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Check Before You Invest : Riyaasat Lifestyle Ltd

BSE: 544804 NSE: ISIN: INE0KYI01012
  |   Sector:  Textiles & Apparels   |   Industry:  Textile

Snapshot

Q.1 Which industry/sub-sector does Riyaasat Lifestyle Ltd belong to?
Riyaasat Lifestyle Ltd belongs to the Textiles & Apparels sector, operating specifically within the Textile segment.
Q.2 Is Riyaasat Lifestyle Ltd a good quality company?
Riyaasat Lifestyle 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 Riyaasat Lifestyle Ltd undervalued or overvalued?
Riyaasat Lifestyle 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 12.41 13.50
Price to Book 1.49 1.54
Price to Sales 1.93 2.65
EV to EBITDA 5.83 10.89
Q.4 Is Riyaasat Lifestyle Ltd a good buy now?
Riyaasat Lifestyle 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 Riyaasat Lifestyle Ltd?
Riyaasat Lifestyle Ltd revenue growth is 8.4% for FY-2025, which is below its 3-year CAGR of 78.51%, indicating slower growth.

Q.2 Gross Profit margin of Riyaasat Lifestyle Ltd?
Riyaasat Lifestyle Ltd Gross profit margin which is the profit after deduction of direct costs, is 24.3% for FY-2025, which is above its 3-year median of 22.6%, indicating increasing margins.

Q.3 Operating Profit Margin of Riyaasat Lifestyle Ltd?
Riyaasat Lifestyle Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 25.95% for FY-2025, which is above its 3-year median of 23.39% indicating increasing margins.

Q.4 Net Profit Margin of Riyaasat Lifestyle Ltd?
Riyaasat Lifestyle Ltd Net Profit Margin is 19.62% for FY-2025, is above its 3-year median of 17.86%, indicating increasing margins.
Current Level 3-year
Historic Median
Gross Profit Margin (%) 24.3 22.6
Operating Profit Margin (%) 25.95 23.39
Net Profit Margin (%) 19.62 17.86

B: Does the business utilize capital efficiently?

Q.5 Return on Asset of Riyaasat Lifestyle Ltd?
Riyaasat Lifestyle Ltd Return on Asset is 18.87%, which is below its 3-year historical median of 23.86%, indicating deteriorated asset utilization efficiency.

Q.6 Return on capital employed (ROCE) of Riyaasat Lifestyle Ltd?
Riyaasat Lifestyle Ltd Return on capital employed is 40.39% for FY-2025, which is below its 3-year historical median of 80.63%. 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 Riyaasat Lifestyle Ltd?
Riyaasat Lifestyle Ltd Return on equity is 50.34% for FY-2025, which is below its 3-year historical median of 97.45%, indicating the business is making worse use of its shareholders capital.

Q.8 Cash conversion cycle of Riyaasat Lifestyle Ltd?
Riyaasat Lifestyle Ltd Cash conversion cycle is 206 days, above its 3-year historical median of 105 days, indicating deteriorated working capital management. However, you need to compare this with its peers in the industry.
Current Level 3-year
Historic Median
Asset Turnover (x) 0.96 1.73
ROE (%) 50.34 97.45
ROCE (%) 40.39 80.63
Cash Conversion Cycle 206 days 105 days

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

Q.9 Debt to Equity ratio of Riyaasat Lifestyle Ltd?
Riyaasat Lifestyle Ltd Debt-to-Equity ratio is 0.68, 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 Riyaasat Lifestyle Ltd?
Riyaasat Lifestyle Ltd Debt to cash flow from operations is 5.93, which is at a unhealthy level.

Ownership & governance

D: Promoter shareholding and pledge status of Riyaasat Lifestyle Ltd?

Q.1 Promoter shareholding and pledge status of Riyaasat Lifestyle Ltd?
Promoters hold 73.39% of the Riyaasat Lifestyle Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

E: How does Riyaasat Lifestyle Ltd performance compare with that of its Peers?

Q.1 Revenue growth of Riyaasat Lifestyle Ltd vs industry peers?
Riyaasat Lifestyle Ltd revenue CAGR is 78.51%, compared to the industry median CAGR of 1.12%, indicating faster growth and gaining its market share.
Profit Metrics
Current Level 3-year
Industry Median
Revenue Growth (%) 8.4 1.1
Gross Profit Growth (%) 16.6 7.7
Operating Profit Growth (%) 20 6.8
Net Profit Growth (%) 19.4 10.7
Operating Efficiency
Current Level 3-year
Industry Median
Asset Turnover (x) 0.96 0.98
ROE (%) 50.34 5.48
ROCE (%) 40.39 7.63
Cash Conversion Cycle (days) 206.44 101

Valuation & price assessment

Q.1 Stock return of Riyaasat Lifestyle 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 Riyaasat Lifestyle Ltd vs historical?
The current P/E ratio of 12.41 is lower than its historical median of 13.50, indicating that the stock is trading below 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 12.41 13.50 21.85
Price to Book 1.49 1.54 1.39
Price to Sales 1.93 2.65 1.29
EV to EBITDA 5.83 10.89 10.21

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