At a Glance
Rashi Peripherals Ltd (RPL) quietly handles the heavy lifting behind India’s tech ecosystem as a distributor and after-sales service provider for global ICT brands. With a ₹1,913 Cr market cap and a low P/E of 9, it’s trading near 1.1x book value, boasting a solid ROCE of 14% and ROE of 12.5%. The company has been growing revenues steadily but carries a dark cloud in the form of ₹583 Cr contingent liabilities. Dividend yield is an underwhelming 0.34%. Investors who like steady modest growth at value prices might want to keep an eye here — but watch those liabilities.
Introduction
ICT product distribution is not glamorous, but without it, your shiny new laptop, smartphone, or UPS wouldn’t show up on store shelves or your desk. Rashi Peripherals Ltd has been doing this quietly since 1989 — bridging global tech brands and Indian customers. The company also handles after-sales service, a lifeline in a market notorious for flaky electronics.
Trading at just 9 times earnings, RPL is a value hunter’s playground compared to hotshot tech distributors trading at 20x or more. Yet, lurking in the shadows is a whopping ₹583 Cr in contingent liabilities, a financial “what-if” that raises eyebrows. Will these liabilities explode or quietly disappear? That’s a key question before jumping on board.
Business Model (WTF Do They Even Do?)
RPL acts as the middleman between global tech manufacturers and Indian retailers/end users. They distribute a wide range of ICT products — from laptops, mobiles, wearables, printers, networking gear, storage devices, UPS, and even inverters.
In addition to distribution, they provide after-sales services — basically the warranty repairs, troubleshooting, and support that keep devices alive and customers (sometimes) happy. They have long-term contracts with big-name tech brands, which smooths revenue visibility.
Financials Overview
- Market Cap: ₹1,913 Cr
- Current Price: ₹291
- P/E: 9.0 (cheap vs peers)
- Book Value: ₹264 (trading near 1.1x)
- ROCE: 14.0% (decent)
- ROE: 12.5% (respectable)
- Dividend Yield: 0.34% (token)
- Operating Margin: ~2–3% (low, but distribution businesses run on volume)
Revenue grew from ₹9,454 Cr in FY23 to ₹12,658 Cr TTM, a healthy 14% CAGR recently.
