RNIT Al Solutions Limited

Consumer Cyclical — Furnishings, Fixtures & Appliances · BSE

₹106.90−₹2.15 (−1.97%)

DalalBaazaar Score

61 / 100

🟢 Good

Verdict

NEUTRAL

Risk

High

Driven by negative free cash flow, micro-cap size, which brings thin liquidity, a very high earnings multiple, which leaves little margin for disappointment.

In simple words: Reasonable but unspectacular business quality, with both sales and profits growing well. Cash generation is currently the main factor to watch.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 6:04 pm

Mixed / neutral. No major red flags jump out, but nothing here screams "obviously cheap" either. This is a name that needs a peer comparison and a view on near-term earnings triggers before sizing a position.

Understanding the Business

Company site ↗

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

What does this company do?

RNIT Al Solutions Limited, a tech company, focuses on providing enterprise-level solutions in India and internationally.

IndustryFurnishings, Fixtures & Appliances

SectorConsumer Cyclical

Employees63

Annual revenue₹51 Cr

How does it make money?

Turns over ₹51 Cr a year. Of every ₹100 of sales, about ₹23 reaches shareholders as profit, with ₹41 left at the operating level before interest, tax and depreciation. Each of its 63 employees supports ₹81.7 lakh of revenue a year, the signature of a people-led business.

EBITDA margin41.3%

Net margin23.3%

Revenue / employee₹81.7 lakh

Who are its competitors?

The closest listed comparisons in its industry are HAVELLS INDIA LIMITED, VOLTAS LTD, TITAN COMPANY LIMITED. These are the companies its valuation and returns are measured against elsewhere in this report.

HAVELLS INDIA LIMITEDP/E 43.5x · ROE 17.1%

VOLTAS LTDP/E 75.8x · ROE 7.0%

TITAN COMPANY LIMITEDP/E 68.5x · ROE 36.7%

What is its competitive advantage?Little sign of one

Returns on capital of 11.9% 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.

ROCE11.9%

ROE11.4%

Peer median ROE17.1%

DalalBaazaar Score

61/ 100

Good

Weighted across six categories. Every point is explained below.

✗ 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

69/ 100

Good

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

Valuation

46/ 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

67.7x

1.3Y Median

64.0x

16 monthly readings · mean 68.5x · range 41.9x–130.2x

Sector Median

68.5x

median of 3 sector peers

🟡Currently trading close to its 1.3y median of 64.0x — the market is paying about what it usually pays for this company.

🟡Against its sector it is priced broadly in line with the peer median of 68.5x.

vs. its own history

Fair

64.0x median over 16 months · +6%

vs. sector peers

Fair

68.5x median of 3 peers · -1%

vs. generic bands

Expensive

Above 35x

P/E (Trailing)

67.7x

P/B

2.41x

EV/EBITDA

42.1x

PEG

—

Dividend Yield

None

What's Good / What's Bad

🟢 What's Going Well3

Debt is being paid down
Total debt is down 31% over 2 years.
Return on capital is rising
ROCE has improved from -4.3% to 11.9%.
Very low debt
Debt/Equity of 0.13x leaves the balance sheet with plenty of headroom.

🔴 What Needs Attention1

Free cash flow is negative
The business is not currently covering its capital spending from operations.

Red Flags

2 items require attention · 1 high · 1 watch

🔴Free cash flow negative for 3 yearsFinancial
The business has not covered its capital spending from operations for several years running, which has to be funded externally.
🟡Shareholders have been dilutedOwnership
Shares outstanding are up 9601% over 2 years — each existing share owns a smaller slice of the company.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Deleveraging frees up earnings
Debt is down 31% over 2 years. Every rupee of interest not paid drops to the bottom line, so profit can grow even if revenue does not.

🔴 Bear CaseWhat could go wrong?

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 39%✓ 41.3%
Two points below today's level — enough room for noise, tight enough to catch real compression.
2Free cash flow remains positive✗ -₹8 Cr
Profit that never becomes cash eventually stops being profit.
3Debt / EBITDA stays below 2x✓ 0.8x
The ratio lenders write covenants against; it survives a small or negative equity base, unlike Debt/Equity.
4ROCE stays above 9%✓ 11.9%
Falling returns on capital are usually competition arriving, and show up here before they reach the margin.
5Valuation vs its own median of 64.0x✓ 67.7x today
A re-rating above its own history needs a reason; without one it is just a higher price.

Investment Checklist

7 / 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 · 5 neutral · 2 weak

Market Cap

₹906 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

67.7x

Expensive

Expensive — verify against sector peers

P/B Ratio

2.41x

Fair

Moderate premium to the company's book value

EPS (TTM)

₹1.58

Profitable

Profitable on a per-share basis

ROE

11.4%

Moderate

Moderate capital efficiency

ROCE

11.9%

Moderate

Moderate return on the capital in the business

Debt/Equity

0.13x

Low

Conservative leverage

Revenue Growth (YoY)

92.0%

Healthy

Healthy top-line growth

Profit Growth (YoY)

95.5%

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

-₹0 Cr

Cash burning

Spending more cash than the operations bring in

More Metrics

CMP

₹106.9

ROA

7.1%

Average

Average asset productivity

Operating Margin

32.7%

Good

Healthy core-business profitability

Net Margin

22.1%

Good

Strong bottom-line conversion

Current Ratio

3.71

Comfortable

Healthy short-term liquidity

52W Range Position

75%

Mid-range

Technical Snapshot

SMA 20 / SMA 50

106.3 / 95.2

Bullish alignment (short > long)

Price vs SMA 200

Above

Long-term uptrend

RSI (14)

50.8

Neutral momentum

Financial Trend (3-Year)

Metric	FY24	FY25	FY26	2Y CAGR
Revenue	—	₹32 Cr	₹51 Cr	—
EBITDA	-₹0 Cr	₹10 Cr	₹21 Cr	—
EBITDA Margin	—	31.7%	41.3%	—
PAT (Net Profit)	-₹0 Cr	₹7 Cr	₹12 Cr	—
EPS	₹-0.9	₹1	₹1.57	—
ROE	—	9.4%	8.6%	—
ROCE	-4.3%	8.7%	11.9%	—
Total Debt	₹26 Cr	₹12 Cr	₹18 Cr	-17.2%
Free Cash Flow	-₹0 Cr	-₹24 Cr	-₹8 Cr	—

🟢 EBITDA has turned positive, from -₹0 Cr to ₹21 Cr.

🟢 EBITDA Margin has risen from 31.7% to 41.3% over 2 years (+9.6 pts).

🟢 PAT (Net Profit) has turned positive, from -₹0 Cr to ₹12 Cr.

🟢 EPS has turned positive, from ₹-0.9 to ₹1.57.

🟡 ROE has held roughly flat at 8.6% over 2 years.

🟢 ROCE has risen from -4.3% to 11.9% over 2 years (+16.2 pts).

🟢 Total Debt has shrunk at 17.2% a year over 2 years.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹167 Cr

Total Liabilities

₹28 Cr

Total Debt

₹18 Cr

Cash & Equivalents

₹29 Cr

Operating Cash Flow

₹11 Cr

Capex

-₹19 Cr

Shareholding (proxy)

Institutional Holding

2.4%

Insider Holding

70.2%

Corporate Actions

Ex-Dividend Date

28 Sept 1995

Peer Comparison

Company	P/E	ROE
HAVELLS INDIA LIMITED	43.5x	17.1%
VOLTAS LTD	75.8x	7.0%
TITAN COMPANY LIMITED	68.5x	36.7%

Recent News

1 mixed5 general

RNIT AI Solutions Lower Circuit Today: Price, Data and Peers

Univest, 08 Oct

RNIT AI Solutions secures engagement with APSSDC

Business Standard, 22 Sept

RNIT AI Solutions submits BSE application for promoter reclassification

scanx.trade, 29 Jul

RNIT AI Solutions Share Price near 52-week high, value view

Univest, 09 Oct

RNIT AI defies challenging market conditions; raise INR 26.33 crore

TheWire.in, 31 Mar

RNIT AI Solutions Reports Strong Q4 FY26 Performance With 26.6% Sequential Revenue Growth

scanx.trade, 03 MayResults

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

Watch Items

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

DalalBaazaar Thesis

🟢Business QualityStrong15.8/20

🟢Financial HealthStrong15/20

🟡GrowthModest10/20

🟢ProfitabilityStrong10.9/15

🟡ValuationFair6.9/15

🔴RiskHigh2.5/10

Good business at a fair price

A sound business at a reasonable valuation. Suitable for a long-term holding, with the valuation and the direction of margins worth watching rather than the business itself. 1 high-severity red flag sits above this conclusion and should be read first.

This thesis breaks if

✓EBITDA margin holds above 39%41.3%
✗Free cash flow remains positive-₹8 Cr
✓Debt / EBITDA stays below 2x0.8x
✓ROCE stays above 9%11.9%
✓Valuation vs its own median of 64.0x67.7x today