Rupa & Company Limited

Consumer Cyclical — Apparel Manufacturing · NSE

₹135.90+₹5.59 (+4.29%)

DalalBaazaar Score

62 / 100

🟢 Good

Verdict

REASONABLE

Risk

Low

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

In simple words: The business is earning a fairly low return on the money invested in it, with both sales and profits growing well. Nothing obvious stands out as stretched — 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 Rupa & Company Limited — what it does, how it earns, and who it competes with, before any of the numbers below.

What does this company do?

Rupa & Company Limited, together with its subsidiaries, manufactures, markets, sells, and distributes hosiery products in knitted undergarments, casual wears, and thermal wears for men, women, and kids in India and internationally.

IndustryApparel Manufacturing

SectorConsumer Cyclical

Employees842

Annual revenue₹1,254 Cr

How does it make money?

Turns over ₹1,254 Cr a year. Of every ₹100 of sales, about ₹6 reaches shareholders as profit, with ₹11 left at the operating level before interest, tax and depreciation. Each of its 842 employees supports ₹1.49 Cr of revenue a year, the signature of a capital- or asset-led business.

Revenue / employee₹1.49 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 10.7% 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 is the outlook?

1 analysts covering the stock expect revenue to grow about 5.0% and earnings to grow about 4.0% in the year to 2028. These are estimates by people who follow the company, not a forecast for the wider industry.

Est. revenue growth+5.0%

Est. earnings growth+4.0%

Analysts1

What has been driving growth?

Profit has moved mainly because margins changed, not because the business sold much more. Over 3 years revenue moved +10% 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+10%

Margin effect+22%

DalalBaazaar Score

62/ 100

Good

Weighted across six categories. Every point is explained below.

✗ ROE of 6.8% is weak

Quality vs. Valuation

Company Quality

58/ 100

Average

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

Valuation

80/ 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

14.4x

3Y Median

24.2x

40 monthly readings · mean 26.1x · range 10.6x–46.5x

Sector Median

69.2x

median of 4 sector peers

🟢Current valuation is approximately 41% below its 3y median of 24.2x. 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 79% below the peer median of 69.2x.

vs. its own history

Cheap

24.2x median over 40 months · -41%

vs. sector peers

Cheap

69.2x median of 4 peers · -79%

vs. generic bands

Cheap

Below 15x

EV/EBITDA

9.6x

PEG

1.37

What's Good / What's Bad

🟢 What's Going Well3

Margins are improving
EBITDA margin is up from 9.2% to 11.1% over 3 years.
Very low debt
Debt/Equity of 0.24x leaves the balance sheet with plenty of headroom.
Consistently profitable
Profitable in every one of the last 4 reported years.

🔴 What Needs Attention0

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

Red Flags

1 item require attention · 1 watch

🟡Receivables growing faster than salesFinancial
Receivables up 34% against revenue up 10% — sales are being booked faster than they are collected.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Margin expansion has further to run
EBITDA margin has risen from 9.2% to 11.1%. If that holds, profit compounds faster than sales and today's multiple looks cheaper in hindsight than it does now.
Priced below its own history
The stock trades 41% 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 79% below the sector median. Either the market sees a problem the numbers do not show, or the discount closes.
Self-funding with balance-sheet headroom
Positive free cash flow of ₹37 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 34% against revenue up 10%. 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 3.3% 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.
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 9%✓ 11.1%
Two points below today's level — enough room for noise, tight enough to catch real compression.
2Revenue growth stays above 4% a year✗ 3.3% CAGR
Latest reported year was 10.1%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
3Free cash flow remains positive✓ ₹37 Cr
Profit that never becomes cash eventually stops being profit.
4Debt / EBITDA stays below 2x✓ 1.8x
The ratio lenders write covenants against; it survives a small or negative equity base, unlike Debt/Equity.
5ROCE stays above 8%✓ 10.7%
Falling returns on capital are usually competition arriving, and show up here before they reach the margin.

Investment Checklist

8 / 12 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
✓ Analyst consensus isn't majority-sell
✗ Short-term technical trend isn't bearish

Price history

Quick Metrics

8 good · 2 neutral · 1 weak

Market Cap

₹1,081 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

14.4x

Cheap

Cheap against the generic band

P/B Ratio

1.01x

Reasonable

Reasonable against the company's book value

EPS (TTM)

₹9.45

Profitable

Profitable on a per-share basis

ROE

6.8%

Weak

Weak capital efficiency

ROCE

10.7%

Moderate

Moderate return on the capital in the business

Debt/Equity

0.24x

Low

Conservative leverage

Revenue Growth (YoY)

10.1%

Healthy

Healthy top-line growth

Profit Growth (YoY)

50.7%

Healthy

Profits growing at a healthy clip

Dividend Yield

2.21%

Healthy

Meaningful cash return while you hold the stock

Free Cash Flow

₹37 Cr

Cash generative

Generates cash even after funding its capex

More Metrics

P/E (Forward)

13.1x

Improving

Below the trailing multiple — the street expects earnings to grow into the price

Operating Margin

5.9%

Average

Average margins

Net Margin

5.9%

Average

Average bottom-line conversion

Current Ratio

2.59

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

0.65

Defensive

Steadier than the market

52W Range Position

28%

Mid-range

Technical Snapshot

SMA 20 / SMA 50

132.2 / 142.0

Bearish alignment (short < long)

Price vs SMA 200

Below

Long-term downtrend

RSI (14)

49.8

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹1,137 Cr	₹1,211 Cr	₹1,234 Cr	₹1,254 Cr	+3.3%
EBITDA	₹104 Cr	₹138 Cr	₹148 Cr	₹140 Cr	+10.3%
EBITDA Margin	9.2%	11.4%	12.0%	11.1%	—
PAT (Net Profit)	₹54 Cr	₹70 Cr	₹83 Cr	₹72 Cr	+10.5%
EPS	₹6.76	₹8.77	₹10.47	₹9.12	+10.5%
ROE	5.9%	7.3%	8.2%	6.8%	—
ROCE	9.7%	11.6%	12.7%	10.7%	—
Total Debt	₹258 Cr	₹235 Cr	₹238 Cr	₹258 Cr	+0.0%
Free Cash Flow	₹154 Cr	₹146 Cr	₹51 Cr	₹37 Cr	-37.8%

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

🟢 EBITDA has grown at 10.3% a year over 3 years.

🟢 EBITDA Margin has risen from 9.2% to 11.1% over 3 years (+2.0 pts).

🟢 PAT (Net Profit) has grown at 10.5% a year over 3 years.

🟢 EPS has grown at 10.5% a year over 3 years.

🟡 ROE has held roughly flat at 6.8% over 3 years.

🟢 ROCE has risen from 9.7% to 10.7% over 3 years (+1.1 pts).

🟡 Total Debt has been broadly flat over 3 years (0.0% a year).

🔴 Free Cash Flow has shrunk at 37.8% a year over 3 years.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹1,614 Cr

Total Liabilities

₹548 Cr

Cash & Equivalents

₹4 Cr

Operating Cash Flow

₹45 Cr

Capex

-₹8 Cr

Shareholding (proxy)

Institutional Holding

3.5%

Insider Holding

73.3%

Corporate Actions

Dividend Rate

₹3

Ex-Dividend Date

11 Sept 2026

Analyst Consensus

Recommendations

1 Buy · 0 Hold · 0 Sell

Target Price (Mean)

₹207

+52.3% vs CMP

Target Range

₹207 – ₹207

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 positive2 mixed3 general

Rupa & Company (RUPA) Share/Stock Price Live, NSE

TechGraph, 08 Oct

RUPA Forecast — Price Target — Prediction for 2027

TradingView, 25 JunAnalyst view

🟡Mixed / dependsBroker commentary — an opinion about the price rather than new information about the business.

Rupa and Company Stock Signals to Watch This Week

Univest, 24 Sept

Rupa & Company (RUPA.NS) Trades Near ₹142; Support and Resistance Define Near-Term Band - Zero Lag EMA

siam.in, 08 Sept

₹186: That's What Analysts Think Rupa & Company Limited (NSE:RUPA) Is Worth After Its Latest Results

Simply Wall Street, 16 FebAnalyst view

🟡Mixed / dependsBroker commentary — an opinion about the price rather than new information about the business.

Rupa & Company consolidated net profit rises 49.64% in the June 2026 quarter

Business Standard, 11 AugResults

🟢Potentially positiveReported improvement. Check whether it came from volume, price or a one-off item before treating it as a trend.

Watch Items

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

DalalBaazaar Thesis

StrongFinancial Health · Valuation

MiddlingBusiness Quality · Growth · Risk

WeakProfitability

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 — Revenue growth stays above 4% a year · see Key things to watch ↑