Rectitude Holdings Ltd (RECT) AI Stock Analysis

• Market Cap: $24.66M
• Dividend Yield: N/A
• Average Volume (3M): 22.02K
• Price to Earnings (P/E): 19.2
• Beta (1Y): 0.19
• Revenue Growth: 6.70%
• EPS Growth: -30.54%
• Country: US
• Employees: 107
• Sector: General
• Sector Strength: N/A
• Industry: Industrial - Distribution
• EPS (TTM): 0.10
• Shares Outstanding: 14,500,000
• 10 Day Avg. Volume: 5,511
• 30 Day Avg. Volume: 22,017
• PEG Ratio: 0.25
• Price to Book (P/B): 8.22
• Price to Sales (P/S): 1.59
• P/FCF Ratio: 16.63
• Enterprise Value/Market Cap: 2.50
• Enterprise Value/Revenue: 1.63
• Enterprise Value/Gross Profit: 4.96
• Enterprise Value/Ebitda: 19.38
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: Hold
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 50 Neutral
• Price Target: $2.00 ▲(17.65% Upside)

Rectitude Holdings Ltd's overall stock score is primarily influenced by its strong revenue growth and improved balance sheet, which are offset by declining profitability margins and significant cash flow challenges. The bearish technical indicators further weigh on the score, while the moderate valuation provides some balance. The absence of earnings call data and corporate events means these factors do not influence the score.

Positive Factors

Strategic Partnership

The partnership with Pansik Technology is set to expand Rectitude's renewable energy solutions across key regions, enhancing market reach and brand reputation, which supports long-term growth in the renewable energy sector.

Revenue Growth

Strong revenue growth indicates robust demand and market expansion, which is crucial for sustaining long-term business growth and competitiveness.

Balance Sheet Improvement

Improved debt-to-equity ratio reflects a stronger equity position and reduced leverage risk, enhancing financial stability and flexibility for future investments.

Negative Factors

Declining Profit Margins

Declining profit margins suggest increased costs or pricing pressures, which could impact long-term profitability and require operational adjustments.

Cash Flow Challenges

Negative cash flow generation indicates potential liquidity issues, which could constrain the company's ability to invest in growth opportunities and meet financial obligations.

Management Transition

CFO transition may lead to temporary disruptions in financial strategy execution, impacting financial stability and investor confidence in the short to medium term.

Rectitude Holdings Ltd Business Overview & Revenue Model

Company Description

Rectitude Holdings Ltd. offers a comprehensive range of safety equipment, including personal protective clothing, safety gloves, step platform ladders, safety footwear, travel restraint and personal fall arrest equipment, portable fire extinguishers, firefighting equipment, fire-related safety products, traffic products, and industrial hardware tools. The company markets its products under various brands such as D&D, SkyHawk, Super Sun, STRIKERS, Osprey, HORNET, and DADE. ​

How the Company Makes Money

Rectitude Holdings Ltd generates revenue primarily through its investment portfolio, which includes equity stakes in various companies across its targeted sectors. The company earns capital gains through the appreciation of its investments, as well as dividends from its equity holdings. Additionally, RECT may engage in strategic partnerships and joint ventures that provide supplementary income streams, such as revenue sharing agreements or consulting services. The company's focus on sustainable and socially responsible investments enhances its appeal to a growing market of impact investors, potentially increasing its access to capital and funding sources.

Rectitude Holdings Ltd Financial Statement Overview

Summary

Rectitude Holdings Ltd shows strong revenue growth and a healthier balance sheet with reduced leverage. However, declining profitability margins and significant cash flow challenges pose risks to financial stability. The company needs to address operational inefficiencies and improve cash flow management to sustain growth and profitability.

Income Statement

Rectitude Holdings Ltd has demonstrated strong revenue growth with a 41.07% increase in the latest year, indicating robust demand and market expansion. However, the net profit margin has decreased to 5.11% from 8.11% the previous year, suggesting increased costs or pricing pressures. The gross profit margin remains healthy at 33.65%, but the decline in EBIT and EBITDA margins indicates potential operational inefficiencies.

Balance Sheet

The company's debt-to-equity ratio has improved significantly to 0.35 from 1.12, reflecting a stronger equity position and reduced leverage risk. However, the return on equity has dropped to 9.04% from 41.84%, indicating reduced profitability relative to shareholder equity. The equity ratio of 56.67% suggests a stable financial structure with a good proportion of assets financed by equity.

Cash Flow

Rectitude Holdings Ltd faces challenges in cash flow management, with a significant decline in free cash flow growth rate to -208.96%, indicating negative cash generation. The operating cash flow to net income ratio is low at 0.016, highlighting potential issues in converting income into cash. The negative free cash flow to net income ratio further underscores cash flow constraints.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2023	Dec 2022
Income Statement
Total Revenue	37.87M	43.80M	41.35M	20.61M	29.81M
Gross Profit	12.44M	14.74M	14.71M	6.12M	8.74M
EBITDA	3.18M	4.56M	5.88M	5.32M	3.59M
Net Income	1.75M	2.24M	3.36M	2.15M	2.08M
Balance Sheet
Total Assets	42.28M	43.69M	34.21M	16.24M	25.25M
Cash, Cash Equivalents and Short-Term Investments	3.97M	6.65M	3.47M	1.38M	1.14M
Total Debt	10.04M	8.69M	8.94M	4.03M	7.53M
Total Liabilities	18.96M	18.92M	19.62M	9.88M	15.80M
Stockholders Equity	23.32M	24.77M	8.02M	6.35M	9.45M
Cash Flow
Free Cash Flow	-1.41M	-415.68K	3.96M	1.99M	1.13M
Operating Cash Flow	-1.07M	200.13K	4.20M	2.00M	1.32M
Investing Cash Flow	-7.35M	-5.80M	-230.35K	―	-188.66K
Financing Cash Flow	9.21M	8.77M	-2.93M	-1.28M	-1.00M

Rectitude Holdings Ltd Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 1.70
• 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 RECT, the sentiment is Negative. The current price of 1.7 is below the 20-day moving average (MA) of 1.86, below the 50-day MA of 2.24, and below the 200-day MA of 3.83, indicating a bearish trend. The MACD of -0.18 indicates Negative momentum. The RSI at 32.03 is Neutral, neither overbought nor oversold. The STOCH value of 38.34 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for RECT.

Rectitude Holdings Ltd Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	55 Neutral	$6.65B	3.83	-15.92%	6.20%	10.91%	7.18%
RECT	50 Neutral	$24.66M	19.17	11.45%	―	6.70%	-30.54%
HTLM	44 Neutral	$36.87M	―	―	―	―	―

Rectitude Holdings Ltd Corporate Events

Rectitude Holdings Partners with Pansik Technology to Expand Renewable Energy Reach

On October 27, 2025, Rectitude Holdings Ltd announced a strategic partnership with Pansik Technology Pte Ltd to expand its renewable energy solutions across Southeast Asia, Australia, and the Middle East. This collaboration involves Pansik acting as a rental and leasing partner for Rectitude’s energy storage systems, expected to secure SGD $2.3 million in sales within two months. The partnership aims to broaden Rectitude’s market reach, enhance its Super Sun brand’s reputation, and attract regional distributors, positioning the company for growth in the renewable energy sector.

Rectitude Holdings Ltd Announces CFO Transition

Rectitude Holdings Ltd, based in Singapore, announced a change in its financial leadership. On September 30, 2025, Mr. Chan Yong Xian resigned as Chief Financial Officer for personal reasons, and on October 1, 2025, Mr. Chan Kah Chun was appointed as the interim CFO. Mr. Chan Kah Chun brings over a decade of experience with the company and a strong background in finance and accounting, which is expected to ensure continuity and stability in the company’s financial operations.

Rectitude Holdings Initiates $32.6 Million Bitcoin Treasury Strategy

Rectitude Holdings Ltd, a Singapore-based safety equipment provider, announced on September 8, 2025, its entry into a Standby Equity Purchase Agreement (SEPA) with Constantinople Limited and Chen Zhiqiang to initiate a Bitcoin treasury strategy. The agreement allows Rectitude to issue up to $32.6 million in ordinary shares, with proceeds primarily intended for Bitcoin purchases. This strategic move aims to leverage Bitcoin as a store of value and hedge against inflation, reflecting the company’s confidence in Bitcoin’s potential amidst growing global adoption. The SEPA provides Rectitude with a flexible capital source to support its Bitcoin strategy and enhance shareholder value.