Rubfila International Limited

Basic Materials — Specialty Chemicals · NSE

₹64.10−₹1.89 (−2.86%)

DalalBaazaar Score

54 / 100

🟡 Moderate

Verdict

CAUTION

Risk

High

Driven by negative free cash flow, micro-cap size, which brings thin liquidity, falling profits.

In simple words: Reasonable but unspectacular business quality, but sales are shrinking. Cash generation is currently the main factor to watch.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 8:28 pm

Understanding the Business

Company site ↗

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

What does this company do?

Rubfila International Limited manufactures and sells rubber threads in India, rest of Asia, Europe, Africa, and America. It operates through two segments, Heat Resistant Latex Rubber Thread and Corrugated Carton Box.

IndustrySpecialty Chemicals

SectorBasic Materials

Employees356

Annual revenue₹600 Cr

How does it make money?

Turns over ₹600 Cr a year. Of every ₹100 of sales, about ₹4 reaches shareholders as profit, with ₹8 left at the operating level before interest, tax and depreciation. Each of its 356 employees supports ₹1.68 Cr of revenue a year, the signature of a capital- or asset-led business.

Revenue / employee₹1.68 Cr

Who are its competitors?

The closest listed comparisons in its industry are ASIAN PAINTS LIMITED, PIDILITE INDUSTRIES LTD, SRF LTD, UPL 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 10.9% 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 ROE22.3%

What has been driving growth?

Sales and margins have both contributed to where profit is now. Over 3 years revenue moved +32% while net margin moved -22% 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+32%

Margin effect-22%

DalalBaazaar Score

54/ 100

Moderate

Weighted across six categories. Every point is explained below.

✗ ROE of 8.4% is weak

Quality vs. Valuation

Company Quality

50/ 100

Average

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

Valuation

71/ 100

Cheap

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

13.2x

2Y Median

14.4x

28 monthly readings · mean 14.9x · range 11.1x–18.7x

Sector Median

40.4x

median of 4 sector peers

🟡Currently trading close to its 2y median of 14.4x — the market is paying about what it usually pays for this company.

🟢Against its sector it trades 67% below the peer median of 40.4x.

vs. its own history

Fair

14.4x median over 28 months · -9%

vs. sector peers

Cheap

40.4x median of 4 peers · -67%

vs. generic bands

Cheap

Below 15x

EV/EBITDA

7.0x

PEG

15.70

What's Good / What's Bad

🟢 What's Going Well2

Debt is being paid down
Total debt is down 19% over 3 years.
Consistently profitable
Profitable in every one of the last 4 reported years.

🔴 What Needs Attention1

Margins are compressing
EBITDA margin has slipped from 9.7% to 8.1% over 3 years.

Red Flags

2 items require attention · 2 watch

🟡Free cash flow is negativeFinancial
Free cash flow was -₹22 Cr in the latest year.
🟡Receivables growing faster than salesFinancial
Receivables up 63% against revenue up 32% — sales are being booked faster than they are collected.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Deleveraging frees up earnings
Debt is down 19% over 3 years. Every rupee of interest not paid drops to the bottom line, so profit can grow even if revenue does not.
Cheaper than its peers
It trades 67% below the sector median. Either the market sees a problem the numbers do not show, or the discount closes.
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?

Margins are being competed away
EBITDA margin has fallen from 9.7% to 8.1%. If the trend continues, profit falls even on flat sales — and margin decline rarely reverses quickly.
Sales are being booked faster than collected
Receivables are up 63% against revenue up 32%. If customers keep taking longer to pay, reported profit will not turn into cash — and write-offs follow if some never do.
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

1EBITDA margin holds above 6%✓ 8.1%
Two points below today's level — enough room for noise, tight enough to catch real compression.
2Free cash flow remains positive✗ -₹22 Cr
Profit that never becomes cash eventually stops being profit.
3Revenue growth stays above 7% a year✓ 9.6% CAGR
Latest reported year was -7.9%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
4Debt / EBITDA stays below 2x✓ 0.0x
The ratio lenders write covenants against; it survives a small or negative equity base, unlike Debt/Equity.
5ROCE stays above 8%✓ 10.9%
Falling returns on capital are usually competition arriving, and show up here before they reach the margin.

Investment Checklist

4 / 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

5 good · 3 neutral · 3 weak

Market Cap

₹348 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

13.2x

Cheap

Cheap against the generic band

P/B Ratio

1.10x

Reasonable

Reasonable against the company's book value

EPS (TTM)

₹4.86

Profitable

Profitable on a per-share basis

ROE

8.4%

Moderate

Moderate capital efficiency

ROCE

10.9%

Moderate

Moderate return on the capital in the business

Debt/Equity

0.31x

Low

Conservative leverage

Revenue Growth (YoY)

-7.9%

Shrinking

Sales are contracting

Profit Growth (YoY)

-13.0%

Falling

Profits are shrinking

Dividend Yield

3.12%

Healthy

Meaningful cash return while you hold the stock

Free Cash Flow

-₹22 Cr

Cash burning

Spending more cash than the operations bring in

More Metrics

Operating Margin

4.8%

Weak

Thin margins leave little room for error

Net Margin

4.4%

Average

Average bottom-line conversion

Current Ratio

5.88

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

0.85

Market-like

Moves roughly in line with the market

52W Range Position

24%

Mid-range

Technical Snapshot

SMA 20 / SMA 50

64.0 / 66.7

Bearish alignment (short < long)

Price vs SMA 200

Below

Long-term downtrend

RSI (14)

52.6

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹455 Cr	₹468 Cr	₹548 Cr	₹600 Cr	+9.6%
EBITDA	₹44 Cr	₹44 Cr	₹51 Cr	₹49 Cr	+3.3%
EBITDA Margin	9.7%	9.3%	9.3%	8.1%	—
PAT (Net Profit)	₹26 Cr	₹25 Cr	₹29 Cr	₹27 Cr	+0.8%
EPS	₹4.78	₹4.62	₹5.42	₹4.9	+0.8%
ROE	10.3%	9.4%	10.0%	8.6%	—
ROCE	12.7%	11.0%	12.4%	10.9%	—
Total Debt	₹1 Cr	₹1 Cr	₹1 Cr	₹1 Cr	-6.9%
Free Cash Flow	₹4 Cr	₹24 Cr	₹13 Cr	-₹22 Cr	—

🟢 Revenue has grown at 9.6% a year over 3 years.

🟢 EBITDA has grown at 3.3% a year over 3 years.

🔴 EBITDA Margin has fallen from 9.7% to 8.1% over 3 years (-1.6 pts).

🟡 PAT (Net Profit) has been broadly flat over 3 years (0.8% a year).

🟡 EPS has been broadly flat over 3 years (0.8% a year).

🔴 ROE has fallen from 10.3% to 8.6% over 3 years (-1.7 pts).

🔴 ROCE has fallen from 12.7% to 10.9% over 3 years (-1.8 pts).

🟢 Total Debt has shrunk at 6.9% a year over 3 years.

🔴 Free Cash Flow has turned negative, from ₹4 Cr to -₹22 Cr.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹379 Cr

Total Liabilities

₹69 Cr

Cash & Equivalents

₹10 Cr

Operating Cash Flow

-₹3 Cr

Capex

-₹19 Cr

Shareholding (proxy)

Institutional Holding

0.0%

Insider Holding

66.0%

Corporate Actions

Dividend Rate

₹2

Ex-Dividend Date

22 Sept 2026

Peer Comparison

Company	P/E	ROE
ASIAN PAINTS LIMITED	46.9x	22.3%
PIDILITE INDUSTRIES LTD	57.8x	24.4%
SRF LTD	33.8x	15.4%
UPL LIMITED	21.5x	6.1%

Recent News

1 positive1 negative4 general

Is Rubfila International the Best Stock in Its Sector? A Look at the Numbers

Univest, 07 Oct

Rubfila International Ltd. Shareholding Pattern – Promoters, FIIs & DIIs

Value Research, 27 Aug

Rubfila International FY26 net profit rises, dividend declared

scanx.trade, 26 MayCapital return

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

Rubfila International Ltd

Equitypandit, 20 Feb

Rubfila International consolidated net profit declines 13.30% in the June 2026 quarter

Business Standard, 11 AugResults

🔴Potentially negativeReported deterioration, which feeds the growth and margin inputs on this page directly.

Rubfila International Share: Bull Case vs Bear Case for 2026

Univest, 18 Sept

Watch Items

Revenue growth is negative (-7.9%) on the latest reported period — check if this is one-off or a trend.
Cross-check against the company's latest quarterly filing / investor presentation before acting.

DalalBaazaar Thesis

StrongFinancial Health · Valuation

MiddlingBusiness Quality · Risk

WeakGrowth · Profitability

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.

1 of 5 tripwires tripped — Free cash flow remains positive · see Key things to watch ↑