Rudra Gas Enterprise Limited

Industrials — Engineering & Construction · BSE

₹73.50+₹3.49 (+4.99%)

DalalBaazaar Score

61 / 100

🟢 Good

Verdict

NEUTRAL

Risk

Very High

Driven by moderate debt load, negative free cash flow, micro-cap size, which brings thin liquidity.

In simple words: Strong business and financial position, with both sales and profits growing well. Cash generation is currently the main factor to watch.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 7:44 pm

Understanding the Business

Company site ↗

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

What does this company do?

Rudra Gas Enterprise Limited engages in the provision of end-to-end solutions for city gas distribution sector in India.

IndustryEngineering & Construction

SectorIndustrials

Employees49

Annual revenue₹124 Cr

How does it make money?

Turns over ₹124 Cr a year. Of every ₹100 of sales, about ₹7 reaches shareholders as profit, with ₹13 left at the operating level before interest, tax and depreciation. Each of its 49 employees supports ₹2.53 Cr of revenue a year, the signature of a capital- or asset-led business.

Revenue / employee₹2.53 Cr

Who are its competitors?

The closest listed comparisons in its industry are LARSEN & TOUBRO LTD., ADANI PORT & SEZ LTD, SIEMENS 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?The numbers suggest a real one

ROCE has stayed above 15% in every year available and stands at 25.0%. Returns that high normally get competed away; when they persist, something is protecting them, and its ROE of 23.4% against a peer median of 14.1% is consistent with that. What that something is — brand, scale, switching costs, regulation — the accounts cannot tell you.

Peer median ROE14.1%

What has been driving growth?

Growth has come mainly from selling more, rather than from keeping more of each sale. Over 3 years revenue moved +151% while net margin moved -6% 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+151%

Margin effect-6%

DalalBaazaar Score

61/ 100

Good

Weighted across six categories. Every point is explained below.

✗ Beta of 1.91 — amplifies market moves in both directions
✗ Micro Cap: thinner liquidity and sharper drawdowns are normal
✗ Negative free cash flow means dependence on external funding

Quality vs. Valuation

Company Quality

60/ 100

Average

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

Valuation

88/ 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

7.1x

3Y Median

11.9x

34 monthly readings · mean 17.8x · range 7.5x–49.3x

Sector Median

30.1x

median of 3 sector peers

🟢Current valuation is approximately 40% below its 3y median of 11.9x. Cheaper than its own history, which is worth a reason too: the market may be pricing in something the backward-looking numbers do not show.

🟢Against its sector it trades 76% below the peer median of 30.1x.

vs. its own history

Cheap

11.9x median over 34 months · -40%

vs. sector peers

Cheap

30.1x median of 3 peers · -76%

vs. generic bands

Cheap

Below 15x

EV/EBITDA

7.1x

PEG

0.22

What's Good / What's Bad

🟢 What's Going Well2

High return on capital employed
ROCE of 25.0% is the mark of a business that converts capital into profit efficiently.
Consistently profitable
Profitable in every one of the last 4 reported years.

🔴 What Needs Attention2

Return on equity is falling
ROE has dropped from 45.4% to 21.0% — each rupee of shareholder capital earns less than it did.
Return on capital is falling
ROCE has declined from 43.5% to 25.0% — often a sign of competition or overexpansion.

Red Flags

5 items require attention · 5 high

🔴Debt has risen sharplyFinancial
Total debt is up 234% over 3 years, from ₹17 Cr to ₹58 Cr.
🔴Free cash flow negative for 4 yearsFinancial
The business has not covered its capital spending from operations for several years running, which has to be funded externally.
🔴Profit up while operating cash flow fallsFinancial
Reported profit rose but cash generated by operations declined — worth checking whether earnings are being supported by non-cash items or working capital.
🔴Receivables growing faster than salesFinancial
Receivables up 434% against revenue up 151% — sales are being booked faster than they are collected.
🔴Inventory building faster than salesFinancial
Inventory up 257% against revenue up 151% — stock may not be moving.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Capital compounds at a high rate
ROCE of 25.0% 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.
Priced below its own history
The stock trades 40% below its own median multiple. If the business performs as it has and simply re-rates back to normal, that gap is return on its own.
Cheaper than its peers
It trades 76% 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?

The debt load needs earnings to hold up
Debt is 3.6x EBITDA. At that level a downturn in earnings turns a manageable balance sheet into a refinancing problem, and lenders get paid before shareholders.
Sales are being booked faster than collected
Receivables are up 434% against revenue up 151%. If customers keep taking longer to pay, reported profit will not turn into cash — and write-offs follow if some never do.
Returns on shareholder capital are falling
ROE has dropped from 45.4% to 21.0%. 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
5 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 27% a year✓ 36.0% CAGR
Latest reported year was 22.6%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
2EBITDA margin holds above 11%✓ 12.9%
Two points below today's level — enough room for noise, tight enough to catch real compression.
3Debt / EBITDA falls below 3x✗ 3.6x
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✗ -₹28 Cr
Profit that never becomes cash eventually stops being profit.
5ROCE stays above 22%✓ 25.0%
Falling returns on capital are usually competition arriving, and show up here before they reach the margin.

Investment Checklist

8 / 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

7 good · 3 neutral · 1 weak

Market Cap

₹61 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

7.1x

Cheap

Cheap against the generic band

P/B Ratio

1.50x

Reasonable

Reasonable against the company's book value

EPS (TTM)

₹10.28

Profitable

Profitable on a per-share basis

ROE

23.4%

Strong

Strong capital efficiency

ROCE

25.0%

Strong

Earns comfortably above its likely cost of capital

Debt/Equity

1.42x

Moderate

Moderate leverage

Revenue Growth (YoY)

22.6%

Healthy

Healthy top-line growth

Profit Growth (YoY)

55.5%

Healthy

Profits growing at a healthy clip

Dividend Yield

None

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

Free Cash Flow

-₹33 Cr

Cash burning

Spending more cash than the operations bring in

More Metrics

ROA

10.6%

Good

Assets are working hard

Operating Margin

14.1%

Average

Average margins

Net Margin

6.9%

Average

Average bottom-line conversion

Current Ratio

1.73

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

1.91

High swing

Swings more than the market in both directions

52W Range Position

38%

Mid-range

Technical Snapshot

SMA 20 / SMA 50

72.0 / 71.9

Bullish alignment (short > long)

Price vs SMA 200

Above

Long-term uptrend

RSI (14)

52.2

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹49 Cr	₹64 Cr	₹100 Cr	₹124 Cr	+36.0%
EBITDA	₹7 Cr	₹9 Cr	₹12 Cr	₹16 Cr	+31.4%
EBITDA Margin	14.3%	14.2%	11.6%	12.9%	—
PAT (Net Profit)	₹4 Cr	₹5 Cr	₹6 Cr	₹9 Cr	+33.2%
EPS	₹4.35	₹7.33	₹7.48	—	—
ROE	45.4%	17.8%	19.3%	21.0%	—
ROCE	43.5%	24.9%	26.0%	25.0%	—
Total Debt	₹17 Cr	₹21 Cr	₹24 Cr	₹58 Cr	+49.4%
Free Cash Flow	-₹2 Cr	-₹6 Cr	-₹5 Cr	-₹28 Cr	—

🟢 Revenue has grown at 36.0% a year over 3 years.

🟢 EBITDA has grown at 31.4% a year over 3 years.

🔴 EBITDA Margin has fallen from 14.3% to 12.9% over 3 years (-1.4 pts).

🟢 PAT (Net Profit) has grown at 33.2% a year over 3 years.

🔴 ROE has fallen from 45.4% to 21.0% over 3 years (-24.4 pts).

🔴 ROCE has fallen from 43.5% to 25.0% over 3 years (-18.5 pts).

🔴 Total Debt has grown at 49.4% a year over 3 years.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹124 Cr

Total Liabilities

₹83 Cr

Cash & Equivalents

₹5 Cr

Operating Cash Flow

-₹22 Cr

Capex

-₹6 Cr

Shareholding (proxy)

Institutional Holding

0.0%

Insider Holding

73.2%

Peer Comparison

Company	P/E	ROE
LARSEN & TOUBRO LTD.	30.1x	15.2%
ADANI PORT & SEZ LTD	29.9x	14.1%
SIEMENS LTD	88.8x	10.5%

Recent News

1 mixed1 negative4 general

Rudra Gas Enterprise Enters Share Purchase Deal To Buy 71% In DS Pipeline Projects For ₹18.38 Crore

scanx.trade, 01 Apr

Rudra Gas Enterprise Ltd Key Financial Ratios – Valuation, Profitability & More

Value Research, 01 Sept

Rudra Gas Enterprise Ltd Peer Comparison – Compare with Others

Value Research, 31 Aug

Rudra Gas Enterprise promoters pledge shares to secure loan

scanx.trade, 05 JunOwnership

🔴Potentially negativePromoter selling or pledging is a signal worth understanding, though the reason is often personal rather than about the business.

Rudra Gas Enterprise lists at 90% premium over issue price on BSE SME

Moneycontrol.com, 15 Feb

Rudra Gas Enterprise declares unanimous AGM results; Kush Patel re-appointed

scanx.trade, 28 SeptResults

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

Watch Items

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

DalalBaazaar Thesis

StrongGrowth · Valuation

MiddlingBusiness Quality · Financial Health · Profitability

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

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