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Check Before You Invest : Rishi Techtex Ltd

BSE: 523021 NSE: RISHIPACK ISIN: INE989D01010
  |   Sector:  Chemicals & Fertilizers   |   Industry:  Plastic Products

Snapshot

Q.1 Which industry/sub-sector does Rishi Techtex Ltd belong to?
Rishi Techtex Ltd belongs to the Chemicals & Fertilizers sector, operating specifically within the Plastic Products segment.
Q.2 Is Rishi Techtex Ltd a good quality company?
Rishi Techtex 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 Rishi Techtex Ltd undervalued or overvalued?
Rishi Techtex 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 9.18 17.60
Price to Book 0.79 0.81
Price to Sales 0.2 0.23
EV to EBITDA 5.18 6.53
Q.4 Is Rishi Techtex Ltd a good buy now?
Rishi Techtex 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 Rishi Techtex Ltd?
Rishi Techtex Ltd revenue growth is 12.4% for FY-2025, which is above its 5-year CAGR of 10.51%, indicating faster growth.

Q.2 Gross Profit margin of Rishi Techtex Ltd?
Rishi Techtex Ltd Gross profit margin which is the profit after deduction of direct costs, is 5% for FY-2025, which is above its 5-year median of 4.2%, indicating increasing margins.

Q.3 Operating Profit Margin of Rishi Techtex Ltd?
Rishi Techtex Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 6.83% for FY-2025, which is above its 5-year median of 6.29% indicating increasing margins.

Q.4 Net Profit Margin of Rishi Techtex Ltd?
Rishi Techtex Ltd Net Profit Margin is 1.83% for FY-2025, is above its 5-year median of 1.21%, indicating increasing margins.
Current Level 5-year
Historic Median
Gross Profit Margin (%) 5 4.2
Operating Profit Margin (%) 6.83 6.29
Net Profit Margin (%) 1.83 1.21

B: Does the business utilize capital efficiently?

Q.5 Return on Asset of Rishi Techtex Ltd?
Rishi Techtex Ltd Return on Asset is 3.09%, which is above its 5-year historical median of 1.85%, indicating improved asset utilization efficiency.

Q.6 Return on capital employed (ROCE) of Rishi Techtex Ltd?
Rishi Techtex Ltd Return on capital employed is 10.44% for FY-2025, which is above its 5-year historical median of 8.65%. The current ROCE is below its estimated weighted average cost of capital (WACC) of 14%, indicating value preservation.

Q.7 Return on Equity (ROE) of Rishi Techtex Ltd?
Rishi Techtex Ltd Return on equity is 6.97% for FY-2025, which is above its 5-year historical median of 4.33%, indicating the business is making better use of its shareholders capital.

Q.8 Cash conversion cycle of Rishi Techtex Ltd?
Rishi Techtex Ltd Cash conversion cycle is 97 days, in line with its 5-year historical median of 102 days, indicating stable working capital management. However, you need to compare this with its peers in the industry.
Current Level 5-year
Historic Median
Asset Turnover (x) 1.69 1.53
ROE (%) 6.97 4.33
ROCE (%) 10.44 8.65
Cash Conversion Cycle 97 days 102 days

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

Q.9 Debt to Equity ratio of Rishi Techtex Ltd?
Rishi Techtex Ltd Debt-to-Equity ratio is 0.70, which is above the industry average of 0.25, indicating higher debt levels in the industry.

Q.10 Debt to cash flow from operations of Rishi Techtex Ltd?
Rishi Techtex Ltd Debt to cash flow from operations is 4.62, which is at a unhealthy level.

Ownership & governance

D: Promoter shareholding and pledge status of Rishi Techtex Ltd?

Q.1 Promoter shareholding and pledge status of Rishi Techtex Ltd?
Promoters hold 41.98% of the Rishi Techtex Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

E: How does Rishi Techtex Ltd performance compare with that of its Peers?

Q.1 Revenue growth of Rishi Techtex Ltd vs industry peers?
Rishi Techtex Ltd revenue CAGR is 10.51%, compared to the industry median CAGR of 4.71%, indicating faster growth and gaining its market share.
Profit Metrics
Current Level 5-year
Industry Median
Revenue Growth (%) 12.4 4.7
Gross Profit Growth (%) 25.5 14.3
Operating Profit Growth (%) 16.1 10.1
Net Profit Growth (%) 70.4 18.7
Operating Efficiency
Current Level 5-year
Industry Median
Asset Turnover (x) 1.69 1.06
ROE (%) 6.97 5.91
ROCE (%) 10.44 8.75
Cash Conversion Cycle (days) 97.13 77

Valuation & price assessment

Q.1 Stock return of Rishi Techtex Ltd over the last decade?
Over the last 9 year(s), the stock has delivered a CAGR of 6.4% based on the current price.
9Y 5Y 3Y 1Y
Share Price
CAGR
6.4% 10.8% 21% -20.3%
Q.2 Valuation ratios of Rishi Techtex Ltd vs historical?
The current P/E ratio of 9.18 is lower than its historical median of 17.60, 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 9.18 17.60 22.05
Price to Book 0.79 0.81 1.89
Price to Sales 0.2 0.23 1.33
EV to EBITDA 5.18 6.53 10.86

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MoneyWorks4Me is a SEBI-registered Investment Adviser (IA) dedicated to helping investors build long-term wealth through transparent, research-driven, conflict-free guidance. Founded in 2008, we started our journey as a Research Analyst (RA), providing deep fundamental analysis, intrinsic value insights, and long-term investing frameworks for Indian equities. In 2017, we transitioned to a full-fledged SEBI-registered Investment Adviser, strengthening our commitment to acting as a fiduciary—always putting the investor’s interest first.

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