Rishiroop Limited

Basic Materials — Specialty Chemicals · BSE

₹127.00−₹0.95 (−0.74%)

DalalBaazaar Score

51 / 100

🟡 Moderate

Verdict

NEUTRAL

Risk

Low

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 obvious stands out as stretched — the usual checks on business quality and management still apply.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 7:00 pm

Understanding the Business

Company site ↗

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

What does this company do?

Rishiroop Limited engages in the manufacture and sale of polymer, polymer compounds, and related products in India and internationally.

IndustrySpecialty Chemicals

SectorBasic Materials

Employees35

Annual revenue₹72 Cr

How does it make money?

Turns over ₹72 Cr a year. Of every ₹100 of sales, about ₹9 reaches shareholders as profit, with ₹11 left at the operating level before interest, tax and depreciation. Each of its 35 employees supports ₹2.06 Cr of revenue a year, the signature of a capital- or asset-led business.

Revenue / employee₹2.06 Cr

Who are its competitors?

The closest listed comparisons in its industry are ASIAN PAINTS LIMITED, PIDILITE INDUSTRIES LTD, SRF LTD, UPL LIMITED. 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 6.1% 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.

Peer median ROE22.3%

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 -19% while net margin moved +2% 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-19%

Margin effect+2%

DalalBaazaar Score

51/ 100

Moderate

Weighted across six categories. Every point is explained below.

✗ Revenue has contracted at 6.7% a year
✗ Profit has declined at 6.1% a year

Quality vs. Valuation

Company Quality

46/ 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

10.9x

3Y Median

9.1x

40 monthly readings · mean 11.4x · range 3.8x–21.7x

Sector Median

40.4x

median of 4 sector peers

⚠️Current valuation is approximately 19% above its 3y median of 9.1x. 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 73% below the peer median of 40.4x.

vs. its own history

Fair

9.1x median over 40 months · +19%

vs. sector peers

Cheap

40.4x median of 4 peers · -73%

vs. generic bands

Cheap

Below 15x

EV/EBITDA

14.8x

PEG

0.23

What's Good / What's Bad

🟢 What's Going Well3

Debt is being paid down
Total debt is down 20% over 3 years.
Very low debt
Debt/Equity of 0.14x leaves the balance sheet with plenty of headroom.
Consistently profitable
Profitable in every one of the last 4 reported years.

🔴 What Needs Attention2

Return on equity is falling
ROE has dropped from 8.1% to 4.9% — each rupee of shareholder capital earns less than it did.
Return on capital is falling
ROCE has declined from 10.6% to 6.1% — often a sign of competition or overexpansion.

Red Flags

1 item require attention · 1 high

🔴Inventory building faster than salesFinancial
Inventory up 87% against revenue up -19% — stock may not be moving.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Deleveraging frees up earnings
Debt is down 20% over 3 years. Every rupee of interest not paid drops to the bottom line, so profit can grow even if revenue does not.
Cheaper than its peers
It trades 73% 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 ₹4 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?

Returns on shareholder capital are falling
ROE has dropped from 8.1% to 4.9%. 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

1EBITDA margin holds above 9%✓ 10.9%
Two points below today's level — enough room for noise, tight enough to catch real compression.
2Free cash flow remains positive✓ ₹4 Cr
Profit that never becomes cash eventually stops being profit.
3Debt / EBITDA stays below 2x✓ 0.0x
The ratio lenders write covenants against; it survives a small or negative equity base, unlike Debt/Equity.
4ROCE stays above 8%✗ 6.1%
Falling returns on capital are usually competition arriving, and show up here before they reach the margin.
5Valuation vs its own median of 9.1x✓ 10.9x today
A re-rating above its own history needs a reason; without one it is just a higher price.

Investment Checklist

9 / 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

7 good · 2 neutral · 2 weak

Market Cap

₹116 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

10.9x

Cheap

Cheap against the generic band

P/B Ratio

0.85x

Reasonable

Reasonable against the company's book value

EPS (TTM)

₹11.69

Profitable

Profitable on a per-share basis

ROE

4.9%

Weak

Weak capital efficiency

ROCE

6.1%

Weak

Low return on total capital employed

Debt/Equity

0.14x

Low

Conservative leverage

Revenue Growth (YoY)

41.8%

Healthy

Healthy top-line growth

Profit Growth (YoY)

46.3%

Healthy

Profits growing at a healthy clip

Dividend Yield

1.18%

Modest

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

Free Cash Flow

₹4 Cr

Cash generative

Generates cash even after funding its capex

More Metrics

Operating Margin

22.4%

Good

Healthy core-business profitability

Net Margin

13.5%

Good

Strong bottom-line conversion

Current Ratio

2.59

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

0.51

Defensive

Steadier than the market

52W Range Position

74%

Mid-range

Technical Snapshot

SMA 20 / SMA 50

127.9 / 118.5

Bullish alignment (short > long)

Price vs SMA 200

Above

Long-term uptrend

RSI (14)

35.6

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹89 Cr	₹77 Cr	₹74 Cr	₹72 Cr	-6.7%
EBITDA	₹11 Cr	₹8 Cr	₹7 Cr	₹8 Cr	-10.3%
EBITDA Margin	12.2%	10.3%	9.6%	10.9%	—
PAT (Net Profit)	₹8 Cr	₹24 Cr	₹11 Cr	₹7 Cr	-6.1%
EPS	₹8.84	₹26.36	₹11.67	₹7.31	-6.1%
ROE	8.1%	19.6%	8.1%	4.9%	—
ROCE	10.6%	22.0%	10.5%	6.1%	—
Total Debt	₹0 Cr	₹1 Cr	₹0 Cr	₹0 Cr	-7.0%
Free Cash Flow	₹14 Cr	₹7 Cr	₹1 Cr	₹4 Cr	-35.4%

🔴 Revenue has shrunk at 6.7% a year over 3 years.

🔴 EBITDA has shrunk at 10.3% a year over 3 years.

🔴 EBITDA Margin has fallen from 12.2% to 10.9% over 3 years (-1.3 pts).

🔴 PAT (Net Profit) has shrunk at 6.1% a year over 3 years.

🔴 EPS has shrunk at 6.1% a year over 3 years.

🔴 ROE has fallen from 8.1% to 4.9% over 3 years (-3.2 pts).

🔴 ROCE has fallen from 10.6% to 6.1% over 3 years (-4.5 pts).

🟢 Total Debt has shrunk at 7.0% a year over 3 years.

🔴 Free Cash Flow has shrunk at 35.4% a year over 3 years.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹163 Cr

Total Liabilities

₹26 Cr

Cash & Equivalents

₹0 Cr

Operating Cash Flow

₹4 Cr

Capex

-₹0 Cr

Shareholding (proxy)

Institutional Holding

0.0%

Insider Holding

77.3%

Corporate Actions

Dividend Rate

₹1.5

Ex-Dividend Date

01 Sept 2026

Peer Comparison

Company	P/E	ROE
ASIAN PAINTS LIMITED	46.9x	22.3%
PIDILITE INDUSTRIES LTD	57.8x	24.4%
SRF LTD	33.8x	15.4%
UPL LIMITED	21.5x	6.1%

Recent News

1 positive1 mixed4 general

Rishiroop Share Price Falls 9.81% Today: Valuation View

Univest, 01 OctPrice move

🟡Mixed / dependsA price move rather than a change in the business. If the figures on this page have not moved, the fall is either an opportunity or news they have yet to catch up with.

Rishiroop Ltd closes trading window from July 1, 2026

scanx.trade, 01 Jul

Compare with PUNEET RESINS

Equitymaster, 15 Oct

Rishiroop Ltd. Share Price: 9.13% Gain and Fundamentals

Univest, 23 Sept

Rishiroop Q1FY27 net profit rises 46% to ₹12.68 crore on revenue and investment gains

scanx.trade, 07 AugResults

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

Compare PUNEET RESINS with

Equitymaster, 08 Oct

Watch Items

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

DalalBaazaar Thesis

StrongFinancial Health · Valuation

MiddlingProfitability

WeakBusiness Quality · Growth · Risk

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.

1 of 5 tripwires tripped — ROCE stays above 8% · see Key things to watch ↑