Rukmani Devi Garg Agro Impex Limited

Consumer Defensive — Farm Products · BSE

₹135.00₹0.00 (0.00%)

DalalBaazaar Score

67 / 100

🟢 Good

Verdict

REASONABLE

Risk

Moderate

Driven by micro-cap size, which brings thin liquidity, falling profits.

In simple words: Strong business and financial position, but sales are shrinking. The direction of profits is the main factor to watch.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 7:49 pm

Understanding the Business

Company site ↗

The 60-second version of Rukmani Devi Garg Agro Impex Limited — what it does, how it earns, and who it competes with, before any of the numbers below.

What does this company do?

Rukmani Devi Garg Agro Impex Limited engages in the trading of agricultural commodities in India. It trades in wheat, mustard, coriander, maize, flax seeds, and soyabean. The company is also involved in the manufacturing of edible oils, such as soyabean oil and mustard oil.

IndustryFarm Products

SectorConsumer Defensive

Employees16

Annual revenue₹461 Cr

How does it make money?

Turns over ₹461 Cr a year. Of every ₹100 of sales, about ₹2 reaches shareholders as profit, with ₹3 left at the operating level before interest, tax and depreciation. Each of its 16 employees supports ₹28.78 Cr of revenue a year, the signature of a capital- or asset-led business.

Revenue / employee₹28.78 Cr

Who are its competitors?

The closest listed comparisons in its industry are HINDUSTAN UNILEVER LTD., ITC LTD, NESTLE INDIA LIMITED, BRITANNIA INDUSTRIES LTD. 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 22.7% 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 ROE51.0%

What has been driving growth?

Profit has moved mainly because margins changed, not because the business sold much more. Over 3 years revenue moved +86% while net margin moved +910% 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+86%

Margin effect+910%

DalalBaazaar Score

67/ 100

Good

Weighted across six categories. Every point is explained below.

✗ Micro Cap: thinner liquidity and sharper drawdowns are normal
✗ Profits have swung sharply from year to year — earnings are hard to forecast

Quality vs. Valuation

Company Quality

73/ 100

Good

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

Valuation

75/ 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

13.5x

1.2Y Median

12.7x

14 monthly readings · mean 12.8x · range 7.0x–17.7x

Sector Median

43.3x

median of 4 sector peers

🟡Currently trading close to its 1.2y median of 12.7x — the market is paying about what it usually pays for this company.

🟢Against its sector it trades 69% below the peer median of 43.3x.

vs. its own history

Fair

12.7x median over 14 months · +6%

vs. sector peers

Cheap

43.3x median of 4 peers · -69%

vs. generic bands

Cheap

Below 15x

EV/EBITDA

9.0x

PEG

0.08

What's Good / What's Bad

🟢 What's Going Well8

Margins are improving
EBITDA margin is up from 1.4% to 3.2% over 3 years.
Debt is being paid down
Total debt is down 51% over 3 years.
Cash flow has turned positive
Free cash flow moved from negative to positive over 3 years.
Return on equity is rising
ROE has improved from 2.4% to 14.2%.
Return on capital is rising
ROCE has improved from 12.5% to 22.7%.
High return on capital employed
ROCE of 22.7% is the mark of a business that converts capital into profit efficiently.
Very low debt
Debt/Equity of 0.20x leaves the balance sheet with plenty of headroom.
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

1 item require attention · 1 high

🔴Inventory building faster than salesFinancial
Inventory up 167% against revenue up 86% — stock may not be moving.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Capital compounds at a high rate
ROCE of 22.7% 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 1.4% to 3.2%. If that holds, profit compounds faster than sales and today's multiple looks cheaper in hindsight than it does now.
Deleveraging frees up earnings
Debt is down 51% over 3 years. Every rupee of interest not paid drops to the bottom line, so profit can grow even if revenue does not.
Cheaper than its peers
It trades 69% below the sector median. Either the market sees a problem the numbers do not show, or the discount closes.
Self-funding with balance-sheet headroom
Positive free cash flow of ₹20 Cr alongside low debt means growth, buybacks or dividends need no outside money — and a downturn can be absorbed rather than refinanced.

🔴 Bear CaseWhat could go wrong?

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 17% a year✓ 22.9% CAGR
Latest reported year was -4.9%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
2EBITDA margin holds above 1%✓ 3.2%
Two points below today's level — enough room for noise, tight enough to catch real compression.
3Free cash flow remains positive✓ ₹20 Cr
Profit that never becomes cash eventually stops being profit.
4Debt / EBITDA stays below 2x✓ 0.8x
The ratio lenders write covenants against; it survives a small or negative equity base, unlike Debt/Equity.
5ROCE stays above 20%✓ 22.7%
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

6 good · 3 neutral · 2 weak

Market Cap

₹120 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

13.5x

Cheap

Cheap against the generic band

P/B Ratio

1.92x

Fair

Moderate premium to the company's book value

EPS (TTM)

₹10.01

Profitable

Profitable on a per-share basis

ROE

18.7%

Strong

Strong capital efficiency

ROCE

22.7%

Strong

Earns comfortably above its likely cost of capital

Debt/Equity

0.20x

Low

Conservative leverage

Revenue Growth (YoY)

-4.9%

Shrinking

Sales are contracting

Profit Growth (YoY)

-15.5%

Falling

Profits are shrinking

Dividend Yield

None

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

Free Cash Flow

₹16 Cr

Cash generative

Generates cash even after funding its capex

More Metrics

ROA

9.4%

Good

Assets are working hard

Operating Margin

4.2%

Weak

Thin margins leave little room for error

Net Margin

1.9%

Weak

Very little revenue reaches the bottom line

Current Ratio

4.44

Comfortable

Healthy short-term liquidity

52W Range Position

73%

Mid-range

Technical Snapshot

SMA 20 / SMA 50

140.1 / 142.0

Bearish alignment (short < long)

Price vs SMA 200

Above

Long-term uptrend

RSI (14)

31.8

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹248 Cr	₹244 Cr	₹327 Cr	₹461 Cr	+22.9%
EBITDA	₹3 Cr	₹9 Cr	₹13 Cr	₹15 Cr	+62.2%
EBITDA Margin	1.4%	3.5%	4.0%	3.2%	—
PAT (Net Profit)	₹0 Cr	₹5 Cr	₹8 Cr	₹9 Cr	+165.6%
EPS	₹0.53	₹5.65	₹8.41	—	—
ROE	2.4%	20.2%	23.4%	14.2%	—
ROCE	12.5%	30.0%	37.2%	22.7%	—
Total Debt	₹25 Cr	₹27 Cr	₹49 Cr	₹12 Cr	-21.4%
Free Cash Flow	-₹2 Cr	-₹7 Cr	-₹20 Cr	₹20 Cr	—

🟢 Revenue has grown at 22.9% a year over 3 years.

🟢 EBITDA has grown at 62.2% a year over 3 years.

🟢 EBITDA Margin has risen from 1.4% to 3.2% over 3 years (+1.8 pts).

🟢 PAT (Net Profit) has grown at 165.6% a year over 3 years.

🟢 ROE has risen from 2.4% to 14.2% over 3 years (+11.9 pts).

🟢 ROCE has risen from 12.5% to 22.7% over 3 years (+10.2 pts).

🟢 Total Debt has shrunk at 21.4% a year over 3 years.

🟢 Free Cash Flow has turned positive, from -₹2 Cr to ₹20 Cr.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹80 Cr

Total Liabilities

₹17 Cr

Cash & Equivalents

₹0 Cr

Operating Cash Flow

₹20 Cr

Capex

-₹0 Cr

Shareholding (proxy)

Institutional Holding

0.0%

Insider Holding

81.5%

Peer Comparison

Company	P/E	ROE
HINDUSTAN UNILEVER LTD.	42.5x	21.5%
ITC LTD	16.6x	27.4%
NESTLE INDIA LIMITED	59.8x	79.9%
BRITANNIA INDUSTRIES LTD	44.1x	51.0%

Recent News

1 positive5 general

RUKMANI DEVI GARG AGRO IMPEX L Lower Circuit: Price and Key Data

Univest, 28 Sept

Rukmani Devi Garg Agro Impex Ltd Key Financial Ratios – Valuation, Profitability & More

Value Research, 31 Aug

RUKMANI DEVI GARG AGRO IMPEX L Share Price - Live RDGAIL Stock Price & Chart

Upstox, 05 May

Compare with

Equitymaster, 29 Sept

Rukmani Devi Garg Agro FY26 Results: Net profit rises 17% YoY to ₹888.51 lakh

scanx.trade, 08 AugResults

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

Rukmani Devi Garg Agro Impex Ltd Peer Comparison – Compare with Others

Value Research, 30 Aug

Watch Items

Revenue growth is negative (-4.9%) on the latest reported period — check if this is one-off or a trend.
Cross-check against the company's latest quarterly filing / investor presentation before acting.

DalalBaazaar Thesis

StrongFinancial Health · Growth · Profitability · Valuation

MiddlingBusiness Quality

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 high-severity red flag sits above this conclusion and should be read first.

All 5 tripwires holding · see Key things to watch ↑