Check Before You Invest : RNFI Services Ltd

Snapshot

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

RNFI Services Ltd belongs to the IT & ITES sector, operating specifically within the Fintech segment.

Q.2 Is RNFI Services Ltd a good quality company?

RNFI Services Ltd is a average quality company, based on a somewhat consistent 4-year financial track record.

Q.3 Is RNFI Services Ltd undervalued or overvalued?

RNFI Services Ltd appears Fair, as its key valuation ratios are in line with their past averages.

Q.4 Is RNFI Services Ltd a good buy now?

RNFI Services Ltd is a neutral opportunity now, based on stable price trend analysis suggesting prices may move sideways. However, you need to check its quality and valuation before making a decision

Performance Analysis

Q.1 Revenue growth of RNFI Services Ltd?

RNFI Services Ltd revenue growth is 89.4% for FY-2025, which is above its 3-year CAGR of 21.98%, indicating faster growth.

Q.2 Return on capital employed (ROCE) of RNFI Services Ltd?

RNFI Services Ltd Return on capital employed is 24.97% for FY-2025, which is below its 3-year historical median of 33.21%. The current ROCE is above its estimated weighted average cost of capital (WACC) of 14%, indicating value creation.

Q.3 Return on Asset of RNFI Services Ltd?

RNFI Services Ltd Return on Asset is 7.72%, which is in line with its 3-year historical median of 7.4%, indicating stable asset utilization efficiency.

Q.4 Return on Equity (ROE) of RNFI Services Ltd?

RNFI Services Ltd Return on equity is 20.93% for FY-2025, which is below its 3-year historical median of 37.72%, indicating the business is making worse use of its shareholders capital.

Q.5 Cash conversion cycle of RNFI Services Ltd?

RNFI Services Ltd Cash conversion cycle is 27 days, in line with its 3-year historical median of 27 days, indicating stable working capital management. However, you need to compare this with its peers in the industry.

	Current Level	3-year Historic Median
Asset Turnover	1.51	1.46
ROE	20.93	37.72
ROCE	24.97	33.21
Cash Conversion Cycle	27 days	27 days

Q.6 Gross Profit margin of RNFI Services Ltd?

RNFI Services Ltd Gross profit margin which is the profit after deduction of direct costs, is 10.8% for FY-2025, which is above its 3-year median of 9.7%, indicating increasing margins.

Q.7 Operating Profit Margin of RNFI Services Ltd?

RNFI Services Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 9.67% for FY-2025, which is above its 3-year median of 6.62% indicating increasing margins.

Q.8 Net Profit Margin of RNFI Services Ltd?

RNFI Services Ltd Net Profit Margin is 5.13% for FY-2025, is in line with with its 3-year median of 5.13%, indicating stable margins.

	Current Level	3-year Historic Median
Gross Profit Margin	10.8	9.7
Operating Profit Margin	9.67	6.62
Net Profit Margin	5.13	5.13

Q.9 Debt to Equity ratio of RNFI Services Ltd?

RNFI Services Ltd Debt-to-Equity ratio is 0.14, which is lower with the industry average of 0.23, indicating lower debt levels in the industry.

Q.10 Debt to cash flow from operations of RNFI Services Ltd?

RNFI Services Ltd Debt to cash flow from operations is 0.7, which is at a healthy level.

Ownership & governance

Q.1 Promoter shareholding and pledge status of RNFI Services Ltd?

Promoters hold 65.11% of the RNFI Services Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

Q.1 Revenue growth of RNFI Services Ltd vs industry peers?

RNFI Services Ltd revenue CAGR is 21.98%, compared to the industry median CAGR of 29.55%, indicating slower growth and losing its market share.

Profit Metrics

	Current Level	3-year Industry Median
Revenue Growth	89.4	29.6
Gross Profit Growth	114.3	44.7
Operating Profit Growth	170	40.1
Net Profit Growth	55.6	47.7

Operating Efficiency

	Current Level	3-year Industry Median
Asset Turnover	1.51	1.03
ROE	20.93	4.91
ROCE	24.97	12.66
Cash Conversion Cycle (days)	26.54	8

Valuation & price assessment

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

Over the last 1 year(s), the stock has delivered a CAGR of 20.22% based on the current price.

Q.2 What return has the stock given over the last decade?

	9Y	5Y	3Y	1Y
Share Price CAGR	-	-	-	20.2%

Q.3 Valuation ratios of RNFI Services Ltd vs historical?

The current P/E is lower that its historical median.

Q.4 How do the current valuation ratios compare with 3-year historical median and industry numbers?

Valuation Ratios	Current	3-year Historic Median	3-year Industry Median
Price to Earnings	50.39	57.62	62.87
Price to Book	5.87	6.48	4.20
Price to Sales	2.59	2.98	5.74
EV to EBITDA	19.97	23.43	19.33

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