Check Before You Invest : Rachit Prints Ltd

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

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

Q: Is Rachit Prints Ltd a good quality company?

Rachit Prints 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 Rachit Prints Ltd undervalued or overvalued?

Rachit Prints 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: 19.75, Historic Median: 14.06. Price to Book, Current: 2.83, Historic Median: 2.02. Price to Sales, Current: 2.16, Historic Median: 1.54. EV to EBITDA, Current: 13.53, Historic Median: 9.98

Q: Is Rachit Prints Ltd a good buy now?

Rachit Prints 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 Rachit Prints Ltd?

Rachit Prints Ltd revenue growth is 12.5% for FY-2025, which is below its 3-year CAGR of 13.2%, indicating slower growth.

Q: Gross Profit margin of Rachit Prints Ltd?

Rachit Prints Ltd Gross profit margin which is the profit after deduction of direct costs, is 16.6% for FY-2025, which is above its 3-year median of 10%, indicating increasing margins.

Q: Operating Profit Margin of Rachit Prints Ltd?

Rachit Prints Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 17.33% for FY-2025, which is above its 3-year median of 11.52% indicating increasing margins.

Q: Net Profit Margin of Rachit Prints Ltd?

Rachit Prints Ltd Net Profit Margin is 10.94% for FY-2025, is above its 3-year median of 5.47%, indicating increasing margins. Profitability Metrics. Gross Profit Margin (%), Current: 16.6, Historic Median: 10. Operating Profit Margin (%), Current: 17.33, Historic Median: 11.52. Net Profit Margin (%), Current: 10.94, Historic Median: 5.47

Q: Return on Asset of Rachit Prints Ltd?

Rachit Prints Ltd Return on Asset is 20.23%, which is above its 3-year historical median of 9.6%, indicating improved asset utilization efficiency.

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

Rachit Prints Ltd Return on capital employed is 38.7% for FY-2025, which is above its 3-year historical median of 22.24%. The current ROCE is above its estimated weighted average cost of capital (WACC) of 14%, indicating value creation.

Check Before You Invest : Rachit Prints Ltd

BSE: 544503 NSE: ISIN: INE0ZN101029

| Sector: Textiles & Apparels | Industry: Textile

Snapshot

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

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

Q.2 Is Rachit Prints Ltd a good quality company?

Rachit Prints 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 Rachit Prints Ltd undervalued or overvalued?

Rachit Prints 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	3-year Historic Median
Price to Earnings	19.75	14.06
Price to Book	2.83	2.02
Price to Sales	2.16	1.54
EV to EBITDA	13.53	9.98

Q.4 Is Rachit Prints Ltd a good buy now?

Rachit Prints 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 Rachit Prints Ltd?

Rachit Prints Ltd revenue growth is 12.5% for FY-2025, which is below its 3-year CAGR of 13.2%, indicating slower growth.

Q.2 Gross Profit margin of Rachit Prints Ltd?

Rachit Prints Ltd Gross profit margin which is the profit after deduction of direct costs, is 16.6% for FY-2025, which is above its 3-year median of 10%, indicating increasing margins.

Q.3 Operating Profit Margin of Rachit Prints Ltd?

Rachit Prints Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 17.33% for FY-2025, which is above its 3-year median of 11.52% indicating increasing margins.

Q.4 Net Profit Margin of Rachit Prints Ltd?

Rachit Prints Ltd Net Profit Margin is 10.94% for FY-2025, is above its 3-year median of 5.47%, indicating increasing margins.

	Current Level	3-year Historic Median
Gross Profit Margin (%)	16.6	10
Operating Profit Margin (%)	17.33	11.52
Net Profit Margin (%)	10.94	5.47

B: Does the business utilize capital efficiently?

Q.5 Return on Asset of Rachit Prints Ltd?

Rachit Prints Ltd Return on Asset is 20.23%, which is above its 3-year historical median of 9.6%, indicating improved asset utilization efficiency.

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

Rachit Prints Ltd Return on capital employed is 38.7% for FY-2025, which is above its 3-year historical median of 22.24%. 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 Rachit Prints Ltd?

Rachit Prints Ltd Return on equity is 51.34% for FY-2025, which is above its 3-year historical median of 45.64%, indicating the business is making better use of its shareholders capital.

Q.8 Cash conversion cycle of Rachit Prints Ltd?

Rachit Prints Ltd Cash conversion cycle is 47 days, below its 3-year historical median of 52 days, indicating improved working capital management. However, you need to compare this with its peers in the industry.

	Current Level	3-year Historic Median
Asset Turnover (x)	1.85	1.75
ROE (%)	51.34	45.64
ROCE (%)	38.7	22.24
Cash Conversion Cycle	47 days	52 days

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

Q.9 Debt to Equity ratio of Rachit Prints Ltd?

Rachit Prints Ltd Debt-to-Equity ratio is 0.75, which is above the industry average of 0.42, indicating higher debt levels in the industry.

Q.10 Debt to cash flow from operations of Rachit Prints Ltd?

Rachit Prints Ltd Debt to cash flow from operations is 20.06, which is at a unhealthy level.

Ownership & governance

D: Promoter shareholding and pledge status of Rachit Prints Ltd?

Q.1 Promoter shareholding and pledge status of Rachit Prints Ltd?

Promoters hold 67.68% of the Rachit Prints Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

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

Q.1 Revenue growth of Rachit Prints Ltd vs industry peers?

Rachit Prints Ltd revenue CAGR is 13.20%, compared to the industry median CAGR of 1.00%, indicating faster growth and gaining its market share.

Profit Metrics

	Current Level	3-year Industry Median
Revenue Growth (%)	12.5	1
Gross Profit Growth (%)	87.6	6.8
Operating Profit Growth (%)	69.3	6.1
Net Profit Growth (%)	124.6	10

Operating Efficiency

	Current Level	3-year Industry Median
Asset Turnover (x)	1.85	0.97
ROE (%)	51.34	4.83
ROCE (%)	38.7	7.46
Cash Conversion Cycle (days)	47.44	101

Valuation & price assessment

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

Over the last - year(s), the stock has delivered a CAGR of N/A% based on the current price.

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

Q.2 Valuation ratios of Rachit Prints Ltd vs historical?

The current P/E ratio of 19.75 is higher than its historical median of 14.06, indicating that the stock is trading above its historical average valuation.

Q.3 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	19.75	14.06	21.85
Price to Book	2.83	2.02	1.39
Price to Sales	2.16	1.54	1.29
EV to EBITDA	13.53	9.98	10.21

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Check Before You Invest : Rachit Prints Ltd

Snapshot

Performance Analysis

Ownership & governance

Peer comparison (industry-wise, mcap)

Profit Metrics

Operating Efficiency

Valuation & price assessment

Check more companies

Check trending companies

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