Rishabh Instruments Limited

Technology — Scientific & Technical Instruments · NSE

₹687.70+₹17.00 (+2.53%)

DalalBaazaar Score

62 / 100

🟢 Good

Verdict

REASONABLE

Risk

Moderate

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

In simple words: Reasonable but unspectacular business quality, though profits are falling even as sales grow. Cash generation is currently 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 Rishabh Instruments Limited — what it does, how it earns, and who it competes with, before any of the numbers below.

What does this company do?

Rishabh Instruments Limited engages in the design, development, and manufacturing of global energy efficiency solutions in electrical automation, measurement, and industrial technology in Asia, Europe, and internationally.

IndustryScientific & Technical Instruments

SectorTechnology

Employees563

Annual revenue₹758 Cr

How does it make money?

Turns over ₹758 Cr a year. Of every ₹100 of sales, about ₹11 reaches shareholders as profit, with ₹19 left at the operating level before interest, tax and depreciation. Each of its 563 employees supports ₹1.35 Cr of revenue a year, the signature of a capital- or asset-led business.

EBITDA margin19.4%

Net margin10.8%

Revenue / employee₹1.35 Cr

Who are its competitors?

The closest listed comparisons in its industry are TATA CONSULTANCY SERV LT, INFOSYS LIMITED, HCL TECHNOLOGIES LTD, WIPRO LTD. These are the companies its valuation and returns are measured against elsewhere in this report.

TATA CONSULTANCY SERV LTP/E 17.3x · ROE 45.6%

INFOSYS LIMITEDP/E 15.8x · ROE 32.0%

HCL TECHNOLOGIES LTDP/E 20.4x · ROE 24.6%

WIPRO LTDP/E 14.5x · ROE 15.9%

What is its competitive advantage?Little sign of one

Returns on capital of 13.5% 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.

ROCE13.5%

ROE10.9%

Peer median ROE32.0%

What is the outlook?

2 analysts covering the stock expect revenue to grow about 19.9% and earnings to grow about 38.2% in the year to 2028. These are estimates by people who follow the company, not a forecast for the wider industry.

Est. revenue growth+19.9%

Est. earnings growth+38.2%

Analysts2

What has been driving growth?

Sales and margins have both contributed to where profit is now. Over 3 years revenue moved +35% while net margin moved +29% 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+35%

Margin effect+29%

DalalBaazaar Score

62/ 100

Good

Weighted across six categories. Every point is explained below.

• Beta of 1.05 — 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

67/ 100

Good

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

Valuation

45/ 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

32.9x

3Y Median

37.4x

39 monthly readings · mean 47.1x · range 19.9x–104.5x

Sector Median

16.5x

median of 4 sector peers

🟢Current valuation is approximately 12% below its 3y median of 37.4x. 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 99% above the peer median of 16.5x.

vs. its own history

Fair

37.4x median over 39 months · -12%

vs. sector peers

Expensive

16.5x median of 4 peers · +99%

vs. generic bands

Fair

15x–35x

P/E (Trailing)

32.9x

P/B

3.56x

EV/EBITDA

17.9x

PEG

1.62

Dividend Yield

0.29%

What's Good / What's Bad

🟢 What's Going Well4

Margins are improving
EBITDA margin is up from 15.1% to 19.4% over 3 years.
Debt is being paid down
Total debt is down 24% over 3 years.
Very low debt
Debt/Equity of 0.11x leaves the balance sheet with plenty of headroom.
Consistently profitable
Profitable in every one of the last 4 reported years.

🔴 What Needs Attention1

Free cash flow is negative
The business is not currently covering its capital spending from operations.

Red Flags

1 item require attention · 1 watch

🟡Free cash flow is negativeFinancial
Free cash flow was -₹2 Cr in the latest year.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Margin expansion has further to run
EBITDA margin has risen from 15.1% to 19.4%. 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 24% over 3 years. Every rupee of interest not paid drops to the bottom line, so profit can grow even if revenue does not.
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?

A premium to the sector to defend
It trades 99% above the peer median. That premium needs a reason that persists, or it closes.
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✓ 10.4% CAGR
Latest reported year was 4.2%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
2EBITDA margin holds above 17%✓ 19.4%
Two points below today's level — enough room for noise, tight enough to catch real compression.
3Free cash flow remains positive✗ -₹2 Cr
Profit that never becomes cash eventually stops being profit.
4Debt / EBITDA stays below 2x✓ 0.5x
The ratio lenders write covenants against; it survives a small or negative equity base, unlike Debt/Equity.
5ROCE stays above 10%✓ 13.5%
Falling returns on capital are usually competition arriving, and show up here before they reach the margin.

Investment Checklist

7 / 12 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
✓ Analyst consensus isn't majority-sell
✗ Short-term technical trend isn't bearish

Price history

Quick Metrics

2 good · 7 neutral · 2 weak

Market Cap

₹2,661 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

32.9x

Fair

Fairly valued against the generic band

P/B Ratio

3.56x

Fair

Moderate premium to the company's book value

EPS (TTM)

₹20.9

Profitable

Profitable on a per-share basis

ROE

10.9%

Moderate

Moderate capital efficiency

ROCE

13.5%

Moderate

Moderate return on the capital in the business

Debt/Equity

0.11x

Low

Conservative leverage

Revenue Growth (YoY)

4.2%

Modest

Modest growth

Profit Growth (YoY)

-4.5%

Falling

Profits are shrinking

Dividend Yield

0.29%

Modest

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

Free Cash Flow

-₹2 Cr

Cash burning

Spending more cash than the operations bring in

More Metrics

CMP

₹687.7

P/E (Forward)

21.4x

Improving

Below the trailing multiple — the street expects earnings to grow into the price

Operating Margin

12.0%

Average

Average margins

Net Margin

10.3%

Good

Strong bottom-line conversion

Current Ratio

3.02

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

1.05

Market-like

Moves roughly in line with the market

52W Range Position

69%

Mid-range

Technical Snapshot

SMA 20 / SMA 50

701.8 / 710.6

Bearish alignment (short < long)

Price vs SMA 200

Above

Long-term uptrend

RSI (14)

43.2

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹563 Cr	₹679 Cr	₹707 Cr	₹758 Cr	+10.4%
EBITDA	₹85 Cr	₹83 Cr	₹63 Cr	₹147 Cr	+20.3%
EBITDA Margin	15.1%	12.2%	8.9%	19.4%	—
PAT (Net Profit)	₹47 Cr	₹40 Cr	₹22 Cr	₹82 Cr	+20.3%
EPS	₹12.33	₹10.54	₹5.84	₹21.07	+19.5%
ROE	11.7%	7.1%	3.7%	10.9%	—
ROCE	14.4%	9.2%	5.0%	13.5%	—
Total Debt	₹106 Cr	₹58 Cr	₹100 Cr	₹81 Cr	-8.7%
Free Cash Flow	-₹3 Cr	₹7 Cr	-₹11 Cr	-₹2 Cr	—

🟢 Revenue has grown at 10.4% a year over 3 years.

🟢 EBITDA has grown at 20.3% a year over 3 years.

🟢 EBITDA Margin has risen from 15.1% to 19.4% over 3 years (+4.4 pts).

🟢 PAT (Net Profit) has grown at 20.3% a year over 3 years.

🟢 EPS has grown at 19.5% a year over 3 years.

🟡 ROE has held roughly flat at 10.9% over 3 years.

🟡 ROCE has held roughly flat at 13.5% over 3 years.

🟢 Total Debt has shrunk at 8.7% a year over 3 years.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹1,003 Cr

Total Liabilities

₹254 Cr

Total Debt

₹81 Cr

Cash & Equivalents

₹96 Cr

Operating Cash Flow

₹108 Cr

Capex

-₹110 Cr

Shareholding (proxy)

Institutional Holding

9.5%

Insider Holding

72.9%

Corporate Actions

Dividend Rate

₹2

Ex-Dividend Date

24 Jul 2026

Analyst Consensus

Recommendations

2 Buy · 0 Hold · 0 Sell

Target Price (Mean)

₹845

+22.9% vs CMP

Target Range

₹830 – ₹860

Peer Comparison

Company	P/E	ROE
TATA CONSULTANCY SERV LT	17.3x	45.6%
INFOSYS LIMITED	15.8x	32.0%
HCL TECHNOLOGIES LTD	20.4x	24.6%
WIPRO LTD	14.5x	15.9%

Recent News

1 positive2 mixed1 negative2 general

RISHABH Forecast — Price Target — Prediction for 2027

TradingView, 17 OctAnalyst view

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

Rishabh Instruments Share Price Jumps 13% On Tuesday After Q4FY26 Profit Triples, Announces Dividend

Dalal Street Investment Journal, 19 MayCapital return

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

Rishabh Instruments Limited's (NSE:RISHABH) Top Key Executive Narendra Goliya is the most upbeat insider, and their holdings increased by 11% last week

Simply Wall Street, 01 Feb

Rishabh Instruments Share Price: fresh 52-week high update

Univest, 07 Sept

Rishabh Instruments shares fall as promoters eye stake sale

Moneycontrol.com, 20 AugOwnership

🔴Potentially negativePromoter selling or pledging is a signal worth understanding, though the reason is often personal rather than about the business.

Up 70% in 2026, yet Choice sees another 22% rally; initiates coverage with ‘Buy’. Check target price and stop-loss

Livemint, 09 OctAnalyst view

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

Watch Items

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

DalalBaazaar Thesis

🟡Business QualityAdequate12/20

🟢Financial HealthStrong15/20

🟢GrowthStrong13.3/20

🟢ProfitabilityStrong9.9/15

🟡ValuationFair8.1/15

🔴RiskHigh3.5/10

Good business at a fair price

A sound business at a reasonable valuation. Suitable for a long-term holding, with the valuation and the direction of margins worth watching rather than the business itself.

This thesis breaks if

✓Revenue growth stays above 8% a year10.4% CAGR
✓EBITDA margin holds above 17%19.4%
✗Free cash flow remains positive-₹2 Cr
✓Debt / EBITDA stays below 2x0.5x
✓ROCE stays above 10%13.5%