Rashi Peripherals Limited

Technology — Electronics & Computer Distribution · NSE

₹867.90+₹13.10 (+1.53%)

DalalBaazaar Score

65 / 100

🟢 Good

Verdict

REASONABLE

Risk

Low

Driven by small-cap size, which brings sharper price swings.

In simple words: Strong business and financial position, with both sales and profits growing well. Thin profit margins are the main factor to watch.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 6:09 pm

Constructive picture on fundamentals. Profitability, leverage and growth metrics are broadly healthy on this snapshot. That said, valuation should still be checked against direct sector peers (not just the generic P/E bands used here) before treating this as a buy signal.

Understanding the Business

Company site ↗

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

What does this company do?

Rashi Peripherals Limited operates as a distribution partner for information and communications technology (ICT) products of various brands in India. The company provides personal computing, enterprise, cloud solutions, lifestyle and IT essentials.

IndustryElectronics & Computer Distribution

SectorTechnology

Employees1,589

Annual revenue₹15,827 Cr

How does it make money?

Turns over ₹15,827 Cr a year. Of every ₹100 of sales, about ₹2 reaches shareholders as profit, with ₹3 left at the operating level before interest, tax and depreciation. Each of its 1,589 employees supports ₹9.96 Cr of revenue a year, the signature of a capital- or asset-led business.

EBITDA margin3.0%

Net margin1.8%

Revenue / employee₹9.96 Cr

Who are its competitors?

The closest listed comparisons in its industry are TATA CONSULTANCY SERV LT, INFOSYS LIMITED, HCL TECHNOLOGIES LTD, WIPRO LTD. These are the companies its valuation and returns are measured against elsewhere in this report.

TATA CONSULTANCY SERV LTP/E 17.3x · ROE 45.6%

INFOSYS LIMITEDP/E 15.8x · ROE 32.0%

HCL TECHNOLOGIES LTDP/E 20.4x · ROE 24.6%

WIPRO LTDP/E 14.5x · ROE 15.9%

What is its competitive advantage?The numbers suggest a real one

ROCE has stayed above 15% in every year available and stands at 22.5%. Returns that high normally get competed away; when they persist, something is protecting them, and its ROE of 13.7% against a peer median of 32.0% is consistent with that. What that something is — brand, scale, switching costs, regulation — the accounts cannot tell you.

ROCE22.5%

ROE13.7%

Peer median ROE32.0%

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 +67% while net margin moved +35% 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+67%

Margin effect+35%

DalalBaazaar Score

65/ 100

Good

Weighted across six categories. Every point is explained below.

• ROE of 13.7% is moderate
✗ ROE has fallen by 3.9 points over the period

Quality vs. Valuation

Company Quality

69/ 100

Good

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

Valuation

55/ 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.

Historical Valuation

Current P/E

18.3x

3Y Median

12.7x

34 monthly readings · mean 14.5x · range 8.4x–26.4x

Sector Median

16.5x

median of 4 sector peers

⚠️Current valuation is approximately 44% above its 3y median of 12.7x. Paying more than usual needs a reason — faster growth, a better balance sheet, or a re-rating you believe in.

🟡Against its sector it is priced broadly in line with the peer median of 16.5x.

vs. its own history

Expensive

12.7x median over 34 months · +44%

vs. sector peers

Fair

16.5x median of 4 peers · +10%

vs. generic bands

Fair

15x–35x

P/E (Trailing)

18.3x

P/B

2.82x

EV/EBITDA

14.0x

PEG

0.59

Dividend Yield

0.23%

What's Good / What's Bad

🟢 What's Going Well3

Cash flow has turned positive
Free cash flow moved from negative to positive over 3 years.
High return on capital employed
ROCE of 22.5% 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 Attention4

Return on equity is falling
ROE has dropped from 17.6% to 13.7% — each rupee of shareholder capital earns less than it did.
Return on capital is falling
ROCE has declined from 33.2% to 22.5% — often a sign of competition or overexpansion.
Receivables growing faster than sales
Receivables are up 151% against revenue growth of 67% — customers are taking longer to pay.
Valuation above its historical average
At 18.3x the stock trades 44% above its own median of 12.7x.

Red Flags

1 item require attention · 1 high

🔴Receivables growing faster than salesFinancial
Receivables up 151% against revenue up 67% — sales are being booked faster than they are collected.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Capital compounds at a high rate
ROCE of 22.5% 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.
Self-funding with balance-sheet headroom
Positive free cash flow of ₹105 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?

Sales are being booked faster than collected
Receivables are up 151% against revenue up 67%. If customers keep taking longer to pay, reported profit will not turn into cash — and write-offs follow if some never do.
The price already assumes success
The stock trades 44% 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 17.6% to 13.7%. 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
Small 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

1Revenue growth stays above 14% a year✓ 18.7% CAGR
Latest reported year was 61.9%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
2EBITDA margin holds above 1%✓ 3.0%
Two points below today's level — enough room for noise, tight enough to catch real compression.
3Debt / EBITDA stays below 2x✗ 2.1x
The ratio lenders write covenants against; it survives a small or negative equity base, unlike Debt/Equity.
4Free cash flow remains positive✓ ₹105 Cr
Profit that never becomes cash eventually stops being profit.
5ROCE stays above 19%✓ 22.5%
Falling returns on capital are usually competition arriving, and show up here before they reach the margin.

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
✓ 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 · 5 neutral · 0 weak

Market Cap

₹5,763 Cr

Small Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

18.3x

Fair

Fairly valued against the generic band

P/B Ratio

2.82x

Fair

Moderate premium to the company's book value

EPS (TTM)

₹47.46

Profitable

Profitable on a per-share basis

ROE

13.7%

Moderate

Moderate capital efficiency

ROCE

22.5%

Strong

Earns comfortably above its likely cost of capital

Debt/Equity

0.49x

Low

Conservative leverage

Revenue Growth (YoY)

61.9%

Healthy

Healthy top-line growth

Profit Growth (YoY)

64.0%

Healthy

Profits growing at a healthy clip

Dividend Yield

0.23%

Modest

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

Free Cash Flow

₹105 Cr

Cash generative

Generates cash even after funding its capex

More Metrics

CMP

₹867.9

Operating Margin

2.9%

Weak

Thin margins leave little room for error

Net Margin

1.8%

Weak

Very little revenue reaches the bottom line

Current Ratio

1.60

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

0.74

Defensive

Steadier than the market

52W Range Position

80%

Mid-range

Technical Snapshot

SMA 20 / SMA 50

897.0 / 858.9

Bullish alignment (short > long)

Price vs SMA 200

Above

Long-term uptrend

RSI (14)

45.3

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹9,454 Cr	₹11,095 Cr	₹13,773 Cr	₹15,827 Cr	+18.7%
EBITDA	₹263 Cr	₹306 Cr	₹358 Cr	₹479 Cr	+22.0%
EBITDA Margin	2.8%	2.8%	2.6%	3.0%	—
PAT (Net Profit)	₹123 Cr	₹141 Cr	₹208 Cr	₹278 Cr	+31.1%
EPS	₹18.7	₹31.14	₹31.57	₹41.18	+30.1%
ROE	17.6%	9.1%	11.9%	13.7%	—
ROCE	33.2%	19.1%	19.6%	22.5%	—
Total Debt	₹1,082 Cr	₹700 Cr	₹910 Cr	₹1,021 Cr	-1.9%
Free Cash Flow	-₹126 Cr	-₹109 Cr	-₹307 Cr	₹105 Cr	—

🟢 Revenue has grown at 18.7% a year over 3 years.

🟢 EBITDA has grown at 22.0% a year over 3 years.

🟡 EBITDA Margin has held roughly flat at 3.0% over 3 years.

🟢 PAT (Net Profit) has grown at 31.1% a year over 3 years.

🟢 EPS has grown at 30.1% a year over 3 years.

🔴 ROE has fallen from 17.6% to 13.7% over 3 years (-3.9 pts).

🔴 ROCE has fallen from 33.2% to 22.5% over 3 years (-10.7 pts).

🟡 Total Debt has been broadly flat over 3 years (-1.9% a year).

🟢 Free Cash Flow has turned positive, from -₹126 Cr to ₹105 Cr.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹5,327 Cr

Total Liabilities

₹3,291 Cr

Total Debt

₹1,021 Cr

Cash & Equivalents

₹81 Cr

Operating Cash Flow

₹114 Cr

Capex

-₹8 Cr

Shareholding (proxy)

Institutional Holding

8.3%

Insider Holding

69.2%

Corporate Actions

Dividend Rate

₹2

Ex-Dividend Date

14 Aug 2026

Peer Comparison

Company	P/E	ROE
TATA CONSULTANCY SERV LT	17.3x	45.6%
INFOSYS LIMITED	15.8x	32.0%
HCL TECHNOLOGIES LTD	20.4x	24.6%
WIPRO LTD	14.5x	15.9%

Recent News

1 mixed5 general

Rashi Peripherals (NSEI:RPTECH) - Stock Analysis

Simply Wall Street, 16 Oct

Rashi Peripherals shares list with single-digit premium despite huge oversubscription

Upstox, 16 Oct

Pros and Cons of Rashi Peripherals Share 2026 | RPTECH

Univest, 12 Aug

Why This AI-Focused Tech Stock Has More Than Doubled In 2026

NDTV Profit, 29 Jun

Rashi Peripherals Q1 Revenue Reaches 51B Rupees, Net Profit Touches 1B Rupees

Sahi, 04 AugResults

🟡Mixed / dependsA results event. The figures on this page update once the new statements reach the data feed, which usually lags the announcement.

Rashi Peripherals defends governance after Anil Khandelwal resignation

scanx.trade, 25 Aug

Watch Items

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

DalalBaazaar Thesis

🟡Business QualityAdequate9.6/20

🟢Financial HealthStrong17.8/20

🟢GrowthStrong18.5/20

🔴ProfitabilityWeak6/15

🟡ValuationFair7.3/15

🟡RiskModerate6/10

Good business at a fair price

A sound business at a reasonable valuation. Suitable for a long-term holding, with the valuation and the direction of margins worth watching rather than the business itself. 1 high-severity red flag sits above this conclusion and should be read first.

This thesis breaks if

✓Revenue growth stays above 14% a year18.7% CAGR
✓EBITDA margin holds above 1%3.0%
✗Debt / EBITDA stays below 2x2.1x
✓Free cash flow remains positive₹105 Cr
✓ROCE stays above 19%22.5%