Ravi Kumar Distilleries Limited

Consumer Defensive — Beverages - Wineries & Distilleries · NSE

₹16.30+₹0.34 (+2.13%)

DalalBaazaar Score

46 / 100

🟡 Moderate

Verdict

CAUTION

Risk

High

Driven by moderate debt load, micro-cap size, which brings thin liquidity, a very high earnings multiple, which leaves little margin for disappointment.

In simple words: The business is earning a fairly low return on the money invested in it, but sales are shrinking. Valuation is currently the main factor to watch.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 6:09 pm

Caution warranted. Multiple fundamental metrics — flagged in red below — point to either valuation stretch, leverage risk, or weakening profitability. This doesn't mean avoid the stock outright, but it does mean the burden of proof is on the growth story to justify the current price.

Understanding the Business

Company site ↗

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

What does this company do?

Ravi Kumar Distilleries Limited manufactures, sells, and trades Indian made foreign liquors in India. The company manufactures and trades whisky, brandy, rum, gin, and vodka under the Capricorn, Jean Brothers, Black Berry, 2Barrels, Green Magic, Chevalier, and Once More brands.

IndustryBeverages - Wineries & Distilleries

SectorConsumer Defensive

Employees55

Annual revenue₹20 Cr

How does it make money?

Turns over ₹20 Cr a year. Of every ₹100 of sales, about ₹1 reaches shareholders as profit, with ₹-4 left at the operating level before interest, tax and depreciation. Each of its 55 employees supports ₹36.1 lakh of revenue a year, the signature of a people-led business.

EBITDA margin-4.3%

Net margin0.7%

Revenue / employee₹36.1 lakh

Who are its competitors?

The closest listed comparisons in its industry are HINDUSTAN UNILEVER LTD., ITC LTD, NESTLE INDIA LIMITED, BRITANNIA INDUSTRIES LTD. These are the companies its valuation and returns are measured against elsewhere in this report.

HINDUSTAN UNILEVER LTD.P/E 42.5x · ROE 21.5%

ITC LTDP/E 16.6x · ROE 27.4%

NESTLE INDIA LIMITEDP/E 59.8x · ROE 79.9%

BRITANNIA INDUSTRIES LTDP/E 44.1x · ROE 51.0%

What is its competitive advantage?Little sign of one

Returns on capital of 0.4% 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.

ROCE0.4%

ROE0.3%

Peer median ROE51.0%

What has been driving growth?

Profit has moved mainly because margins changed, not because the business sold much more. Over 3 years revenue moved -29% while net margin moved -108% 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-29%

Margin effect-108%

DalalBaazaar Score

46/ 100

Moderate

Weighted across six categories. Every point is explained below.

✗ Revenue has contracted at 10.7% a year

Quality vs. Valuation

Company Quality

41/ 100

Weak

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

Valuation

54/ 100

Fair

What you are being asked to pay, ignoring how good the business is.

Weak on business quality and not cheap enough to compensate.

Historical Valuation

Current P/E

203.8x

1.3Y Median

362.2x

16 monthly readings · mean 374.7x · range 271.7x–491.4x

Sector Median

43.3x

median of 4 sector peers

🟢Current valuation is approximately 44% below its 1.3y median of 362.2x. 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 371% above the peer median of 43.3x.

vs. its own history

Cheap

362.2x median over 16 months · -44%

vs. sector peers

Expensive

43.3x median of 4 peers · +371%

vs. generic bands

Expensive

Above 35x

P/E (Trailing)

203.8x

P/B

0.96x

EV/EBITDA

—

PEG

—

Dividend Yield

None

What's Good / What's Bad

🟢 What's Going Well4

Cash flow has turned positive
Free cash flow moved from negative to positive over 3 years.
Return on equity is rising
ROE has improved from -5.2% to 0.3%.
Return on capital is rising
ROCE has improved from -3.7% to 0.4%.
Valuation below its historical average
At 203.8x the stock trades 44% below its own median of 362.2x.

🔴 What Needs Attention1

Receivables growing faster than sales
Receivables are up 22% against revenue growth of -29% — customers are taking longer to pay.

Red Flags

1 item require attention · 1 high

🔴Receivables growing faster than salesFinancial
Receivables up 22% against revenue up -29% — sales are being booked faster than they are collected.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Priced below its own history
The stock trades 44% 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?

Sales are being booked faster than collected
Receivables are up 22% against revenue up -29%. If customers keep taking longer to pay, reported profit will not turn into cash — and write-offs follow if some never do.
A premium to the sector to defend
It trades 371% above the peer median. That premium needs a reason that persists, or it closes.
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 -6%✓ -4.3%
Two points below today's level — enough room for noise, tight enough to catch real compression.
2Interest cover stays above 3x✓ 3.3x
How much operating profit can fall before interest stops being comfortably covered.
3Free cash flow remains positive✓ ₹1 Cr
Profit that never becomes cash eventually stops being profit.
4ROCE stays above 8%✗ 0.4%
Falling returns on capital are usually competition arriving, and show up here before they reach the margin.
5Valuation vs its own median of 362.2x✓ 203.8x today
A re-rating above its own history needs a reason; without one it is just a higher price.

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

4 good · 3 neutral · 4 weak

Market Cap

₹39 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

203.8x

Expensive

Expensive — verify against sector peers

P/B Ratio

0.96x

Reasonable

Reasonable against the company's book value

EPS (TTM)

₹0.08

Profitable

Profitable on a per-share basis

ROE

0.3%

Weak

Weak capital efficiency

ROCE

0.4%

Weak

Low return on total capital employed

Debt/Equity

1.09x

Moderate

Moderate leverage

Revenue Growth (YoY)

-9.4%

Shrinking

Sales are contracting

Profit Growth (YoY)

200.0%

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

₹1 Cr

Cash generative

Generates cash even after funding its capex

More Metrics

CMP

₹16.3

Operating Margin

-5.4%

Weak

Thin margins leave little room for error

Net Margin

0.9%

Weak

Very little revenue reaches the bottom line

Current Ratio

1.13

Adequate

Adequate, but no real cushion

Beta (vs Nifty)

-0.44

Defensive

Steadier than the market

52W Range Position

Near low

Near its 52-week low

Technical Snapshot

SMA 20 / SMA 50

17.5 / 18.1

Bearish alignment (short < long)

Price vs SMA 200

Below

Long-term downtrend

RSI (14)

28.6

Oversold zone

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹28 Cr	₹24 Cr	₹37 Cr	₹20 Cr	-10.7%
EBITDA	-₹1 Cr	-₹2 Cr	-₹1 Cr	-₹1 Cr	—
EBITDA Margin	-3.2%	-9.4%	-2.5%	-4.3%	—
PAT (Net Profit)	-₹2 Cr	-₹2 Cr	₹0 Cr	₹0 Cr	—
EPS	₹-0.95	₹-0.81	₹0.06	₹0.06	—
ROE	-5.2%	-4.7%	0.3%	0.3%	—
ROCE	-3.7%	-3.2%	0.4%	0.4%	—
Total Debt	₹39 Cr	₹40 Cr	₹40 Cr	₹46 Cr	+5.6%
Free Cash Flow	-₹9 Cr	-₹0 Cr	-₹1 Cr	₹1 Cr	—

🔴 Revenue has shrunk at 10.7% a year over 3 years.

🔴 EBITDA Margin has fallen from -3.2% to -4.3% over 3 years (-1.2 pts).

🟢 PAT (Net Profit) has turned positive, from -₹2 Cr to ₹0 Cr.

🟢 EPS has turned positive, from ₹-0.95 to ₹0.06.

🟢 ROE has risen from -5.2% to 0.3% over 3 years (+5.6 pts).

🟢 ROCE has risen from -3.7% to 0.4% over 3 years (+4.1 pts).

🔴 Total Debt has grown at 5.6% a year over 3 years.

🟢 Free Cash Flow has turned positive, from -₹9 Cr to ₹1 Cr.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹133 Cr

Total Liabilities

₹91 Cr

Total Debt

₹46 Cr

Cash & Equivalents

₹0 Cr

Operating Cash Flow

₹2 Cr

Capex

-₹1 Cr

Shareholding (proxy)

Institutional Holding

0.0%

Insider Holding

69.3%

Corporate Actions

Ex-Dividend Date

26 Jul 2011

Peer Comparison

Company	P/E	ROE
HINDUSTAN UNILEVER LTD.	42.5x	21.5%
ITC LTD	16.6x	27.4%
NESTLE INDIA LIMITED	59.8x	79.9%
BRITANNIA INDUSTRIES LTD	44.1x	51.0%

Recent News

1 mixed5 general

Ravi Kumar Distilleries (NSEI:RKDL) - Stock Analysis

Simply Wall Street, 15 Oct

Ravi Kumar Distilleries AGM passes resolutions with 84% majority

scanx.trade, 17 Oct

Ravi Kumar Distilleries Share Price Forecast to 2030

Univest, 27 Jul

Ravi Kumar Distilleries Ltd. Shareholding Pattern – Promoters, FIIs & DIIs

Value Research, 28 Aug

Ravi Kumar Distilleries (NSE:RKDL): Has It Filed Its Reg 74(5) Compliance Certificate for Q2 FY27?

Kalkine India, 10 OctResults

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

52 Week Low Shares BSE | 52 Week Low Today | Shares Trading 52 Week Low BSE

Livemint, 16 Oct

Watch Items

Revenue growth is negative (-9.4%) on the latest reported period — check if this is one-off or a trend.
Trading very close to its 52-week low — worth checking whether this reflects a temporary setback or a structural problem.
Cross-check against the company's latest quarterly filing / investor presentation before acting.
RSI is in oversold territory — could mean either a bargain or a stock still falling for good reason. Check the 'why' before assuming reversal.

DalalBaazaar Thesis

🔴Business QualityWeak8.7/20

🟡Financial HealthAdequate12.4/20

🔴GrowthWeak2.4/20

🟡ProfitabilityModerate7.1/15

🟡ValuationFair9.7/15

🟡RiskModerate5.2/10

Weak on the fundamentals

Poor scores on business quality without a price low enough to compensate. There is no obvious argument for owning this over a stronger company at a similar valuation. 1 high-severity red flag sits above this conclusion and should be read first.

This thesis breaks if

✓EBITDA margin holds above -6%-4.3%
✓Interest cover stays above 3x3.3x
✓Free cash flow remains positive₹1 Cr
✗ROCE stays above 8%0.4%
✓Valuation vs its own median of 362.2x203.8x today