ROX Hi-Tech Limited

Sector n/a · NSE

₹128.80+₹1.65 (+1.30%)

DalalBaazaar Score

55 / 100

🟡 Moderate

Verdict

NEUTRAL

Risk

Moderate

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

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

Decision support, not a buy or sell call.

As of 18 Oct 2026, 6:08 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

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

How does it make money?

Turns over ₹203 Cr a year. Of every ₹100 of sales, about ₹8 reaches shareholders as profit, with ₹14 left at the operating level before interest, tax and depreciation.

EBITDA margin14.2%

Net margin8.3%

What is its competitive advantage?Some evidence

ROCE of 19.8% is above what capital typically costs, which suggests some pricing power, though not yet the sustained, wide gap that marks a durable advantage.

ROCE19.8%

ROE12.8%

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 +52% while net margin moved -28% 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+52%

Margin effect-28%

DalalBaazaar Score

55/ 100

Moderate

Weighted across six categories. Every point is explained below.

• ROE of 12.8% is moderate
✗ ROE has fallen by 50.9 points over the period

Quality vs. Valuation

Company Quality

56/ 100

Average

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

Valuation

60/ 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.

vs. its own history

Not enough price and earnings history

vs. sector peers

Not enough peers with a usable P/E

vs. generic bands

No P/E available

P/E (Trailing)

—

P/B

—

EV/EBITDA

11.7x

PEG

—

Dividend Yield

None

What's Good / What's Bad

🟢 What's Going Well2

Cash flow has turned positive
Free cash flow moved from negative to positive over 3 years.
Consistently profitable
Profitable in every one of the last 4 reported years.

🔴 What Needs Attention6

Margins are compressing
EBITDA margin has slipped from 17.8% to 14.2% over 3 years.
Debt is rising
Total debt is up 205% over 3 years — worth checking what it funded.
Return on equity is falling
ROE has dropped from 63.8% to 12.8% — each rupee of shareholder capital earns less than it did.
Return on capital is falling
ROCE has declined from 84.2% to 19.8% — often a sign of competition or overexpansion.
Receivables growing faster than sales
Receivables are up 136% against revenue growth of 52% — customers are taking longer to pay.
Inventory building faster than sales
Inventory is up 130% against revenue growth of 52% — stock may not be moving.

Red Flags

5 items require attention · 3 high · 2 watch

🔴Debt has risen sharplyFinancial
Total debt is up 205% over 3 years, from ₹23 Cr to ₹69 Cr.
🔴Receivables growing faster than salesFinancial
Receivables up 136% against revenue up 52% — sales are being booked faster than they are collected.
🔴Inventory building faster than salesFinancial
Inventory up 130% against revenue up 52% — stock may not be moving.
🟡Interest coverage is deterioratingFinancial
Cover has fallen from 7.0x to 4.3x.
🟡Margins are compressingFinancial
EBITDA margin is down 3.6 points over 3 years.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Capital compounds at a high rate
ROCE of 19.8% 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.
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 17.8% to 14.2%. 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 136% against revenue up 52%. 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 63.8% to 12.8%. 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.
Several serious flags at once
3 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

1Revenue growth stays above 11% a year✓ 15.0% CAGR
Latest reported year was 8.3%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
2EBITDA margin holds above 12%✓ 14.2%
Two points below today's level — enough room for noise, tight enough to catch real compression.
3Debt / EBITDA stays below 2x✗ 2.4x
The ratio lenders write covenants against; it survives a small or negative equity base, unlike Debt/Equity.
4Free cash flow remains positive✓ ₹3 Cr
Profit that never becomes cash eventually stops being profit.
5ROCE stays above 17%✓ 19.8%
Falling returns on capital are usually competition arriving, and show up here before they reach the margin.

Investment Checklist

6 / 9 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
✓ Short-term technical trend isn't bearish

Price history

Quick Metrics

3 good · 7 neutral · 1 weak

Market Cap

₹295 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

Not available

No data

Source didn't return this field

P/B Ratio

Not available

No data

Source didn't return this field

EPS (TTM)

Not available

No data

Source didn't return this field

ROE

12.8%

Moderate

Moderate capital efficiency

ROCE

19.8%

Strong

Earns comfortably above its likely cost of capital

Debt/Equity

0.52x

Low

Conservative leverage

Revenue Growth (YoY)

8.3%

Modest

Modest growth

Profit Growth (YoY)

-15.1%

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

₹3 Cr

Cash generative

Generates cash even after funding its capex

More Metrics

CMP

₹128.8

Gross Margin

18.8%

Proxy

Operating margin unavailable — showing gross margin instead

Net Margin

8.3%

Average

Average bottom-line conversion

Current Ratio

1.88

Comfortable

Healthy short-term liquidity

Technical Snapshot

SMA 20 / SMA 50

58.0 / 52.8

Bullish alignment (short > long)

Price vs SMA 200

Above

Long-term uptrend

RSI (14)

82.2

Overbought zone

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹133 Cr	₹176 Cr	₹187 Cr	₹203 Cr	+15.0%
EBITDA	₹24 Cr	₹32 Cr	₹31 Cr	₹29 Cr	+6.7%
EBITDA Margin	17.8%	18.3%	16.8%	14.2%	—
PAT (Net Profit)	₹15 Cr	₹21 Cr	₹20 Cr	₹17 Cr	+3.2%
EPS	₹6.74	₹9.11	₹8.73	—	—
ROE	63.8%	23.0%	18.1%	12.8%	—
ROCE	84.2%	33.1%	25.8%	19.8%	—
Total Debt	₹23 Cr	₹21 Cr	₹47 Cr	₹69 Cr	+45.0%
Free Cash Flow	-₹2 Cr	-₹42 Cr	-₹34 Cr	₹3 Cr	—

🟢 Revenue has grown at 15.0% a year over 3 years.

🟢 EBITDA has grown at 6.7% a year over 3 years.

🔴 EBITDA Margin has fallen from 17.8% to 14.2% over 3 years (-3.6 pts).

🟢 PAT (Net Profit) has grown at 3.2% a year over 3 years.

🔴 ROE has fallen from 63.8% to 12.8% over 3 years (-50.9 pts).

🔴 ROCE has fallen from 84.2% to 19.8% over 3 years (-64.4 pts).

🔴 Total Debt has grown at 45.0% a year over 3 years.

🟢 Free Cash Flow has turned positive, from -₹2 Cr to ₹3 Cr.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹250 Cr

Total Liabilities

₹118 Cr

Total Debt

₹69 Cr

Cash & Equivalents

₹27 Cr

Operating Cash Flow

₹3 Cr

Capex

-₹1 Cr

Recent News

2 mixed4 general

ROX Hi-Tech promoters declare no encumbrance on shares in FY26

scanx.trade, 04 Oct

Rox Hi-Tech Share Price News: Why It Dropped Today

Univest, 07 OctPrice 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.

ROXHITECH Historical Data

Equitypandit, 27 Feb

ROX Hi-Tech (NSE:ROXHITECH) Looks To Prolong Its Impressive Returns

Simply Wall Street, 14 Jan

Rox Hi-Tech Ltd. Share Price Rise Streak After 36.41% Move

Univest, 06 OctPrice move

🟡Mixed / dependsA price move, which is not by itself a change in the business. Worth finding the cause before reading it as either good or bad.

Rox Hi-Tech seeks shareholder nod for ₹18.01 crore preferential issue

scanx.trade, 29 Jul

Watch Items

Cross-check against the company's latest quarterly filing / investor presentation before acting.
Sector/industry classification unavailable — verify manually for peer comparison.
3 metrics couldn't be retrieved for this stock — this is more common for smaller or thinly-covered listings.
RSI is in overbought territory — momentum entries here carry more short-term pullback risk.

DalalBaazaar Thesis

🟡Business QualityAdequate11.8/20

🟢Financial HealthStrong13.4/20

🟡GrowthModest10/20

🟡ProfitabilityModerate7.1/15

🟡ValuationFair7.5/15

🟡RiskModerate5/10

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

This thesis breaks if

✓Revenue growth stays above 11% a year15.0% CAGR
✓EBITDA margin holds above 12%14.2%
✗Debt / EBITDA stays below 2x2.4x
✓Free cash flow remains positive₹3 Cr
✓ROCE stays above 17%19.8%