MoneyWorks4Me

Check Before You Invest : Ritco Logistics Ltd

BSE: 542383 NSE: RITCO ISIN: INE01EG01016
  |   Sector:  Transportation & Logistics   |   Industry:  Logistics

Snapshot

Q.1 Which industry/sub-sector does Ritco Logistics Ltd belong to?
Ritco Logistics Ltd belongs to the Transportation & Logistics sector, operating specifically within the Logistics segment.
Q.2 Is Ritco Logistics Ltd a good quality company?
Ritco Logistics 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 Ritco Logistics Ltd undervalued or overvalued?
Ritco Logistics 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 3-year
Historic Median
Price to Earnings 24.97 18.52
Price to Book 2.16 2.98
Price to Sales 0.53 0.70
EV to EBITDA 12.26 11.25
Q.4 Is Ritco Logistics Ltd a good buy now?
Ritco Logistics 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.

Q.1 Gross Profit margin of Ritco Logistics Ltd?
Ritco Logistics Ltd Gross profit margin which is the profit after deduction of direct costs, is 5.2% for FY-2026, which is below its 3-year median of 6.1%, indicating decreasing margins.

Q.2 Operating Profit Margin of Ritco Logistics Ltd?
Ritco Logistics Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 6.58% for FY-2026, which is below its 3-year median of 7.57% indicating decreasing margins.

Q.3 Net Profit Margin of Ritco Logistics Ltd?
Ritco Logistics Ltd Net Profit Margin is 2.13% for FY-2026, is below its 3-year median of 3.42%, indicating decreasing margins.
Current Level 3-year
Historic Median
Gross Profit Margin (%) 5.2 6.1
Operating Profit Margin (%) 6.58 7.57
Net Profit Margin (%) 2.13 3.42

B: Does the business utilize capital efficiently?

Q.4 Return on Asset of Ritco Logistics Ltd?
Ritco Logistics Ltd Return on Asset is 4.22%, which is below its 3-year historical median of 7.35%, indicating deteriorated asset utilization efficiency.

Q.5 Return on capital employed (ROCE) of Ritco Logistics Ltd?
Ritco Logistics Ltd Return on capital employed is 10.13% for FY-2026, which is below its 3-year historical median of 14.71%. The current ROCE is below its estimated weighted average cost of capital (WACC) of 14%, indicating value preservation.

Q.6 Return on Equity (ROE) of Ritco Logistics Ltd?
Ritco Logistics Ltd Return on equity is 9.32% for FY-2026, which is below its 3-year historical median of 16.18%, indicating the business is making worse use of its shareholders capital.

Q.7 Cash conversion cycle of Ritco Logistics Ltd?
Ritco Logistics Ltd Cash conversion cycle is 105 days, in line with its 3-year historical median of 104 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 (x) 1.98 2.15
ROE (%) 9.32 16.18
ROCE (%) 10.13 14.71
Cash Conversion Cycle 105 days 104 days

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

Q.8 Debt to Equity ratio of Ritco Logistics Ltd?
Ritco Logistics Ltd Debt-to-Equity ratio is 1.29, which is above the industry average of 0.33, indicating higher debt levels in the industry.

Q.9 Debt to cash flow from operations of Ritco Logistics Ltd?
Ritco Logistics Ltd Debt to cash flow from operations is -13.88, which is at a unhealthy level.

Ownership & governance

D: Promoter shareholding and pledge status of Ritco Logistics Ltd?

Q.1 Promoter shareholding and pledge status of Ritco Logistics Ltd?
Promoters hold 62.68% of the Ritco Logistics Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

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

Q.1 Revenue growth of Ritco Logistics Ltd vs industry peers?
Ritco Logistics Ltd revenue CAGR is 0.00%, compared to the industry median CAGR of 0.00%, indicating stable growth and maintaining its market share.
Profit Metrics
Current Level 3-year
Industry Median
Revenue Growth (%) -7.2 0
Gross Profit Growth (%) 6.9 16.6
Operating Profit Growth (%) 8.9 13.7
Net Profit Growth (%) -22 18.2
Operating Efficiency
Current Level 3-year
Industry Median
Asset Turnover (x) 1.98 1.83
ROE (%) 9.32 11.2
ROCE (%) 10.13 14.32
Cash Conversion Cycle (days) 104.61 42

Valuation & price assessment

Q.1 Stock return of Ritco Logistics Ltd over the last decade?
Over the last 5 year(s), the stock has delivered a CAGR of 40.26% based on the current price.
9Y 5Y 3Y 1Y
Share Price
CAGR
- 40.3% 4.9% 10.9%
Q.2 Valuation ratios of Ritco Logistics Ltd vs historical?
The current P/E ratio of 24.97 is higher than its historical median of 18.52, 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 24.97 18.52 20.92
Price to Book 2.16 2.98 1.87
Price to Sales 0.53 0.70 0.94
EV to EBITDA 12.26 11.25 9.73

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