Renaissance Global Limited

Consumer Cyclical — Luxury Goods · NSE

₹164.85+₹0.38 (+0.23%)

DalalBaazaar Score

51 / 100

🟡 Moderate

Verdict

NEUTRAL

Risk

Moderate

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

In simple words: The business is earning a fairly low return on the money invested in it, with both sales and profits growing well. Nothing on this snapshot stands out as an immediate concern — the usual checks on business quality and management still apply.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 6:05 pm

Mixed / neutral. No major red flags jump out, but nothing here screams "obviously cheap" either. This is a name that needs a peer comparison and a view on near-term earnings triggers before sizing a position.

Understanding the Business

Company site ↗

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

What does this company do?

Renaissance Global Limited, together with its subsidiaries, engages in the manufacture, retail, and trade of jewelry, gems, and diamonds in India and internationally. The company offers gold and diamond studded jewelry. It also trades in cut and polished diamonds, and gems.

IndustryLuxury Goods

SectorConsumer Cyclical

Employees337

Annual revenue₹2,813 Cr

How does it make money?

Turns over ₹2,813 Cr a year. Of every ₹100 of sales, about ₹3 reaches shareholders as profit, with ₹7 left at the operating level before interest, tax and depreciation. Each of its 337 employees supports ₹8.35 Cr of revenue a year, the signature of a capital- or asset-led business.

EBITDA margin7.4%

Net margin3.2%

Revenue / employee₹8.35 Cr

Who are its competitors?

The closest listed comparisons in its industry are TITAN COMPANY LIMITED, TRENT LTD, AVENUE SUPERMARTS LIMITED, ASIAN PAINTS LIMITED. These are the companies its valuation and returns are measured against elsewhere in this report.

TITAN COMPANY LIMITEDP/E 68.5x · ROE 36.7%

TRENT LTDP/E 87.2x · ROE 25.9%

AVENUE SUPERMARTS LIMITEDP/E 69.9x · ROE 12.7%

ASIAN PAINTS LIMITEDP/E 46.9x · ROE 22.3%

What is its competitive advantage?Little sign of one

Returns on capital of 9.1% 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.

ROCE9.1%

ROE6.0%

Peer median ROE25.9%

What has been driving growth?

Sales and margins have both contributed to where profit is now. Over 3 years revenue moved +26% while net margin moved -18% 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+26%

Margin effect-18%

DalalBaazaar Score

51/ 100

Moderate

Weighted across six categories. Every point is explained below.

✗ ROE of 6.0% is weak

Quality vs. Valuation

Company Quality

47/ 100

Average

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

Valuation

53/ 100

Fair

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

20.9x

3Y Median

15.1x

40 monthly readings · mean 15.3x · range 10.8x–23.5x

Sector Median

69.2x

median of 4 sector peers

⚠️Current valuation is approximately 39% above its 3y median of 15.1x. 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 70% below the peer median of 69.2x.

vs. its own history

Expensive

15.1x median over 40 months · +39%

vs. sector peers

Cheap

69.2x median of 4 peers · -70%

vs. generic bands

Fair

15x–35x

P/E (Trailing)

20.9x

P/B

1.17x

EV/EBITDA

11.3x

PEG

18.21

Dividend Yield

None

What's Good / What's Bad

🟢 What's Going Well1

Consistently profitable
Profitable in every one of the last 4 reported years.

🔴 What Needs Attention3

Return on capital is falling
ROCE has declined from 11.3% to 9.1% — often a sign of competition or overexpansion.
Receivables growing faster than sales
Receivables are up 89% against revenue growth of 26% — customers are taking longer to pay.
Valuation above its historical average
At 20.9x the stock trades 39% above its own median of 15.1x.

Red Flags

1 item require attention · 1 high

🔴Receivables growing faster than salesFinancial
Receivables up 89% against revenue up 26% — sales are being booked faster than they are collected.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Cheaper than its peers
It trades 70% 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 ₹41 Cr alongside low debt means growth, buybacks or dividends need no outside money — and a downturn can be absorbed rather than refinanced.
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 89% against revenue up 26%. 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 39% 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.
Growth barely outpaces inflation
Revenue compounding at 8.0% 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.

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

1EBITDA margin holds above 5%✓ 7.4%
Two points below today's level — enough room for noise, tight enough to catch real compression.
2Debt / 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.
3Interest cover stays above 3x✓ 3.4x
How much operating profit can fall before interest stops being comfortably covered.
4Revenue growth stays above 6% a year✓ 8.0% CAGR
Latest reported year was 47.2%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
5Free cash flow remains positive✓ ₹41 Cr
Profit that never becomes cash eventually stops being profit.

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

6 good · 4 neutral · 1 weak

Market Cap

₹1,771 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

20.9x

Fair

Fairly valued against the generic band

P/B Ratio

1.17x

Reasonable

Reasonable against the company's book value

EPS (TTM)

₹7.88

Profitable

Profitable on a per-share basis

ROE

6.0%

Weak

Weak capital efficiency

ROCE

9.1%

Moderate

Moderate return on the capital in the business

Debt/Equity

0.42x

Low

Conservative leverage

Revenue Growth (YoY)

47.2%

Healthy

Healthy top-line growth

Profit Growth (YoY)

301.7%

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

₹41 Cr

Cash generative

Generates cash even after funding its capex

More Metrics

CMP

₹164.85

Operating Margin

5.8%

Average

Average margins

Net Margin

3.6%

Average

Average bottom-line conversion

Current Ratio

3.01

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

0.27

Defensive

Steadier than the market

52W Range Position

90%

Near high

Near its 52-week high

Technical Snapshot

SMA 20 / SMA 50

163.5 / 146.7

Bullish alignment (short > long)

Price vs SMA 200

Above

Long-term uptrend

RSI (14)

44.4

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹2,234 Cr	₹2,105 Cr	₹2,081 Cr	₹2,813 Cr	+8.0%
EBITDA	₹170 Cr	₹166 Cr	₹171 Cr	₹209 Cr	+7.2%
EBITDA Margin	7.6%	7.9%	8.2%	7.4%	—
PAT (Net Profit)	₹87 Cr	₹72 Cr	₹76 Cr	₹90 Cr	+1.1%
EPS	₹9.16	₹7.54	₹7.63	₹8.4	-2.8%
ROE	8.5%	6.3%	5.5%	6.0%	—
ROCE	11.3%	10.5%	8.7%	9.1%	—
Total Debt	₹612 Cr	₹655 Cr	₹661 Cr	₹641 Cr	+1.6%
Free Cash Flow	₹191 Cr	-₹50 Cr	-₹32 Cr	₹41 Cr	-40.0%

🟢 Revenue has grown at 8.0% a year over 3 years.

🟢 EBITDA has grown at 7.2% a year over 3 years.

🟡 EBITDA Margin has held roughly flat at 7.4% over 3 years.

🟡 PAT (Net Profit) has been broadly flat over 3 years (1.1% a year).

🔴 EPS has shrunk at 2.8% a year over 3 years.

🔴 ROE has fallen from 8.5% to 6.0% over 3 years (-2.5 pts).

🔴 ROCE has fallen from 11.3% to 9.1% over 3 years (-2.1 pts).

🟡 Total Debt has been broadly flat over 3 years (1.6% a year).

🔴 Free Cash Flow has shrunk at 40.0% a year over 3 years.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹2,412 Cr

Total Liabilities

₹869 Cr

Total Debt

₹641 Cr

Cash & Equivalents

₹58 Cr

Operating Cash Flow

₹54 Cr

Capex

-₹13 Cr

Shareholding (proxy)

Institutional Holding

0.0%

Insider Holding

66.3%

Corporate Actions

Ex-Dividend Date

19 Jul 2022

Peer Comparison

Company	P/E	ROE
TITAN COMPANY LIMITED	68.5x	36.7%
TRENT LTD	87.2x	25.9%
AVENUE SUPERMARTS LIMITED	69.9x	12.7%
ASIAN PAINTS LIMITED	46.9x	22.3%

Recent News

2 mixed4 general

Should You Be Adding Renaissance Global (NSE:RGL) To Your Watchlist Today?

Simply Wall Street, 13 Aug

InvestingPro’s fair value model delivers 65% returns on Renaissance Global By Investing.com

Investing.com India, 26 Sept

Bulk and block deals: Massachusetts Institute of Technology picks up 1.53% stake in Renaissance Global

Moneycontrol.com, 16 Jun

Renaissance Global receives '65 Strong' ESG rating from CRISIL

scanx.trade, 07 Oct

Renaissance Global Share Price Target 2027 to 2030: Analyst Outlo

Univest, 18 AugAnalyst view

🟡Mixed / dependsBroker commentary — an opinion about the price rather than new information about the business.

Renaissance Global's (NSE:RGL) five-year earnings growth trails the 15% YoY shareholder returns

Simply Wall Street, 09 FebResults

🟡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

Cross-check against the company's latest quarterly filing / investor presentation before acting.

DalalBaazaar Thesis

🔴Business QualityWeak7.5/20

🟢Financial HealthStrong16.3/20

🔴GrowthWeak7.3/20

🔴ProfitabilityWeak4.5/15

🟡ValuationFair8.7/15

🟡RiskModerate6.2/10

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

This thesis breaks if

✓EBITDA margin holds above 5%7.4%
✗Debt / EBITDA falls below 3x3.1x
✓Interest cover stays above 3x3.4x
✓Revenue growth stays above 6% a year8.0% CAGR
✓Free cash flow remains positive₹41 Cr