The company's financial position has deteriorated to such an extent that shareholder funds turned negative at -₹3.65 crores as of March 2025, whilst the company has reported zero sales for seven consecutive quarters through September 2025. With a negative book value per share of ₹0.23, Risa International represents a case study in corporate distress within India's trading sector.
The stock's technical indicators paint an equally grim picture, with all major moving averages—from the 5-day MA at ₹0.53 to the 200-day MA at ₹0.76—positioned well above the current price. The bearish trend, which commenced on January 5, 2026, reflects mounting investor concern about the company's viability as a going concern.
| Quarter | Net Sales (₹ Cr) | Net Profit (₹ Cr) | Operating Profit (₹ Cr) | Interest (₹ Cr) |
|---|---|---|---|---|
| Sep'25 | 0.00 | -0.10 | -0.03 | 0.07 |
| Jun'25 | 0.00 | -0.15 | -0.10 | 0.05 |
| Mar'25 | 0.00 | -8.69 | -8.65 | 0.04 |
| Dec'24 | 0.00 | -0.09 | -0.05 | 0.04 |
| Sep'24 | 0.00 | -0.10 | -0.06 | 0.04 |
| Jun'24 | 0.00 | -0.12 | -0.08 | 0.04 |
| Mar'24 | 0.00 | -0.09 | -0.06 | 0.03 |
Financial Performance: A Company Without Operations
The second quarter of FY26 saw Risa International post a net loss of ₹0.10 crores, marginally improved from the ₹0.15 crores loss in Q1 FY26 but still reflecting a company devoid of revenue-generating activities. The absence of sales for seven consecutive quarters—dating back to at least March 2024—underscores a fundamental question about the company's operational status and future viability.
On a half-yearly basis for H1 FY26, the company accumulated losses of ₹0.25 crores whilst generating zero revenue. The operating loss before interest for Q2 FY26 stood at ₹0.03 crores, with employee costs of ₹0.02 crores representing the primary expense alongside interest payments of ₹0.07 crores. This interest burden, despite the company having no reported long-term debt on its balance sheet, suggests short-term borrowings or other financial obligations that continue to drain resources.
The March 2025 quarter was particularly catastrophic, recording a massive loss of ₹8.69 crores—likely reflecting substantial write-offs or provisions that further eroded shareholder equity. This single-quarter loss represented more than the company's entire current market capitalisation, highlighting the severity of the financial distress.
Critical Alert: Negative Shareholder Equity
Risa International's shareholder funds turned negative at -₹3.65 crores as of March 2025, down from positive ₹5.36 crores in March 2024. The company's reserves and surplus stand at -₹35.55 crores against share capital of ₹31.90 crores, resulting in a book value per share of -₹0.23. This represents a complete erosion of shareholder wealth and raises serious going concern questions.
Balance Sheet Deterioration: From Viability to Distress
The company's balance sheet tells a story of systematic deterioration over recent years. Shareholder funds, which stood at a healthy ₹24.17 crores in March 2020, have collapsed to -₹3.65 crores by March 2025—a shocking erosion of ₹27.82 crores in shareholder value over five years. The reserves and surplus account has plummeted from -₹7.73 crores in March 2020 to -₹35.55 crores in March 2025, reflecting cumulative losses that have overwhelmed the company's equity base.
Current assets have shrunk dramatically from ₹41.44 crores in March 2020 to just ₹0.09 crores in March 2025, whilst current liabilities have reduced from ₹23.50 crores to ₹8.57 crores over the same period. Trade payables remain stuck at ₹6.47 crores for the past five years, suggesting creditors may have little hope of recovery and the company lacks the resources to settle outstanding obligations.
The company maintains zero fixed assets as of March 2025, down from a negligible ₹0.02 crores in March 2020, and holds no investments. This complete absence of productive assets, combined with minimal current assets and zero revenue generation, paints a picture of a corporate shell rather than an operating business entity.
Operational Challenges: The Complete Absence of Business Activity
Perhaps the most alarming aspect of Risa International's situation is the complete cessation of business operations. The company last reported meaningful sales in the financial year ending March 2019, when it generated ₹14.00 crores in revenue—itself a 77.80% collapse from the ₹63.00 crores reported in March 2017. Since March 2019, the company has reported zero sales annually and quarterly, indicating a business that has effectively shut down all trading and distribution activities.
The company's historical performance shows it once operated as a viable trading entity. In FY2015, Risa International generated ₹176.00 crores in sales with a net profit of ₹2.00 crores and a respectable PAT margin of 1.10%. By FY2016, sales had declined to ₹133.00 crores, and the downward spiral continued relentlessly through FY2019 when sales reached just ₹14.00 crores before disappearing entirely.
The five-year sales growth rate stands at 0.00%, whilst the five-year EBIT growth rate is similarly 0.00%—metrics that reflect not stagnation but complete business cessation. The company's average return on equity over recent years is 0.00%, whilst the average return on capital employed registers at just 7.46%—figures that fail to capture the current reality of negative shareholder equity and absent operations.
What Happened to Risa International?
Originally incorporated in 1993 as Govindji Trikamdas Exports Ltd. and renamed Risa International Limited in 2011, the company once engaged in textiles and real estate trading. In FY2015, it formed three wholly owned subsidiaries in Hong Kong, the UK, and UAE. However, the subsequent collapse in sales from ₹176 crores in FY2015 to zero by FY2019 suggests a complete unravelling of the business model, with no apparent restructuring or revival efforts succeeding in the seven years since operations ceased.
Shareholding Pattern: Frozen Ownership Structure
The shareholding pattern of Risa International has remained completely static over the past five quarters, with promoter holding locked at 13.09%, foreign institutional investor (FII) holding at 0.24%, insurance holdings at 0.31%, and non-institutional investors holding 86.35%. The absence of any changes in ownership structure suggests a complete lack of investor interest—neither buying nor selling activity—reflecting the stock's status as an illiquid, distressed micro-cap.
| Quarter | Promoter % | FII % | MF % | Insurance % | Non-Institutional % |
|---|---|---|---|---|---|
| Dec'25 | 13.09% | 0.24% | 0.00% | 0.31% | 86.35% |
| Sep'25 | 13.09% | 0.24% | 0.00% | 0.31% | 86.35% |
| Jun'25 | 13.09% | 0.24% | 0.00% | 0.31% | 86.35% |
| Mar'25 | 13.09% | 0.24% | 0.00% | 0.31% | 86.35% |
| Dec'24 | 13.09% | 0.24% | 0.00% | 0.31% | 86.35% |
The low promoter holding of just 13.09%—controlled primarily by Kotsin Commerce LLP (12.70%) and Abhinandan Jain (0.40%)—raises questions about promoter commitment to the company's revival. The total institutional holding of just 0.55% reflects complete institutional abandonment, with zero mutual fund participation signalling that professional investors see no investment merit whatsoever in the company's prospects.
Positively, there is no promoter pledging of shares, though this matters little given the negligible value of the holdings. The frozen shareholding pattern over multiple quarters suggests the stock trades purely on speculation rather than any fundamental investment thesis, with retail investors comprising the vast majority of the shareholder base.
Stock Performance: Unrelenting Decline Across All Timeframes
Risa International's stock performance has been catastrophic across virtually every timeframe, with the shares delivering negative returns that dramatically underperform both the benchmark Sensex and the broader Trading & Distributors sector. Over the past year, the stock has plunged 54.29% whilst the Sensex gained 10.41%, resulting in a negative alpha of 64.70 percentage points.
| Period | Stock Return | Sensex Return | Alpha |
|---|---|---|---|
| 1 Week | -21.31% | +0.50% | -21.81% |
| 1 Month | -21.31% | +0.79% | -22.10% |
| 3 Months | -35.14% | +0.43% | -35.57% |
| 6 Months | -28.36% | +4.50% | -32.86% |
| YTD | -27.27% | -1.16% | -26.11% |
| 1 Year | -54.29% | +10.41% | -64.70% |
| 2 Years | -40.00% | +17.65% | -57.65% |
| 5 Years | +2.13% | +63.46% | -61.33% |
The stock's recent performance has been particularly brutal, with a one-week decline of 21.31% and a three-month collapse of 35.14%. Year-to-date through February 11, 2026, the shares are down 27.27%, extending the pattern of relentless value destruction. Even over a five-year period, the stock has managed only a meagre 2.13% gain whilst the Sensex surged 63.46%, and over 10 years, Risa International shares have collapsed 69.62% whilst the Sensex soared 267.00%.
The stock's risk-adjusted returns paint an equally dismal picture, with a one-year risk-adjusted return of -0.88 and volatility of 61.94%—more than five times the Sensex volatility of 11.52%. This places Risa International firmly in the "HIGH RISK LOW RETURN" category, with a negative Sharpe ratio indicating investors have been penalised rather than rewarded for taking on the stock's extreme volatility.
Compared to the Trading & Distributors sector, which declined 14.47% over the past year, Risa International underperformed by a massive 39.82 percentage points. The stock's high beta of 1.50 indicates it amplifies market movements, though in this case, the beta calculation is largely academic given the stock's fundamental problems far outweigh any systematic market risk factors.
Peer Comparison: Bottom of the Barrel
Within the Trading & Distributors sector, Risa International stands out for all the wrong reasons. A comparison with sector peers highlights the company's uniquely distressed position, with metrics that place it at the absolute bottom of the peer group.
| Company | P/E Ratio | P/BV Ratio | ROE % | Debt to Equity |
|---|---|---|---|---|
| Risa International | NA (Loss Making) | -2.10x | 0.00% | -0.57 |
| Parker Agrochem | 13.07x | 1.94x | 11.57% | 0.08 |
| AVI Products | NA (Loss Making) | 1.50x | 8.52% | -0.48 |
| Devine Impex | 225.44x | 0.66x | 0.23% | 0.00 |
| Nouveau Global | NA (Loss Making) | 9.09x | 0.00% | 8.20 |
| Universal Office | NA (Loss Making) | 4.86x | 0.00% | -0.72 |
Whilst several peers are also loss-making, Risa International is the only company with a negative price-to-book value of -2.10x, reflecting its negative shareholder equity. Even amongst a peer group that includes other distressed names, Risa International's combination of zero revenue, negative book value, and complete absence of operations places it in a category of its own.
Parker Agrochem, the sector's relative outperformer, trades at a P/E of 13.07x with a healthy ROE of 11.57%, demonstrating that viable businesses do exist within the trading and distribution space. The contrast with Risa International's 0.00% ROE and inability to generate any revenue whatsoever could not be starker.
Valuation Analysis: Risky Beyond Measure
The concept of traditional valuation becomes largely meaningless for a company with negative shareholder equity and zero revenue. Risa International's valuation grade is classified as "RISKY"—a designation it has held since April 2023 when it was downgraded from "Does Not Qualify." Prior to that, the stock briefly held an "Attractive" rating in 2015 before the business collapse commenced.
The stock's price-to-book value of -2.10x reflects the negative book value per share of ₹0.23. With the stock trading at ₹0.48, investors are paying for shares in a company whose liabilities exceed its assets by a significant margin. The enterprise value to EBITDA ratio of -1.10x and EV to EBIT ratio of -1.10x are mathematical artefacts of the negative enterprise value rather than meaningful valuation metrics.
The stock trades 57.52% below its 52-week high of ₹1.13 and just 17.07% above its 52-week low of ₹0.41—a low that represents the market's assessment of the company's minimal residual value. With a market capitalisation of just ₹8.00 crores against negative shareholder equity of ₹3.65 crores, the market is pricing in either a miraculous turnaround or speculative value in the company's listing status.
Quality Assessment: Below Average and Deteriorating
Risa International's quality grade stands at "BELOW AVERAGE," though even this classification seems generous given the complete absence of business operations. The company's quality assessment is based on long-term financial performance that reflects a business that once operated but has since ceased all meaningful activity.
The company's five-year sales growth of 0.00% and five-year EBIT growth of 0.00% capture the reality of zero revenue generation since FY2019. The average EBIT to interest ratio of 0.0x indicates the company cannot cover its interest obligations from operations—a situation that persists quarter after quarter as interest expenses of ₹0.05-0.07 crores per quarter drain resources without any offsetting revenue.
On the positive side, the company has no long-term debt and no promoter pledging. The average net debt to equity ratio of -0.57 technically indicates a net cash position, though with shareholder equity itself negative, this metric loses its usual interpretative value. The company's institutional holdings of just 0.55% reflect the complete absence of professional investor confidence in any turnaround prospects.
Technical Analysis: Bearish Across All Timeframes
From a technical perspective, Risa International's chart presents a picture of unrelenting bearish pressure. The stock entered a bearish trend on January 5, 2026, at ₹0.69, and has since declined to ₹0.48—a further 30.43% drop in just over a month. All major technical indicators flash bearish signals, with MACD, RSI (on weekly charts), Bollinger Bands, and KST all pointing downwards.
The stock trades below all its moving averages, with the current price of ₹0.48 sitting 9.43% below the 5-day MA of ₹0.53, 14.29% below the 20-day MA of ₹0.56, 22.58% below the 50-day MA of ₹0.62, 31.43% below the 100-day MA of ₹0.70, and 36.84% below the 200-day MA of ₹0.76. This alignment of moving averages in descending order—with all positioned above the current price—represents a classic bearish configuration indicating strong downward momentum.
Support levels appear thin, with the 52-week low of ₹0.41 representing the most immediate floor. Any further deterioration in the company's financial position or loss of investor confidence could see the stock test this level or potentially breach it to establish new lows. Resistance levels are stacked above, with the 20-day MA at ₹0.56, the 100-day MA at ₹0.70, and the 200-day MA at ₹0.76 all representing significant overhead supply.
Key Strengths
- Zero Long-Term Debt: The company has no long-term borrowings, eliminating one source of financial stress.
- No Promoter Pledging: Promoter shares remain unpledged, though holdings are minimal at 13.09%.
- Stable Shareholding: The ownership structure has remained frozen, providing some consistency.
- Low Fixed Cost Base: With zero fixed assets and minimal employee costs (₹0.02 crores per quarter), the company has limited ongoing operational expenses.
Key Concerns
- Zero Revenue Generation: The company has reported no sales for seven consecutive quarters and none since FY2019.
- Negative Shareholder Equity: Shareholder funds stand at -₹3.65 crores with book value per share of -₹0.23.
- Continuous Losses: The company posts quarterly losses of ₹0.10-0.15 crores despite having no operations.
- Complete Absence of Operations: No business activity, no assets, no revenue—effectively a corporate shell.
- Massive Historical Value Destruction: ₹27.82 crores in shareholder equity has evaporated since March 2020.
- Minimal Institutional Interest: Just 0.55% institutional holding with zero mutual fund participation.
- Stock Price Collapse: Down 54.29% over one year and 69.62% over 10 years, dramatically underperforming all benchmarks.
Outlook: What to Watch
Positive Catalysts
- Business Restructuring: Any announcement of operational restart or business model pivot.
- Asset Monetisation: Sale of any remaining assets or settlement of receivables.
- Strategic Investor: Entry of new investor or management with turnaround expertise.
- Debt Settlement: Resolution of current liabilities to improve balance sheet.
Red Flags
- Further Equity Erosion: Continued quarterly losses driving shareholder equity deeper into negative territory.
- Delisting Risk: Failure to meet minimum listing requirements or voluntary delisting.
- Promoter Exit: Further reduction in already minimal 13.09% promoter holding.
- Creditor Action: Legal proceedings from unpaid creditors (₹6.47 crores in trade payables).
- Going Concern Issues: Auditor qualifications regarding ability to continue as going concern.
The Verdict: A Shell Company Beyond Redemption
Score: 17/100
For Fresh Investors: Avoid entirely. Risa International is not an investment but a speculative bet on a corporate shell with negative shareholder equity, zero revenue, and no visible path to operational revival. The company has destroyed ₹27.82 crores in shareholder value over five years whilst ceasing all business activity. There is no fundamental investment case whatsoever.
For Existing Holders: Exit immediately at any available price. With negative book value of ₹0.23 per share, continued quarterly losses, and seven consecutive quarters of zero revenue, the company represents a near-total loss of invested capital. The stock's 54.29% decline over the past year likely understates the fundamental deterioration. Any residual value lies purely in speculative hope rather than business reality.
Fair Value Estimate: Not applicable. Traditional valuation methods cannot be applied to a company with negative shareholder equity and zero operations. The current market price of ₹0.48 appears to reflect speculative value in the listing status rather than any fundamental business worth.
Rationale: Risa International exhibits every characteristic of terminal corporate distress: zero revenue for seven quarters, negative shareholder equity of ₹3.65 crores, continuous losses despite no operations, complete absence of productive assets, frozen shareholding pattern indicating zero investor interest, and stock price performance that has destroyed 69.62% of value over 10 years. The Mojo score of 17/100 and STRONG SELL rating accurately reflect a company that has ceased to function as a viable business entity. This is a cautionary tale of value destruction, not an investment opportunity.
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. The analysis presented here is based on publicly available information as of February 11, 2026, and circumstances may change. Past performance is not indicative of future results. Investment in securities involves risk, including the potential loss of principal.
