%

vs. generic bands

Cheap

Below 15x

EV/EBITDA

5.9x

PEG

0.62

What's Good / What's Bad

🟢 What's Going Well2

Margins are improving
EBITDA margin is up from 29.8% to 38.7% over 3 years.
Consistently profitable
Profitable in every one of the last 4 reported years.

🔴 What Needs Attention0

Nothing stands out as clearly deteriorating on the years of data available.

Red Flags

4 items require attention · 4 high

🔴Debt has risen sharplyFinancial
Total debt is up 2087% over 3 years, from ₹0 Cr to ₹1 Cr.
🔴Free cash flow negative for 3 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.
🔴Inventory building faster than salesFinancial
Inventory up 91% against revenue up 8% — stock may not be moving.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Capital compounds at a high rate
ROCE of 18.3% means each rupee reinvested earns well above what capital costs. If the company can keep deploying at this rate, growth creates value rather than just consuming cash.
Margin expansion has further to run
EBITDA margin has risen from 29.8% to 38.7%. 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 32% 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 90% 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?

Growth barely outpaces inflation
Revenue compounding at 2.5% a year is close to the rate prices rise, so the business is gaining little ground in real terms. That leaves the share price dependent on a re-rating rather than on earnings growth.
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.
Several serious flags at once
4 high-severity checks triggered. Individually each has an explanation; together they raise the chance that something structural is wrong rather than a one-off.

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

1EBITDA margin holds above 37%✓ 38.7%
Two points below today's level — enough room for noise, tight enough to catch real compression.
2Free cash flow remains positive✗ -₹21 Cr
Profit that never becomes cash eventually stops being profit.
3Revenue growth stays above 4% a year✗ 2.5% CAGR
Latest reported year was 14.1%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
4Debt / EBITDA stays below 2x✓ 0.0x
The ratio lenders write covenants against; it survives a small or negative equity base, unlike Debt/Equity.
5ROCE stays above 15%✓ 18.3%
Falling returns on capital are usually competition arriving, and show up here before they reach the margin.

Investment Checklist

8 / 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

7 good · 3 neutral · 1 weak

Market Cap

₹267 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

7.2x

Cheap

Cheap against the generic band

P/B Ratio

1.08x

Reasonable

Reasonable against the company's book value

EPS (TTM)

₹20.88

Profitable

Profitable on a per-share basis

ROE

13.7%

Moderate

Moderate capital efficiency

ROCE

18.3%

Strong

Earns comfortably above its likely cost of capital

Debt/Equity

0.38x

Low

Conservative leverage

Revenue Growth (YoY)

14.1%

Healthy

Healthy top-line growth

Profit Growth (YoY)

35.3%

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

-₹21 Cr

Cash burning

Spending more cash than the operations bring in

More Metrics

P/E (Forward)

26.9x

Flat

At or above the trailing multiple — no earnings uplift is being priced in

Operating Margin

27.1%

Good

Healthy core-business profitability

Net Margin

30.4%

Good

Strong bottom-line conversion

Current Ratio

39.44

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

0.18

Defensive

Steadier than the market

52W Range Position

23%

Mid-range

Technical Snapshot

SMA 20 / SMA 50

159.9 / 164.6

Bearish alignment (short < long)

Price vs SMA 200

Below

Long-term downtrend

RSI (14)

22.8

Oversold zone

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹109 Cr	₹103 Cr	₹148 Cr	₹118 Cr	+2.5%
EBITDA	₹33 Cr	₹31 Cr	₹36 Cr	₹46 Cr	+11.8%
EBITDA Margin	29.8%	30.2%	24.6%	38.7%	—
PAT (Net Profit)	₹24 Cr	₹24 Cr	₹26 Cr	₹34 Cr	+11.7%
EPS	₹13.76	₹13.68	₹14.94	₹19.17	+11.7%
ROE	15.0%	13.0%	12.4%	13.7%	—
ROCE	20.0%	17.2%	16.8%	18.3%	—
Total Debt	₹0 Cr	₹1 Cr	₹1 Cr	₹1 Cr	+179.7%
Free Cash Flow	₹45 Cr	-₹77 Cr	-₹12 Cr	-₹21 Cr	—

🟢 Revenue has grown at 2.5% a year over 3 years.

🟢 EBITDA has grown at 11.8% a year over 3 years.

🟢 EBITDA Margin has risen from 29.8% to 38.7% over 3 years (+8.9 pts).

🟢 PAT (Net Profit) has grown at 11.7% a year over 3 years.

🟢 EPS has grown at 11.7% a year over 3 years.

🔴 ROE has fallen from 15.0% to 13.7% over 3 years (-1.3 pts).

🔴 ROCE has fallen from 20.0% to 18.3% over 3 years (-1.6 pts).

🔴 Total Debt has grown at 179.7% a year over 3 years.

🔴 Free Cash Flow has turned negative, from ₹45 Cr to -₹21 Cr.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹255 Cr

Total Liabilities

₹8 Cr

Cash & Equivalents

₹0 Cr

Operating Cash Flow

-₹21 Cr

Capex

-₹0 Cr

Shareholding (proxy)

Institutional Holding

0.0%

Insider Holding

85.2%

Corporate Actions

Ex-Dividend Date

26 Aug 2015

Peer Comparison

Company	P/E	ROE
MARUTI SUZUKI INDIA LTD.	25.2x	13.4%
TITAN COMPANY LIMITED	68.5x	36.7%
TRENT LTD	87.2x	25.9%
AVENUE SUPERMARTS LIMITED	69.9x	12.7%

Recent News

1 positive1 mixed4 general

RDB Rasayans Ltd. Key Financial Ratios – Valuation, Profitability & More

Value Research, 31 Aug

RDB Rasayans Q1 FY27 Results: PAT Up 35% to Rs 11 Cr

Univest, 14 AugResults

🟡Mixed / dependsA results event. The figures on this page update once the new statements reach the data feed, which usually lags the announcement.

RDB Rasayans Reports 43.5% Jump in Q3FY26 Net Profit to ₹823.75 Lacs

scanx.trade, 10 Feb

RDB Rasayans Ltd. Peer Comparison – Compare with Others

Value Research, 27 Aug

HPBL Stock Price and Chart — BSE:HPBL

TradingView, 15 Jul

RDB Rasayans Q1 Results: Net profit rises 35% YoY to ₹11.6 crore

scanx.trade, 13 AugResults

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

Watch Items

Cross-check against the company's latest quarterly filing / investor presentation before acting.
RSI is in oversold territory — could mean either a bargain or a stock still falling for good reason. Check the 'why' before assuming reversal.

DalalBaazaar Thesis

StrongBusiness Quality · Financial Health · Profitability · Valuation

MiddlingGrowth · Risk

Points for each in the Score ↑

Attractive on both counts

A good business currently available at an undemanding price — the combination this framework exists to look for. The work left is qualitative: whether the advantage the numbers imply is one you can identify and expect to last. 4 high-severity red flags sit above this conclusion and should be read first.

2 of 5 tripwires tripped — Free cash flow remains positive; Revenue growth stays above 4% a year · see Key things to watch ↑