RRP Defense Limited

Consumer Cyclical — Apparel Retail · BSE

₹602.60₹0.00 (0.00%)

DalalBaazaar Score

40 / 100

🟡 Moderate

Verdict

CAUTION

Risk

Low

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

In simple words: Profitability data is thin for this company. Thin profit margins are the main factor to watch.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 6:10 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

Company site ↗

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

What does this company do?

RRP Defense Limited engages in the manufacture, operations, repair, renting, and training of drones in India. It offers reflex and thermal sights, border protection systems, and miniature cameras.

IndustryApparel Retail

SectorConsumer Cyclical

Who are its competitors?

The closest listed comparisons in its industry are TRENT LTD, TITAN COMPANY LIMITED, AVENUE SUPERMARTS LIMITED. These are the companies its valuation and returns are measured against elsewhere in this report.

TRENT LTDP/E 87.2x · ROE 25.9%

TITAN COMPANY LIMITEDP/E 68.5x · ROE 36.7%

AVENUE SUPERMARTS LIMITEDP/E 69.9x · ROE 12.7%

DalalBaazaar Score

40/ 100

Moderate

Weighted across six categories. Every point is explained below.

✗ The business is lossmaking at the net level

Quality vs. Valuation

Company Quality

43/ 100

Weak

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

Valuation

25/ 100

Expensive

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

Weak on business quality and not cheap enough to compensate.

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

58.95x

EV/EBITDA

—

PEG

—

Dividend Yield

None

What's Good / What's Bad

🟢 What's Going Well1

Very low debt
Debt/Equity of 0.20x leaves the balance sheet with plenty of headroom.

🔴 What Needs Attention0

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

Red Flags

No automated checks triggered

None of the automated financial checks below were triggered on the years of data available. That is not the same as a clean bill of health — see what could not be checked.

Investment Thesis

🟢 Bull CaseWhat could make this work?

No clear supporting case emerges from the available numbers.

🔴 Bear CaseWhat could go wrong?

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.

🟡 Key Things to WatchMeasurable tripwires, set against where this company stands today

1Free cash flow remains positive✗ not reported
Profit that never becomes cash eventually stops being profit.

Investment Checklist

2 / 4 checks passed

✗ Healthy net margin (≥ 10%)
✓ Manageable leverage (Debt/Equity < 1.0)
✓ Not buying right at the 52-week high
✗ Short-term technical trend isn't bearish

Price history

Quick Metrics

1 good · 9 neutral · 1 weak

Market Cap

₹827 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

58.95x

Rich

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

EPS (TTM)

Not available

No data

Source didn't return this field

ROE

Not available

No data

Source didn't return this field

ROCE

Not available

No data

Source didn't return this field

Debt/Equity

0.20x

Low

Conservative leverage

Revenue Growth (YoY)

Not available

No data

Source didn't return this field

Profit Growth (YoY)

Not available

No data

Source didn't return this field

Dividend Yield

None

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

Free Cash Flow

Not available

No data

Source didn't return this field

More Metrics

CMP

₹602.6

Operating Margin

-1605000.0%

Weak

Thin margins leave little room for error

Net Margin

-19.8%

Weak

Very little revenue reaches the bottom line

Beta (vs Nifty)

0.91

Market-like

Moves roughly in line with the market

52W Range Position

0%

Near low

Near its 52-week low

Technical Snapshot

SMA 20 / SMA 50

612.4 / 632.4

Bearish alignment (short < long)

Price vs SMA 200

Below

Long-term downtrend

RSI (14)

0.0

Oversold zone

Shareholding (proxy)

Institutional Holding

0.0%

Insider Holding

91.4%

Peer Comparison

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

Recent News

2 mixed4 general

RRP Defense Bags Rs 64.31 Crore Contract from BEL For Telescopic Day Sights

HDFC Sky, 07 Jul

RRP Defense Q1 FY27 Results: Revenue, Net Loss & Key Highlights

Univest, 10 AugResults

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

RRP Defense: Understanding the Real Structure Behind the RRP Drones and RRP S4E Transactions

UnlistedZone, 07 Nov

This Smallcap Defence Stock Secures Rs 29.8 Crore Bharat Electronics Limited Order For Thermal Imaging Components

Dalal Street Investment Journal, 22 May

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

The Times of India, 19 Dec

RRP Defense Completes ₹226.87 Crore Acquisition with Shareholder Approval

scanx.trade, 18 NovM&A

🟡Mixed / dependsAcquisitions change the balance sheet before they change the earnings. Look at what was paid, how it was funded, and whether debt rose.

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.
7 metrics couldn't be retrieved for this stock — this is more common for smaller or thinly-covered listings.
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

🔴Business QualityWeak2/20

🟢Financial HealthStrong18.4/20

🟡GrowthModest10/20

🔴ProfitabilityWeak1.5/15

🔴ValuationDemanding3.8/15

🔴RiskHigh4/10

Weak on the fundamentals

Poor scores on business quality without a price low enough to compensate. There is no obvious argument for owning this over a stronger company at a similar valuation.

This thesis breaks if

✗Free cash flow remains positivenot reported