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Check Before You Invest : Riddhi Corporate Services Ltd

BSE: 540590 NSE: ISIN: INE325X01015
  |   Sector:  IT & ITES   |   Industry:  BPO/ITeS

Snapshot

Q.1 Which industry/sub-sector does Riddhi Corporate Services Ltd belong to?
Riddhi Corporate Services Ltd belongs to the IT & ITES sector, operating specifically within the BPO/ITeS segment.
Q.2 Is Riddhi Corporate Services Ltd a good quality company?
Riddhi Corporate Services Ltd is a quality company, based on a 10 year financial track record.
Q.3 Is Riddhi Corporate Services Ltd undervalued or overvalued?
Riddhi Corporate Services Ltd appears Undervalued, as its key valuation ratios are below with their past averages.
Q.4 Is Riddhi Corporate Services Ltd a good buy now?
Riddhi Corporate Services 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

Q.1 Revenue growth of Riddhi Corporate Services Ltd?
Riddhi Corporate Services Ltd revenue growth is 53% for FY-2025 , which is above its 5 year CAGR of 25.9% , indicating faster growth.
Q.2 Gross Profit margin of Riddhi Corporate Services Ltd?
Riddhi Corporate Services Ltd Gross profit margin which is the profit after deduction of direct costs, is 13.3% for FY-2025 , which is below its 5 year median of 15.5% , indicating decreasing margins.
Q.3 Operating Profit Margin of Riddhi Corporate Services Ltd?
Riddhi Corporate Services Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 11.52% for FY-2025 , which is in line with its 5 year median of 11.52% indicating stable margins.
Q.4 Net Profit Margin of Riddhi Corporate Services Ltd?
Riddhi Corporate Services Ltd Net Profit Margin is 5.31% for FY-2025 , is above with its 5 year median of 4.21%, indicating increasing margins.
Current Level Historic Median
Gross Profit Margin 13.3 15.5
Operating Profit Margin 11.52 11.52
Net Profit Margin 5.31 4.21
Q.5 Return on Asset of Riddhi Corporate Services Ltd?
Riddhi Corporate Services Ltd Return on Asset is 6.99%, which is above its 5 year historical median of 4.61%, indicating improved asset utilization efficiency.
Q.6 Return on Equity (ROE) of Riddhi Corporate Services Ltd?
Riddhi Corporate Services Ltd Return on equity is 22.63% for FY-2025 , which is above its historical median of 18.81%, indicating the business is making better use of its shareholders capital.
Q.7 Return on capital employed (ROCE) of Riddhi Corporate Services Ltd?
Riddhi Corporate Services Ltd Return on capital employed is 30.95% for FY-2025 , which is above its estimated weighted average cost of capital(WACC) 14%, indicating value creation.
Q.8 Cash conversion cycle of Riddhi Corporate Services Ltd?
Riddhi Corporate Services Ltd Cash conversion cycle is 6 days, above its historical median of -7 days, indicating deteriorated working capital management. However, you need to compare this with its peers in the industry.
Current Level Historic Median
Asset Turnover 1.32 1
ROE 22.63 18.81
ROCE 30.95 30.95
Cash Conversion Cycle 6 days -7 days
Q.9 Debt to Equity ratio of Riddhi Corporate Services Ltd?
Riddhi Corporate Services Ltd Debt-to-Equity ratio is 0.13 , which is above with the industry average of 0.06 , indicating higher debt levels in the industry.
Q.10 Debt to cash flow from operations of Riddhi Corporate Services Ltd?
Riddhi Corporate Services Ltd Debt to cash flow from operations is 0.22 , which is at a healthy level.

Ownership & governance

Q.1 Promoter shareholding and pledge status of Riddhi Corporate Services Ltd?
Promoters hold 68.28% of the Riddhi Corporate Services Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

Q.1 Revenue growth of Riddhi Corporate Services Ltd vs industry peers?
Riddhi Corporate Services Ltd revenue CAGR is 25.93% , compared to the industry median CAGR of 4.16% , indicating faster growth and gaining its market share.
Profit Metrics
Current Level Industry Median
Revenue 255.3 35.5
Gross Profit 34 4.4
Operating Profit 29.4 4.4
Net Profit 13.6 2
Operating Efficiency
Current Level Industry Median
Asset Turnover 1.32 0.73
ROE 22.63 11.15
ROCE 30.95 15.65
Cash Conversion Cycle (days) 6.3 40

Valuation & price assessment

Q.1 Stock return of Riddhi Corporate Services Ltd over the last decade?
Over the last 5 year(s), the stock has delivered a CAGR of -17.83% based on the current price.
Q.2 What return has the stock given over the last decade?
9Y 5Y 3Y 1Y
Share Price - -17.8% -39.9% -6.9%
Q.3 Valuation ratios of Riddhi Corporate Services Ltd vs historical?
The current P/E is lower that its historical median.
Q.4 How do the current valuation ratios measure up against the historic numbers and the current industry numbers?
Valuation Ratios Current Historic Median Industry Median
Price to Earnings 7.48 61.15 19.99
Price to Book 0.95 0.00 2.65
Price to Sales 0.16 2.75 3.59
EV to EBITDA 1.45 12.43 16.03

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