Why is Riddhi Corporate Services Ltd ?
1
Weak Long Term Fundamental Strength with an average Return on Capital Employed (ROCE) of 6.28%
- Poor long term growth as Operating profit has grown by an annual rate 2.49% of over the last 5 years
- Company's ability to service its debt is weak with a poor EBIT to Interest (avg) ratio of 0.84
2
With a growth in Net Profit of 103.27%, the company declared Very Positive results in Sep 25
- The company has declared positive results for the last 5 consecutive quarters
- NET SALES(Q) At Rs 133.55 cr has Grown at 100.92%
- PAT(Q) At Rs 3.11 cr has Grown at 103.3%
- ROCE(HY) Highest at 20.24%
3
With ROCE of 6.7, it has a Very Attractive valuation with a 1.1 Enterprise value to Capital Employed
- The stock is trading at a discount compared to its peers' average historical valuations
- Over the past year, while the stock has generated a return of 9.87%, its profits have risen by 167.8% ; the PEG ratio of the company is 0
4
Majority shareholders : Promoters
How much should you hold?
- Overall Portfolio exposure to Riddhi Corporate should be less than 10%
- Overall Portfolio exposure to Computers - Software & Consulting should be less than 30%
(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Computers - Software & Consulting)
When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock
Is Riddhi Corporate for you?
High Risk, Medium Return
Absolute
Risk Adjusted
Volatility
Riddhi Corporate
9.87%
0.23
43.69%
Sensex
4.83%
0.40
11.83%
Quality key factors
Factor
Value
Sales Growth (5y)
35.93%
EBIT Growth (5y)
2.49%
EBIT to Interest (avg)
0.84
Debt to EBITDA (avg)
3.57
Net Debt to Equity (avg)
0.23
Sales to Capital Employed (avg)
1.74
Tax Ratio
12.65%
Dividend Payout Ratio
0
Pledged Shares
0
Institutional Holding
1.60%
ROCE (avg)
7.69%
ROE (avg)
15.26%
Valuation Key Factors 
Factor
Value
P/E Ratio
6
Industry P/E
35
Price to Book Value
1.12
EV to EBIT
16.30
EV to EBITDA
4.07
EV to Capital Employed
1.10
EV to Sales
0.27
PEG Ratio
0.03
Dividend Yield
NA
ROCE (Latest)
6.74%
ROE (Latest)
20.29%
Loading Valuation Snapshot...
Technical key factors
Indicator
Weekly
Monthly
MACD
Mildly Bearish
Mildly Bullish
RSI
No Signal
No Signal
Bollinger Bands
Mildly Bearish
Sideways
Moving Averages
Bullish (Daily)
KST
Mildly Bearish
Mildly Bullish
Dow Theory
No Trend
No Trend
Technical Movement
30What is working for the Company
NET SALES(Q)
At Rs 133.55 cr has Grown at 100.92%
PAT(Q)
At Rs 3.11 cr has Grown at 103.3%
ROCE(HY)
Highest at 20.24%
DEBT-EQUITY RATIO(HY)
Lowest at 0.59 times
DEBTORS TURNOVER RATIO(HY)
Highest at 6.99 times
-5What is not working for the Company
PBT LESS OI(Q)
At Rs -0.14 cr has Fallen at -111.38%
NON-OPERATING INCOME(Q)
is 103.34 % of Profit Before Tax (PBT
Loading Valuation Snapshot...
Here's what is working for Riddhi Corporate
Net Sales - Quarterly
At Rs 133.55 cr has Grown at 100.92%
Year on Year (YoY)MOJO Watch
Near term sales trend is very positive
Net Sales (Rs Cr)
Profit After Tax (PAT) - Quarterly
At Rs 3.11 cr has Grown at 103.3%
Year on Year (YoY)MOJO Watch
Near term PAT trend is very positive
PAT (Rs Cr)
Debt-Equity Ratio - Half Yearly
Lowest at 0.59 times and Fallen
each half year in the last five half yearly periodsMOJO Watch
The company has been reducing its borrowing as compared to equity capital
Debt-Equity Ratio
Net Sales - Quarterly
Highest at Rs 133.55 cr
in the last five quartersMOJO Watch
Near term sales trend is positive
Net Sales (Rs Cr)
Debtors Turnover Ratio- Half Yearly
Highest at 6.99 times
in the last five half yearly periodsMOJO Watch
Company has been able to settle its Debtors faster
Debtors Turnover Ratio
Here's what is not working for Riddhi Corporate
Profit Before Tax less Other Income (PBT) - Quarterly
At Rs -0.14 cr has Fallen at -111.38%
Year on Year (YoY)MOJO Watch
Near term PBT trend is very negative
PBT less Other Income (Rs Cr)
Non Operating Income - Quarterly
is 103.34 % of Profit Before Tax (PBT)
MOJO Watch
The company's income from non business activities is high; which is not a sustainable business model
Non Operating Income to PBT






