Riddhi Siddhi Gluco Biols Limited

Basic Materials — Agricultural Inputs · BSE

₹711.00+₹1.00 (+0.14%)

DalalBaazaar Score

53 / 100

🟡 Moderate

Verdict

CAUTION

Risk

Moderate

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

In simple words: The business is earning a fairly low return on the money invested in it, 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, 6:09 pm

Caution warranted. Multiple fundamental metrics — flagged in red below — point to either valuation stretch, leverage risk, or weakening profitability. This doesn't mean avoid the stock outright, but it does mean the burden of proof is on the growth story to justify the current price.

Understanding the Business

Company site ↗

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

What does this company do?

Riddhi Siddhi Gluco Biols Limited trades in agriculture and metal commodities in India. The company operates through Wind Power Generation, Trading Business, Paper Reprocessing, and Real Estate Business segments.

IndustryAgricultural Inputs

SectorBasic Materials

Employees9

Annual revenue₹235 Cr

How does it make money?

Turns over ₹235 Cr a year. Of every ₹100 of sales, about ₹-2 reaches shareholders as profit, with ₹23 left at the operating level before interest, tax and depreciation. Each of its 9 employees supports ₹26.15 Cr of revenue a year, the signature of a capital- or asset-led business.

EBITDA margin23.3%

Net margin-1.9%

Revenue / employee₹26.15 Cr

Who are its competitors?

The closest listed comparisons in its industry are TATA STEEL LIMITED, JSW STEEL LIMITED, ULTRATECH CEMENT LIMITED, ASIAN PAINTS LIMITED. These are the companies its valuation and returns are measured against elsewhere in this report.

TATA STEEL LIMITEDP/E 19.8x · ROE 10.8%

JSW STEEL LIMITEDP/E 12.0x · ROE 24.7%

ULTRATECH CEMENT LIMITEDP/E 37.6x · ROE 11.1%

ASIAN PAINTS LIMITEDP/E 46.9x · ROE 22.3%

What is its competitive advantage?Little sign of one

Returns on capital of 2.8% 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.

ROCE2.8%

ROE-0.3%

Peer median ROE22.3%

What has been driving growth?

Profit has moved mainly because margins changed, not because the business sold much more. Over 3 years revenue moved +37% while net margin moved -94% 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+37%

Margin effect-94%

DalalBaazaar Score

53/ 100

Moderate

Weighted across six categories. Every point is explained below.

✓ Beta of 0.63 — historically steadier than the index
✗ 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

55/ 100

Average

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

Valuation

42/ 100

Expensive

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

34.7x

2Y Median

9.9x

28 monthly readings · mean 9.8x · range 6.7x–12.4x

Sector Median

28.7x

median of 4 sector peers

⚠️Current valuation is approximately 251% above its 2y median of 9.9x. 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 21% above the peer median of 28.7x.

vs. its own history

Expensive

9.9x median over 28 months · +251%

vs. sector peers

Expensive

28.7x median of 4 peers · +21%

vs. generic bands

Fair

15x–35x

P/E (Trailing)

34.7x

P/B

0.34x

EV/EBITDA

12.4x

PEG

—

Dividend Yield

0.42%

What's Good / What's Bad

🟢 What's Going Well2

Return on equity is rising
ROE has improved from -3.9% to -0.3%.
Very low debt
Debt/Equity of 0.18x leaves the balance sheet with plenty of headroom.

🔴 What Needs Attention5

Margins are compressing
EBITDA margin has slipped from 49.7% to 23.3% over 3 years.
Debt is rising
Total debt is up 249% over 3 years — worth checking what it funded.
Free cash flow is negative
The business is not currently covering its capital spending from operations.
Inventory building faster than sales
Inventory is up 833% against revenue growth of 37% — stock may not be moving.
Valuation above its historical average
At 34.7x the stock trades 251% above its own median of 9.9x.

Red Flags

6 items require attention · 5 high · 1 watch

🔴Debt has risen sharplyFinancial
Total debt is up 249% over 3 years, from ₹81 Cr to ₹283 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.
🔴The company is lossmakingFinancial
Net profit of -₹4 Cr in the latest reported year.
🔴Significant margin compressionFinancial
EBITDA margin has fallen 26.4 points, from 49.7% to 23.3%.
🔴Inventory building faster than salesFinancial
Inventory up 833% against revenue up 37% — stock may not be moving.
🟡Interest coverage is deterioratingFinancial
Cover has fallen from 8.4x to 2.8x.

Investment Thesis

🟢 Bull CaseWhat could make this work?

No clear supporting case emerges from the available numbers.

🔴 Bear CaseWhat could go wrong?

Margins are being competed away
EBITDA margin has fallen from 49.7% to 23.3%. If the trend continues, profit falls even on flat sales — and margin decline rarely reverses quickly.
The debt load needs earnings to hold up
Debt is 5.2x EBITDA. At that level a downturn in earnings turns a manageable balance sheet into a refinancing problem, and lenders get paid before shareholders.
The price already assumes success
The stock trades 251% 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.

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

1Revenue growth stays above 8% a year✓ 11.0% CAGR
Latest reported year was -41.9%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
2EBITDA margin holds above 21%✓ 23.3%
Two points below today's level — enough room for noise, tight enough to catch real compression.
3Debt / EBITDA falls below 3x✗ 5.2x
Already stretched, so this is a reduction target rather than a level to hold. Around 3x is where lenders typically start attaching conditions.
4Free cash flow remains positive✗ -₹10 Cr
Profit that never becomes cash eventually stops being profit.
5Interest cover stays above 3x✗ 2.8x
How much operating profit can fall before interest stops being comfortably covered.

Investment Checklist

4 / 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

3 good · 3 neutral · 5 weak

Market Cap

₹507 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

34.7x

Fair

Fairly valued against the generic band

P/B Ratio

0.34x

Reasonable

Reasonable against the company's book value

EPS (TTM)

₹20.51

Profitable

Profitable on a per-share basis

ROE

-0.3%

Weak

Weak capital efficiency

ROCE

2.8%

Weak

Low return on total capital employed

Debt/Equity

0.18x

Low

Conservative leverage

Revenue Growth (YoY)

-41.9%

Shrinking

Sales are contracting

Profit Growth (YoY)

-62.6%

Falling

Profits are shrinking

Dividend Yield

0.42%

Modest

Small cash return — most of the return has to come from the price

Free Cash Flow

-₹10 Cr

Cash burning

Spending more cash than the operations bring in

More Metrics

CMP

₹711

Operating Margin

-5.5%

Weak

Thin margins leave little room for error

Net Margin

8.7%

Average

Average bottom-line conversion

Current Ratio

3.90

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

0.63

Defensive

Steadier than the market

52W Range Position

67%

Mid-range

Technical Snapshot

SMA 20 / SMA 50

727.4 / 745.2

Bearish alignment (short < long)

Price vs SMA 200

Above

Long-term uptrend

RSI (14)

40.1

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹172 Cr	₹268 Cr	₹135 Cr	₹235 Cr	+11.0%
EBITDA	₹85 Cr	₹80 Cr	₹88 Cr	₹55 Cr	-13.8%
EBITDA Margin	49.7%	29.8%	65.5%	23.3%	—
PAT (Net Profit)	-₹56 Cr	₹47 Cr	₹5 Cr	-₹4 Cr	—
EPS	₹-119.1	₹61.53	₹-17.07	₹-17.15	—
ROE	-3.9%	3.0%	0.3%	-0.3%	—
ROCE	3.7%	4.6%	5.1%	2.8%	—
Total Debt	₹81 Cr	₹73 Cr	₹101 Cr	₹283 Cr	+51.7%
Free Cash Flow	₹0 Cr	-₹4 Cr	-₹77 Cr	-₹10 Cr	—

🟢 Revenue has grown at 11.0% a year over 3 years.

🔴 EBITDA has shrunk at 13.8% a year over 3 years.

🔴 EBITDA Margin has fallen from 49.7% to 23.3% over 3 years (-26.4 pts).

🟢 ROE has risen from -3.9% to -0.3% over 3 years (+3.6 pts).

🟡 ROCE has held roughly flat at 2.8% over 3 years.

🔴 Total Debt has grown at 51.7% a year over 3 years.

🔴 Free Cash Flow has turned negative, from ₹0 Cr to -₹10 Cr.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹1,891 Cr

Total Liabilities

₹352 Cr

Total Debt

₹283 Cr

Cash & Equivalents

₹108 Cr

Operating Cash Flow

-₹9 Cr

Capex

-₹0 Cr

Shareholding (proxy)

Institutional Holding

0.0%

Insider Holding

82.2%

Corporate Actions

Dividend Rate

₹3

Ex-Dividend Date

18 Sept 2026

Peer Comparison

Company	P/E	ROE
TATA STEEL LIMITED	19.8x	10.8%
JSW STEEL LIMITED	12.0x	24.7%
ULTRATECH CEMENT LIMITED	37.6x	11.1%
ASIAN PAINTS LIMITED	46.9x	22.3%

Recent News

1 negative5 general

Riddhi Siddhi Gluco Biols Ltd. Shareholding Pattern – Promoters, FIIs & DIIs

Value Research, 04 Sept

Riddhi Siddhi Gluco Biols achieves 25% public shareholding

scanx.trade, 15 Jun

Riddhi Siddhi Gluco Biols Ltd. Share Price Live Today

CNBC TV18, 03 Jan

Riddhi Siddhi Gluco Biols OFS 2026 Date, Floor Price, OFS Size Details

IPO Watch, 22 Jun

SAT Reduces SEBI Ban On Riddhi Siddhi Gluco Biols, Promoters To 6 Months, Upholds MPS, Fraud Findings

LiveLawBiz, 12 MarRegulatory

🔴Potentially negativeRegulatory and legal actions carry a financial cost and a governance question. The second usually matters more than the first.

Riddhi Siddhi Gluco Biols re-enters starch business with Cargill India buy

BusinessLine, 19 Jan

Watch Items

Revenue growth is negative (-41.9%) 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

🟡Business QualityAdequate11.8/20

🟡Financial HealthAdequate11.8/20

🟡GrowthModest10.6/20

🟡ProfitabilityModerate7.4/15

🟡ValuationFair7.5/15

🔴RiskHigh4/10

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

This thesis breaks if

✓Revenue growth stays above 8% a year11.0% CAGR
✓EBITDA margin holds above 21%23.3%
✗Debt / EBITDA falls below 3x5.2x
✗Free cash flow remains positive-₹10 Cr
✗Interest cover stays above 3x2.8x