Rashi Peripherals Limited (RPTECH) AI Stock Analysis

• Market Cap: ₹24.32B
• Dividend Yield: 1.17%
• Average Volume (3M): 13.03K
• Price to Earnings (P/E): 9.9
• Beta (1Y): 1.29
• Revenue Growth: N/A
• EPS Growth: N/A
• Country: IN
• Employees: 1,326
• Sector: Technology
• Sector Strength: 88
• Industry: Technology Distributors
• EPS (TTM): 11.16
• Shares Outstanding: 65,899,666
• 10 Day Avg. Volume: 5,713
• 30 Day Avg. Volume: 13,034
• PEG Ratio: 6.99
• Price to Book (P/B): 1.15
• Price to Sales (P/S): 0.15
• P/FCF Ratio: -6.54
• 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: 57 Neutral
• Price Target: ₹369.00 ▲(12.69% Upside)
• Action: N/A Date: 02/24/26
• Date: Action: N/A 02/24/26

The score is held back primarily by weak financial quality—especially sustained negative operating/free cash flow and the sharp 2025 revenue contraction—partly offset by a healthier balance sheet and a low P/E that provides valuation support. Technicals are mixed, with short-term weakness despite a longer-term uptrend.

Positive Factors

Broad national distribution network

RPTECH’s core model is durable: a nationwide channel ecosystem across retail, resellers, system integrators and e‑commerce partners plus logistics and after‑sales. That breadth supports diversification of demand, scale advantages with vendors, and long‑term resilience to single‑channel shocks.

Improving leverage and ROE

Leverage has come down materially and equity has expanded, improving financial stability. Rising ROE into 2025 indicates capital is being deployed more efficiently, reducing refinancing vulnerability and giving management more optionality for investment or working‑capital support.

Consistent positive earnings and stable gross margins

Despite industry cyclicality, RPTECH has maintained positive profitability and stable gross margins typical of distribution. Earnings resilience and modest net margins suggest the company can generate operating profit across cycles, supporting long‑term vendor relationships and incremental investment in service capabilities.

Negative Factors

Chronic negative operating & free cash flow

Sustained negative operating and free cash flow indicate earnings are not converting to cash, likely from working‑capital absorption. This raises refinancing and liquidity risk, limits reinvestment capacity, and makes the company sensitive to funding cost shocks over the medium term.

Sharp 2025 revenue contraction

A near‑25% revenue drop in 2025 signals meaningful demand or channel volatility for a distributor. Reduced volume tightens scale economics, pressures already thin margins, and can increase inventory/credit strain, making revenue stability a material medium‑term risk.

Working‑capital intensity and remaining debt

The distribution model is working‑capital intensive and the company remains exposed to cyclical inventory and receivable swings. Although leverage fell, meaningful debt combined with cash conversion weakness raises the probability of funding pressure in downturns and limits strategic flexibility.

Rashi Peripherals Limited Business Overview & Revenue Model

Company Description

Rashi Peripherals Limited operates as a distribution partner for information and communications technology (ICT) products of various brands in India. It provides personal computing, mobility, and enterprise solutions, as well as embedded solutions, components, lifestyle products, storage and memory devices, power products, and accessories of approximately 48 technology brands/OEMs. The company was incorporated in 1989 and is based in Mumbai, India.

How the Company Makes Money

Rashi Peripherals Limited Financial Statement Overview

Summary

Mixed fundamentals: the balance sheet has improved (moderate debt-to-equity and rising ROE), and earnings remain positive, but 2025 saw a sharp revenue decline (-24.9%) and cash conversion is a major risk with negative operating and free cash flow for 2021–2025.

Income Statement

Revenue growth was strong from 2021–2024 (including a surge in 2022), but the latest year (2025 annual) shows a sharp revenue decline (-24.9%), signaling meaningful demand/industry or channel volatility. Profitability is consistently positive but thin for a distributor: gross margin has stayed around ~5–6% and net margin around ~1–2%. Earnings improved into 2024 and held up in 2025 (net income higher than 2024), but overall margin compression versus earlier years and the 2025 revenue drop temper the quality of the earnings trajectory.

Balance Sheet

Leverage has improved substantially: debt relative to equity fell from very elevated levels in 2020 to moderate levels by 2024–2025 (debt-to-equity ~0.45–0.52), reflecting a stronger capital base. Equity has expanded materially over time, supporting asset growth. Returns on equity remain healthy (about ~9% in 2024 rising to ~12% in 2025), though down from unusually high earlier years when the equity base was much smaller. Overall, the balance sheet looks more stable today, but debt is still meaningful and the business remains sensitive to working-capital cycles typical of distribution models.

Cash Flow

Cash generation is the clear weak spot: operating cash flow is negative for five consecutive years from 2021–2025, and free cash flow is also negative across the same period, indicating profits are not translating into cash (likely working-capital absorption). While 2020 showed positive operating and free cash flow, the subsequent multi-year pattern of cash outflows increases funding/refinancing risk and reduces financial flexibility, especially during periods of revenue volatility like 2025.

Breakdown	TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	126.58B	137.73B	110.95B	94.54B	93.13B	59.25B
Gross Profit	6.66B	7.27B	5.92B	5.40B	5.16B	3.46B
EBITDA	3.79B	3.00B	3.00B	2.71B	3.05B	2.17B
Net Income	2.14B	2.08B	1.41B	1.23B	1.82B	1.30B
Balance Sheet
Total Assets	0.00	42.64B	38.19B	27.99B	26.70B	15.94B
Cash, Cash Equivalents and Short-Term Investments	219.54M	219.54M	1.45B	346.29M	451.94M	289.47M
Total Debt	0.00	9.10B	7.00B	10.82B	8.86B	4.90B
Total Liabilities	-17.44B	25.20B	22.68B	21.00B	20.92B	11.97B
Stockholders Equity	17.44B	17.42B	15.51B	7.00B	5.75B	3.94B
Cash Flow
Free Cash Flow	0.00	-3.07B	-1.09B	-1.26B	-3.27B	-1.16B
Operating Cash Flow	0.00	-2.99B	-1.02B	-1.15B	-3.15B	-1.10B
Investing Cash Flow	0.00	518.62M	17.75M	-38.13M	-64.38M	-9.84M
Financing Cash Flow	0.00	1.23B	2.11B	1.08B	3.38B	1.34B

Rashi Peripherals Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
DLINKINDIA	70 Outperform	₹15.03B	14.46	―	5.12%	8.30%	10.23%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
INSPIRISYS	61 Neutral	₹3.49B	7.85	―	―	-1.07%	187.83%
RPTECH	57 Neutral	₹24.32B	9.94	―	1.17%	―	―
COMPINFO	46 Neutral	₹126.94M	―	―	―	―	―
HCL.INSYS	40 Underperform	₹4.27B	-18.04	―	―	-22.96%	28.55%

Rashi Peripherals Limited Corporate Events

Rashi Peripherals Discloses Rs 1.96 Crore GST Demand, Plans to Appeal

Rashi Peripherals Limited has disclosed that it received an adjudication order from the Assistant Commissioner of GST & Central Excise, Chennai North Commissionerate, confirming a total demand of about Rs 1.96 crore in tax and penalties for financial year 2021–22, primarily linked to alleged wrongful availment and excess claim of input tax credit on imported goods. The company disputes the demand, is consulting tax advisers to file an appeal, and says the amount will be treated as a contingent liability in its financial statements until the matter is finally resolved, signalling a potential but currently non-cash exposure that investors and other stakeholders will likely monitor for its eventual financial and compliance implications.

Rashi Peripherals Announces Trading Window Closure Ahead of Q3 FY26 Results

Rashi Peripherals Limited has announced that its trading window for dealing in the company’s securities will be closed from 1 January 2026 until 48 hours after the declaration of its unaudited standalone and consolidated financial results for the quarter and nine months ended 31 December 2025, in line with SEBI’s Prohibition of Insider Trading Regulations and its internal code of conduct. During this period, designated persons, including directors and promoters, are barred from trading in the company’s shares, signaling routine compliance with insider trading safeguards ahead of financial disclosures, while the date of the board meeting to approve these results will be communicated separately to the market.

Rashi Peripherals Announces Postal Ballot Notice Publication

Rashi Peripherals Limited announced the publication of a newspaper advertisement regarding a postal ballot notice and e-voting information. This announcement, made in compliance with SEBI regulations, was published in both English and Marathi newspapers and is also available on the company’s website, indicating the company’s commitment to transparent communication with its stakeholders.