Check Before You Invest : RNFI Services Ltd

Q: Which industry/sub-sector does RNFI Services Ltd belong to?

RNFI Services Ltd belongs to the IT & ITES sector, operating specifically within the Fintech segment.

Q: Is RNFI Services Ltd a good quality company?

RNFI Services Ltd is a average quality company, based on a somewhat consistent 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 RNFI Services Ltd undervalued or overvalued?

RNFI Services 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. Price to Earnings, Current: 49.43, Historic Median: 56.60. Price to Book, Current: 5.76, Historic Median: 6.45. Price to Sales, Current: 2.54, Historic Median: 2.90. EV to EBITDA, Current: 19.56, Historic Median: 23.01

Q: Is RNFI Services Ltd a good buy now?

RNFI Services Ltd is a neutral opportunity now, based on stable price trend analysis suggesting prices may move sideways. However, you need to check its quality and valuation before making a decision

Q: Revenue growth of RNFI Services Ltd?

RNFI Services Ltd revenue growth is 89.4% for FY-2025, which is above its 3-year CAGR of 21.98%, indicating faster growth.

Q: Gross Profit margin of RNFI Services Ltd?

RNFI Services Ltd Gross profit margin which is the profit after deduction of direct costs, is 10.8% for FY-2025, which is above its 3-year median of 9.7%, indicating increasing margins.

Q: Operating Profit Margin of RNFI Services Ltd?

RNFI Services Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 9.67% for FY-2025, which is above its 3-year median of 6.62% indicating increasing margins.

Q: Net Profit Margin of RNFI Services Ltd?

RNFI Services Ltd Net Profit Margin is 5.13% for FY-2025, is in line with its 3-year median of 5.13%, indicating stable margins. Profitability Metrics. Gross Profit Margin (%), Current: 10.8, Historic Median: 9.7. Operating Profit Margin (%), Current: 9.67, Historic Median: 6.62. Net Profit Margin (%), Current: 5.13, Historic Median: 5.13

Q: Return on Asset of RNFI Services Ltd?

RNFI Services Ltd Return on Asset is 7.72%, which is in line with its 3-year historical median of 7.4%, indicating stable asset utilization efficiency.

Q: Return on capital employed (ROCE) of RNFI Services Ltd?

RNFI Services Ltd Return on capital employed is 24.97% for FY-2025, which is below its 3-year historical median of 33.21%. The current ROCE is above its estimated weighted average cost of capital (WACC) of 14%, indicating value creation.

Snapshot

Q.1 Which industry/sub-sector does RNFI Services Ltd belong to?

RNFI Services Ltd belongs to the IT & ITES sector, operating specifically within the Fintech segment.

Q.2 Is RNFI Services Ltd a good quality company?

RNFI Services Ltd is a average quality company, based on a somewhat consistent 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 RNFI Services Ltd undervalued or overvalued?

RNFI Services 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	49.43	56.60
Price to Book	5.76	6.45
Price to Sales	2.54	2.90
EV to EBITDA	19.56	23.01

Q.4 Is RNFI Services Ltd a good buy now?

RNFI Services Ltd is a neutral opportunity now, based on stable price trend analysis suggesting prices may move sideways. 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 RNFI Services Ltd?

RNFI Services Ltd revenue growth is 89.4% for FY-2025, which is above its 3-year CAGR of 21.98%, indicating faster growth.

Q.2 Gross Profit margin of RNFI Services Ltd?

RNFI Services Ltd Gross profit margin which is the profit after deduction of direct costs, is 10.8% for FY-2025, which is above its 3-year median of 9.7%, indicating increasing margins.

Q.3 Operating Profit Margin of RNFI Services Ltd?

RNFI Services Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 9.67% for FY-2025, which is above its 3-year median of 6.62% indicating increasing margins.

Q.4 Net Profit Margin of RNFI Services Ltd?

RNFI Services Ltd Net Profit Margin is 5.13% for FY-2025, is in line with its 3-year median of 5.13%, indicating stable margins.

	Current Level	3-year Historic Median
Gross Profit Margin (%)	10.8	9.7
Operating Profit Margin (%)	9.67	6.62
Net Profit Margin (%)	5.13	5.13

B: Does the business utilize capital efficiently?

Q.5 Return on Asset of RNFI Services Ltd?

RNFI Services Ltd Return on Asset is 7.72%, which is in line with its 3-year historical median of 7.4%, indicating stable asset utilization efficiency.

Q.6 Return on capital employed (ROCE) of RNFI Services Ltd?

RNFI Services Ltd Return on capital employed is 24.97% for FY-2025, which is below its 3-year historical median of 33.21%. 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 RNFI Services Ltd?

RNFI Services Ltd Return on equity is 20.93% for FY-2025, which is below its 3-year historical median of 37.72%, indicating the business is making worse use of its shareholders capital.

Q.8 Cash conversion cycle of RNFI Services Ltd?

RNFI Services Ltd Cash conversion cycle is 27 days, in line with its 3-year historical median of 27 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)	1.51	1.46
ROE (%)	20.93	37.72
ROCE (%)	24.97	33.21
Cash Conversion Cycle	27 days	27 days

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

Q.9 Debt to Equity ratio of RNFI Services Ltd?

RNFI Services Ltd Debt-to-Equity ratio is 0.14, which is above the industry average of 0.05, indicating higher debt levels in the industry.

Q.10 Debt to cash flow from operations of RNFI Services Ltd?

RNFI Services Ltd Debt to cash flow from operations is 0.7, which is at a healthy level.

Ownership & governance

D: Promoter shareholding and pledge status of RNFI Services Ltd?

Q.1 Promoter shareholding and pledge status of RNFI Services Ltd?

Promoters hold 65.11% of the RNFI Services Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

E: How does RNFI Services Ltd performance compare with that of its Peers?

Q.1 Revenue growth of RNFI Services Ltd vs industry peers?

RNFI Services Ltd revenue CAGR is 21.98%, compared to the industry median CAGR of 29.55%, indicating slower growth and losing its market share.

Profit Metrics

	Current Level	3-year Industry Median
Revenue Growth (%)	89.4	29.6
Gross Profit Growth (%)	114.3	55.4
Operating Profit Growth (%)	170	52.3
Net Profit Growth (%)	55.6	47.7

Operating Efficiency

	Current Level	3-year Industry Median
Asset Turnover (x)	1.51	1.03
ROE (%)	20.93	4.91
ROCE (%)	24.97	12.66
Cash Conversion Cycle (days)	26.54	8

Valuation & price assessment

Q.1 Stock return of RNFI Services Ltd over the last decade?

Over the last 1 year(s), the stock has delivered a CAGR of 24.22% based on the current price.

	9Y	5Y	3Y	1Y
Share Price CAGR	-	-	-	24.2%

Q.2 Valuation ratios of RNFI Services Ltd vs historical?

The current P/E ratio of 49.43 is lower than its historical median of 56.60, 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	49.43	56.60	62.63
Price to Book	5.76	6.45	4.20
Price to Sales	2.54	2.90	5.77
EV to EBITDA	19.56	23.01	19.23

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