Riddhi Corporate Services Limited

Industrials — Specialty Business Services · BSE

₹56.01+₹0.31 (+0.56%)

DalalBaazaar Score

59 / 100

🟡 Moderate

Verdict

NEUTRAL

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, 6:07 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 Riddhi Corporate Services Limited — what it does, how it earns, and who it competes with, before any of the numbers below.

What does this company do?

Riddhi Corporate Services Limited provides document management, inbound and outbound contact center, data entry, software development, logistics, transportation, verification, and recruitment services in India.

IndustrySpecialty Business Services

SectorIndustrials

Employees9,217

Annual revenue₹513 Cr

How does it make money?

Turns over ₹513 Cr a year. Of every ₹100 of sales, about ₹2 reaches shareholders as profit, with ₹5 left at the operating level before interest, tax and depreciation. Each of its 9,217 employees supports ₹5.6 lakh of revenue a year, the signature of a people-led business.

EBITDA margin5.1%

Net margin1.7%

Revenue / employee₹5.6 lakh

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.

LARSEN & TOUBRO LTD.P/E 30.1x · ROE 15.2%

SIEMENS LTDP/E 88.8x · ROE 10.5%

ABB INDIA LIMITEDP/E 92.6x · ROE 19.1%

What is its competitive advantage?Some evidence

ROCE of 15.5% is above what capital typically costs, which suggests some pricing power, though not yet the sustained, wide gap that marks a durable advantage.

ROCE15.5%

ROE11.7%

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 +156% while net margin moved -59% 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+156%

Margin effect-59%

DalalBaazaar Score

59/ 100

Moderate

Weighted across six categories. Every point is explained below.

• ROE of 11.7% is moderate
✗ ROE has fallen by 4.7 points over the period

Quality vs. Valuation

Company Quality

55/ 100

Average

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

Valuation

77/ 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

9.2x

3Y Median

13.7x

40 monthly readings · mean 12.2x · range 4.5x–26.1x

Sector Median

88.8x

median of 3 sector peers

🟢Current valuation is approximately 33% below its 3y median of 13.7x. 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 90% below the peer median of 88.8x.

vs. its own history

Cheap

13.7x median over 40 months · -33%

vs. sector peers

Cheap

88.8x median of 3 peers · -90%

vs. generic bands

Cheap

Below 15x

P/E (Trailing)

9.2x

P/B

1.37x

EV/EBITDA

3.2x

PEG

4.49

Dividend Yield

0.87%

What's Good / What's Bad

🟢 What's Going Well5

Debt is being paid down
Total debt is down 73% over 3 years.
Cash flow has turned positive
Free cash flow moved from negative to positive over 3 years.
Return on capital is rising
ROCE has improved from 13.1% to 15.5%.
Valuation below its historical average
At 9.2x the stock trades 33% below its own median of 13.7x.
Consistently profitable
Profitable in every one of the last 4 reported years.

🔴 What Needs Attention3

Margins are compressing
EBITDA margin has slipped from 20.3% to 5.1% over 3 years.
Return on equity is falling
ROE has dropped from 16.4% to 11.7% — each rupee of shareholder capital earns less than it did.
Receivables growing faster than sales
Receivables are up 217% against revenue growth of 156% — customers are taking longer to pay.

Red Flags

2 items require attention · 2 high

🔴Significant margin compressionFinancial
EBITDA margin has fallen 15.2 points, from 20.3% to 5.1%.
🔴Receivables growing faster than salesFinancial
Receivables up 217% against revenue up 156% — sales are being booked faster than they are collected.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Deleveraging frees up earnings
Debt is down 73% over 3 years. Every rupee of interest not paid drops to the bottom line, so profit can grow even if revenue does not.
Priced below its own history
The stock trades 33% 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 90% below the sector median. Either the market sees a problem the numbers do not show, or the discount closes.
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?

Margins are being competed away
EBITDA margin has fallen from 20.3% to 5.1%. If the trend continues, profit falls even on flat sales — and margin decline rarely reverses quickly.
Sales are being booked faster than collected
Receivables are up 217% against revenue up 156%. If customers keep taking longer to pay, reported profit will not turn into cash — and write-offs follow if some never do.
Returns on shareholder capital are falling
ROE has dropped from 16.4% to 11.7%. Each rupee of equity earns less than it did, so profit growth increasingly depends on raising more capital rather than on the existing base working harder.
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 28% a year✓ 36.9% CAGR
Latest reported year was -51.4%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
2EBITDA margin holds above 3%✓ 5.1%
Two points below today's level — enough room for noise, tight enough to catch real compression.
3Interest cover stays above 3x✓ 3.6x
How much operating profit can fall before interest stops being comfortably covered.
4Free cash flow remains positive✓ ₹24 Cr
Profit that never becomes cash eventually stops being profit.
5Debt / EBITDA stays below 2x✓ 1.3x
The ratio lenders write covenants against; it survives a small or negative equity base, unlike Debt/Equity.

Investment Checklist

6 / 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

₹66 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

9.2x

Cheap

Cheap against the generic band

P/B Ratio

1.37x

Reasonable

Reasonable against the company's book value

EPS (TTM)

₹6.06

Profitable

Profitable on a per-share basis

ROE

11.7%

Moderate

Moderate capital efficiency

ROCE

15.5%

Strong

Earns comfortably above its likely cost of capital

Debt/Equity

0.55x

Low

Conservative leverage

Revenue Growth (YoY)

-51.4%

Shrinking

Sales are contracting

Profit Growth (YoY)

-79.8%

Falling

Profits are shrinking

Dividend Yield

0.87%

Modest

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

Free Cash Flow

₹24 Cr

Cash generative

Generates cash even after funding its capex

More Metrics

CMP

₹56.01

Operating Margin

2.5%

Weak

Thin margins leave little room for error

Net Margin

1.8%

Weak

Very little revenue reaches the bottom line

Current Ratio

1.88

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

-0.94

Defensive

Steadier than the market

52W Range Position

16%

Mid-range

Technical Snapshot

SMA 20 / SMA 50

56.1 / 57.4

Bearish alignment (short < long)

Price vs SMA 200

Below

Long-term downtrend

RSI (14)

45.6

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹200 Cr	₹167 Cr	₹255 Cr	₹513 Cr	+36.9%
EBITDA	₹41 Cr	₹34 Cr	₹34 Cr	₹26 Cr	-13.9%
EBITDA Margin	20.3%	20.1%	13.4%	5.1%	—
PAT (Net Profit)	₹8 Cr	₹5 Cr	₹14 Cr	₹9 Cr	+2.1%
EPS	₹7.3	₹4.34	₹11.41	₹6.99	-1.4%
ROE	16.4%	9.2%	19.7%	11.7%	—
ROCE	13.1%	10.3%	15.6%	15.5%	—
Total Debt	₹125 Cr	₹110 Cr	₹94 Cr	₹34 Cr	-35.2%
Free Cash Flow	-₹19 Cr	₹19 Cr	₹30 Cr	₹24 Cr	—

🟢 Revenue has grown at 36.9% a year over 3 years.

🔴 EBITDA has shrunk at 13.9% a year over 3 years.

🔴 EBITDA Margin has fallen from 20.3% to 5.1% over 3 years (-15.2 pts).

🟢 PAT (Net Profit) has grown at 2.1% a year over 3 years.

🟡 EPS has been broadly flat over 3 years (-1.4% a year).

🔴 ROE has fallen from 16.4% to 11.7% over 3 years (-4.7 pts).

🟢 ROCE has risen from 13.1% to 15.5% over 3 years (+2.4 pts).

🟢 Total Debt has shrunk at 35.2% a year over 3 years.

🟢 Free Cash Flow has turned positive, from -₹19 Cr to ₹24 Cr.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹176 Cr

Total Liabilities

₹99 Cr

Total Debt

₹34 Cr

Cash & Equivalents

₹16 Cr

Operating Cash Flow

₹24 Cr

Capex

—

Shareholding (proxy)

Institutional Holding

0.0%

Insider Holding

80.2%

Corporate Actions

Dividend Rate

₹0.49

Ex-Dividend Date

21 Sept 2026

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 positive4 general

Riddhi Corporate Services Ltd. Financials – Balance Sheet, Profit & Loss, Cash Flow

Value Research, 31 Aug

Riddhi Corporate Services declares ₹0.49 dividend, sets AGM date

scanx.trade, 05 SeptCapital return

🟢Potentially positiveCash or shares returned to holders. A buyback is only good value if the shares were cheap when bought.

Visagar Financial Services appoints CA Riddhi Trivedi as statutory auditor

scanx.trade, 16 Oct

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

Groww, 10 Dec

Upcoming dividends, stock splits this week: IRCTC, Engineers India, BEML, NLC India, Titagarh Rail Systems, Dixon Tech, among others in focus

Upstox, 20 Sept

Afcom Holdings standalone net profit rises 86.06% in the June 2026 quarter

Business Standard, 15 AugResults

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

Watch Items

Revenue growth is negative (-51.4%) 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 QualityAdequate10.3/20

🟢Financial HealthStrong15.4/20

🟡GrowthModest10/20

🔴ProfitabilityWeak6/15

🟢ValuationAttractive13.2/15

🔴RiskHigh4.4/10

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

This thesis breaks if

✓Revenue growth stays above 28% a year36.9% CAGR
✓EBITDA margin holds above 3%5.1%
✓Interest cover stays above 3x3.6x
✓Free cash flow remains positive₹24 Cr
✓Debt / EBITDA stays below 2x1.3x