At a Glance
Rashi Peripherals (RPTECH) just delivered a neat Q1 FY26: revenue (ex-one-off) rose 11.4% YoY, EBITDA jumped 23%, and PAT grew 12% YoY to ₹62 crore. This ICT distribution giant—middleman to global tech brands—runs a low-margin but high-turnover game. With a stock P/E of 8.8 and price hovering around ₹286, it’s cheaper than your monthly internet bill in valuation terms. But beware, contingent liabilities of ₹583 crore lurk like a Trojan virus.
Introduction
Imagine being the Robinhood of the tech world—buy from the rich (Apple, Dell, HP) and sell to the masses. That’s Rashi Peripherals for you, operating in a space where margins are thinner than your smartphone’s bezel. While Q1 FY26 numbers looked solid, the business remains a classic volume play: low-margin, high-turnover, and working capital hungry. With a 27% stock price drop over the past year, investors are divided—value hunters see a bargain; skeptics see a value trap.
Business Model (WTF Do They Even Do?)
Rashi Peripherals is India’s leading ICT product distributor. They distribute:
- Computers & Notebooks (Dell, Asus, etc.)
- Mobiles & Wearables (Apple, Xiaomi)
- Networking, Storage, Printers
- IT Accessories, UPS, Peripherals
Their job? Move massive volumes, earn razor-thin margins (~3% OPM), and ensure after-sales service. Their revenue depends on tech demand cycles, import policies, and OEM tie-ups. The business is less about brand differentiation and more about logistics efficiency and credit control.
Financials Overview
For Q1 FY26 (June 2025):
- Revenue: ₹3,152 crore (+11.4% YoY)
- EBITDA: ₹104 crore (+23% YoY)
- Net Profit: ₹62 crore (+12% YoY)
- EPS (Q1): ₹9.3
FY25 was impressive:
- Revenue: ₹13,773 crore (+24%)
- PAT: ₹210 crore (+46%)
- EPS FY25: ₹32.5
Fresh P/E: 286 / 32.5 ≈ 8.8 – a value investor’s candy.
Valuation
- P/E Method: Sector median ~20. Fair value = 20 × 32.5 ≈ ₹650.
- EV/EBITDA: FY25 EBITDA ₹300 crore, EV/EBITDA 8× → Fair value ≈ ₹450–480.
- DCF:
