Rajnish Retail Limited

Consumer Cyclical — Luxury Goods · BSE

₹2.00−₹0.02 (−0.99%)

DalalBaazaar Score

54 / 100

🟡 Moderate

Verdict

CAUTION

Risk

High

Driven by negative free cash flow, micro-cap size, which brings thin liquidity, a very high earnings multiple, which leaves little margin for disappointment.

In simple words: The business is earning a fairly low return on the money invested in it, with both sales and profits growing well. Cash generation is currently the main factor to watch.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 6:08 pm

Caution warranted. Multiple fundamental metrics — flagged in red below — point to either valuation stretch, leverage risk, or weakening profitability. This doesn't mean avoid the stock outright, but it does mean the burden of proof is on the growth story to justify the current price.

Understanding the Business

Company site ↗

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

What does this company do?

Rajnish Retail Limited engages in the retail businesses in India. The company operates brands in three main business areas: Retail segment, FMCG with Ayurveda and Urban Family Salon division, and Micro Investors.

IndustryLuxury Goods

SectorConsumer Cyclical

Employees19

Annual revenue₹94 Cr

How does it make money?

Turns over ₹94 Cr a year. Of every ₹100 of sales, about ₹0 reaches shareholders as profit, with ₹0 left at the operating level before interest, tax and depreciation. Each of its 19 employees supports ₹4.96 Cr of revenue a year, the signature of a capital- or asset-led business.

EBITDA margin0.2%

Net margin0.5%

Revenue / employee₹4.96 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.

TITAN COMPANY LIMITEDP/E 68.5x · ROE 36.7%

TRENT LTDP/E 87.2x · ROE 25.9%

AVENUE SUPERMARTS LIMITEDP/E 69.9x · ROE 12.7%

ASIAN PAINTS LIMITEDP/E 46.9x · ROE 22.3%

What is its competitive advantage?Little sign of one

Returns on capital of 0.8% 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.

ROCE0.8%

ROE0.6%

Peer median ROE25.9%

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 +2890% while net margin moved -105% 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+2890%

Margin effect-105%

DalalBaazaar Score

54/ 100

Moderate

Weighted across six categories. Every point is explained below.

✓ Beta of 0.46 — historically steadier than the index
✗ Micro Cap: thinner liquidity and sharper drawdowns are normal
✗ Profits have swung sharply from year to year — earnings are hard to forecast
✗ Negative free cash flow means dependence on external funding

Quality vs. Valuation

Company Quality

56/ 100

Average

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

Valuation

36/ 100

Expensive

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

100.0x

2Y Median

97.1x

28 monthly readings · mean 378.1x · range 32.5x–2983.6x

Sector Median

69.2x

median of 4 sector peers

🟡Currently trading close to its 2y median of 97.1x — the market is paying about what it usually pays for this company.

⚠️Against its sector it trades 45% above the peer median of 69.2x.

vs. its own history

Fair

97.1x median over 28 months · +3%

vs. sector peers

Expensive

69.2x median of 4 peers · +45%

vs. generic bands

Expensive

Above 35x

P/E (Trailing)

100.0x

P/B

0.43x

EV/EBITDA

179.4x

PEG

5.38

Dividend Yield

None

What's Good / What's Bad

🟢 What's Going Well3

Margins are improving
EBITDA margin is up from -4.8% to 0.2% over 3 years.
Return on equity is rising
ROE has improved from -9.8% to 0.6%.
Return on capital is rising
ROCE has improved from -10.1% to 0.8%.

🔴 What Needs Attention2

Free cash flow is negative
The business is not currently covering its capital spending from operations.
Inventory building faster than sales
Inventory is up 33403% against revenue growth of 2890% — stock may not be moving.

Red Flags

3 items require attention · 2 high · 1 watch

🔴Free cash flow negative for 4 yearsFinancial
The business has not covered its capital spending from operations for several years running, which has to be funded externally.
🔴Inventory building faster than salesFinancial
Inventory up 33403% against revenue up 2890% — stock may not be moving.
🟡Shareholders have been dilutedOwnership
Shares outstanding are up 213% over 3 years — each existing share owns a smaller slice of the company.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Margin expansion has further to run
EBITDA margin has risen from -4.8% to 0.2%. If that holds, profit compounds faster than sales and today's multiple looks cheaper in hindsight than it does now.

🔴 Bear CaseWhat could go wrong?

A premium to the sector to defend
It trades 45% above the peer median. That premium needs a reason that persists, or it closes.
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

1Revenue growth stays above 158% a year✓ 210.4% CAGR
Latest reported year was 10.5%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
2EBITDA margin holds above -2%✓ 0.2%
Two points below today's level — enough room for noise, tight enough to catch real compression.
3Free cash flow remains positive✗ -₹10 Cr
Profit that never becomes cash eventually stops being profit.
4ROCE stays above 8%✗ 0.8%
Falling returns on capital are usually competition arriving, and show up here before they reach the margin.
5Valuation vs its own median of 97.1x✓ 100.0x today
A re-rating above its own history needs a reason; without one it is just a higher price.

Investment Checklist

4 / 10 checks passed

✗ Strong return on equity (ROE ≥ 15%)
✗ Strong return on capital employed (ROCE ≥ 15%)
✗ Healthy net margin (≥ 10%)
✗ Generates positive free cash flow
✓ 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 · 3 neutral · 4 weak

Market Cap

₹31 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

100.0x

Expensive

Expensive — verify against sector peers

P/B Ratio

0.43x

Reasonable

Reasonable against the company's book value

EPS (TTM)

₹0.02

Profitable

Profitable on a per-share basis

ROE

0.6%

Weak

Weak capital efficiency

ROCE

0.8%

Weak

Low return on total capital employed

Debt/Equity

Not available

No data

Source didn't return this field

Revenue Growth (YoY)

10.5%

Healthy

Healthy top-line growth

Profit Growth (YoY)

18.6%

Healthy

Profits growing at a healthy clip

Dividend Yield

None

No dividend yield reported — usually means no payout, but verify if one was recently initiated

Free Cash Flow

-₹10 Cr

Cash burning

Spending more cash than the operations bring in

More Metrics

CMP

₹2

Operating Margin

0.2%

Weak

Thin margins leave little room for error

Net Margin

0.5%

Weak

Very little revenue reaches the bottom line

Current Ratio

12.11

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

0.46

Defensive

Steadier than the market

52W Range Position

Near low

Near its 52-week low

Technical Snapshot

SMA 20 / SMA 50

2.0 / 2.1

Bearish alignment (short < long)

Price vs SMA 200

Below

Long-term downtrend

RSI (14)

34.2

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹3 Cr	₹6 Cr	₹85 Cr	₹94 Cr	+210.4%
EBITDA	-₹0 Cr	₹0 Cr	₹1 Cr	₹0 Cr	—
EBITDA Margin	-4.8%	6.6%	1.8%	0.2%	—
PAT (Net Profit)	-₹0 Cr	₹0 Cr	₹1 Cr	₹0 Cr	—
EPS	₹-0.06	₹0.02	₹0.07	₹0.03	—
ROE	-9.8%	0.5%	1.5%	0.6%	—
ROCE	-10.1%	0.7%	2.0%	0.8%	—
Total Debt	₹0 Cr	₹0 Cr	—	—	—
Free Cash Flow	-₹0 Cr	-₹45 Cr	-₹11 Cr	-₹10 Cr	—

🟢 Revenue has grown at 210.4% a year over 3 years.

🟢 EBITDA has turned positive, from -₹0 Cr to ₹0 Cr.

🟢 EBITDA Margin has risen from -4.8% to 0.2% over 3 years (+4.9 pts).

🟢 PAT (Net Profit) has turned positive, from -₹0 Cr to ₹0 Cr.

🟢 EPS has turned positive, from ₹-0.06 to ₹0.03.

🟢 ROE has risen from -9.8% to 0.6% over 3 years (+10.4 pts).

🟢 ROCE has risen from -10.1% to 0.8% over 3 years (+11.0 pts).

Balance Sheet & Cash Flow — FY2026

Total Assets

₹79 Cr

Total Liabilities

₹6 Cr

Total Debt

—

Cash & Equivalents

₹1 Cr

Operating Cash Flow

-₹9 Cr

Capex

-₹1 Cr

Shareholding (proxy)

Institutional Holding

0.0%

Insider Holding

44.2%

Corporate Actions

Ex-Dividend Date

19 Jul 1996

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

2 positive4 general

Rajnish Retail: Sales Up 11%, Profit Thin, Stock at 52-Week Low

Kalkine India, 12 OctResults

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

Rajnish Retail shareholders approve FY26 financials and RPTs

scanx.trade, 28 Sept

Compare SHEETAL DIAM with

Equitymaster, 08 Oct

Sheetal Diamonds Ltd. Shareholding Pattern – Promoters, FIIs & DIIs

Value Research, 30 Aug

Rajnish Retail Bags ₹1,500 Cr Order; Share Price May Surge 2,000%

VCCircle, 21 JanOrder win

🟢Potentially positiveAn order or contract win, which adds to future revenue. How much depends on its size against annual sales and on when it is executed.

Top Gold Stocks to Invest in India in 2026

Samco, 11 Oct

Watch Items

Trading very close to its 52-week low — worth checking whether this reflects a temporary setback or a structural problem.
Cross-check against the company's latest quarterly filing / investor presentation before acting.
1 metric couldn't be retrieved for this stock — this is more common for smaller or thinly-covered listings.

DalalBaazaar Thesis

🔴Business QualityWeak8.7/20

🟢Financial HealthStrong13.2/20

🟢GrowthStrong13/20

🟡ProfitabilityModerate7.1/15

🟡ValuationFair8.3/15

🔴RiskHigh4/10

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

This thesis breaks if

✓Revenue growth stays above 158% a year210.4% CAGR
✓EBITDA margin holds above -2%0.2%
✗Free cash flow remains positive-₹10 Cr
✗ROCE stays above 8%0.8%
✓Valuation vs its own median of 97.1x100.0x today