Check Before You Invest : Reetech International Ltd

BSE: 543617 NSE: ISIN: INE0MKO01015

| Sector: Miscellaneous | Industry: Trading

Snapshot

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

Reetech International Ltd belongs to the Miscellaneous sector, operating specifically within the Trading segment.

Q.2 Is Reetech International Ltd a good quality company?

Reetech International Ltd is a quality company, based on a 5-year financial track record.

Q.3 Is Reetech International Ltd undervalued or overvalued?

Reetech International Ltd appears Somewhat overvalued, as its key valuation ratios are above with their past averages.

Q.4 Is Reetech International Ltd a good buy now?

Reetech International 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

Q.1 Return on capital employed (ROCE) of Reetech International Ltd?

Reetech International Ltd Return on capital employed is -0.26% for FY-2025, which is below its 5-year historical median of 11.72%. The current ROCE is below its estimated weighted average cost of capital (WACC) of 14%, indicating value preservation.

Q.2 Return on Asset of Reetech International Ltd?

Reetech International Ltd Return on Asset is -1.43%, which is below its 5-year historical median of 5.73%, indicating deteriorated asset utilization efficiency.

Q.3 Return on Equity (ROE) of Reetech International Ltd?

Reetech International Ltd Return on equity is -1.69% for FY-2025, which is below its 5-year historical median of 7.16%, indicating the business is making worse use of its shareholders capital.

Q.4 Cash conversion cycle of Reetech International Ltd?

Reetech International Ltd Cash conversion cycle is 71 days, above its 5-year historical median of 17 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	0.67	3.09
ROE	-1.69	7.16
ROCE	-0.26	11.72
Cash Conversion Cycle	71 days	17 days

Q.5 Gross Profit margin of Reetech International Ltd?

Reetech International Ltd Gross profit margin which is the profit after deduction of direct costs, is 3.3% for FY-2025, which is in line with its 5-year median of 3.3%, indicating stable margins.

Q.6 Operating Profit Margin of Reetech International Ltd?

Reetech International Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is -6.33% for FY-2025, which is below its 5-year median of 2.13% indicating decreasing margins.

Q.7 Net Profit Margin of Reetech International Ltd?

Reetech International Ltd Net Profit Margin is -2.13% for FY-2025, is below with its 5-year median of 2.2%, indicating decreasing margins.

	Current Level	5-year Historic Median
Gross Profit Margin	3.3	3.3
Operating Profit Margin	-6.33	2.13
Net Profit Margin	-2.13	2.2

Q.8 Debt to Equity ratio of Reetech International Ltd?

Reetech International Ltd Debt-to-Equity ratio is 0.18, which is above with the industry average of 0.17, indicating higher debt levels in the industry.

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

Reetech International Ltd Debt to cash flow from operations is -5.15, which is at a unhealthy level.

Ownership & governance

Q.1 Promoter shareholding and pledge status of Reetech International Ltd?

Promoters hold 73.62% of the Reetech International Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

Q.1 Revenue growth of Reetech International Ltd vs industry peers?

Reetech International Ltd revenue CAGR is 0.00%, compared to the industry median CAGR of 12.68%, indicating slower growth and losing its market share.

Profit Metrics

	Current Level	5-year Industry Median
Revenue Growth	-	12.7
Gross Profit Growth	-75.3	17.5
Operating Profit Growth	-200	15.5
Net Profit Growth	-124.8	NAN

Operating Efficiency

	Current Level	5-year Industry Median
Asset Turnover	0.67	0.81
ROE	-1.69	2.6
ROCE	-0.26	3.8
Cash Conversion Cycle (days)	71.26	61

Valuation & price assessment

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

Over the last 3 year(s), the stock has delivered a CAGR of -21.74% based on the current price.

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

	9Y	5Y	3Y	1Y
Share Price CAGR	-	-	-21.7%	-9.2%

Q.3 Valuation ratios of Reetech International Ltd vs historical?

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

Q.4 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	-	20.35	33.44
Price to Book	0.89	1.40	1.58
Price to Sales	1.1	0.42	2.20
EV to EBITDA	25.51	12.07	14.05

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