Check Before You Invest : Riddhi Corporate Services Ltd

Q: 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: Is Riddhi Corporate Services Ltd a good quality company?

Riddhi Corporate Services Ltd is a quality company, based on a 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: Is Riddhi Corporate Services Ltd undervalued or overvalued?

Riddhi Corporate Services Ltd appears Undervalued, as its key valuation ratios are lower 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. Price to Earnings, Current: 7.47, Historic Median: 19.76. Price to Book, Current: 0.95, Historic Median: 2.75. Price to Sales, Current: 0.16, Historic Median: 0.78. EV to EBITDA, Current: 1.45, Historic Median: 4.07

Q: 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

Q: 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 25.93%, indicating faster growth.

Q: 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: 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: Net Profit Margin of Riddhi Corporate Services Ltd?

Riddhi Corporate Services Ltd Net Profit Margin is 5.31% for FY-2025, is above its 5-year median of 4.21%, indicating increasing margins. Profitability Metrics. Gross Profit Margin (%), Current: 13.3, Historic Median: 15.5. Operating Profit Margin (%), Current: 11.52, Historic Median: 11.52. Net Profit Margin (%), Current: 5.31, Historic Median: 4.21

Q: 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: 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 in line with its 5-year historical median of 30.95%. The current ROCE is above its estimated weighted average cost of capital (WACC) of 14%, indicating value creation.

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 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 Riddhi Corporate Services Ltd undervalued or overvalued?

Riddhi Corporate Services Ltd appears Undervalued, as its key valuation ratios are lower 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	7.47	19.76
Price to Book	0.95	2.75
Price to Sales	0.16	0.78
EV to EBITDA	1.45	4.07

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

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 Riddhi Corporate Services Ltd?

Riddhi Corporate Services Ltd revenue growth is 53% for FY-2025, which is above its 5-year CAGR of 25.93%, 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 its 5-year median of 4.21%, indicating increasing margins.

	Current Level	5-year Historic Median
Gross Profit Margin (%)	13.3	15.5
Operating Profit Margin (%)	11.52	11.52
Net Profit Margin (%)	5.31	4.21

B: Does the business utilize capital efficiently?

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 capital employed (ROCE) of Riddhi Corporate Services Ltd?

Riddhi Corporate Services Ltd Return on capital employed is 30.95% for FY-2025, which is in line with its 5-year historical median of 30.95%. The current ROCE is above its estimated weighted average cost of capital (WACC) of 14%, indicating value creation.

Q.7 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 5-year historical median of 18.81%, indicating the business is making better use of its shareholders capital.

Q.8 Cash conversion cycle of Riddhi Corporate Services Ltd?

Riddhi Corporate Services Ltd Cash conversion cycle is 6 days, above its 5-year historical median of -7 days, indicating deteriorated working capital management. However, you need to compare this with its peers in the industry.

	Current Level	5-year Historic Median
Asset Turnover (x)	1.32	1
ROE (%)	22.63	18.81
ROCE (%)	30.95	30.95
Cash Conversion Cycle	6 days	-7 days

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

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 the industry average of 0.05, 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

D: Promoter shareholding and pledge status of Riddhi Corporate Services Ltd?

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)

E: How does Riddhi Corporate Services Ltd performance compare with that of its Peers?

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 3.91%, indicating faster growth and gaining its market share.

Profit Metrics

	Current Level	5-year Industry Median
Revenue Growth (%)	53	3.9
Gross Profit Growth (%)	26.9	10.8
Operating Profit Growth (%)	-1	10.8
Net Profit Growth (%)	163.6	8.5

Operating Efficiency

	Current Level	5-year Industry Median
Asset Turnover (x)	1.32	0.72
ROE (%)	22.63	10.43
ROCE (%)	30.95	15.4
Cash Conversion Cycle (days)	6.3	38

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 -17.41% based on the current price.

	9Y	5Y	3Y	1Y
Share Price CAGR	-	-17.4%	-36.8%	9.5%

Q.2 Valuation ratios of Riddhi Corporate Services Ltd vs historical?

The current P/E ratio of 7.47 is lower than its historical median of 19.76, indicating that the stock is trading below 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	7.47	19.76	29.72
Price to Book	0.95	2.75	2.75
Price to Sales	0.16	0.78	4.18
EV to EBITDA	1.45	4.07	15.58

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