Rishabh Digha Steel And Allied Products Limited

Basic Materials — Steel · BSE

₹43.79+₹2.00 (+4.79%)

DalalBaazaar Score

62 / 100

🟢 Good

Verdict

NEUTRAL

Risk

High

Driven by short-term liabilities exceed short-term assets, negative free cash flow, micro-cap size, which brings thin liquidity.

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, 7:01 pm

Understanding the Business

Company site ↗

The 60-second version of Rishabh Digha Steel And Allied Products Limited — what it does, how it earns, and who it competes with, before any of the numbers below.

What does this company do?

Rishabh Digha Steel And Allied Products Limited manufactures and sells steel products in India. It offers hot and cold rolled coil straightening and de-coiling services. It is also involved in the cutting of 16mm steel sheets.

IndustrySteel

SectorBasic Materials

Employees3

Annual revenue₹1 Cr

How does it make money?

Turns over ₹1 Cr a year. Of every ₹100 of sales, about ₹25 reaches shareholders as profit, with ₹69 left at the operating level before interest, tax and depreciation. Each of its 3 employees supports ₹32.7 lakh of revenue a year, the signature of a people-led business.

Revenue / employee₹32.7 lakh

Who are its competitors?

The closest listed comparisons in its industry are TATA STEEL LIMITED, JSW STEEL LIMITED, JINDAL STEEL LIMITED, STEEL AUTHORITY OF INDIA. 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?Little sign of one

Returns on capital of 3.6% 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.

Peer median ROE10.8%

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 +7797% while net margin moved -101% 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+7797%

Margin effect-101%

DalalBaazaar Score

62/ 100

Good

Weighted across six categories. Every point is explained below.

✓ Beta of -0.07 — 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

64/ 100

Average

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

Valuation

47/ 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

74.2x

2Y Median

96.5x

28 monthly readings · mean 123.8x · range 1.7x–281.6x

Sector Median

18.2x

median of 4 sector peers

🟢Current valuation is approximately 23% below its 2y median of 96.5x. 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 308% above the peer median of 18.2x.

vs. its own history

Cheap

96.5x median over 28 months · -23%

vs. sector peers

Expensive

18.2x median of 4 peers · +308%

vs. generic bands

Expensive

Above 35x

EV/EBITDA

40.0x

PEG

—

What's Good / What's Bad

🟢 What's Going Well4

Margins are improving
EBITDA margin is up from -1954.6% to 68.6% over 3 years.
Return on equity is rising
ROE has improved from -7.0% to 1.3%.
Return on capital is rising
ROCE has improved from -6.1% to 3.6%.
Very low debt
Debt/Equity of 0.16x leaves the balance sheet with plenty of headroom.

🔴 What Needs Attention0

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

Red Flags

3 items require attention · 1 high · 2 watch

🔴Debt has risen sharplyFinancial
Total debt is up 117% over 3 years, from ₹1 Cr to ₹3 Cr.
🟡Free cash flow is negativeFinancial
Free cash flow was -₹1 Cr in the latest year.
🟡Short-term liquidity is tightFinancial
Current ratio of 0.03 — near-term obligations exceed near-term assets.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Margin expansion has further to run
EBITDA margin has risen from -1954.6% to 68.6%. If that holds, profit compounds faster than sales and today's multiple looks cheaper in hindsight than it does now.
Priced below its own history
The stock trades 23% 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.

🔴 Bear CaseWhat could go wrong?

The debt load needs earnings to hold up
Debt is 4.3x EBITDA. At that level a downturn in earnings turns a manageable balance sheet into a refinancing problem, and lenders get paid before shareholders.
A premium to the sector to defend
It trades 308% 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 247% a year✓ 329.0% CAGR
Latest reported year was -6.9%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
2EBITDA margin holds above 67%✓ 68.6%
Two points below today's level — enough room for noise, tight enough to catch real compression.
3Debt / EBITDA falls below 3x✗ 4.3x
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✗ -₹1 Cr
Profit that never becomes cash eventually stops being profit.
5ROCE stays above 8%✗ 3.6%
Falling returns on capital are usually competition arriving, and show up here before they reach the margin.

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 · 2 neutral · 6 weak

Market Cap

₹24 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

74.2x

Expensive

Expensive — verify against sector peers

P/B Ratio

0.98x

Reasonable

Reasonable against the company's book value

EPS (TTM)

₹0.59

Profitable

Profitable on a per-share basis

ROE

1.3%

Weak

Weak capital efficiency

ROCE

3.6%

Weak

Low return on total capital employed

Debt/Equity

0.16x

Low

Conservative leverage

Revenue Growth (YoY)

-6.9%

Shrinking

Sales are contracting

Profit Growth (YoY)

-16.1%

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

-₹1 Cr

Cash burning

Spending more cash than the operations bring in

More Metrics

Operating Margin

-13.0%

Weak

Thin margins leave little room for error

Net Margin

22.2%

Good

Strong bottom-line conversion

Current Ratio

0.03

Tight

Tight short-term liquidity

Beta (vs Nifty)

-0.07

Defensive

Steadier than the market

52W Range Position

87%

Near high

Near its 52-week high

Technical Snapshot

SMA 20 / SMA 50

41.5 / 38.7

Bullish alignment (short > long)

Price vs SMA 200

Above

Long-term uptrend

RSI (14)

45.0

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹0 Cr	—	₹1 Cr	₹1 Cr	+329.0%
EBITDA	-₹0 Cr	-₹0 Cr	₹0 Cr	₹1 Cr	—
EBITDA Margin	-1954.6%	—	16.6%	68.6%	—
PAT (Net Profit)	-₹0 Cr	₹12 Cr	₹0 Cr	₹0 Cr	—
EPS	₹-0.84	₹20.96	₹0.14	₹0.45	—
ROE	-7.0%	63.9%	0.4%	1.3%	—
ROCE	-6.1%	80.9%	0.6%	3.6%	—
Total Debt	₹1 Cr	₹3 Cr	₹0 Cr	₹3 Cr	+29.6%
Free Cash Flow	-₹0 Cr	₹11 Cr	-₹1 Cr	-₹1 Cr	—

🟢 Revenue has grown at 329.0% a year over 3 years.

🟢 EBITDA has turned positive, from -₹0 Cr to ₹1 Cr.

🟢 EBITDA Margin has risen from -1954.6% to 68.6% over 3 years (+2023.2 pts).

🟢 PAT (Net Profit) has turned positive, from -₹0 Cr to ₹0 Cr.

🟢 EPS has turned positive, from ₹-0.84 to ₹0.45.

🟢 ROE has risen from -7.0% to 1.3% over 3 years (+8.3 pts).

🟢 ROCE has risen from -6.1% to 3.6% over 3 years (+9.7 pts).

🔴 Total Debt has grown at 29.6% a year over 3 years.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹21 Cr

Total Liabilities

₹3 Cr

Cash & Equivalents

₹0 Cr

Operating Cash Flow

-₹1 Cr

Capex

—

Shareholding (proxy)

Institutional Holding

0.0%

Insider Holding

84.6%

Corporate Actions

Ex-Dividend Date

20 Sept 2019

Peer Comparison

Company	P/E	ROE
TATA STEEL LIMITED	19.8x	10.8%
JSW STEEL LIMITED	12.0x	24.7%
JINDAL STEEL LIMITED	39.1x	5.3%
STEEL AUTHORITY OF INDIA	16.5x	7.1%

Recent News

1 positive1 mixed4 general

Rishabh Digha Steel to appoint S.D. Jain as auditors at Nov 5 EGM

scanx.trade, 13 Oct

Rishabh Digha Steel & Allied Products Ltd. Financials – Balance Sheet, Profit & Loss, Cash Flow

Value Research, 27 Aug

Rishabh Digha Steel Q1 Results: Net profit rises 20% YoY to ₹19.33 lakh

scanx.trade, 17 AugResults

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

Galaxy Agrico Exports reports standalone net profit of Rs 0.50 crore in the June 2026 quarter

Business Standard, 15 AugResults

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

Rishabh Digha Steel Confirms Postal Ballot Notice Dispatch via Newspaper Ads

scanx.trade, 30 Apr

Rishabh Digha Steel Declares Non-Applicability of Large Corporate Framework Under SEBI Circular

scanx.trade, 07 Apr

Watch Items

Revenue growth is negative (-6.9%) 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

StrongBusiness Quality · Growth · Profitability

MiddlingFinancial Health · Valuation

WeakRisk

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

3 of 5 tripwires tripped — Debt / EBITDA falls below 3x; Free cash flow remains positive; ROCE stays above 8% · see Key things to watch ↑