Rajputana Stainless Limited

Basic Materials — Steel · NSE

₹179.01+₹8.40 (+4.92%)

DalalBaazaar Score

55 / 100

🟡 Moderate

Verdict

NEUTRAL

Risk

Low

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

In simple words: Strong business and financial position, with both sales and profits growing well. Nothing on this snapshot stands out as an immediate concern — the usual checks on business quality and management still apply.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 7:00 pm

Understanding the Business

Company site ↗

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

What does this company do?

Rajputana Stainless Limited manufactures and markets long and flat stainless-steel products under the RSL brand name in India and internationally.

IndustrySteel

SectorBasic Materials

Employees385

Annual revenue₹1,005 Cr

How does it make money?

Turns over ₹1,005 Cr a year. Of every ₹100 of sales, about ₹5 reaches shareholders as profit, with ₹9 left at the operating level before interest, tax and depreciation. Each of its 385 employees supports ₹2.61 Cr of revenue a year, the signature of a capital- or asset-led business.

Revenue / employee₹2.61 Cr

Who are its competitors?

The closest listed comparisons in its industry are TATA STEEL LIMITED, JSW STEEL LIMITED, JINDAL STEEL LIMITED, STEEL AUTHORITY OF INDIA. 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?The numbers suggest a real one

ROCE has stayed above 15% in every year available and stands at 22.3%. 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 10.8% is consistent with that. What that something is — brand, scale, switching costs, regulation — the accounts cannot tell you.

Peer median ROE10.8%

What has been driving growth?

Profit has moved mainly because margins changed, not because the business sold much more. Over 3 years revenue moved +6% while net margin moved +95% 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+6%

Margin effect+95%

DalalBaazaar Score

55/ 100

Moderate

Weighted across six categories. Every point is explained below.

✗ Micro Cap: thinner liquidity and sharper drawdowns are normal

Quality vs. Valuation

Company Quality

59/ 100

Average

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

Valuation

60/ 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

21.7x

Sector Median

18.2x

median of 4 sector peers

⚠️Against its sector it trades 19% above the peer median of 18.2x.

vs. its own history

Not enough price and earnings history

vs. sector peers

Fair

18.2x median of 4 peers · +19%

vs. generic bands

Fair

15x–35x

EV/EBITDA

16.9x

PEG

0.79

What's Good / What's Bad

🟢 What's Going Well5

Margins are improving
EBITDA margin is up from 4.6% to 9.2% over 3 years.
Cash generation is improving
Free cash flow is up 227% over 3 years.
High return on capital employed
ROCE of 22.3% is the mark of a business that converts capital into profit efficiently.
Very low debt
Debt/Equity of 0.19x leaves the balance sheet with plenty of headroom.
Consistently profitable
Profitable in every one of the last 4 reported years.

🔴 What Needs Attention2

Return on equity is falling
ROE has dropped from 29.6% to 13.7% — each rupee of shareholder capital earns less than it did.
Return on capital is falling
ROCE has declined from 30.3% to 22.3% — often a sign of competition or overexpansion.

Red Flags

3 items require attention · 2 high · 1 watch

🔴Debt has risen sharplyFinancial
Total debt is up 58% over 3 years, from ₹43 Cr to ₹69 Cr.
🔴Inventory building faster than salesFinancial
Inventory up 106% against revenue up 6% — stock may not be moving.
🟡Receivables growing faster than salesFinancial
Receivables up 29% against revenue up 6% — 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 22.3% 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 4.6% to 9.2%. If that holds, profit compounds faster than sales and today's multiple looks cheaper in hindsight than it does now.
Self-funding with balance-sheet headroom
Positive free cash flow of ₹19 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 29% against revenue up 6%. If customers keep taking longer to pay, reported profit will not turn into cash — and write-offs follow if some never do.
Growth barely outpaces inflation
Revenue compounding at 2.0% 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.
Returns on shareholder capital are falling
ROE has dropped from 29.6% 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
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 7%✓ 9.2%
Two points below today's level — enough room for noise, tight enough to catch real compression.
2Revenue growth stays above 4% a year✗ 2.0% CAGR
Latest reported year was 32.4%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
3Free cash flow remains positive✓ ₹19 Cr
Profit that never becomes cash eventually stops being profit.
4Debt / EBITDA stays below 2x✓ 0.7x
The ratio lenders write covenants against; it survives a small or negative equity base, unlike Debt/Equity.
5ROCE stays above 19%✓ 22.3%
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

₹1,496 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

21.7x

Fair

Fairly valued against the generic band

P/B Ratio

3.43x

Fair

Moderate premium to the company's book value

EPS (TTM)

₹8.25

Profitable

Profitable on a per-share basis

ROE

13.7%

Moderate

Moderate capital efficiency

ROCE

22.3%

Strong

Earns comfortably above its likely cost of capital

Debt/Equity

0.19x

Low

Conservative leverage

Revenue Growth (YoY)

32.4%

Healthy

Healthy top-line growth

Profit Growth (YoY)

49.4%

Healthy

Profits growing at a healthy clip

Dividend Yield

0.28%

Modest

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

Free Cash Flow

₹19 Cr

Cash generative

Generates cash even after funding its capex

More Metrics

Operating Margin

8.7%

Average

Average margins

Net Margin

5.4%

Average

Average bottom-line conversion

Current Ratio

2.28

Comfortable

Healthy short-term liquidity

52W Range Position

77%

Mid-range

Technical Snapshot

SMA 20 / SMA 50

176.3 / 173.7

Bullish alignment (short > long)

RSI (14)

46.5

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹946 Cr	₹908 Cr	₹930 Cr	₹1,005 Cr	+2.0%
EBITDA	₹44 Cr	₹62 Cr	₹77 Cr	₹93 Cr	+28.3%
EBITDA Margin	4.6%	6.8%	8.3%	9.2%	—
PAT (Net Profit)	₹24 Cr	₹32 Cr	₹40 Cr	₹50 Cr	+27.5%
EPS	₹2.88	₹3.78	₹4.77	₹7.17	+35.6%
ROE	29.6%	28.2%	26.2%	13.7%	—
ROCE	30.3%	38.5%	37.7%	22.3%	—
Total Debt	₹43 Cr	₹80 Cr	₹102 Cr	₹69 Cr	+16.5%
Free Cash Flow	₹6 Cr	₹21 Cr	-₹1 Cr	₹19 Cr	+48.4%

🟢 Revenue has grown at 2.0% a year over 3 years.

🟢 EBITDA has grown at 28.3% a year over 3 years.

🟢 EBITDA Margin has risen from 4.6% to 9.2% over 3 years (+4.6 pts).

🟢 PAT (Net Profit) has grown at 27.5% a year over 3 years.

🟢 EPS has grown at 35.6% a year over 3 years.

🔴 ROE has fallen from 29.6% to 13.7% over 3 years (-15.9 pts).

🔴 ROCE has fallen from 30.3% to 22.3% over 3 years (-8.0 pts).

🔴 Total Debt has grown at 16.5% a year over 3 years.

🟢 Free Cash Flow has grown at 48.4% a year over 3 years.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹600 Cr

Total Liabilities

₹237 Cr

Cash & Equivalents

₹0 Cr

Operating Cash Flow

₹32 Cr

Capex

-₹13 Cr

Shareholding (proxy)

Institutional Holding

3.5%

Insider Holding

69.7%

Corporate Actions

Dividend Rate

₹0.5

Ex-Dividend Date

16 Sept 2026

Peer Comparison

Company	P/E	ROE
TATA STEEL LIMITED	19.8x	10.8%
JSW STEEL LIMITED	12.0x	24.7%
JINDAL STEEL LIMITED	39.1x	5.3%
STEEL AUTHORITY OF INDIA	16.5x	7.1%

Recent News

1 positive2 mixed3 general

RAJPUTANA STAINLESS LTD Share Price - Live NSE: RSL Stock Price & Chart

Upstox, 05 May

Rajputana Stainless Share Price falls 8.1% on price action

Univest, 28 SeptPrice move

🟡Mixed / dependsA price move rather than a change in the business. If the figures on this page have not moved, the fall is either an opportunity or news they have yet to catch up with.

RSL Stock Price and Chart — NSE:RSL

TradingView, 11 Aug

Newly-listed metal stock Rajputana Stainless surges 10%, hits record high after strong Q1 results

Livemint, 13 AugResults

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

Rajputana Stainless shares make a muted debut, list at 2% premium over IPO price

The Economic Times, 19 Mar

Rajputana Stainless submits AGM voting results; dividend passed

scanx.trade, 23 SeptCapital return

🟢Potentially positiveCash or shares returned to holders. A buyback is only good value if the shares were cheap when bought.

Watch Items

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

DalalBaazaar Thesis

StrongFinancial Health · Growth

MiddlingBusiness Quality · Profitability · Valuation

WeakRisk

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.

1 of 5 tripwires tripped — Revenue growth stays above 4% a year · see Key things to watch ↑