Ravikumar Distilleries Ltd. (RKDL) AI Stock Analysis

• Market Cap: ₹466.80M
• Dividend Yield: N/A
• Average Volume (3M): 8.76K
• Price to Earnings (P/E): 724.4
• Beta (1Y): 1.20
• Revenue Growth: 4.30%
• EPS Growth: -40.22%
• Country: IN
• Employees: 59
• Sector: Consumer Defensive
• Sector Strength: 42
• Industry: Beverages - Wineries & Distilleries
• EPS (TTM): <0.01
• Shares Outstanding: 24,000,000
• 10 Day Avg. Volume: 3,772
• 30 Day Avg. Volume: 8,761
• PEG Ratio: -4.60
• Price to Book (P/B): 1.55
• Price to Sales (P/S): 1.74
• P/FCF Ratio: -103.98
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 42 Neutral
• Price Target: ₹19.50 ▼(-19.42% Downside)
• Action: Reiterated Date: 03/07/26
• Date: Action: Reiterated 03/07/26

The score is held down primarily by weak profitability and negative free cash flow despite strong revenue growth. Technicals are mixed but lean bearish given the price below key longer-term moving averages and a negative MACD. Valuation is a major risk due to an extremely high P/E and no dividend yield support.

Positive Factors

Revenue Growth

A 36% reported revenue rise indicates durable top-line momentum and demand for the company’s products. Sustained revenue expansion over months can improve fixed-cost absorption, provide scale for distribution, and create a platform for future margin recovery if costs are managed.

Moderate Leverage

A near-1.0 D/E suggests the company is using debt to finance growth but isn’t excessively leveraged. This balance provides financing flexibility to invest in operations or capex while still allowing options to delever if cash generation improves, supporting multi-month stability.

Profitability Turning Positive

Moving from a loss to a marginal positive net margin shows management has begun to stem losses and execute on cost or revenue levers. If sustained, this inflection is a foundational improvement that can compound with volume growth into steadier long-term profitability.

Negative Factors

Low Margins / Weak Profitability

Slim gross margins and a negative EBIT margin indicate the core business retains little value after costs, limiting durable earnings power. Structural margin weakness leaves the company vulnerable to cost inflation or pricing pressure and constrains sustainable operating leverage.

Negative Cash Generation

Persistently negative free cash flow and poor conversion of income into operating cash reduce reinvestment ability and increase reliance on external funding. Over months, this undermines flexibility to scale, pay down debt, or fund working capital without new capital.

Very Low Returns on Equity

An ROE near zero signals capital is not generating meaningful returns, reflecting inefficiency or low pricing power. Combined with modest equity backing, this reduces the company’s ability to produce shareholder value over time unless structural changes raise profitability.

Ravikumar Distilleries Ltd. Business Overview & Revenue Model

Company Description

Ravi Kumar Distilleries Limited engages in the manufacture and sale of Indian made foreign liquors in India. The company provides whisky, brandy, rum, gin, and vodka under the Capricorn, Jean Brothers, Black Berry, 2Barrels, Green Magic, Chevalier, and Once More brands. It also designs and erects liquor plants on turnkey basis; and operates as a consultant for source and supply of liquor, beer, wine, etc. Ravi Kumar Distilleries Limited was incorporated in 1993 and is based in Puducherry, India.

How the Company Makes Money

RKDL generates revenue primarily through the sale of its alcoholic beverages across various markets. The company leverages multiple revenue streams, including direct sales to consumers, distribution agreements with retail chains, and partnerships with bars and restaurants. Additionally, RKDL invests in marketing campaigns to enhance brand visibility, which drives sales growth. The company may also benefit from exporting its products to international markets, further diversifying its revenue sources. Strategic collaborations with local distributors and participation in trade shows contribute to expanding its market reach and boosting overall earnings.

Ravikumar Distilleries Ltd. Financial Statement Overview

Summary

Strong revenue growth (36%) is offset by weak profitability (gross margin 14.4%, EBIT margin -7.5%, net margin ~0.36%) and poor cash generation (negative free cash flow and negative operating cash flow to net income). Balance sheet leverage is moderate (D/E 0.97) but returns remain very low (ROE 0.32%).

Income Statement

The company has shown significant revenue growth from 2024 to 2025, with a Revenue Growth Rate of 36%. However, profitability remains a concern with low Gross Profit Margin at 14.4% and negative EBIT Margin at -7.5%. The Net Profit Margin improved to a marginal 0.36% from a negative position in the previous year, indicating some progress but still far from strong profitability.

Balance Sheet

The Debt-to-Equity Ratio is at 0.97, indicating a balanced leverage position. The Return on Equity is very low at 0.32%, suggesting weak profitability relative to equity. The Equity Ratio stands at about 31.7%, reflecting moderate financial stability but room for improvement in equity financing.

Cash Flow

The company has a negative Free Cash Flow, with a Free Cash Flow Growth Rate that remains negative, indicating cash management challenges. The Operating Cash Flow to Net Income Ratio is negative, reflecting a lack of operational efficiency in generating cash from operations relative to net income.

Breakdown	TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	295.97M	371.53M	283.86M	278.66M	105.01M	2.15M
Gross Profit	48.43M	53.47M	53.55M	35.11M	24.76M	-28.25M
EBITDA	6.00M	6.11M	-15.06M	-19.17M	-127.90M	-68.55M
Net Income	1.20M	1.32M	-19.45M	-22.80M	-132.32M	-73.38M
Balance Sheet
Total Assets	1.31B	1.32B	1.29B	1.30B	1.30B	1.36B
Cash, Cash Equivalents and Short-Term Investments	450.10M	25.67M	26.00M	25.58M	27.22M	25.50M
Total Debt	424.08M	404.80M	396.87M	390.15M	322.92M	317.41M
Total Liabilities	886.28M	901.90M	874.90M	865.39M	837.74M	772.62M
Stockholders Equity	419.69M	419.01M	417.37M	436.34M	458.11M	588.86M
Cash Flow
Free Cash Flow	51.38M	-6.23M	-1.25M	-87.27M	-28.41M	-1.86M
Operating Cash Flow	51.38M	-4.40M	1.35M	-87.14M	-27.75M	-1.86M
Investing Cash Flow	-6.00K	-1.83M	-2.60M	-132.00K	8.33M	0.00
Financing Cash Flow	-50.26M	5.90M	1.67M	85.63M	21.12M	-245.00K

Ravikumar Distilleries Ltd. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 24.20
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:RKDL, the sentiment is Negative. The current price of 24.2 is above the 20-day moving average (MA) of 19.20, above the 50-day MA of 20.49, and below the 200-day MA of 25.77, indicating a bearish trend. The MACD of -0.57 indicates Negative momentum. The RSI at 45.78 is Neutral, neither overbought nor oversold. The STOCH value of 49.65 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for IN:RKDL.

Ravikumar Distilleries Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
GMBREW	75 Outperform	₹22.09B	16.42	―	0.72%	―	―
TI	66 Neutral	₹108.85B	-24.49	―	0.21%	3.35%	56.08%
SDBL	66 Neutral	₹14.03B	121.41	―	―	-0.87%	10.87%
ASALCBR	66 Neutral	₹13.54B	16.60	―	0.21%	16.02%	48.63%
Sector *	62 Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%
SULA	57 Neutral	₹12.86B	50.36	―	1.67%	-2.15%	-42.78%
RKDL	42 Neutral	₹466.80M	724.38	―	―	4.30%	-40.22%