Riddhi Display Equipments Limited

Consumer Cyclical — Furnishings, Fixtures & Appliances · BSE

₹26.75₹0.00 (0.00%)

DalalBaazaar Score

67 / 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 modest growth. 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 Riddhi Display Equipments Limited — what it does, how it earns, and who it competes with, before any of the numbers below.

What does this company do?

Riddhi Display Equipments Limited manufactures and sells display counter, commercial kitchen equipment, and commercial refrigeration equipment under the Riddhi Display Equipments brand in India.

IndustryFurnishings, Fixtures & Appliances

SectorConsumer Cyclical

Employees60

Annual revenue₹29 Cr

How does it make money?

Turns over ₹29 Cr a year. Of every ₹100 of sales, about ₹15 reaches shareholders as profit, with ₹27 left at the operating level before interest, tax and depreciation. Each of its 60 employees supports ₹48.5 lakh of revenue a year, the signature of a people-led business.

Revenue / employee₹48.5 lakh

Who are its competitors?

The closest listed comparisons in its industry are HAVELLS INDIA LIMITED, VOLTAS LTD, TITAN COMPANY 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 17.1% 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 ROE17.1%

DalalBaazaar Score

67/ 100

Good

Weighted across six categories. Every point is explained below.

✗ Micro Cap: thinner liquidity and sharper drawdowns are normal
✗ Negative free cash flow means dependence on external funding

Quality vs. Valuation

Company Quality

69/ 100

Good

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

Valuation

85/ 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

3.8x

1.0Y Median

7.4x

12 monthly readings · mean 7.1x · range 5.0x–9.9x

Sector Median

68.5x

median of 3 sector peers

🟢Current valuation is approximately 49% below its 1.0y median of 7.4x. 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 94% below the peer median of 68.5x.

vs. its own history

Cheap

7.4x median over 12 months · -49%

vs. sector peers

Cheap

68.5x median of 3 peers · -94%

vs. generic bands

Cheap

Below 15x

EV/EBITDA

4.2x

PEG

1.09

What's Good / What's Bad

🟢 What's Going Well1

Very low debt
Debt/Equity of 0.28x leaves the balance sheet with plenty of headroom.

🔴 What Needs Attention0

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

Red Flags

1 item require attention · 1 watch

🟡Free cash flow is negativeFinancial
Free cash flow was -₹23 Cr in the latest year.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Priced below its own history
The stock trades 49% 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 94% below the sector median. Either the market sees a problem the numbers do not show, or the discount closes.

🔴 Bear CaseWhat could go wrong?

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

1EBITDA margin holds above 25%✓ 27.3%
Two points below today's level — enough room for noise, tight enough to catch real compression.
2Free cash flow remains positive✗ -₹23 Cr
Profit that never becomes cash eventually stops being profit.
3Debt / EBITDA stays below 2x✓ 1.3x
The ratio lenders write covenants against; it survives a small or negative equity base, unlike Debt/Equity.
4ROCE stays above 14%✓ 17.1%
Falling returns on capital are usually competition arriving, and show up here before they reach the margin.
5Interest cover stays above 4x✓ 6.0x
How much operating profit can fall before interest stops being comfortably covered.

Investment Checklist

9 / 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

₹23 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

3.8x

Cheap

Cheap against the generic band

P/B Ratio

0.62x

Reasonable

Reasonable against the company's book value

EPS (TTM)

₹7.04

Profitable

Profitable on a per-share basis

ROE

17.9%

Strong

Strong capital efficiency

ROCE

17.1%

Strong

Earns comfortably above its likely cost of capital

Debt/Equity

0.28x

Low

Conservative leverage

Revenue Growth (YoY)

37.0%

Healthy

Healthy top-line growth

Profit Growth (YoY)

3.5%

Modest

Slow profit growth

Dividend Yield

None

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

Free Cash Flow

-₹25 Cr

Cash burning

Spending more cash than the operations bring in

More Metrics

ROA

9.4%

Good

Assets are working hard

Operating Margin

16.3%

Good

Healthy core-business profitability

Net Margin

14.6%

Good

Strong bottom-line conversion

Current Ratio

2.50

Comfortable

Healthy short-term liquidity

52W Range Position

Near low

Near its 52-week low

Technical Snapshot

SMA 20 / SMA 50

28.1 / 30.4

Bearish alignment (short < long)

Price vs SMA 200

Below

Long-term downtrend

RSI (14)

29.3

Oversold zone

Financial Trend (2-Year)

Metric	FY25	FY26	1Y CAGR
EBITDA	₹7 Cr	₹8 Cr	+16.6%
Free Cash Flow	-₹5 Cr	-₹23 Cr	—

🟢 EBITDA has grown at 16.6% a year over 1 years.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹59 Cr

Total Liabilities

₹22 Cr

Total Debt

₹10 Cr

Cash & Equivalents

₹0 Cr

Operating Cash Flow

-₹15 Cr

Capex

-₹8 Cr

Shareholding (proxy)

Institutional Holding

0.0%

Insider Holding

71.4%

Peer Comparison

Company	P/E	ROE
HAVELLS INDIA LIMITED	43.5x	17.1%
VOLTAS LTD	75.8x	7.0%
TITAN COMPANY LIMITED	68.5x	36.7%

Recent News

2 mixed4 general

Riddhi Display Equipments Limi Share Price - Live RDEL Stock Price & Chart

Upstox, 05 May

Weak market debut: Riddhi Display Equipments shares list at 20% discount to SME IPO price

Moneycontrol.com, 15 Dec

Riddhi Display Equipments Ltd. IPO Allotment Status: Check Overall Subscription & Steps to Verify Status

Groww, 10 Dec

Riddhi Display Equipments Q4 FY26 Results: Net Loss Rs 0.06 Crore, Revenue and Key Financial Highlights

Univest, 04 JunResults

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

Weak Listing: Riddhi Display share price lists at ₹80 in BSE SME, down 20% from SME IPO price

Livemint, 15 DecPrice move

🟡Mixed / dependsA price move rather than a change in the business. If the figures on this page have not moved, the fall is either an opportunity or news they have yet to catch up with.

Riddhi Display appoints H Togadiya as secretarial auditor for FY26

scanx.trade, 02 Sept

Watch Items

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.
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

WeakRisk

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.

1 of 5 tripwires tripped — Free cash flow remains positive · see Key things to watch ↑