Rrp Semiconductor Limited

Technology — Electronics & Computer Distribution · BSE

₹8,044.35₹0.00 (0.00%)

DalalBaazaar Score

43 / 100

🟡 Moderate

Verdict

CAUTION

Risk

High

Driven by the company is currently loss-making, small-cap size, which brings sharper price swings, falling profits.

In simple words: The company is currently losing money, but sales are shrinking. The direction of profits 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 Rrp Semiconductor Limited — what it does, how it earns, and who it competes with, before any of the numbers below.

What does this company do?

Rrp Semiconductor Limited trades in electronic parts in India. The company is involved in the information and technology business, such as semiconductor and digital chips, and others.

IndustryElectronics & Computer Distribution

SectorTechnology

Employees3

Annual revenue-₹7 Cr

How does it make money?

Turns over -₹7 Cr a year. Of every ₹100 of sales, about ₹114 reaches shareholders as profit, with ₹105 left at the operating level before interest, tax and depreciation. Each of its 3 employees supports ₹-2,27,38,000 of revenue a year, the signature of a people-led business.

Revenue / employee₹-2,27,38,000

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.

Compared side by side in Peers ↓

What is its competitive advantage?Little sign of one

Returns on capital of -48.1% 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 ROE32.0%

DalalBaazaar Score

43/ 100

Moderate

Weighted across six categories. Every point is explained below.

✗ No meaningful P/E — the company is lossmaking
✗ P/B of 1221.99x is a steep premium to book

Quality vs. Valuation

Company Quality

47/ 100

Average

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

Valuation

21/ 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.

vs. its own history

Not enough price and earnings history

vs. sector peers

Not enough peers with a usable P/E

vs. generic bands

N/A

No P/E — the company is lossmaking

EV/EBITDA

—

PEG

—

What's Good / What's Bad

🟢 What's Going Well2

Debt is being paid down
Total debt is down 24% over 3 years.
Cash generation is improving
Free cash flow is up 2954% over 3 years.

🔴 What Needs Attention0

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

Red Flags

4 items require attention · 2 high · 2 watch

🔴Thin interest coverageFinancial
Operating profit covers interest only -12.2x — little room if earnings dip.
🔴The company is lossmakingFinancial
Net profit of -₹8 Cr in the latest reported year.
🟡Interest coverage is deterioratingFinancial
Cover has fallen from 51.5x to -12.2x.
🟡Shareholders have been dilutedOwnership
Shares outstanding are up 13524% over 3 years — each existing share owns a smaller slice of the company.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Deleveraging frees up earnings
Debt is down 24% over 3 years. Every rupee of interest not paid drops to the bottom line, so profit can grow even if revenue does not.

🔴 Bear CaseWhat could go wrong?

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
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.
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 103%✓ 105.1%
Two points below today's level — enough room for noise, tight enough to catch real compression.
2Interest cover stays above 3x✗ -12.2x
How much operating profit can fall before interest stops being comfortably covered.
3Free cash flow remains positive✓ ₹5 Cr
Profit that never becomes cash eventually stops being profit.
4ROCE stays above 8%✗ -48.1%
Falling returns on capital are usually competition arriving, and show up here before they reach the margin.

Investment Checklist

5 / 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

1 good · 3 neutral · 7 weak

Market Cap

₹10,960 Cr

Small Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

Not meaningful

Loss-making

Earnings are negative, so a P/E multiple can't be read here

P/B Ratio

1221.99x

Rich

Steep premium to book — needs high, durable returns to justify

EPS (TTM)

₹-5.72

Loss-making

Negative earnings per share — the business is losing money

ROE

-85.8%

Weak

Weak capital efficiency

ROCE

-48.1%

Weak

Low return on total capital employed

Debt/Equity

0.65x

Moderate

Moderate leverage

Revenue Growth (YoY)

-121.6%

Shrinking

Sales are contracting

Profit Growth (YoY)

-191.6%

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

₹5 Cr

Cash generative

Generates cash even after funding its capex

More Metrics

Operating Margin

-264.0%

Weak

Thin margins leave little room for error

Net Margin

0.0%

Weak

Very little revenue reaches the bottom line

Current Ratio

12.14

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

0.33

Defensive

Steadier than the market

52W Range Position

Near low

Near its 52-week low

Technical Snapshot

SMA 20 / SMA 50

8150.5 / 8357.9

Bearish alignment (short < long)

Price vs SMA 200

Below

Long-term downtrend

RSI (14)

0.0

Oversold zone

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	—	₹0 Cr	₹32 Cr	-₹7 Cr	—
EBITDA	-₹0 Cr	₹0 Cr	₹12 Cr	-₹7 Cr	—
EBITDA Margin	—	28.7%	37.0%	105.1%	—
PAT (Net Profit)	-₹0 Cr	-₹0 Cr	₹8 Cr	-₹8 Cr	—
EPS	₹-7.22	₹-1.7	₹6.21	₹-5.69	—
ROE	—	—	50.1%	-85.8%	—
ROCE	—	50.7%	40.4%	-48.1%	—
Total Debt	₹8 Cr	₹8 Cr	₹12 Cr	₹6 Cr	-8.9%
Free Cash Flow	₹0 Cr	-₹0 Cr	-₹18 Cr	₹5 Cr	+212.6%

🔴 Revenue has turned negative, from ₹0 Cr to -₹7 Cr.

🟢 EBITDA Margin has risen from 28.7% to 105.1% over 3 years (+76.3 pts).

🔴 ROE has fallen from 50.1% to -85.8% over 3 years (-135.8 pts).

🔴 ROCE has fallen from 50.7% to -48.1% over 3 years (-98.7 pts).

🟢 Total Debt has shrunk at 8.9% a year over 3 years.

🟢 Free Cash Flow has grown at 212.6% a year over 3 years.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹16 Cr

Total Liabilities

₹7 Cr

Cash & Equivalents

₹0 Cr

Operating Cash Flow

₹5 Cr

Capex

-₹0 Cr

Shareholding (proxy)

Institutional Holding

0.0%

Insider Holding

95.7%

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

6 general

RRP Semiconductor Ltd. 52 Week Low Streak and Valuation

Univest, 08 Oct

Regulator bars 39 entities for alleged manipulation of RRP Semicon share price

The Economic Times, 11 Apr

From ₹15 to ₹10,887 in 18 Months! SEBI Bars 39, Including 3 Promoters, in RRP Semiconductor Stock Price Manipulation Case

Moneylife, 13 Apr

RRP Semiconductor’s stock price surges 55,000 per cent, triggering regulatory concerns

The Indian Express, 20 Dec

RRP Semiconductor Ltd: Why this stock’s 55,000% rally in India is fuelling AI bubble fears

The Times of India, 19 Dec

The story of RRP Semiconductor is cautionary tale for investors chasing AI stocks | Business News

Hindustan Times, 18 Dec

Watch Items

Revenue growth is negative (-121.6%) on the latest reported period — check if this is one-off or a trend.
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.
RSI is in oversold territory — could mean either a bargain or a stock still falling for good reason. Check the 'why' before assuming reversal.

DalalBaazaar Thesis

StrongFinancial Health

MiddlingGrowth · Risk

WeakBusiness Quality · Profitability · Valuation

Points for each in the Score ↑

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.

2 of 4 tripwires tripped — Interest cover stays above 3x; ROCE stays above 8% · see Key things to watch ↑