SEBI Reg. Investment Advisor

Download App

MoneyWorks4Me

Check Before You Invest : Richa Info Systems Ltd

BSE: 0 NSE: RICHA ISIN: INE0J1P01015
  |   Sector:  Capital Goods & Industrial Consumables   |   Industry:  Electronics - Components

Snapshot

Q.1 Which industry/sub-sector does Richa Info Systems Ltd belong to?
Richa Info Systems Ltd belongs to the Capital Goods & Industrial Consumables sector, operating specifically within the Electronics - Components segment.
Q.2 Is Richa Info Systems Ltd a good quality company?
Richa Info Systems Ltd is a weak quality company, based on a inconsistent 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 Richa Info Systems Ltd undervalued or overvalued?
Richa Info Systems Ltd appears Fair, as its key valuation ratios are in line with 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 21.58 23.35
Price to Book 1.27 1.49
Price to Sales 0.89 0.65
EV to EBITDA 14.79 11.19
Q.4 Is Richa Info Systems Ltd a good buy now?
Richa Info Systems Ltd is a good buy now, based on strong price trend analysis suggesting prices may rise. 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 Richa Info Systems Ltd?
Richa Info Systems Ltd revenue growth is 226.3% for FY-2025, which is above its 5-year CAGR of 48.71%, indicating faster growth.

Q.2 Gross Profit margin of Richa Info Systems Ltd?
Richa Info Systems Ltd Gross profit margin which is the profit after deduction of direct costs, is 5.8% for FY-2025, which is above its 5-year median of 5.4%, indicating increasing margins.

Q.3 Operating Profit Margin of Richa Info Systems Ltd?
Richa Info Systems Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 6.31% for FY-2025, which is in line with its 5-year median of 6.61% indicating stable margins.

Q.4 Net Profit Margin of Richa Info Systems Ltd?
Richa Info Systems Ltd Net Profit Margin is 4.1% for FY-2025, is above its 5-year median of 3.34%, indicating increasing margins.
Current Level 5-year
Historic Median
Gross Profit Margin (%) 5.8 5.4
Operating Profit Margin (%) 6.31 6.61
Net Profit Margin (%) 4.1 3.34

B: Does the business utilize capital efficiently?

Q.5 Return on Asset of Richa Info Systems Ltd?
Richa Info Systems Ltd Return on Asset is 6.57%, which is above its 5-year historical median of 5.77%, indicating improved asset utilization efficiency.

Q.6 Return on capital employed (ROCE) of Richa Info Systems Ltd?
Richa Info Systems Ltd Return on capital employed is 12.15% for FY-2025, which is in line with its 5-year historical median of 11.75%. 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 Richa Info Systems Ltd?
Richa Info Systems Ltd Return on equity is 10.78% for FY-2025, which is in line with its 5-year historical median of 10.78%, indicating the business is making similar use of its shareholders capital.

Q.8 Cash conversion cycle of Richa Info Systems Ltd?
Richa Info Systems Ltd Cash conversion cycle is 127 days, in line with its 5-year historical median of 127 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) 1.6 1.6
ROE (%) 10.78 10.78
ROCE (%) 12.15 11.75
Cash Conversion Cycle 127 days 127 days

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

Q.9 Debt to Equity ratio of Richa Info Systems Ltd?
Richa Info Systems Ltd Debt-to-Equity ratio is 0.09, which is lower the industry average of 0.25, indicating lower debt levels in the industry.

Q.10 Debt to cash flow from operations of Richa Info Systems Ltd?
Richa Info Systems Ltd Debt to cash flow from operations is -0.09, which is at a unhealthy level.

Ownership & governance

D: Promoter shareholding and pledge status of Richa Info Systems Ltd?

Q.1 Promoter shareholding and pledge status of Richa Info Systems Ltd?
Promoters hold 23.33% of the Richa Info Systems Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

E: How does Richa Info Systems Ltd performance compare with that of its Peers?

Q.1 Revenue growth of Richa Info Systems Ltd vs industry peers?
Richa Info Systems Ltd revenue CAGR is 48.71%, compared to the industry median CAGR of 3.03%, indicating faster growth and gaining its market share.
Profit Metrics
Current Level 5-year
Industry Median
Revenue Growth (%) 226.3 3
Gross Profit Growth (%) 250 16
Operating Profit Growth (%) 166.7 19.2
Net Profit Growth (%) 400 16.2
Operating Efficiency
Current Level 5-year
Industry Median
Asset Turnover (x) 1.6 0.79
ROE (%) 10.78 7.33
ROCE (%) 12.15 9.29
Cash Conversion Cycle (days) 126.5 121

Valuation & price assessment

Q.1 Stock return of Richa Info Systems Ltd over the last decade?
Over the last 3 year(s), the stock has delivered a CAGR of -6.12% based on the current price.
9Y 5Y 3Y 1Y
Share Price
CAGR
- - -6.1% 2.6%
Q.2 Valuation ratios of Richa Info Systems Ltd vs historical?
The current P/E ratio of 21.58 is lower than its historical median of 23.35, 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 21.58 23.35 37.32
Price to Book 1.27 1.49 3.80
Price to Sales 0.89 0.65 4.16
EV to EBITDA 14.79 11.19 22.30

About MoneyWorks4Me

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.

Our Vision

To become India’s most trusted, research-powered fiduciary advisory platform—where every investor, regardless of experience, can make calm, confident, and well-reasoned investment decisions.

What Makes MoneyWorks4Me Different

Our Approach: Ensuring compounding work its magic on client portfolio.

MoneyWorks4Me ensures this through: