Raj Consumer Care Limited

Consumer Defensive — Packaged Foods · NSE

₹41.50−₹0.38 (−0.91%)

DalalBaazaar Score

59 / 100

🟡 Moderate

Verdict

CAUTION

Risk

Very High

Driven by high debt relative to equity, short-term liabilities exceed short-term assets, micro-cap size, which brings thin liquidity.

In simple words: Strong business and financial position, though profits are falling even as sales grow. Debt is the main factor to watch.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 6:50 pm

Understanding the Business

Company site ↗

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

What does this company do?

Raj Consumer Care Limited manufactures and sells edible oil and cakes in India.

IndustryPackaged Foods

SectorConsumer Defensive

Employees165

Annual revenue₹151 Cr

How does it make money?

Turns over ₹151 Cr a year. Of every ₹100 of sales, about ₹3 reaches shareholders as profit, with ₹5 left at the operating level before interest, tax and depreciation. Each of its 165 employees supports ₹91.7 lakh of revenue a year, the signature of a people-led business.

Revenue / employee₹91.7 lakh

Who are its competitors?

The closest listed comparisons in its industry are NESTLE INDIA LIMITED, BRITANNIA INDUSTRIES LTD, TATA CONSUMER PRODUCT LTD, DABUR INDIA LTD. 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 166.0% 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 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 +8% while net margin moved +79% 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+8%

Margin effect+79%

DalalBaazaar Score

59/ 100

Moderate

Weighted across six categories. Every point is explained below.

✓ Beta of 0.53 — historically steadier than the index
✗ Micro Cap: thinner liquidity and sharper drawdowns are normal
✗ High leverage magnifies any downturn in earnings

Quality vs. Valuation

Company Quality

59/ 100

Average

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

Valuation

79/ 100

Cheap

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

14.0x

3Y Median

29.1x

40 monthly readings · mean 31.6x · range 13.2x–51.0x

Sector Median

51.7x

median of 4 sector peers

🟢Current valuation is approximately 52% below its 3y median of 29.1x. 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 73% below the peer median of 51.7x.

vs. its own history

Cheap

29.1x median over 40 months · -52%

vs. sector peers

Cheap

51.7x median of 4 peers · -73%

vs. generic bands

Cheap

Below 15x

EV/EBITDA

12.7x

PEG

0.57

What's Good / What's Bad

🟢 What's Going Well4

Debt is being paid down
Total debt is down 11% over 3 years.
Cash flow has turned positive
Free cash flow moved from negative to positive over 3 years.
High return on capital employed
ROCE of 166.0% is the mark of a business that converts capital into profit efficiently.
Consistently profitable
Profitable in every one of the last 4 reported years.

🔴 What Needs Attention0

Nothing stands out as clearly deteriorating on the years of data available.

Red Flags

3 items require attention · 1 high · 2 watch

🔴High leverageFinancial
Debt/Equity of 12.23x — earnings must service borrowings before shareholders see anything.
🟡Inventory building faster than salesFinancial
Inventory up 38% against revenue up 8% — stock may not be moving.
🟡Short-term liquidity is tightFinancial
Current ratio of 0.59 — near-term obligations exceed near-term assets.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Capital compounds at a high rate
ROCE of 166.0% means each rupee reinvested earns well above what capital costs. If the company can keep deploying at this rate, growth creates value rather than just consuming cash.
Priced below its own history
The stock trades 52% 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 73% below the sector median. Either the market sees a problem the numbers do not show, or the discount closes.
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 debt load needs earnings to hold up
Debt is 3.8x EBITDA. At that level a downturn in earnings turns a manageable balance sheet into a refinancing problem, and lenders get paid before shareholders.
Growth barely outpaces inflation
Revenue compounding at 2.6% a year is close to the rate prices rise, so the business is gaining little ground in real terms. That leaves the share price dependent on a re-rating rather than on earnings growth.
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 3%✓ 4.6%
Two points below today's level — enough room for noise, tight enough to catch real compression.
2Debt / EBITDA falls below 3x✗ 3.8x
Already stretched, so this is a reduction target rather than a level to hold. Around 3x is where lenders typically start attaching conditions.
3Revenue growth stays above 4% a year✗ 2.6% CAGR
Latest reported year was 5.8%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
4Free cash flow remains positive✓ ₹5 Cr
Profit that never becomes cash eventually stops being profit.
5ROCE stays above 163%✓ 166.0%
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

5 good · 3 neutral · 3 weak

Market Cap

₹62 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

14.0x

Cheap

Cheap against the generic band

P/B Ratio

28.90x

Rich

Steep premium to book — needs high, durable returns to justify

EPS (TTM)

₹2.96

Profitable

Profitable on a per-share basis

ROE

216.8%

Strong

Strong capital efficiency

ROCE

166.0%

Strong

Earns comfortably above its likely cost of capital

Debt/Equity

12.23x

High

High leverage

Revenue Growth (YoY)

5.8%

Modest

Modest growth

Profit Growth (YoY)

-21.3%

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

₹5 Cr

Cash generative

Generates cash even after funding its capex

More Metrics

Operating Margin

4.4%

Weak

Thin margins leave little room for error

Net Margin

2.9%

Weak

Very little revenue reaches the bottom line

Current Ratio

0.59

Tight

Tight short-term liquidity

Beta (vs Nifty)

0.53

Defensive

Steadier than the market

52W Range Position

25%

Mid-range

Technical Snapshot

SMA 20 / SMA 50

42.0 / 42.7

Bearish alignment (short < long)

Price vs SMA 200

Below

Long-term downtrend

RSI (14)

41.8

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹140 Cr	₹125 Cr	₹114 Cr	₹151 Cr	+2.6%
EBITDA	₹5 Cr	₹4 Cr	₹6 Cr	₹7 Cr	+14.3%
EBITDA Margin	3.3%	3.5%	4.9%	4.6%	—
PAT (Net Profit)	₹2 Cr	₹2 Cr	₹3 Cr	₹5 Cr	+24.4%
EPS	₹1.62	₹1.14	₹1.8	₹3.11	+24.3%
Total Debt	₹30 Cr	₹31 Cr	₹32 Cr	₹26 Cr	-3.8%
Free Cash Flow	-₹0 Cr	-₹1 Cr	₹0 Cr	₹5 Cr	—

🟢 Revenue has grown at 2.6% a year over 3 years.

🟢 EBITDA has grown at 14.3% a year over 3 years.

🟢 EBITDA Margin has risen from 3.3% to 4.6% over 3 years (+1.3 pts).

🟢 PAT (Net Profit) has grown at 24.4% a year over 3 years.

🟢 EPS has grown at 24.3% a year over 3 years.

🟢 Total Debt has shrunk at 3.8% a year over 3 years.

🟢 Free Cash Flow has turned positive, from -₹0 Cr to ₹5 Cr.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹43 Cr

Total Liabilities

₹40 Cr

Cash & Equivalents

₹1 Cr

Operating Cash Flow

₹6 Cr

Capex

-₹1 Cr

Shareholding (proxy)

Institutional Holding

0.0%

Insider Holding

76.6%

Peer Comparison

Company	P/E	ROE
NESTLE INDIA LIMITED	59.8x	79.9%
BRITANNIA INDUSTRIES LTD	44.1x	51.0%
TATA CONSUMER PRODUCT LTD	59.3x	7.5%
DABUR INDIA LTD	34.7x	17.2%

Recent News

6 general

Raj Consumer Care (BSE:533093) - Stock Analysis

Simply Wall Street, 15 Oct

Raj Consumer Care Limited (ROML) Company Information

Simply Wall Street, 15 Oct

Raj Oil Mills shareholders approve name change to Raj Consumer Care

scanx.trade, 29 Sept

Raj Oil Mills Renamed to Raj Consumer Care Limited Following MCA Approval

EquityBulls, 13 Oct

Raj Consumer Care (NSEI:ROML) - Stock Analysis

Simply Wall Street, 15 Oct

Raj Oil Mills Limited has Changed its Name to Raj Consumer Care Limited

www.marketscreener.com, 28 Sept

Watch Items

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

DalalBaazaar Thesis

StrongGrowth · Profitability · Valuation

MiddlingBusiness Quality · Financial Health

WeakRisk

Points for each in the Score ↑

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. 1 high-severity red flag sits above this conclusion and should be read first.

2 of 5 tripwires tripped — Debt / EBITDA falls below 3x; Revenue growth stays above 4% a year · see Key things to watch ↑