1. 🕐 At a Glance
Raja Bahadur International Ltd is a nearly century-old company that pivoted from textiles to real estate, currently running a premium IT park in Pune leased to TCS. Despite a tiny topline, its margins have exploded recently, and the company is showing signs of revival. But with negative ROE and a 10x book valuation, it’s a strange mix of asset-heavy ambition and accounting acrobatics.
2. 🌟 Introduction with Hook
From making pillowcases in the 1920s to building posh glass buildings in Pune—Raja Bahadur has truly gone from thread to tread. But is this faded Maharaja making a comeback or just flexing one leased office tower? At ₹4,850 a share and a market cap of barely ₹120 Cr, this is one of the most expensive low-revenue companies in India.
3. 💰 Business Model (WTF Do They Even Do?)
- Originally a textile manufacturing company.
- Pivoted fully into Real Estate Development.
- Owns the Raja-Shree Business Park, a premium IT office space in Pune.
- Primary revenue comes from leasing (to TCS) and possibly small-scale power generation.
- Essentially, it’s a single-asset REIT disguised as a legacy smallcap.
4. 📈 Financials Overview – Profit, Margins, ROE, Growth
| Metric | FY23 | FY24 | FY25 |
|---|---|---|---|
| Revenue | ₹18.88 Cr | ₹21.23 Cr | ₹27.75 Cr |
| EBITDA | ₹2.64 Cr | ₹11.57 Cr | ₹17.46 Cr |
| Net Profit | ₹-6.27 Cr | ₹1.26 Cr | ₹-0.95 Cr |
| ROE | -8.03% | 0.6% | -8.03% |
| Book Value | ₹455 |
- Margins shot up to 62%+ in FY25, likely due to full leasing impact.
- However, bottom line still wobbly with PBT of just ₹1.54 Cr and NP negative again.
- Equity remains low at ₹2.5 Cr, so EPS swings wildly each quarter.
5. 📉 Valuation – Is It Cheap, Meh, or Crack?
- CMP: ₹4,850
- Book Value: ₹455 → P/BV = 10.7x!
- No visible PE (loss-making TTM)
- Looks like an expensive REIT with no dividend.
Fair Value Range? Assuming:
- Rental EBITDA of ₹17.5 Cr,
- Cap Rate of 10% on stabilized rent → Value of ₹175 Cr,
- Add minor power asset value + cash = ₹200 Cr,
- Equity Value = ₹200 Cr – ₹212 Cr debt = -12 Cr!
Okay, let’s give them a break and assume value of asset is under-reported:
- FV Range: ₹300 Cr – 350 Cr = ₹7,200 – 8,400/share (optimistic)
- Conservative FV = ₹3,500 – 4,000/share
So, Current Price = Fully Valued to Slightly Overvalued
6. 🎩 What’s Cooking – News, Triggers, Drama
- Appointment of Umang & Vaibhav Pittie as Whole-Time Directors (May 2025)
- Massive OPM expansion in FY24 & FY25
- Revival story? FY25 revenue highest in history
- Zero dividend so far despite steady leasing income
7. 💸 Balance Sheet – How Much Debt, How Many Dreams?
- Debt = ₹212 Cr, up from ₹152 Cr in FY24
- Reserves hovering at ₹8.87 Cr ↓ declining trend
- Single asset-backed balance sheet → vulnerable to tenant risk
8. 💵 Cash Flow – Sab Number Game Hai
| FY | CFO | CFI | CFF |
|---|---|---|---|
| FY23 | ₹9.19 Cr | ₹-35.01 Cr | ₹37.5 Cr |
| FY24 | ₹5.05 Cr | ₹-30.22 Cr | ₹15.84 Cr |
| FY25 | ₹12.47 Cr | ₹-49.16 Cr | ₹43.51 Cr |
- Heavy investment in CWIP and capex (₹87 Cr in FY25!)
- Most cash raised through debt
9. 🔢 Ratios – Sexy or Stressy?
- ROCE: 9.36% (respectable, improving)
- ROE: -8.03% (bad)
- Debtor Days: 124 (okay for leasing)
- **Inventory Days: High, but unclear utility in RE)
- Interest Coverage: <1x → Red Flag!
10. 💳 P&L Breakdown – Show Me the Money
- 3-Year Revenue CAGR: -3% (yes, negative)
- But TTM Growth: +31%
- EBITDA grew from ₹2.64 Cr in FY23 to ₹17.46 Cr in FY25
- Net profit still not dependable due to high interest and depreciation
11. 🏅 Peer Comparison – Who Else in the Game?
| Company | Mkt Cap | ROCE | OPM | P/BV |
|---|---|---|---|---|
| DLF | ₹208,908 Cr | 6.5% | 26.4% | 4.9x |
| Godrej Props | ₹69,574 Cr | 6.6% | -1.5% | 4.0x |
| Oberoi Realty | ₹67,561 Cr | 17.7% | 58.7% | 4.3x |
| Raja Bahadur | ₹121 Cr | 9.4% | 62.9% | 10.7x |
- Has better OPM than peers!
- But valuation (P/B) completely out of sync with peer scale
12. 🧑💼 Miscellaneous – Shareholding, Promoters
- Promoters hold 75% consistently
- Zero FII/DII presence
- ~1,280 public shareholders
- Promoters = Pittie family (recently added two younger directors)
13. 🧱 EduInvesting Verdict™
Raja Bahadur International is like that vintage palace converted into a coworking space – cool, niche, profitable… but weirdly valued. With only one big tenant (TCS) and lopsided financials, it’s less of a growth story and more of an asset play. If leasing continues strong and the debt gets trimmed, there might be hidden value. But at 10.7x book and no dividends, this is currently more flex than fundamentals.
Tags: Raja Bahadur International, Pune real estate, TCS lease, smallcap REIT, microcap analysis, OPM margin stock, asset-heavy stock, EduInvesting real estate picks
✍️ Written by Prashant | 🗓️ July 9, 2025
