Ritesh International Limited

Basic Materials — Chemicals · BSE

₹89.26+₹4.25 (+5.00%)

DalalBaazaar Score

67 / 100

🟢 Good

Verdict

REASONABLE

Risk

Low

Driven by micro-cap size, which brings thin liquidity.

In simple words: Strong business and financial position, with both sales and profits growing well. Thin profit margins are the main factor to watch.

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 Ritesh International Limited — what it does, how it earns, and who it competes with, before any of the numbers below.

What does this company do?

Ritesh International Limited engages in the manufacture and sale of stearic acids and other non-edible oils for rubber and PVC industries in India. The company provides stearic acids, fatty acids, and glycerin, as well as trades in ready-made garment products.

IndustryChemicals

SectorBasic Materials

Employees143

Annual revenue₹160 Cr

How does it make money?

Turns over ₹160 Cr a year. Of every ₹100 of sales, about ₹2 reaches shareholders as profit, with ₹4 left at the operating level before interest, tax and depreciation. Each of its 143 employees supports ₹1.12 Cr of revenue a year, the signature of a capital- or asset-led business.

Revenue / employee₹1.12 Cr

Who are its competitors?

The closest listed comparisons in its industry are 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?Some evidence

ROCE of 17.9% is above what capital typically costs, which suggests some pricing power, though not yet the sustained, wide gap that marks a durable advantage.

Peer median ROE15.4%

What has been driving growth?

Profit has moved mainly because margins changed, not because the business sold much more. Over 3 years revenue moved +40% while net margin moved +149% 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+40%

Margin effect+149%

DalalBaazaar Score

67/ 100

Good

Weighted across six categories. Every point is explained below.

✓ Beta of 0.12 — 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
✗ Trading within 10% of its 52-week high — entries here carry more pullback risk

Quality vs. Valuation

Company Quality

69/ 100

Good

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 good business currently available at an undemanding price — the combination this framework is built to look for.

Historical Valuation

Current P/E

15.7x

3Y Median

21.7x

40 monthly readings · mean 21.5x · range 7.5x–33.4x

Sector Median

33.8x

median of 3 sector peers

🟢Current valuation is approximately 28% below its 3y median of 21.7x. 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 54% below the peer median of 33.8x.

vs. its own history

Cheap

21.7x median over 40 months · -28%

vs. sector peers

Cheap

33.8x median of 3 peers · -54%

vs. generic bands

Fair

15x–35x

EV/EBITDA

12.7x

PEG

0.30

What's Good / What's Bad

🟢 What's Going Well5

Margins are improving
EBITDA margin is up from 2.7% to 4.5% over 3 years.
Cash generation is improving
Free cash flow is up 110% over 3 years.
Return on equity is rising
ROE has improved from 5.4% to 12.3%.
Return on capital is rising
ROCE has improved from 10.4% to 17.9%.
Very low debt
Debt/Equity of 0.30x 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 · 3 high

🔴Debt has risen sharplyFinancial
Total debt is up 98% over 3 years, from ₹5 Cr to ₹9 Cr.
🔴Receivables growing faster than salesFinancial
Receivables up 120% against revenue up 40% — sales are being booked faster than they are collected.
🔴Inventory building faster than salesFinancial
Inventory up 141% against revenue up 40% — stock may not be moving.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Margin expansion has further to run
EBITDA margin has risen from 2.7% to 4.5%. 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 28% 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 54% 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 ₹2 Cr alongside low debt means growth, buybacks or dividends need no outside money — and a downturn can be absorbed rather than refinanced.

🔴 Bear CaseWhat could go wrong?

Sales are being booked faster than collected
Receivables are up 120% against revenue up 40%. If customers keep taking longer to pay, reported profit will not turn into cash — and write-offs follow if some never do.
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.
Several serious flags at once
3 high-severity checks triggered. Individually each has an explanation; together they raise the chance that something structural is wrong rather than a one-off.

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

1Revenue growth stays above 9% a year✓ 11.9% CAGR
Latest reported year was 44.2%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
2EBITDA margin holds above 2%✓ 4.5%
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✓ 1.2x
The ratio lenders write covenants against; it survives a small or negative equity base, unlike Debt/Equity.
5ROCE stays above 15%✓ 17.9%
Falling returns on capital are usually competition arriving, and show up here before they reach the margin.

Investment Checklist

8 / 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 · 5 neutral · 0 weak

Market Cap

₹84 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

15.7x

Fair

Fairly valued against the generic band

P/B Ratio

2.59x

Fair

Moderate premium to the company's book value

EPS (TTM)

₹5.7

Profitable

Profitable on a per-share basis

ROE

12.3%

Moderate

Moderate capital efficiency

ROCE

17.9%

Strong

Earns comfortably above its likely cost of capital

Debt/Equity

0.30x

Low

Conservative leverage

Revenue Growth (YoY)

44.2%

Healthy

Healthy top-line growth

Profit Growth (YoY)

322.7%

Healthy

Profits growing at a healthy clip

Dividend Yield

None

No dividend yield reported — usually means no payout, but verify if one was recently initiated

Free Cash Flow

₹2 Cr

Cash generative

Generates cash even after funding its capex

More Metrics

Operating Margin

5.1%

Average

Average margins

Net Margin

2.8%

Weak

Very little revenue reaches the bottom line

Current Ratio

1.71

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

0.12

Defensive

Steadier than the market

52W Range Position

91%

Near high

Near its 52-week high

Technical Snapshot

SMA 20 / SMA 50

87.0 / 82.2

Bullish alignment (short > long)

Price vs SMA 200

Above

Long-term uptrend

RSI (14)

53.1

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹114 Cr	₹84 Cr	₹119 Cr	₹160 Cr	+11.9%
EBITDA	₹3 Cr	₹1 Cr	₹6 Cr	₹7 Cr	+31.9%
EBITDA Margin	2.7%	1.6%	4.8%	4.5%	—
PAT (Net Profit)	₹1 Cr	-₹0 Cr	₹3 Cr	₹4 Cr	+51.7%
EPS	₹1.23	₹-0.09	₹3.86	₹4.23	+50.9%
ROE	5.4%	-0.4%	14.6%	12.3%	—
ROCE	10.4%	2.5%	19.3%	17.9%	—
Total Debt	₹5 Cr	₹6 Cr	₹10 Cr	₹9 Cr	+25.5%
Free Cash Flow	₹1 Cr	₹0 Cr	-₹3 Cr	₹2 Cr	+28.0%

🟢 Revenue has grown at 11.9% a year over 3 years.

🟢 EBITDA has grown at 31.9% a year over 3 years.

🟢 EBITDA Margin has risen from 2.7% to 4.5% over 3 years (+1.7 pts).

🟢 PAT (Net Profit) has grown at 51.7% a year over 3 years.

🟢 EPS has grown at 50.9% a year over 3 years.

🟢 ROE has risen from 5.4% to 12.3% over 3 years (+6.8 pts).

🟢 ROCE has risen from 10.4% to 17.9% over 3 years (+7.5 pts).

🔴 Total Debt has grown at 25.5% a year over 3 years.

🟢 Free Cash Flow has grown at 28.0% a year over 3 years.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹48 Cr

Total Liabilities

₹18 Cr

Cash & Equivalents

₹1 Cr

Operating Cash Flow

₹7 Cr

Capex

-₹5 Cr

Shareholding (proxy)

Institutional Holding

0.0%

Insider Holding

49.1%

Peer Comparison

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

Recent News

1 positive2 mixed3 general

Ritesh International Ltd. Upper Circuit Today: Price, Data and Peers

Univest, 22 Sept

Ritesh International sets Sept 22 e-voting cut-off for AGM

scanx.trade, 29 Aug

Q2 results this week: Infosys, Eternal, Bajaj Finance, Adani Energy, Kotak Mahindra Bank, UltraTech Cement, HPCL, Tata Motors, Dr Reddy's and more

Upstox, 18 OctResults

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

Ritesh International Ltd. Peer Comparison – Compare with Others

Value Research, 30 Aug

Ritesh International plans capacity expansion of 50% at its Ahmedgarh facility

Business Standard, 17 AugCapacity

🟡Mixed / dependsCapacity additions can raise revenue over two to three years, but the capital spend usually pressures free cash flow first. Worth checking whether the capex is funded from operations or from borrowing.

Bharat Electronics shares rise as firm bags order worth ₹533 crore; check details

Upstox, 13 OctOrder win

🟢Potentially positiveOrder wins add to future revenue, though the effect depends on the contract's size against annual sales and on when it is executed.

Watch Items

Trading very close to its 52-week high — momentum-driven entries here carry more mean-reversion risk.
Cross-check against the company's latest quarterly filing / investor presentation before acting.

DalalBaazaar Thesis

StrongFinancial Health · Growth · Valuation

MiddlingBusiness Quality · Profitability

WeakRisk

Points for each in the Score ↑

Attractive on both counts

A good business currently available at an undemanding price — the combination this framework exists to look for. The work left is qualitative: whether the advantage the numbers imply is one you can identify and expect to last. 3 high-severity red flags sit above this conclusion and should be read first.

All 5 tripwires holding · see Key things to watch ↑