Royal India Corporation Limited

Consumer Cyclical — Luxury Goods · BSE

₹5.38−₹0.19 (−3.41%)

DalalBaazaar Score

71 / 100

🟢 Good

Verdict

NEUTRAL

Risk

High

Driven by high debt relative to equity, micro-cap size, which brings thin liquidity, falling profits.

In simple words: Strong business and financial position, but sales are shrinking. Debt is the main factor to watch.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 7:45 pm

Understanding the Business

Company site ↗

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

What does this company do?

Royal India Corporation Limited engages in the wholesale trading of gold bullion, plain gold jewelry, gold coins, and medallions in India. It is also involved in the sales of 23k 995 and 999 purity Indian made gold coins in round and rectangular shapes; and defence business.

IndustryLuxury Goods

SectorConsumer Cyclical

Employees7

Annual revenue₹47 Cr

How does it make money?

Turns over ₹47 Cr a year. Of every ₹100 of sales, about ₹112 reaches shareholders as profit, with ₹171 left at the operating level before interest, tax and depreciation. Each of its 7 employees supports ₹6.65 Cr of revenue a year, the signature of a capital- or asset-led business.

Revenue / employee₹6.65 Cr

Who are its competitors?

The closest listed comparisons in its industry are TITAN COMPANY LIMITED, TRENT LTD, AVENUE SUPERMARTS LIMITED, ASIAN PAINTS 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?Some evidence

ROCE of 51.4% 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 ROE25.9%

What has been driving growth?

Profit has moved mainly because margins changed, not because the business sold much more. Over 3 years revenue moved +24% while net margin moved -1233% 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+24%

Margin effect-1233%

DalalBaazaar Score

71/ 100

Good

Weighted across six categories. Every point is explained below.

✗ Revenue CAGR of only 7.5% — barely ahead of inflation
✗ Latest-year revenue growth of -88.1% is below the longer-term trend — momentum is fading
✗ Profit fell 45.7% in the latest year

Quality vs. Valuation

Company Quality

72/ 100

Good

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

Valuation

88/ 100

Cheap

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

A good business currently available at an undemanding price — the combination this framework is built to look for.

Historical Valuation

Current P/E

1.2x

1.3Y Median

6.1x

16 monthly readings · mean 4.9x · range 1.1x–7.8x

Sector Median

69.2x

median of 4 sector peers

🟢Current valuation is approximately 80% below its 1.3y median of 6.1x. 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 98% below the peer median of 69.2x.

vs. its own history

Cheap

6.1x median over 16 months · -80%

vs. sector peers

Cheap

69.2x median of 4 peers · -98%

vs. generic bands

Cheap

Below 15x

EV/EBITDA

0.9x

PEG

—

What's Good / What's Bad

🟢 What's Going Well5

Margins are improving
EBITDA margin is up from 10.7% to 170.7% over 3 years.
Debt is being paid down
Total debt is down 91% over 3 years.
Cash flow has turned positive
Free cash flow moved from negative to positive over 3 years.
Return on capital is rising
ROCE has improved from 3.2% to 51.4%.
High return on capital employed
ROCE of 51.4% is the mark of a business that converts capital into profit efficiently.

🔴 What Needs Attention0

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

Red Flags

3 items require attention · 2 high · 1 watch

🔴High leverageFinancial
Debt/Equity of 8.38x — earnings must service borrowings before shareholders see anything.
🔴Inventory building faster than salesFinancial
Inventory up 153% against revenue up 24% — stock may not be moving.
🟡Shareholders have been dilutedOwnership
Shares outstanding are up 411% over 3 years — each existing share owns a smaller slice of the company.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Capital compounds at a high rate
ROCE of 51.4% 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.
Margin expansion has further to run
EBITDA margin has risen from 10.7% to 170.7%. If that holds, profit compounds faster than sales and today's multiple looks cheaper in hindsight than it does now.
Deleveraging frees up earnings
Debt is down 91% over 3 years. Every rupee of interest not paid drops to the bottom line, so profit can grow even if revenue does not.
Priced below its own history
The stock trades 80% 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 98% below the sector median. Either the market sees a problem the numbers do not show, or the discount closes.

🔴 Bear CaseWhat could go wrong?

Leverage amplifies any setback
Debt/Equity of 8.38x. Interest is payable whether or not the business has a good year.
Growth barely outpaces inflation
Revenue compounding at 7.5% 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.
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.
Several serious flags at once
2 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

1EBITDA margin holds above 169%✓ 170.7%
Two points below today's level — enough room for noise, tight enough to catch real compression.
2Revenue growth stays above 6% a year✓ 7.5% CAGR
Latest reported year was -88.1%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
3Free cash flow remains positive✓ ₹101 Cr
Profit that never becomes cash eventually stops being profit.
4Debt / EBITDA stays below 2x✓ 0.1x
The ratio lenders write covenants against; it survives a small or negative equity base, unlike Debt/Equity.
5ROCE stays above 48%✓ 51.4%
Falling returns on capital are usually competition arriving, and show up here before they reach the margin.

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

6 good · 2 neutral · 3 weak

Market Cap

₹63 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

1.2x

Cheap

Cheap against the generic band

P/B Ratio

0.47x

Reasonable

Reasonable against the company's book value

EPS (TTM)

₹4.45

Profitable

Profitable on a per-share basis

ROE

38.4%

Strong

Strong capital efficiency

ROCE

51.4%

Strong

Earns comfortably above its likely cost of capital

Debt/Equity

8.38x

High

High leverage

Revenue Growth (YoY)

-88.1%

Shrinking

Sales are contracting

Profit Growth (YoY)

-45.7%

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

₹101 Cr

Cash generative

Generates cash even after funding its capex

More Metrics

Operating Margin

46.0%

Good

Healthy core-business profitability

Net Margin

59.8%

Good

Strong bottom-line conversion

Current Ratio

2.69

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

-0.52

Defensive

Steadier than the market

52W Range Position

44%

Mid-range

Technical Snapshot

SMA 20 / SMA 50

5.4 / 5.5

Bearish alignment (short < long)

Price vs SMA 200

Below

Long-term downtrend

RSI (14)

48.7

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹38 Cr	₹29 Cr	₹220 Cr	₹47 Cr	+7.5%
EBITDA	₹4 Cr	-₹2 Cr	₹16 Cr	₹79 Cr	+170.1%
EBITDA Margin	10.7%	-8.5%	7.1%	170.7%	—
PAT (Net Profit)	-₹4 Cr	-₹8 Cr	₹11 Cr	₹52 Cr	—
EPS	₹-1.61	₹-3.57	₹0.99	₹4.44	—
ROE	—	—	14.0%	38.4%	—
ROCE	3.2%	-2.2%	8.6%	51.4%	—
Total Debt	₹137 Cr	₹132 Cr	₹101 Cr	₹12 Cr	-55.9%
Free Cash Flow	-₹2 Cr	-₹2 Cr	-₹23 Cr	₹101 Cr	—

🟢 Revenue has grown at 7.5% a year over 3 years.

🟢 EBITDA has grown at 170.1% a year over 3 years.

🟢 EBITDA Margin has risen from 10.7% to 170.7% over 3 years (+160.0 pts).

🟢 PAT (Net Profit) has turned positive, from -₹4 Cr to ₹52 Cr.

🟢 EPS has turned positive, from ₹-1.61 to ₹4.44.

🟢 ROE has risen from 14.0% to 38.4% over 3 years (+24.5 pts).

🟢 ROCE has risen from 3.2% to 51.4% over 3 years (+48.1 pts).

🟢 Total Debt has shrunk at 55.9% a year over 3 years.

🟢 Free Cash Flow has turned positive, from -₹2 Cr to ₹101 Cr.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹201 Cr

Total Liabilities

₹60 Cr

Cash & Equivalents

₹1 Cr

Operating Cash Flow

₹102 Cr

Capex

-₹1 Cr

Shareholding (proxy)

Institutional Holding

0.0%

Insider Holding

54.1%

Peer Comparison

Company	P/E	ROE
TITAN COMPANY LIMITED	68.5x	36.7%
TRENT LTD	87.2x	25.9%
AVENUE SUPERMARTS LIMITED	69.9x	12.7%
ASIAN PAINTS LIMITED	46.9x	22.3%

Recent News

1 positive1 mixed4 general

Royal India (BSE:512047) - Stock Analysis

Simply Wall Street, 12 Oct

Top 65 Stocks Under 10 Rupees To Buy In October 2026 | High Potential Picks

Samco, 17 Oct

Royal India (BSE:512047) Stock Forecast & Analyst Predictions

Simply Wall Street, 12 OctAnalyst view

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

Royal India Corp shareholders approve all resolutions at 42nd AGM

scanx.trade, 05 Oct

Royal India Corporation Ltd. Key Financial Ratios – Valuation, Profitability & More

Value Research, 29 Aug

Royal India Corporation consolidated net profit rises 330.64% in the March 2026 quarter

Business Standard, 01 JunResults

🟢Potentially positiveReported improvement. Check whether it came from volume, price or a one-off item before treating it as a trend.

Watch Items

Revenue growth is negative (-88.1%) 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

StrongBusiness Quality · Financial Health · Profitability · Valuation

WeakGrowth · Risk

Points for each in the Score ↑

Attractive on both counts

A good business currently available at an undemanding price — the combination this framework exists to look for. The work left is qualitative: whether the advantage the numbers imply is one you can identify and expect to last. 2 high-severity red flags sit above this conclusion and should be read first.

All 5 tripwires holding · see Key things to watch ↑