Check Before You Invest : RLF Ltd

Q: Which industry/sub-sector does RLF Ltd belong to?

RLF Ltd belongs to the Textiles & Apparels sector, operating specifically within the Textile segment.

Q: Is RLF Ltd a good quality company?

RLF 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 RLF Ltd undervalued or overvalued?

RLF 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. Price to Earnings, Current: -, Historic Median: -. Price to Book, Current: 0.35, Historic Median: 0.62. Price to Sales, Current: 12.7, Historic Median: 9.46. EV to EBITDA, Current: -166.61, Historic Median: 51.49

Q: Is RLF Ltd a good buy now?

RLF 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 RLF Ltd?

RLF Ltd revenue growth is -41.9% for FY-2025, which is below its 5-year CAGR of 18.61%, indicating slower growth.

Q: Gross Profit margin of RLF Ltd?

RLF Ltd Gross profit margin which is the profit after deduction of direct costs, is 5.4% for FY-2025, which is in line with its 5-year median of 5.4%, indicating stable margins.

Q: Operating Profit Margin of RLF Ltd?

RLF Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is -31.86% for FY-2025, which is below its 5-year median of -23.87% indicating decreasing margins.

Q: Net Profit Margin of RLF Ltd?

RLF Ltd Net Profit Margin is -21.13% for FY-2025, is in line with its 5-year median of -21.13%, indicating stable margins. Profitability Metrics. Gross Profit Margin (%), Current: 5.4, Historic Median: 5.4. Operating Profit Margin (%), Current: -31.86, Historic Median: -23.87. Net Profit Margin (%), Current: -21.13, Historic Median: -21.13

Q: Return on Asset of RLF Ltd?

RLF Ltd Return on Asset is -0.7%, which is above its 5-year historical median of -2.07%, indicating improved asset utilization efficiency.

Q: Return on capital employed (ROCE) of RLF Ltd?

RLF Ltd Return on capital employed is 0.05% for FY-2025, which is above its 5-year historical median of -4.87%. The current ROCE is below its estimated weighted average cost of capital (WACC) of 14%, indicating value preservation.

Check Before You Invest : RLF Ltd

BSE: 512618 NSE: ISIN: INE629C01014

| Sector: Textiles & Apparels | Industry: Textile

Snapshot

Q.1 Which industry/sub-sector does RLF Ltd belong to?

RLF Ltd belongs to the Textiles & Apparels sector, operating specifically within the Textile segment.

Q.2 Is RLF Ltd a good quality company?

RLF 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 RLF Ltd undervalued or overvalued?

RLF 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	-	-
Price to Book	0.35	0.62
Price to Sales	12.7	9.46
EV to EBITDA	-166.61	51.49

Q.4 Is RLF Ltd a good buy now?

RLF 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 RLF Ltd?

RLF Ltd revenue growth is -41.9% for FY-2025, which is below its 5-year CAGR of 18.61%, indicating slower growth.

Q.2 Gross Profit margin of RLF Ltd?

RLF Ltd Gross profit margin which is the profit after deduction of direct costs, is 5.4% for FY-2025, which is in line with its 5-year median of 5.4%, indicating stable margins.

Q.3 Operating Profit Margin of RLF Ltd?

RLF Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is -31.86% for FY-2025, which is below its 5-year median of -23.87% indicating decreasing margins.

Q.4 Net Profit Margin of RLF Ltd?

RLF Ltd Net Profit Margin is -21.13% for FY-2025, is in line with its 5-year median of -21.13%, indicating stable margins.

	Current Level	5-year Historic Median
Gross Profit Margin (%)	5.4	5.4
Operating Profit Margin (%)	-31.86	-23.87
Net Profit Margin (%)	-21.13	-21.13

B: Does the business utilize capital efficiently?

Q.5 Return on Asset of RLF Ltd?

RLF Ltd Return on Asset is -0.7%, which is above its 5-year historical median of -2.07%, indicating improved asset utilization efficiency.

Q.6 Return on capital employed (ROCE) of RLF Ltd?

RLF Ltd Return on capital employed is 0.05% for FY-2025, which is above its 5-year historical median of -4.87%. 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 RLF Ltd?

RLF Ltd Return on equity is -0.82% for FY-2025, which is above its 5-year historical median of -11.82%, indicating the business is making better use of its shareholders capital.

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

Q.8 Debt to Equity ratio of RLF Ltd?

RLF Ltd Debt-to-Equity ratio is 0.13, which is lower the industry average of 0.42, indicating lower debt levels in the industry.

Q.9 Debt to cash flow from operations of RLF Ltd?

RLF Ltd Debt to cash flow from operations is 8.03, which is at a unhealthy level.

Ownership & governance

D: Promoter shareholding and pledge status of RLF Ltd?

Q.1 Promoter shareholding and pledge status of RLF Ltd?

Promoters hold 59.62% of the RLF Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

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

Q.1 Revenue growth of RLF Ltd vs industry peers?

RLF Ltd revenue CAGR is 18.61%, 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 (%)	-41.9	0
Gross Profit Growth (%)	-53.9	9.1
Operating Profit Growth (%)	0	8.5
Net Profit Growth (%)	-675	13

Operating Efficiency

	Current Level	5-year Industry Median
Asset Turnover (x)	0.03	0.95
ROE (%)	-0.82	4.25
ROCE (%)	0.05	7.55
Cash Conversion Cycle (days)	827.28	102

Valuation & price assessment

Q.1 Stock return of RLF Ltd over the last decade?

Over the last 9 year(s), the stock has delivered a CAGR of 19.9% based on the current price.

	9Y	5Y	3Y	1Y
Share Price CAGR	19.9%	22.8%	14.8%	37.8%

Q.2 Valuation ratios of RLF Ltd vs historical?

The current P/E ratio of 0 is in line with than its historical median of , indicating that the stock is trading near 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	-	-	20.16
Price to Book	0.35	0.62	1.32
Price to Sales	12.7	9.46	1.06
EV to EBITDA	-166.61	51.49	9.31

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Check Before You Invest : RLF Ltd

Snapshot

Performance Analysis

Ownership & governance

Peer comparison (industry-wise, mcap)

Profit Metrics

Operating Efficiency

Valuation & price assessment

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