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Check Before You Invest : Raja Bahadur International Ltd

BSE: 503127 NSE: ISIN: INE491N01016
  |   Sector:  Construction & Infrastructure   |   Industry:  Construction - Real Estate

Snapshot

Q.1 Which industry/sub-sector does Raja Bahadur International Ltd belong to?
Raja Bahadur International Ltd belongs to the Construction & Infrastructure sector, operating specifically within the Construction - Real Estate segment.
Q.2 Is Raja Bahadur International Ltd a good quality company?
Raja Bahadur International Ltd is a weak quality company, based on a inconsistent multi-year financial track record.

This assessment is based on company’s performance on Revenue growth, ROCE, Equity and Assets, key margin ratios, cash conversion cycle, and debt to cash flow from operations and how it compares with its long term averages.

Q.3 Is Raja Bahadur International Ltd undervalued or overvalued?
Raja Bahadur International Ltd appears Overvalued, as its key valuation ratios are higher than their past averages.

Based on the industry it operates in, the relevant valuation ratios include one of the following, P/E, P/BV, P/Sales, EV/EBITDA or a combination of two or more.

Valuation Ratios Current 5-year
Historic Median
Price to Earnings 79.6 -
Price to Book -292.31 -42.16
Price to Sales 4.26 4.30
EV to EBITDA 16.51 24.04
Q.4 Is Raja Bahadur International Ltd a good buy now?
Raja Bahadur International Ltd is not a good buy now, based on weak price trend analysis suggesting prices may fall. However, you need to check its quality and valuation before making a decision

Performance Analysis

We have analysed the performance of the company on the following:

  • How has it performed on generating Profits?

    By checking its Revenue growth, Gross, Operating and Net Margins compared to its last 5-year median.

  • How efficiently has it utilized Capital?

    By checking its ROCE, ROA, ROE and its Cash Conversion Cycle.

  • How is it managing its Debt?

    By checking its Debt to Equity and Cash Flow from Operations.

A: What are the trends in revenue and profit margins?

Q.1 Revenue growth of Raja Bahadur International Ltd?
Raja Bahadur International Ltd revenue growth is 30.7% for FY-2025, which is above its 5-year CAGR of 25.76%, indicating faster growth.

Q.2 Gross Profit margin of Raja Bahadur International Ltd?
Raja Bahadur International Ltd Gross profit margin which is the profit after deduction of direct costs, is 13% for FY-2025, which is above its 5-year median of 5.7%, indicating increasing margins.

Q.3 Operating Profit Margin of Raja Bahadur International Ltd?
Raja Bahadur International Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 62.96% for FY-2025, which is above its 5-year median of 13.94% indicating increasing margins.

Q.4 Net Profit Margin of Raja Bahadur International Ltd?
Raja Bahadur International Ltd Net Profit Margin is -3.42% for FY-2025, is in line with its 5-year median of -3.42%, indicating stable margins.
Current Level 5-year
Historic Median
Gross Profit Margin (%) 13 5.7
Operating Profit Margin (%) 62.96 13.94
Net Profit Margin (%) -3.42 -3.42

B: Does the business utilize capital efficiently?

Q.5 Return on Asset of Raja Bahadur International Ltd?
Raja Bahadur International Ltd Return on Asset is -0.48%, which is in line with its 5-year historical median of -0.48%, indicating stable asset utilization efficiency.

Q.6 Return on capital employed (ROCE) of Raja Bahadur International Ltd?
Raja Bahadur International Ltd Return on capital employed is 10% for FY-2025, which is above its 5-year historical median of 8.45%. The current ROCE is below its estimated weighted average cost of capital (WACC) of 14%, indicating value preservation.

Q.7 Cash conversion cycle of Raja Bahadur International Ltd?
Raja Bahadur International Ltd Cash conversion cycle is -183 days, below its 5-year historical median of -87 days, indicating improved working capital management. However, you need to compare this with its peers in the industry.

C: How much debt does the business have and is it at a sustainable level?

Q.8 Debt to Equity ratio of Raja Bahadur International Ltd?
Raja Bahadur International Ltd Debt-to-Equity ratio is -226.02, which is lower the industry average of 0.23, indicating lower debt levels in the industry.

Q.9 Debt to cash flow from operations of Raja Bahadur International Ltd?
Raja Bahadur International Ltd Debt to cash flow from operations is 17.07, which is at a unhealthy level.

Ownership & governance

D: Promoter shareholding and pledge status of Raja Bahadur International Ltd?

Q.1 Promoter shareholding and pledge status of Raja Bahadur International Ltd?
Promoters hold 75.00% of the Raja Bahadur International Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

E: How does Raja Bahadur International Ltd performance compare with that of its Peers?

Q.1 Revenue growth of Raja Bahadur International Ltd vs industry peers?
Raja Bahadur International Ltd revenue CAGR is 25.76%, compared to the industry median CAGR of 0.00%, indicating faster growth and gaining its market share.
Profit Metrics
Current Level 5-year
Industry Median
Revenue Growth (%) 30.7 0
Gross Profit Growth (%) 33.3 14.9
Operating Profit Growth (%) 54.6 10.4
Net Profit Growth (%) -200 17.2
Operating Efficiency
Current Level 5-year
Industry Median
Asset Turnover (x) 0.14 0.1
ROE (%) - 1.36
ROCE (%) 10 3.88
Cash Conversion Cycle (days) -183.08 439

Valuation & price assessment

Q.1 Stock return of Raja Bahadur International Ltd over the last decade?
Over the last 9 year(s), the stock has delivered a CAGR of 13% based on the current price.
9Y 5Y 3Y 1Y
Share Price
CAGR
13% 13% 11.4% 3.1%
Q.2 Valuation ratios of Raja Bahadur International Ltd vs historical?
The current P/E ratio of 79.6 is higher than its historical median of , indicating that the stock is trading above its historical average valuation.
Q.3 How do the current valuation ratios compare with 5-year historical median and industry numbers?
Valuation Ratios Current 5-year
Historic Median
5-year
Industry Median
Price to Earnings 79.6 - 33.43
Price to Book -292.31 -42.16 1.53
Price to Sales 4.26 4.30 5.23
EV to EBITDA 16.51 24.04 14.43

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