Rectitude Holdings Ltd (RECT)
NASDAQ:RECT
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Rectitude Holdings Ltd
(NASDAQ:RECT)
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Rating:57Neutral
Price Target:
$1.00
▼(-41.18% Downside)
Action:ReiteratedDate:03/04/26
The score is primarily constrained by cash flow weakness and declining profitability despite strong revenue growth and improved leverage. Technical indicators also point to a downtrend and bearish momentum. Valuation appears reasonable on P/E, but lacks dividend support.
Positive Factors
Strong Revenue Growth
Sustained high revenue growth demonstrates durable market demand and successful commercial execution. Over 2–6 months this supports scale economies, greater bargaining power with suppliers, and a larger revenue base to fund reinvestment or new product expansion, improving strategic optionality.
Negative Factors
Free Cash Flow Weakness
Severe free cash flow deterioration and poor conversion of earnings to cash constrain the company's ability to fund capex, service debt, and invest in growth without external financing. This structural cash-generation shortfall raises funding risk over the medium term.
Read all positive and negative factors
Positive Factors
Negative Factors
Strong Revenue Growth
Sustained high revenue growth demonstrates durable market demand and successful commercial execution. Over 2–6 months this supports scale economies, greater bargaining power with suppliers, and a larger revenue base to fund reinvestment or new product expansion, improving strategic optionality.
Read all positive factors
Rectitude Holdings Ltd (RECT) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$17.40M
Dividend YieldN/A
Average Volume (3M)22.02K
Price to Earnings (P/E)8.5
Beta (1Y)0.21
Revenue Growth6.70%
EPS Growth-30.54%
CountryUS
Employees107
SectorIndustrials
Sector Strength72
IndustryIndustrial - Distribution
Share Statistics
EPS (TTM)N/A
Shares Outstanding14,500,000
10 Day Avg. Volume5,511
30 Day Avg. Volume22,017
Financial Highlights & Ratios
PEG Ratio0.25
Price to Book (P/B)8.22
Price to Sales (P/S)1.59
P/FCF Ratio16.63
Enterprise Value/Market Cap1.45
Enterprise Value/Revenue0.62
Enterprise Value/Gross Profit2.02
Enterprise Value/Ebitda4.33
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)N/A
Revenue Forecast (FY)N/A
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 extinguishe...
Rectitude Holdings Ltd Financial Statement Overview
Summary
Income Statement
75
Positive
Balance Sheet
65
Positive
Cash Flow
45
Neutral
| Breakdown | TTM | Mar 2024 | Mar 2024 | Mar 2022 |
|---|---|---|---|---|
Income Statement | ||||
| Total Revenue | 40.66M | 43.80M | 41.35M | 29.81M |
| Gross Profit | 12.51M | 14.74M | 14.71M | 8.74M |
| EBITDA | 5.85M | 4.56M | 5.88M | 3.59M |
| Net Income | 3.16M | 2.24M | 3.36M | 2.08M |
Balance Sheet | ||||
| Total Assets | 38.13M | 43.69M | 34.21M | 25.25M |
| Cash, Cash Equivalents and Short-Term Investments | 4.60M | 6.65M | 3.47M | 1.14M |
| Total Debt | 7.36M | 8.69M | 8.94M | 7.53M |
| Total Liabilities | 17.09M | 18.92M | 19.62M | 15.80M |
| Stockholders Equity | 21.04M | 24.77M | 8.02M | 9.45M |
Cash Flow | ||||
| Free Cash Flow | -589.36K | -415.68K | 3.96M | 1.13M |
| Operating Cash Flow | -333.43K | 200.13K | 4.20M | 1.32M |
| Investing Cash Flow | 1.71M | -5.80M | -230.35K | -188.66K |
| Financing Cash Flow | -461.53K | 8.77M | -2.93M | -1.00M |
Rectitude Holdings Ltd Technical Analysis
Negative
1.70
Price Trends
1.44
Negative
1.65
Negative
2.88
Negative
Market Momentum
-0.07
Negative
35.15
Neutral
60.67
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 above the 20-day moving average (MA) of 1.27, above the 50-day MA of 1.44, and below the 200-day MA of 2.88, indicating a bearish trend. The MACD of -0.07 indicates Negative momentum. The RSI at 35.15 is Neutral, neither overbought nor oversold. The STOCH value of 60.67 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
UnderperformOutperform
Sector (63)
RECT
Rectitude Holdings Ltd
1.20
-2.71
-69.31%
HTLM
HomesToLife Ltd
1.69
-2.17
-56.22%
BRIA
BrilliA Inc. Class A
1.79
-0.12
-6.28%
PASW
Ping An Biomedical
0.14
-3.16
-95.88%
Rectitude Holdings Ltd Corporate Events
Rectitude Holdings Posts Strong First-Half FY2026 Profit Surge on Auxiliary Product Growth
Mar 20, 2026
Rectitude Holdings reported unaudited first-half fiscal 2026 results for the six months ended September 30, 2025, showing revenue up 10.8% year-on-year to S$24.5 million, driven largely by a surge in auxiliary product sales such as AIMS systems, n...
Rectitude Holdings Launches 2026 Equity Incentive Plan to Align Pay With Share Performance
Mar 10, 2026
On March 4, 2026, Rectitude Holdings Ltd adopted a new 2026 Equity Incentive Plan designed to attract, retain and motivate directors, officers, employees, consultants and advisers by granting them equity-linked awards. The plan authorizes up to 1,...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.