Formerly known as Teimangal Commercial Company Limited, Radhagobind Commercial was incorporated in May 1981 and operates in consultancy services and saree trading. However, the company's financial performance has been persistently weak, with minimal revenue generation and recurring losses. The stock has underperformed the broader market significantly, losing 59.49% over the past year whilst the Sensex gained 9.31%, resulting in an alpha of -68.80%.
The company's micro-cap status, combined with extremely low institutional interest (0.0% holdings), minimal trading volumes (1,945 shares on November 19), and zero promoter holding, raises serious concerns about corporate governance, liquidity, and long-term viability. The current Mojo Score of 12 out of 100 and a "Strong Sell" rating reflect the multitude of challenges facing this distressed retail entity.
Financial Performance: Persistent Losses and Minimal Revenue
Radhagobind Commercial's financial performance in the most recent available quarter (December 2016) paints a grim picture. The company reported net sales of ₹0.78 crores in Q3 FY17 (Dec'16), representing a dramatic year-on-year surge of 680.00% from ₹0.10 crores in the corresponding quarter of the previous year. However, this revenue jump failed to translate into profitability, as the company recorded a net loss of ₹0.09 crores during the quarter.
| Quarter | Net Sales (₹ Cr) | Operating Profit (₹ Cr) | PAT (₹ Cr) | PAT Margin (%) |
|---|---|---|---|---|
| Dec'16 | 0.78 | -0.10 | -0.09 | -10.93% |
| Sep'16 | 0.00 | -0.08 | -0.09 | 0.0% |
| Jun'16 | 0.00 | 0.36 | 0.29 | 70.6% |
| Dec'15 | 0.36 | 0.02 | 0.00 | 0.17% |
| Jun'15 | 0.10 | 0.06 | 0.04 | 25.79% |
The quarterly trend reveals extreme volatility in both revenue and profitability. In Q1 FY17 (Jun'16), the company achieved a positive net profit of ₹0.29 crores with a PAT margin of 70.6%, only to slip back into losses in subsequent quarters. The operating profit margin (excluding other income) stood at -12.41% in Dec'16, indicating that core business operations are consuming capital rather than generating returns. This erratic performance pattern, coupled with minimal absolute revenue figures, underscores the company's inability to establish a sustainable business model.
On an annual basis, the company reported net sales of ₹1.00 crore for FY16 (March 2016), with negligible profitability. The five-year sales growth stands at -1.23%, whilst EBIT growth over the same period is -3.66%, both reflecting a deteriorating revenue trajectory. The company's total expenditure matched its revenue at ₹1.00 crore in FY16, leaving no room for profit generation.
Critical Financial Red Flags
Negative Book Value: The company's price-to-book ratio of -0.47x indicates that liabilities exceed assets, a fundamental sign of financial distress. This negative book value severely undermines any investment case and raises questions about the company's ability to continue as a going concern.
Loss-Making Operations: With a P/E ratio marked as "NA (Loss Making)" and recurring quarterly losses, the company has failed to demonstrate any path to profitability. The PAT margin of -10.93% in the latest quarter reflects structural operational inefficiencies.
Balance Sheet Concerns: Negative Equity and Minimal Assets
Radhagobind Commercial's balance sheet reveals a company in severe financial distress. The negative book value is perhaps the most alarming indicator, suggesting that the company's liabilities substantially exceed its assets. This situation typically arises from accumulated losses over multiple years, eroding shareholders' equity to below zero.
On a positive note, the company maintains a net cash position with a net debt-to-equity ratio of -0.29, indicating it is debt-free on a net basis. The average debt-to-EBITDA ratio is described as "Negative Net Debt", which would ordinarily be a strength. However, in the context of negative book value and persistent losses, this simply reflects the absence of borrowing capacity rather than prudent financial management. No credible lender would extend significant debt to a company with such weak fundamentals.
The company's return on capital employed (ROCE) averages 21.94% over recent years, which appears strong on the surface. However, the latest ROCE is marked as "Negative Capital Employed", indicating that the denominator (capital employed) has turned negative due to the erosion of equity. This makes the historical ROCE figure misleading and not representative of current operational efficiency. Meanwhile, the average return on equity (ROE) stands at 0.0%, reflecting the company's inability to generate returns for shareholders.
Shareholding Pattern: Zero Promoter Stake Raises Governance Concerns
One of the most concerning aspects of Radhagobind Commercial is its shareholding structure. As of September 2025, the company has zero promoter holding, with 100.00% of shares held by non-institutional investors. This complete absence of promoter stake is highly unusual and raises significant questions about management commitment, strategic direction, and corporate governance.
| Quarter | Promoter (%) | FII (%) | Mutual Fund (%) | Non-Institutional (%) |
|---|---|---|---|---|
| Sep'25 | 0.00% | 0.00% | 0.00% | 100.00% |
| Jun'25 | 0.00% | 0.36% | 0.00% | 99.64% |
| Mar'25 | 0.00% | 0.36% | 0.00% | 99.64% |
| Dec'24 | 0.00% | 0.38% | 0.00% | 99.62% |
| Sep'24 | 0.00% | 0.00% | 0.00% | 100.00% |
Foreign institutional investor (FII) holdings, which briefly appeared at 0.38% in December 2024, have completely exited by September 2025 (declining by 0.36% quarter-on-quarter). There are zero mutual fund holdings, zero insurance company holdings, and zero other domestic institutional investor (DII) holdings. This complete absence of institutional interest signals a lack of confidence in the company's prospects and suggests that sophisticated investors have avoided or abandoned this stock.
The dominance of non-institutional shareholders (100.00%) combined with extremely low trading volumes (1,945 shares on November 19) creates severe liquidity concerns. Investors seeking to exit positions may struggle to find buyers, potentially facing significant price impact and delays in execution.
Peer Comparison: Underperforming Across All Metrics
When compared to peers in the retailing sector, Radhagobind Commercial ranks at the bottom across virtually every financial metric. The peer group includes Umiya Mobile, Novelix Pharma, MRP Agro, Jay Ambe Supermarket, and Ace Men, all of which demonstrate superior financial health and operational performance.
| Company | P/E (TTM) | ROE (%) | Debt-to-Equity | Price-to-Book |
|---|---|---|---|---|
| Radhagobind Comm | NA (Loss Making) | 0.0% | -0.29 | -0.47 |
| Umiya Mobile | 24.52 | 34.37% | 1.45 | 3.14 |
| Novelix Pharma | 113.53 | 0.74% | -0.06 | 4.21 |
| MRP Agro | 15.10 | 18.34% | -0.32 | 3.13 |
| Jay Ambe Super. | 34.83 | 20.54% | 0.62 | 7.16 |
| Ace Men | 735.89 | 4.26% | 0.00 | 7.61 |
Radhagobind Commercial's ROE of 0.0% compares unfavourably to the peer average of approximately 16%, with Umiya Mobile leading at 34.37%. The company's negative price-to-book ratio of -0.47x stands in stark contrast to peers trading at positive multiples ranging from 3.13x to 7.61x. This valuation discount reflects the market's recognition of the company's fundamental weaknesses and negative book value.
With a market capitalisation of just ₹2.00 crores, Radhagobind Commercial ranks last (#6) among its peer group, underscoring its status as an ultra-micro-cap stock with limited market relevance. The company's inability to generate profits whilst peers demonstrate varying degrees of profitability highlights its competitive disadvantage within the retail sector.
Stock Performance: Severe Underperformance Across All Timeframes
Radhagobind Commercial's stock performance has been dismal across all measured timeframes, with the stock trading at ₹1.58 as of November 19, 2025, down 4.82% on the day. The stock is currently trading 69.08% below its 52-week high of ₹5.11 and just 10.49% above its 52-week low of ₹1.43, indicating it is hovering near multi-year lows.
| Period | Stock Return (%) | Sensex Return (%) | Alpha (%) |
|---|---|---|---|
| 1 Week | -10.23% | +0.39% | -10.62% |
| 1 Month | -8.67% | +1.01% | -9.68% |
| 3 Months | -18.97% | +3.87% | -22.84% |
| 6 Months | -36.55% | +3.34% | -39.89% |
| YTD | -53.39% | +8.52% | -61.91% |
| 1 Year | -59.49% | +9.31% | -68.80% |
| 2 Years | +1.28% | +28.89% | -27.61% |
| 3 Years | -42.65% | +37.52% | -80.17% |
The returns analysis reveals consistent and severe underperformance relative to the Sensex benchmark. Over the past year, the stock has plummeted 59.49% whilst the Sensex gained 9.31%, resulting in a negative alpha of -68.80%. The year-to-date performance is equally dire, with the stock down 53.39% compared to the Sensex's gain of 8.52%.
Even over longer timeframes, the stock has failed to deliver positive returns. The three-year return stands at -42.65% versus the Sensex's gain of 37.52%, producing an alpha of -80.17%. The stock's risk-adjusted return over one year is -0.95, with volatility at an extremely high 62.89%, categorising it as "HIGH RISK LOW RETURN". The stock's beta of 1.50 indicates it is more volatile than the broader market, amplifying losses during downturns.
The stock trades below all key moving averages—5-day (₹1.72), 20-day (₹1.68), 50-day (₹1.77), 100-day (₹2.02), and 200-day (₹2.27)—confirming the entrenched bearish trend. Technical indicators across weekly and monthly timeframes show bearish signals, with MACD bearish, Bollinger Bands bearish, and the overall trend categorised as "BEARISH" since November 14, 2025.
Valuation Analysis: Risky and Uninvestable
Radhagobind Commercial's valuation metrics paint a picture of a company that is fundamentally uninvestable by conventional standards. The P/E ratio is marked as "NA (Loss Making)" due to persistent losses, making traditional earnings-based valuation impossible. The price-to-book value of -0.47x reflects the negative book value, indicating that the company's liabilities exceed its assets—a critical red flag that suggests potential insolvency risk.
The enterprise value (EV) to EBITDA multiple stands at -3.87x, and EV to EBIT is similarly negative at -3.87x. These negative multiples arise from the company's minimal enterprise value (given the micro-cap status and net cash position) combined with negative or negligible operating profits. The EV to sales ratio is marked as "NA", further highlighting the difficulty in applying standard valuation frameworks to this distressed entity.
The overall valuation assessment is categorised as "RISKY", with the valuation grade history showing changes between "Risky" and "Does Not Qualify" over recent periods. The company does not pay dividends (dividend yield: NA), which is unsurprising given its loss-making status. The absence of any dividend payout ratio (0.0) means shareholders receive no income whilst enduring significant capital erosion.
"With negative book value, persistent losses, zero promoter holding, and no institutional interest, Radhagobind Commercial represents a classic value trap—a stock that appears cheap but lacks any fundamental basis for recovery."
Quality Assessment: Below Average with Multiple Red Flags
The company's overall quality grade is "BELOW AVERAGE", reflecting long-term financial underperformance across multiple dimensions. The quality status description states: "Below Average quality company basis long term financial performance." This assessment is based on several concerning factors that collectively undermine any investment thesis.
The five-year sales growth of -1.23% and five-year EBIT growth of -3.66% demonstrate a shrinking business with deteriorating profitability. The average EBIT-to-interest coverage ratio is 0.0x, indicating the company generates insufficient operating profit to cover even minimal interest expenses. Whilst the company maintains a net cash position (average net debt-to-equity of -0.29), this is more a reflection of its inability to access debt markets rather than a strategic choice.
The average ROCE of 21.94% appears strong on paper, but the latest ROCE is marked as "Negative Capital Employed", rendering the historical average meaningless. Similarly, the average ROE of 0.0% confirms the company's failure to generate returns for equity holders. The tax ratio is described as "Tax Ratio is Negative%", which typically occurs when companies have losses and receive tax credits or refunds.
On the positive side, the company has zero pledged shares (0.0%), indicating no promoter leverage concerns—though this is moot given zero promoter holding. Institutional holdings stand at 0.0%, reflecting a complete absence of sophisticated investor interest. The quality grade history shows the company has oscillated between "Below Average" and "Does Not Qualify" categories, never achieving investment-grade quality status.
Financial Trend: Flat Performance with No Growth Catalysts
The short-term financial trend as of September 2025 is categorised as "FLAT", which in the context of this company means stagnation at distressed levels rather than stable performance. The trend history reveals periodic shifts between "Flat", "Negative", and briefly "Positive" over the years, but no sustained improvement trajectory has emerged.
The most recent positive factor cited is that PBDIT (operating profit before depreciation, interest, and tax) in the quarterly data is "Highest at ₹-0.04 Crores"—which is actually a loss, albeit the smallest loss in recent quarters. This highlights the low bar for "positive" developments in the company's performance. The trend history shows the company moved to "Flat" from "Negative" in February 2024, and prior to that, oscillated between various states without establishing consistent positive momentum.
Key Strengths (Limited)
- Net cash position with debt-to-equity ratio of -0.29
- Zero promoter pledging (though 0% promoter holding)
- Historical ROCE of 21.94% (though latest is negative)
- Small equity base of ₹1.44 crores allows for potential turnaround with minimal capital
- Established corporate entity since 1981
Key Concerns (Critical)
- Negative book value (P/BV of -0.47x)
- Persistent losses with PAT of -₹0.09 crores in latest quarter
- Zero promoter holding raises governance concerns
- Zero institutional holdings (FII, MF, Insurance, DII all at 0%)
- Extremely low liquidity with minimal trading volumes
- Stock down 59.49% over one year vs Sensex +9.31%
- Bearish technical trend across all timeframes
- Negative five-year sales growth (-1.23%) and EBIT growth (-3.66%)
- ROE of 0.0% indicates no shareholder value creation
- Ultra-micro-cap status (₹2.00 crores market cap)
Outlook: No Clear Path to Recovery
The outlook for Radhagobind Commercial remains deeply concerning, with no visible catalysts for improvement. The company's Mojo Score of 12 out of 100 places it firmly in the "STRONG SELL" category (0-30 range), with the recommendation to "Strongly consider selling" or "Exit recommended". The score history shows the company has oscillated between "Strong Sell" and "Sell" ratings over recent periods, never approaching investment-grade territory.
The Mojo 4 Dots Analysis provides a comprehensive assessment: Near-term drivers are "MIXED" with flat financial performance and bearish technicals; Quality is "BELOW AVERAGE"; Valuation is "RISKY"; and the overall assessment is "MIXED" with "Mixed signals across parameters". This analysis confirms that the company faces challenges across all fundamental dimensions.
Positive Catalysts (Unlikely)
- Significant operational restructuring and new management
- Capital infusion from strategic investor or promoter
- Successful business model pivot to profitable segments
- Asset monetisation to improve book value
Red Flags (Immediate)
- Continued quarterly losses eroding remaining equity
- Further deterioration in book value towards insolvency
- Delisting risk due to non-compliance or voluntary exit
- Complete absence of institutional or promoter support
- Inability to raise capital given current financial state
The company's key concerns, as identified in the Mojo analysis, include: "Stock in bearish technical trend", "Flat financial performance in recent quarter", "With a Negative Book Value, the company has a Weak Long Term Fundamental Strength", and "Flat results in Jun 25". The sole stated strength—"High Debt Company with a Debt to Equity ratio (avg) at 0 times"—is actually a neutral factor given the context of operational distress.
For investors currently holding this stock, the priority should be exit planning, though liquidity constraints may make immediate exits difficult. Fresh investors should avoid this stock entirely, as it presents high risk with no discernible return potential. The company would need to demonstrate multiple consecutive quarters of profitability, secure credible management with a viable turnaround plan, and restore positive book value before it could be considered for even speculative investment.
The Verdict: A Distressed Micro-Cap to Avoid
Score: 12/100
For Fresh Investors: Avoid entirely. The combination of negative book value, persistent losses, zero promoter holding, no institutional interest, and severe technical weakness makes this an uninvestable proposition. The stock presents high risk with no foreseeable catalysts for recovery.
For Existing Holders: Exit positions as soon as liquidity permits, even at current depressed levels. Holding this stock exposes investors to potential further erosion of capital with minimal prospects for turnaround. The negative book value suggests fundamental solvency concerns that could worsen.
Fair Value Estimate: Not applicable given negative book value and loss-making operations. Current price of ₹1.58 may still overvalue the company's distressed fundamentals.
Note- ROCE= (EBIT - Other income)/(Capital Employed - Cash - Current Investments)
⚠️ Investment Disclaimer
This article is for educational and informational purposes only and should not be construed as financial advice. Investors should conduct their own due diligence, consider their risk tolerance and investment objectives, and consult with a qualified financial advisor before making any investment decisions.
