Rolex Rings Limited

Industrials — Metal Fabrication · NSE

₹172.20+₹4.33 (+2.58%)

DalalBaazaar Score

52 / 100

🟡 Moderate

Verdict

NEUTRAL

Risk

Moderate

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

In simple words: Strong business and financial position, with modest growth. Valuation is currently the main factor to watch.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 6:07 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 Rolex Rings Limited — what it does, how it earns, and who it competes with, before any of the numbers below.

What does this company do?

Rolex Rings Limited manufactures and sell of customized forged and machined bearing rings, and automotive components in India and internationally.

IndustryMetal Fabrication

SectorIndustrials

Employees1,835

Annual revenue₹1,059 Cr

How does it make money?

Turns over ₹1,059 Cr a year. Of every ₹100 of sales, about ₹13 reaches shareholders as profit, with ₹25 left at the operating level before interest, tax and depreciation. Each of its 1,835 employees supports ₹57.7 lakh of revenue a year, the signature of a people-led business.

EBITDA margin25.4%

Net margin13.3%

Revenue / employee₹57.7 lakh

Who are its competitors?

The closest listed comparisons in its industry are TATA STEEL LIMITED, JSW STEEL LIMITED, HINDALCO INDUSTRIES LTD, VEDANTA LIMITED. These are the companies its valuation and returns are measured against elsewhere in this report.

TATA STEEL LIMITEDP/E 19.8x · ROE 10.8%

JSW STEEL LIMITEDP/E 12.0x · ROE 24.7%

HINDALCO INDUSTRIES LTDP/E 12.3x · ROE 12.0%

VEDANTA LIMITEDP/E 10.4x · ROE 18.7%

What is its competitive advantage?Some evidence

ROCE of 15.0% is above what capital typically costs, which suggests some pricing power, though not yet the sustained, wide gap that marks a durable advantage.

ROCE15.0%

ROE11.6%

Peer median ROE18.7%

What is the outlook?

3 analysts covering the stock expect revenue to grow about 11.8% and earnings to grow about 16.3% in the year to 2028. These are estimates by people who follow the company, not a forecast for the wider industry.

Est. revenue growth+11.8%

Est. earnings growth+16.3%

Analysts3

What has been driving growth?

Profit has moved mainly because margins changed, not because the business sold much more. Over 3 years revenue moved -3% while net margin moved -26% 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-3%

Margin effect-26%

DalalBaazaar Score

52/ 100

Moderate

Weighted across six categories. Every point is explained below.

✗ Revenue has contracted at 1.1% a year
✗ Profit has declined at 10.7% a year

Quality vs. Valuation

Company Quality

55/ 100

Average

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

Valuation

31/ 100

Expensive

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

41.8x

3Y Median

3.5x

40 monthly readings · mean 11.4x · range 2.2x–36.7x

Sector Median

12.2x

median of 4 sector peers

⚠️Current valuation is approximately 1082% above its 3y median of 3.5x. 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 244% above the peer median of 12.2x.

vs. its own history

Expensive

3.5x median over 40 months · +1082%

vs. sector peers

Expensive

12.2x median of 4 peers · +244%

vs. generic bands

Expensive

Above 35x

P/E (Trailing)

41.8x

P/B

3.86x

EV/EBITDA

16.5x

PEG

1.87

Dividend Yield

None

What's Good / What's Bad

🟢 What's Going Well1

Consistently profitable
Profitable in every one of the last 4 reported years.

🔴 What Needs Attention3

Return on equity is falling
ROE has dropped from 26.7% to 11.6% — each rupee of shareholder capital earns less than it did.
Return on capital is falling
ROCE has declined from 30.9% to 15.0% — often a sign of competition or overexpansion.
Valuation above its historical average
At 41.8x the stock trades 1082% above its own median of 3.5x.

Red Flags

2 items require attention · 2 watch

🟡Profit is decliningFinancial
Net profit is down 29% over 3 years.
🟡Shareholders have been dilutedOwnership
Shares outstanding are up 900% over 3 years — each existing share owns a smaller slice of the company.

Investment Thesis

🟢 Bull CaseWhat could make this work?

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?

The price already assumes success
The stock trades 1082% above its own median multiple. At this level the business has to deliver just to stand still, and a stumble is repriced twice — lower earnings on a lower multiple.
Returns on shareholder capital are falling
ROE has dropped from 26.7% to 11.6%. 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.
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 23%✓ 25.4%
Two points below today's level — enough room for noise, tight enough to catch real compression.
2Free cash flow remains positive✓ ₹154 Cr
Profit that never becomes cash eventually stops being profit.
3ROCE stays above 12%✓ 15.0%
Falling returns on capital are usually competition arriving, and show up here before they reach the margin.
4Valuation vs its own median of 3.5x✗ 41.8x 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
✓ 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
✓ Analyst consensus isn't majority-sell
✓ Short-term technical trend isn't bearish

Price history

Quick Metrics

4 good · 6 neutral · 1 weak

Market Cap

₹4,517 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

41.8x

Expensive

Expensive — verify against sector peers

P/B Ratio

3.86x

Fair

Moderate premium to the company's book value

EPS (TTM)

₹4.12

Profitable

Profitable on a per-share basis

ROE

11.6%

Moderate

Moderate capital efficiency

ROCE

15.0%

Strong

Earns comfortably above its likely cost of capital

Debt/Equity

Not available

No data

Source didn't return this field

Revenue Growth (YoY)

4.4%

Modest

Modest growth

Profit Growth (YoY)

22.4%

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

₹154 Cr

Cash generative

Generates cash even after funding its capex

More Metrics

CMP

₹172.2

P/E (Forward)

18.6x

Improving

Below the trailing multiple — the street expects earnings to grow into the price

Operating Margin

19.6%

Good

Healthy core-business profitability

Net Margin

13.2%

Good

Strong bottom-line conversion

Current Ratio

8.29

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

0.41

Defensive

Steadier than the market

52W Range Position

73%

Mid-range

Technical Snapshot

SMA 20 / SMA 50

180.3 / 176.8

Bullish alignment (short > long)

Price vs SMA 200

Above

Long-term uptrend

RSI (14)

31.1

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹1,094 Cr	₹1,127 Cr	₹1,061 Cr	₹1,059 Cr	-1.1%
EBITDA	₹276 Cr	₹272 Cr	₹254 Cr	₹269 Cr	-0.9%
EBITDA Margin	25.3%	24.1%	23.9%	25.4%	—
PAT (Net Profit)	₹198 Cr	₹156 Cr	₹174 Cr	₹141 Cr	-10.7%
EPS	₹72.74	₹57.3	₹6.39	₹5.18	-58.6%
ROE	26.7%	17.4%	16.2%	11.6%	—
ROCE	30.9%	21.9%	18.6%	15.0%	—
Total Debt	₹82 Cr	₹18 Cr	₹14 Cr	—	—
Free Cash Flow	₹171 Cr	₹167 Cr	₹175 Cr	₹154 Cr	-3.5%

🟡 Revenue has been broadly flat over 3 years (-1.1% a year).

🟡 EBITDA has been broadly flat over 3 years (-0.9% a year).

🟡 EBITDA Margin has held roughly flat at 25.4% over 3 years.

🔴 PAT (Net Profit) has shrunk at 10.7% a year over 3 years.

🔴 EPS has shrunk at 58.6% a year over 3 years.

🔴 ROE has fallen from 26.7% to 11.6% over 3 years (-15.0 pts).

🔴 ROCE has fallen from 30.9% to 15.0% over 3 years (-15.9 pts).

🔴 Free Cash Flow has shrunk at 3.5% a year over 3 years.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹1,371 Cr

Total Liabilities

₹158 Cr

Total Debt

—

Cash & Equivalents

₹69 Cr

Operating Cash Flow

₹190 Cr

Capex

-₹36 Cr

Shareholding (proxy)

Institutional Holding

31.0%

Insider Holding

55.4%

Analyst Consensus

Recommendations

3 Buy · 0 Hold · 0 Sell

Target Price (Mean)

₹202

+17.3% vs CMP

Target Range

₹188 – ₹221

Peer Comparison

Company	P/E	ROE
TATA STEEL LIMITED	19.8x	10.8%
JSW STEEL LIMITED	12.0x	24.7%
HINDALCO INDUSTRIES LTD	12.3x	12.0%
VEDANTA LIMITED	10.4x	18.7%

Recent News

3 positive1 mixed2 general

Rolex Rings (NSEI:ROLEXRINGS) Stock Forecast & Analyst Predictions

Simply Wall Street, 25 AugAnalyst view

🟡Mixed / dependsBroker commentary — an opinion about the price rather than new information about the business.

Rolex Rings Ltd Share Price at Fresh 52-Week High

Univest, 14 Aug

Smallcap stock Rolex Rings share price rockets 26% in two days ahead of board meet to consider buyback

The Economic Times, 22 AprCapital return

🟢Potentially positiveCash or shares returned to holders. A buyback is only good value if the shares were cheap when bought.

66% returns in 6 months, small-cap stock Rolex Rings gets Buy rating: InCred sees 32% upside - Check share price target

Livemint, 02 OctAnalyst view

🟢Potentially positiveAn analyst opinion changing, which moves the price without changing the business.

Rolex Rings buyback opens at ₹180 per share

scanx.trade, 29 JunCapital return

🟢Potentially positiveCash or shares returned to holders. A buyback is only good value if the shares were cheap when bought.

Rolex Rings: Can Europe drive its next phase of growth?

The Indian Express, 01 Oct

Watch Items

Cross-check against the company's latest quarterly filing / investor presentation before acting.
1 metric couldn't be retrieved for this stock — this is more common for smaller or thinly-covered listings.

DalalBaazaar Thesis

🟢Business QualityStrong13.1/20

🟢Financial HealthStrong17.5/20

🔴GrowthWeak2.4/20

🟡ProfitabilityModerate8.2/15

🔴ValuationDemanding4.9/15

🟡RiskModerate6.2/10

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.

This thesis breaks if

✓EBITDA margin holds above 23%25.4%
✓Free cash flow remains positive₹154 Cr
✓ROCE stays above 12%15.0%
✗Valuation vs its own median of 3.5x41.8x today