Rossell India Limited

Industrials — Conglomerates · NSE

₹51.09₹0.00 (0.00%)

DalalBaazaar Score

44 / 100

🟡 Moderate

Verdict

CAUTION

Risk

High

Driven by short-term liabilities exceed short-term assets, micro-cap size, which brings thin liquidity, falling profits.

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

Decision support, not a buy or sell call.

As of 18 Oct 2026, 8:27 pm

Understanding the Business

Company site ↗

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

What does this company do?

Rossell India Limited engages in the cultivation, manufacture, and sale of tea primarily in India. It also offers black tea and black pepper.

IndustryConglomerates

SectorIndustrials

Employees7,233

Annual revenue₹221 Cr

How does it make money?

Turns over ₹221 Cr a year. Of every ₹100 of sales, about ₹7 reaches shareholders as profit, with ₹13 left at the operating level before interest, tax and depreciation. Each of its 7,233 employees supports ₹3.1 lakh of revenue a year, the signature of a people-led business.

Revenue / employee₹3.1 lakh

Who are its competitors?

The closest listed comparisons in its industry are LARSEN & TOUBRO LTD., SIEMENS LTD, ABB INDIA LIMITED. 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?Little sign of one

Returns on capital of 9.8% 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.

Peer median ROE15.2%

What has been driving growth?

Growth has come mainly from selling more, rather than from keeping more of each sale. Over 3 years revenue moved -37% while net margin moved -9% 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-37%

Margin effect-9%

DalalBaazaar Score

44/ 100

Moderate

Weighted across six categories. Every point is explained below.

✗ Revenue has contracted at 14.1% a year
✗ Profit has declined at 16.9% a year
✗ Profit fell 52.4% in the latest year

Quality vs. Valuation

Company Quality

36/ 100

Weak

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

Valuation

78/ 100

Cheap

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

Optically cheap, but the underlying business scores poorly. Cheap-and-weak is what a value trap looks like from the outside — the low price may be deserved.

Historical Valuation

Current P/E

16.5x

3Y Median

61.6x

40 monthly readings · mean 190.1x · range 8.2x–2701.0x

Sector Median

88.8x

median of 3 sector peers

🟢Current valuation is approximately 73% below its 3y median of 61.6x. 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 81% below the peer median of 88.8x.

vs. its own history

Cheap

61.6x median over 40 months · -73%

vs. sector peers

Cheap

88.8x median of 3 peers · -81%

vs. generic bands

Fair

15x–35x

EV/EBITDA

8.8x

PEG

—

What's Good / What's Bad

🟢 What's Going Well2

Cash generation is improving
Free cash flow is up 18651% over 3 years.
Consistently profitable
Profitable in every one of the last 4 reported years.

🔴 What Needs Attention2

Return on equity is falling
ROE has dropped from 15.6% to 7.9% — each rupee of shareholder capital earns less than it did.
Return on capital is falling
ROCE has declined from 22.8% to 9.8% — often a sign of competition or overexpansion.

Red Flags

6 items require attention · 2 high · 4 watch

🔴Debt has risen sharplyFinancial
Total debt is up 364% over 3 years, from ₹14 Cr to ₹65 Cr.
🔴Receivables growing faster than salesFinancial
Receivables up 47% against revenue up -37% — sales are being booked faster than they are collected.
🟡Interest coverage is deterioratingFinancial
Cover has fallen from 7.6x to 3.9x.
🟡Profit is decliningFinancial
Net profit is down 43% over 3 years.
🟡Margins are compressingFinancial
EBITDA margin is down 2.3 points over 3 years.
🟡Short-term liquidity is tightFinancial
Current ratio of 0.95 — near-term obligations exceed near-term assets.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Priced below its own history
The stock trades 73% 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 81% below the sector median. Either the market sees a problem the numbers do not show, or the discount closes.
Self-funding with balance-sheet headroom
Positive free cash flow of ₹15 Cr alongside low debt means growth, buybacks or dividends need no outside money — and a downturn can be absorbed rather than refinanced.
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?

Margins are being competed away
EBITDA margin has fallen from 15.6% to 13.2%. If the trend continues, profit falls even on flat sales — and margin decline rarely reverses quickly.
Sales are being booked faster than collected
Receivables are up 47% against revenue up -37%. If customers keep taking longer to pay, reported profit will not turn into cash — and write-offs follow if some never do.
Returns on shareholder capital are falling
ROE has dropped from 15.6% to 7.9%. 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.
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 11%✓ 13.2%
Two points below today's level — enough room for noise, tight enough to catch real compression.
2Debt / EBITDA stays below 2x✗ 2.2x
The ratio lenders write covenants against; it survives a small or negative equity base, unlike Debt/Equity.
3Interest cover stays above 3x✓ 3.9x
How much operating profit can fall before interest stops being comfortably covered.
4Free cash flow remains positive✓ ₹15 Cr
Profit that never becomes cash eventually stops being profit.
5ROCE stays above 8%✓ 9.8%
Falling returns on capital are usually competition arriving, and show up here before they reach the margin.

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 · 4 neutral · 3 weak

Market Cap

₹193 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

16.5x

Fair

Fairly valued against the generic band

P/B Ratio

0.96x

Reasonable

Reasonable against the company's book value

EPS (TTM)

₹3.1

Profitable

Profitable on a per-share basis

ROE

7.9%

Weak

Weak capital efficiency

ROCE

9.8%

Moderate

Moderate return on the capital in the business

Debt/Equity

0.32x

Low

Conservative leverage

Revenue Growth (YoY)

-15.6%

Shrinking

Sales are contracting

Profit Growth (YoY)

-52.4%

Falling

Profits are shrinking

Dividend Yield

0.78%

Modest

Small cash return — most of the return has to come from the price

Free Cash Flow

₹15 Cr

Cash generative

Generates cash even after funding its capex

More Metrics

Operating Margin

14.2%

Average

Average margins

Net Margin

5.3%

Average

Average bottom-line conversion

Current Ratio

0.95

Adequate

Adequate, but no real cushion

Beta (vs Nifty)

0.30

Defensive

Steadier than the market

52W Range Position

34%

Mid-range

Technical Snapshot

SMA 20 / SMA 50

51.5 / 54.7

Bearish alignment (short < long)

Price vs SMA 200

Below

Long-term downtrend

RSI (14)

47.3

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹349 Cr	₹145 Cr	₹177 Cr	₹221 Cr	-14.1%
EBITDA	₹54 Cr	₹7 Cr	₹28 Cr	₹29 Cr	-18.7%
EBITDA Margin	15.6%	4.6%	15.7%	13.2%	—
PAT (Net Profit)	₹28 Cr	₹1 Cr	₹20 Cr	₹16 Cr	-16.9%
EPS	₹7.38	₹0.21	₹5.22	₹4.21	-17.1%
ROE	15.6%	0.5%	10.4%	7.9%	—
ROCE	22.8%	1.9%	10.3%	9.8%	—
Total Debt	₹14 Cr	₹27 Cr	₹86 Cr	₹65 Cr	+66.8%
Free Cash Flow	₹0 Cr	-₹1 Cr	₹16 Cr	₹15 Cr	+472.4%

🔴 Revenue has shrunk at 14.1% a year over 3 years.

🔴 EBITDA has shrunk at 18.7% a year over 3 years.

🔴 EBITDA Margin has fallen from 15.6% to 13.2% over 3 years (-2.3 pts).

🔴 PAT (Net Profit) has shrunk at 16.9% a year over 3 years.

🔴 EPS has shrunk at 17.1% a year over 3 years.

🔴 ROE has fallen from 15.6% to 7.9% over 3 years (-7.7 pts).

🔴 ROCE has fallen from 22.8% to 9.8% over 3 years (-13.0 pts).

🔴 Total Debt has grown at 66.8% a year over 3 years.

🟢 Free Cash Flow has grown at 472.4% a year over 3 years.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹294 Cr

Total Liabilities

₹95 Cr

Cash & Equivalents

₹0 Cr

Operating Cash Flow

₹28 Cr

Capex

-₹13 Cr

Shareholding (proxy)

Institutional Holding

2.4%

Insider Holding

76.7%

Corporate Actions

Dividend Rate

₹0.4

Ex-Dividend Date

18 Aug 2026

Peer Comparison

Company	P/E	ROE
LARSEN & TOUBRO LTD.	30.1x	15.2%
SIEMENS LTD	88.8x	10.5%
ABB INDIA LIMITED	92.6x	19.1%

Recent News

1 positive1 mixed4 general

Rossell India Share Price Forecast: 3 Year Outlook to 2030

Univest, 27 Jul

Rossell India Limited (NSE:ROSSELLIND) Will Pay A ₹0.40 Dividend In Three Days

Simply Wall Street, 14 AugCapital return

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

Rossell Techsys Ltd | Stock Share Price Live

MarketSmith India, 24 Feb

Rossell India re-appoints Gupta; Parikh joins board at 32nd AGM

scanx.trade, 25 Aug

Why Is Rossell India Share Price Falling Key Reasons 2026

Univest, 30 JunPrice move

🟡Mixed / dependsA price move rather than a change in the business. If the figures on this page have not moved, the fall is either an opportunity or news they have yet to catch up with.

Does Rossell India (NSE:ROSSELLIND) Have A Healthy Balance Sheet?

Simply Wall Street, 28 Jan

Watch Items

Revenue growth is negative (-15.6%) on the latest reported period — check if this is one-off or a trend.
Cross-check against the company's latest quarterly filing / investor presentation before acting.

DalalBaazaar Thesis

StrongValuation

MiddlingFinancial Health

WeakBusiness Quality · Growth · Profitability · Risk

Points for each in the Score ↑

Cheap, but for a reason

The low price is the whole case here, and the business underneath scores poorly. Cheap-and-weak is what a value trap looks like from the outside — it needs a specific reason the numbers are about to improve, not just the observation that they are low. 2 high-severity red flags sit above this conclusion and should be read first.

1 of 5 tripwires tripped — Debt / EBITDA stays below 2x · see Key things to watch ↑