RLF Limited

Consumer Cyclical — Textile Manufacturing · BSE

₹9.90−₹0.02 (−0.20%)

DalalBaazaar Score

45 / 100

🟡 Moderate

Verdict

CAUTION

Risk

High

Driven by short-term liabilities exceed short-term assets, the company is currently loss-making, micro-cap size, which brings thin liquidity.

In simple words: The company is currently losing money, though profits are falling even as sales grow. Short-term liquidity is the main factor to watch.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 6:05 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 RLF Limited — what it does, how it earns, and who it competes with, before any of the numbers below.

What does this company do?

RLF Limited engages in the textile business in India. It is involved in embroidery, marble, and red stone business. The company also operates sports centre, club, education, recreation, restaurant, F and B, accommodation, and other amenities.

IndustryTextile Manufacturing

SectorConsumer Cyclical

Employees6

Annual revenue₹0 Cr

How does it make money?

Turns over ₹0 Cr a year. Of every ₹100 of sales, about ₹-64 reaches shareholders as profit, with ₹10 left at the operating level before interest, tax and depreciation. Each of its 6 employees supports ₹8.2 lakh of revenue a year, the signature of a people-led business.

EBITDA margin10.5%

Net margin-64.1%

Revenue / employee₹8.2 lakh

Who are its competitors?

The closest listed comparisons in its industry are MARUTI SUZUKI INDIA LTD., TITAN COMPANY LIMITED, TRENT LTD, AVENUE SUPERMARTS LIMITED. These are the companies its valuation and returns are measured against elsewhere in this report.

MARUTI SUZUKI INDIA LTD.P/E 25.2x · ROE 13.4%

TITAN COMPANY LIMITEDP/E 68.5x · ROE 36.7%

TRENT LTDP/E 87.2x · ROE 25.9%

AVENUE SUPERMARTS LIMITEDP/E 69.9x · ROE 12.7%

What is its competitive advantage?Little sign of one

Returns on capital of 0.0% 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.

ROCE0.0%

ROE-1.2%

Peer median ROE25.9%

DalalBaazaar Score

45/ 100

Moderate

Weighted across six categories. Every point is explained below.

✗ Return on equity is negative
✓ ROE has improved by 8.8 points over the period

Quality vs. Valuation

Company Quality

44/ 100

Weak

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

Valuation

30/ 100

Expensive

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

Weak on business quality and not cheap enough to compensate.

vs. its own history

Not enough price and earnings history

vs. sector peers

Not enough peers with a usable P/E

vs. generic bands

N/A

No P/E — the company is lossmaking

P/E (Trailing)

Not meaningful

P/B

0.35x

EV/EBITDA

283.6x

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 -10.0% to -1.2%.
Return on capital is rising
ROCE has improved from -8.8% to 0.0%.
Very low debt
Debt/Equity of 0.13x leaves the balance sheet with plenty of headroom.

🔴 What Needs Attention1

Short-term liquidity is tight
Current ratio of 0.66 — near-term obligations exceed near-term assets.

Red Flags

4 items require attention · 2 high · 2 watch

🔴Thin interest coverageFinancial
Operating profit covers interest only 0.0x — little room if earnings dip.
🔴The company is lossmakingFinancial
Net profit of -₹0 Cr in the latest reported year.
🟡Interest coverage is deterioratingFinancial
Cover has fallen from 0.2x to 0.0x.
🟡Short-term liquidity is tightFinancial
Current ratio of 0.66 — near-term obligations exceed near-term assets.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Self-funding with balance-sheet headroom
Positive free cash flow of ₹0 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?

The debt load needs earnings to hold up
Debt is 68.5x EBITDA. At that level a downturn in earnings turns a manageable balance sheet into a refinancing problem, and lenders get paid before shareholders.
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
2 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

1EBITDA margin holds above 8%✓ 10.5%
Two points below today's level — enough room for noise, tight enough to catch real compression.
2Debt / EBITDA falls below 3x✗ 68.5x
Already stretched, so this is a reduction target rather than a level to hold. Around 3x is where lenders typically start attaching conditions.
3Interest cover stays above 3x✗ 0.0x
How much operating profit can fall before interest stops being comfortably covered.
4Free cash flow remains positive✓ ₹0 Cr
Profit that never becomes cash eventually stops being profit.
5ROCE stays above 8%✗ 0.0%
Falling returns on capital are usually competition arriving, and show up here before they reach the margin.

Investment Checklist

6 / 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 · 2 neutral · 5 weak

Market Cap

₹11 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

Not meaningful

Loss-making

Earnings are negative, so a P/E multiple can't be read here

P/B Ratio

0.35x

Reasonable

Reasonable against the company's book value

EPS (TTM)

₹-0.29

Loss-making

Negative earnings per share — the business is losing money

ROE

-1.2%

Weak

Weak capital efficiency

ROCE

0.0%

Weak

Low return on total capital employed

Debt/Equity

0.13x

Low

Conservative leverage

Revenue Growth (YoY)

13.4%

Healthy

Healthy top-line growth

Profit Growth (YoY)

-38.5%

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

₹0 Cr

Cash generative

Generates cash even after funding its capex

More Metrics

CMP

₹9.9

Operating Margin

17.7%

Good

Healthy core-business profitability

Net Margin

-27.5%

Weak

Very little revenue reaches the bottom line

Current Ratio

0.66

Tight

Tight short-term liquidity

Beta (vs Nifty)

0.80

Defensive

Steadier than the market

52W Range Position

50%

Mid-range

Technical Snapshot

SMA 20 / SMA 50

9.7 / 9.3

Bullish alignment (short > long)

Price vs SMA 200

Above

Long-term uptrend

RSI (14)

62.2

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	—	₹2 Cr	₹1 Cr	₹0 Cr	—
EBITDA	-₹0 Cr	₹0 Cr	-₹0 Cr	₹0 Cr	—
EBITDA Margin	—	12.1%	-7.2%	10.5%	—
PAT (Net Profit)	-₹3 Cr	₹0 Cr	-₹0 Cr	-₹0 Cr	—
EPS	₹-2.84	₹0.04	₹-0.24	₹-0.33	—
ROE	-10.0%	0.2%	-0.8%	-1.2%	—
ROCE	-8.8%	0.5%	0.0%	0.0%	—
Total Debt	₹4 Cr	₹4 Cr	₹4 Cr	₹4 Cr	-3.4%
Free Cash Flow	-₹0 Cr	-₹1 Cr	₹0 Cr	₹0 Cr	—

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

🔴 EBITDA Margin has fallen from 12.1% to 10.5% over 3 years (-1.6 pts).

🟢 ROE has risen from -10.0% to -1.2% over 3 years (+8.8 pts).

🟢 ROCE has risen from -8.8% to 0.0% over 3 years (+8.8 pts).

🟢 Total Debt has shrunk at 3.4% a year over 3 years.

🟢 Free Cash Flow has turned positive, from -₹0 Cr to ₹0 Cr.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹33 Cr

Total Liabilities

₹5 Cr

Total Debt

₹4 Cr

Cash & Equivalents

₹0 Cr

Operating Cash Flow

₹0 Cr

Capex

-₹0 Cr

Shareholding (proxy)

Institutional Holding

0.0%

Insider Holding

65.8%

Peer Comparison

Company	P/E	ROE
MARUTI SUZUKI INDIA LTD.	25.2x	13.4%
TITAN COMPANY LIMITED	68.5x	36.7%
TRENT LTD	87.2x	25.9%
AVENUE SUPERMARTS LIMITED	69.9x	12.7%

Recent News

1 mixed5 general

Compare with RLF LIMITED.

Equitymaster, 14 Oct

RLF Limited Clarifies Recent Share Price Movement to BSE

scanx.trade, 29 Jan

RLF Ltd. Peer Comparison – Compare with Others

Value Research, 31 Aug

Compare with RLF LIMITED.

Equitymaster, 08 Oct

RLF AgTech Raises $3.9 Million via Share Placement and Convertible Notes

Kalkine, 12 Aug

Aditya Khanna files SAST disclosure for RLF Ltd share acquisition via loan conversion

scanx.trade, 02 SeptM&A

🟡Mixed / dependsAcquisitions change the balance sheet before they change the earnings. Look at what was paid, how it was funded, and whether debt rose.

Watch Items

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

DalalBaazaar Thesis

🔴Business QualityWeak7.5/20

🟡Financial HealthAdequate11/20

🟡GrowthModest10/20

🔴ProfitabilityWeak5/15

🟡ValuationFair7.1/15

🔴RiskHigh4.4/10

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. 2 high-severity red flags sit above this conclusion and should be read first.

This thesis breaks if

✓EBITDA margin holds above 8%10.5%
✗Debt / EBITDA falls below 3x68.5x
✗Interest cover stays above 3x0.0x
✓Free cash flow remains positive₹0 Cr
✗ROCE stays above 8%0.0%