RattanIndia Enterprises Ltd.
ISIN: INE834M01019 • Market Cap: ₹4,158 Cr
The 5-Pillar Quality Audit for RattanIndia Enterprises Ltd.
Evaluated across Profitability, Financial Health, Historical Compounding, Valuation Safety, and Ownership Governance:
1. Profitability & Capital Efficiency
Weight: 25%Measures operating margins (-8.5%), Return on Capital Employed (24.9%), and equity compounding (9.2%).
2. Financial Health & Solvency
Weight: 25%Debt-to-Equity is 0.96 with comfortable interest coverage and clean working capital.
3. Growth & Compounding Track Record
Weight: 20%Historical 3Y Sales CAGR (23.1%) and 3Y PAT CAGR (—).
4. Valuation Multiple & Margin of Safety
Weight: 15%Trades at P/E of — vs PEG of — and Dividend Yield of —.
5. Ownership Quality & Governance
Weight: 15%Promoter holding stands at 74.9%, backed by 5.5% institutional ownership.
Key Fundamental Strengths
Superior Capital Efficiency (ROCE: 24.9%)
RattanIndia Enterprises Ltd. generates exceptional return on capital employed of 24.9%, reflecting pricing power and competitive moat.
Strong Topline Expansion (3Y Sales CAGR: 23.1%)
Revenue has expanded at 23.1% CAGR over 3 years, signaling industry market-share gains.
Areas to Watch & Potential Risks
Elevated Financial Gearing (D/E: 0.96)
Debt-to-Equity exceeds 0.9x, meaning substantial operating earnings are absorbed by mandatory interest coverage.
Sectoral & Macro Headwinds (Consumer Services)
Subject to broader cyclical demand, raw material price shifts, and regulatory frameworks governing the Consumer Services space.
Quantitative Strategy Eligibility
Checking RTNINDIA against established Indian wealth creation frameworks:
Coffee Can Investing Framework
Passes Saurabh Mukherjea's Coffee Can rule: 10%+ sustained revenue growth and 15%+ ROCE/ROE.
Quality Factor Screener (High RoIC + Low Debt)
Scorecard of 62/100 or leverage profile sits below strict quality index hurdles.
GARP / Value-Growth Blend
Valuation multiple or return metrics require further cyclical pullback.
Consumer Services Sector Peer Comparison
Compare RTNINDIA directly against top industry peers by market capitalization:
| Company | 5-Pillar Score | Market Cap | P/E | ROCE | D/E | Scorecard |
|---|---|---|---|---|---|---|
| RattanIndia Enterprises Ltd. (RTNINDIA)Current | 62/100 | ₹4,158 Cr | — | 24.9% | 0.96 | — |
| Eternal Ltd. (ETERNAL) | 61/100 | ₹3.09 Lakh Cr | 713.64 | 2.9% | 0.00 | View |
| Avenue Supermarts Ltd. (DMART) | 66/100 | ₹2.60 Lakh Cr | 84.88 | 16.4% | 0.04 | View |
| Trent Ltd. (TRENT) | 74/100 | ₹1.57 Lakh Cr | 86.78 | 29.6% | 0.07 | View |
| Lenskart Solutions Ltd. (LENSKART) | 63/100 | ₹1.11 Lakh Cr | 169.67 | 8.4% | 0.03 | View |
| Indian Hotels Co. Ltd. (INDHOTEL) | 75/100 | ₹1.03 Lakh Cr | 48.02 | 16.0% | 0.00 | View |
Frequently Asked Questions: RattanIndia Enterprises Ltd.
Q:What is the 5-Pillar Fundamental Score for RattanIndia Enterprises Ltd. (RTNINDIA)?
RattanIndia Enterprises Ltd. has a RupeeTools Fundamental Score of 62/100, placing it in the 'Moderate / Average' category. Its pillar scores are: Profitability (56/100), Financial Health (70/100), Growth (85/100), Valuation (15/100), and Ownership Quality (72/100).
Q:Is RTNINDIA fundamentally strong for long-term investment?
RTNINDIA currently holds a moderate quality rating of 62/100. While it operates in the Consumer Services sector, investors should monitor its profit margins before initiating long-term positions.
Q:Does RTNINDIA pass the Coffee Can Investing filter?
Yes! RTNINDIA satisfies both core pillars of Coffee Can Investing: achieving consistently high capital returns (ROCE/ROE >= 15%) alongside double-digit multi-year revenue growth.
Q:How does RTNINDIA compare against other Consumer Services peers?
Within India's Consumer Services sector, RTNINDIA trades at a P/E of — and generates an ROCE of 24.9%. Compare its 5-Pillar score of 62/100 against top sector peers like Eternal Ltd. (61/100), Avenue Supermarts Ltd. (66/100).
Regulatory & SEBI Research Analyst Compliance Disclaimer:
This 5-pillar fundamental score is an automated quantitative health check generated purely from historical public financial statements, corporate filings, and exchange disclosures for educational and informational purposes only. It does NOT constitute investment advice, a stock recommendation, or a solicitation to buy or sell securities. RupeeTools is not a SEBI-registered Research Analyst. Please consult a SEBI-registered financial advisor before making investment decisions.