RattanIndia Enterprises Limited

Consumer Cyclical — Internet Retail · NSE

₹25.60+₹0.29 (+1.15%)

DalalBaazaar Score

40 / 100

🟡 Moderate

Verdict

CAUTION

Risk

Very High

Driven by moderate debt load, short-term liabilities exceed short-term assets, negative free cash flow.

In simple words: The company is currently losing money, though profits are falling even as sales grow. Cash generation is currently the main factor to watch.

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 RattanIndia Enterprises Limited — what it does, how it earns, and who it competes with, before any of the numbers below.

What does this company do?

RattanIndia Enterprises Limited, together with its subsidiaries, engages in the retail business in India and internationally. It operates through Retail-E-commerce Business, EV (E-Motorcycles), Investments, and Others segments.

IndustryInternet Retail

SectorConsumer Cyclical

Employees32

Annual revenue₹7,404 Cr

How does it make money?

Turns over ₹7,404 Cr a year. Of every ₹100 of sales, about ₹-2 reaches shareholders as profit, with ₹1 left at the operating level before interest, tax and depreciation. Each of its 32 employees supports ₹231.38 Cr of revenue a year, the signature of a capital- or asset-led business.

Revenue / employee₹231.38 Cr

Who are its competitors?

The closest listed comparisons in its industry are MARUTI SUZUKI INDIA LTD., TITAN COMPANY LIMITED, TRENT LTD, AVENUE SUPERMARTS LIMITED. 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 -11.6% 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 ROE25.9%

What has been driving growth?

Sales and margins have both contributed to where profit is now. Over 3 years revenue moved +82% while net margin moved -68% 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+82%

Margin effect-68%

DalalBaazaar Score

40/ 100

Moderate

Weighted across six categories. Every point is explained below.

✗ Debt/Equity of 1.43x is on the heavy side
✗ Current ratio of 0.81 — short-term liabilities exceed short-term assets
✗ Free cash flow is negative — growth is being funded by borrowing or fresh equity
✗ Interest cover of only -1.4x — little room if profits dip

Quality vs. Valuation

Company Quality

41/ 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

N/A

No P/E — the company is lossmaking

EV/EBITDA

50.7x

PEG

—

What's Good / What's Bad

🟢 What's Going Well2

Return on equity is rising
ROE has improved from -69.5% to -21.5%.
Return on capital is rising
ROCE has improved from -52.4% to -11.6%.

🔴 What Needs Attention0

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

Red Flags

5 items require attention · 2 high · 3 watch

🔴Thin interest coverageFinancial
Operating profit covers interest only -1.4x — little room if earnings dip.
🔴The company is lossmakingFinancial
Net profit of -₹165 Cr in the latest reported year.
🟡Interest coverage is deterioratingFinancial
Cover has fallen from 2.7x to -1.4x.
🟡Free cash flow is negativeFinancial
Free cash flow was -₹64 Cr in the latest year.
🟡Short-term liquidity is tightFinancial
Current ratio of 0.81 — near-term obligations exceed near-term assets.

Investment Thesis

🟢 Bull CaseWhat could make this work?

No clear supporting case emerges from the available numbers.

🔴 Bear CaseWhat could go wrong?

The debt load needs earnings to hold up
Debt is 12.2x EBITDA. At that level a downturn in earnings turns a manageable balance sheet into a refinancing problem, and lenders get paid before shareholders.
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 17% a year✓ 22.1% CAGR
Latest reported year was 1.9%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
2EBITDA margin holds above -1%✓ 1.2%
Two points below today's level — enough room for noise, tight enough to catch real compression.
3Debt / EBITDA falls below 3x✗ 12.2x
Already stretched, so this is a reduction target rather than a level to hold. Around 3x is where lenders typically start attaching conditions.
4Free cash flow remains positive✗ -₹64 Cr
Profit that never becomes cash eventually stops being profit.
5Interest cover stays above 3x✗ -1.4x
How much operating profit can fall before interest stops being comfortably covered.

Investment Checklist

3 / 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

0 good · 5 neutral · 6 weak

Market Cap

₹3,535 Cr

Micro 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

4.59x

Fair

Moderate premium to the company's book value

EPS (TTM)

₹-4.71

Loss-making

Negative earnings per share — the business is losing money

ROE

-21.5%

Weak

Weak capital efficiency

ROCE

-11.6%

Weak

Low return on total capital employed

Debt/Equity

1.43x

Moderate

Moderate leverage

Revenue Growth (YoY)

1.9%

Modest

Modest growth

Profit Growth (YoY)

-97.0%

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

-₹64 Cr

Cash burning

Spending more cash than the operations bring in

More Metrics

Operating Margin

-5.7%

Weak

Thin margins leave little room for error

Net Margin

-8.6%

Weak

Very little revenue reaches the bottom line

Current Ratio

0.81

Adequate

Adequate, but no real cushion

Beta (vs Nifty)

0.66

Defensive

Steadier than the market

52W Range Position

Near low

Near its 52-week low

Technical Snapshot

SMA 20 / SMA 50

25.9 / 28.0

Bearish alignment (short < long)

Price vs SMA 200

Below

Long-term downtrend

RSI (14)

36.1

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹4,063 Cr	₹5,518 Cr	₹6,586 Cr	₹7,404 Cr	+22.1%
EBITDA	₹29 Cr	₹71 Cr	₹92 Cr	₹90 Cr	+46.2%
EBITDA Margin	0.7%	1.3%	1.4%	1.2%	—
PAT (Net Profit)	-₹285 Cr	₹426 Cr	₹84 Cr	-₹165 Cr	—
EPS	₹-2.06	₹3.09	₹0.61	₹-1.2	—
ROE	-69.5%	50.8%	9.2%	-21.5%	—
ROCE	-52.4%	64.0%	24.1%	-11.6%	—
Total Debt	₹976 Cr	₹1,184 Cr	₹923 Cr	₹1,101 Cr	+4.1%
Free Cash Flow	-₹691 Cr	-₹42 Cr	₹297 Cr	-₹64 Cr	—

🟢 Revenue has grown at 22.1% a year over 3 years.

🟢 EBITDA has grown at 46.2% a year over 3 years.

🟡 EBITDA Margin has held roughly flat at 1.2% over 3 years.

🟢 ROE has risen from -69.5% to -21.5% over 3 years (+48.0 pts).

🟢 ROCE has risen from -52.4% to -11.6% over 3 years (+40.8 pts).

🔴 Total Debt has grown at 4.1% a year over 3 years.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹2,771 Cr

Total Liabilities

₹2,001 Cr

Cash & Equivalents

₹73 Cr

Operating Cash Flow

-₹56 Cr

Capex

-₹8 Cr

Shareholding (proxy)

Institutional Holding

0.3%

Insider Holding

79.9%

Peer Comparison

Company	P/E	ROE
MARUTI SUZUKI INDIA LTD.	25.2x	13.4%
TITAN COMPANY LIMITED	68.5x	36.7%
TRENT LTD	87.2x	25.9%
AVENUE SUPERMARTS LIMITED	69.9x	12.7%

Recent News

1 mixed5 general

8 Best Drone Stocks To Buy In India For October 2026

Samco, 14 Oct

RattanIndia Enterprises Share Price Falls 1.72% After Q1 FY27 Results

Univest, 06 AugPrice 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.

Stocks to buy under ₹100: Mehul Kothari of Anand Rathi recommends three shares to buy or sell

Livemint, 13 Jun

RattanIndia Enterprises Limited (NSE:RTNINDIA) Screens Well But There Might Be A Catch

Simply Wall Street, 12 Jan

Most Active Equities July 27: Eternal, RattanIndia in Focus

HDFC Sky, 27 Jul

RattanIndia Enterprises Share: Bull Case vs Bear Case for 2026

Univest, 18 Sept

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.

DalalBaazaar Thesis

StrongGrowth

WeakBusiness Quality · Financial Health · Profitability · Valuation · Risk

Points for each in the Score ↑

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

3 of 5 tripwires tripped — Debt / EBITDA falls below 3x; Free cash flow remains positive; Interest cover stays above 3x · see Key things to watch ↑