Reganto Enterprises Limited

Industrials — Security & Protection Services · BSE

₹3.99+₹0.03 (+0.76%)

DalalBaazaar Score

56 / 100

🟡 Moderate

Verdict

CAUTION

Risk

High

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

In simple words: Strong business and financial position, 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, 8:27 pm

Understanding the Business

Company site ↗

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

What does this company do?

Reganto Enterprises Limited manufactures, deals in, and sells electronic security and surveillance related electronic equipment in India. It offers CCTV cameras and digital video recorders.

IndustrySecurity & Protection Services

SectorIndustrials

Annual revenue₹222 Cr

How does it make money?

Turns over ₹222 Cr a year. Of every ₹100 of sales, about ₹5 reaches shareholders as profit, with ₹7 left at the operating level before interest, tax and depreciation.

Who are its competitors?

The closest listed comparisons in its industry are LARSEN & TOUBRO LTD., SIEMENS LTD, ABB INDIA 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 15.6% 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 ROE15.2%

What has been driving growth?

Growth has come mainly from selling more, rather than from keeping more of each sale. Over 3 years revenue moved +1098% while net margin moved -189% 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+1098%

Margin effect-189%

DalalBaazaar Score

56/ 100

Moderate

Weighted across six categories. Every point is explained below.

• Beta of 1.19 — moves roughly with the market
✗ 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

56/ 100

Average

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

Valuation

69/ 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

12.9x

2Y Median

5.1x

28 monthly readings · mean 8.8x · range 1.1x–25.1x

Sector Median

88.8x

median of 3 sector peers

⚠️Current valuation is approximately 152% above its 2y median of 5.1x. Paying more than usual needs a reason — faster growth, a better balance sheet, or a re-rating you believe in.

🟢Against its sector it trades 86% below the peer median of 88.8x.

vs. its own history

Expensive

5.1x median over 28 months · +152%

vs. sector peers

Cheap

88.8x median of 3 peers · -86%

vs. generic bands

Cheap

Below 15x

EV/EBITDA

3.8x

PEG

—

What's Good / What's Bad

🟢 What's Going Well2

Margins are improving
EBITDA margin is up from -1.3% to 7.0% over 3 years.
Debt is being paid down
Total debt is down 97% over 3 years.

🔴 What Needs Attention0

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

Red Flags

3 items require attention · 2 high · 1 watch

🔴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.
🔴Receivables growing faster than salesFinancial
Receivables up 65831% against revenue up 1098% — sales are being booked faster than they are collected.
🟡Shareholders have been dilutedOwnership
Shares outstanding are up 87% 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 -1.3% to 7.0%. 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 97% 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 86% below the sector median. Either the market sees a problem the numbers do not show, or the discount closes.

🔴 Bear CaseWhat could go wrong?

Sales are being booked faster than collected
Receivables are up 65831% against revenue up 1098%. If customers keep taking longer to pay, reported profit will not turn into cash — and write-offs follow if some never do.
The price already assumes success
The stock trades 152% above its own median multiple. At this level the business has to deliver just to stand still, and a stumble is repriced twice — lower earnings on a lower multiple.
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.
Several serious flags at once
2 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

1Revenue growth stays above 97% a year✓ 128.8% CAGR
Latest reported year was -94.7%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
2EBITDA margin holds above 5%✓ 7.0%
Two points below today's level — enough room for noise, tight enough to catch real compression.
3Free cash flow remains positive✗ -₹38 Cr
Profit that never becomes cash eventually stops being profit.
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 13%✓ 15.6%
Falling returns on capital are usually competition arriving, and show up here before they reach the margin.

Investment Checklist

5 / 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

5 good · 3 neutral · 3 weak

Market Cap

₹58 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

12.9x

Cheap

Cheap against the generic band

P/B Ratio

0.59x

Reasonable

Reasonable against the company's book value

EPS (TTM)

₹0.31

Profitable

Profitable on a per-share basis

ROE

11.5%

Moderate

Moderate capital efficiency

ROCE

15.6%

Strong

Earns comfortably above its likely cost of capital

Debt/Equity

0.32x

Low

Conservative leverage

Revenue Growth (YoY)

-94.7%

Shrinking

Sales are contracting

Profit Growth (YoY)

-76.2%

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

-₹38 Cr

Cash burning

Spending more cash than the operations bring in

More Metrics

Operating Margin

-47.3%

Weak

Thin margins leave little room for error

Net Margin

3.2%

Average

Average bottom-line conversion

Current Ratio

1.10

Adequate

Adequate, but no real cushion

Beta (vs Nifty)

1.19

Market-like

Moves roughly in line with the market

52W Range Position

Near low

Near its 52-week low

Technical Snapshot

SMA 20 / SMA 50

3.9 / 4.7

Bearish alignment (short < long)

Price vs SMA 200

Below

Long-term downtrend

RSI (14)

56.5

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹19 Cr	₹174 Cr	₹610 Cr	₹222 Cr	+128.8%
EBITDA	-₹0 Cr	₹17 Cr	₹61 Cr	₹15 Cr	—
EBITDA Margin	-1.3%	9.6%	10.1%	7.0%	—
PAT (Net Profit)	-₹1 Cr	₹17 Cr	₹48 Cr	₹11 Cr	—
EPS	₹-0.14	₹1.97	₹5.56	₹0.78	—
ROE	—	118.3%	68.6%	11.5%	—
ROCE	—	117.9%	87.9%	15.6%	—
Total Debt	₹11 Cr	₹11 Cr	₹10 Cr	₹0 Cr	-69.1%
Free Cash Flow	₹0 Cr	-₹10 Cr	-₹8 Cr	-₹38 Cr	—

🟢 Revenue has grown at 128.8% a year over 3 years.

🟢 EBITDA has turned positive, from -₹0 Cr to ₹15 Cr.

🟢 EBITDA Margin has risen from -1.3% to 7.0% over 3 years (+8.2 pts).

🟢 PAT (Net Profit) has turned positive, from -₹1 Cr to ₹11 Cr.

🟢 EPS has turned positive, from ₹-0.14 to ₹0.78.

🔴 ROE has fallen from 118.3% to 11.5% over 3 years (-106.8 pts).

🔴 ROCE has fallen from 117.9% to 15.6% over 3 years (-102.3 pts).

🟢 Total Debt has shrunk at 69.1% a year over 3 years.

🔴 Free Cash Flow has turned negative, from ₹0 Cr to -₹38 Cr.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹1,036 Cr

Total Liabilities

₹937 Cr

Cash & Equivalents

₹0 Cr

Operating Cash Flow

-₹38 Cr

Capex

—

Shareholding (proxy)

Institutional Holding

0.0%

Insider Holding

70.5%

Peer Comparison

Company	P/E	ROE
LARSEN & TOUBRO LTD.	30.1x	15.2%
SIEMENS LTD	88.8x	10.5%
ABB INDIA LIMITED	92.6x	19.1%

Recent News

2 mixed4 general

Reganto Enterprises reports FY26 net profit of ₹1,142.45 lakh

scanx.trade, 16 Jun

Reganto Enterprises (BSE:517393) - Stock Analysis

Simply Wall Street, 15 Dec

Reganto Enterprises Ltd Reports Mixed Quarterly Results Amid Ongoing Financial Challenges

MarketsMojo, 03 JunResults

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

REGANTO Stock Price and Chart — BSE:REGANTO

TradingView, 14 Jan

Reganto Enterprises - 14 penny stocks surge up to 125% in a month; 2 turn multibaggers. Did you own any?

The Economic Times, 26 Apr

Reganto Enterprises: A high-ROCE micro-cap with a sharp earnings contraction — what do the numbers say?

Kalkine India, 24 AprResults

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

Watch Items

Revenue growth is negative (-94.7%) 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

WeakProfitability · Risk

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. 2 high-severity red flags sit above this conclusion and should be read first.

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