Rashi Peripherals Ltd – Turns cashflow positive
11 Dec 2025
Blog
We retain "BUY" rating with a Target Price of Rs. 505 (vs Rs 525 earlier). Rashi Peripherals ltd reported decent topline growth, on the back of strong sales from the PES segment (PCs, Desktops). Our dealer checks suggest demand is improving for AI-enabled PCs as prices are more attractive on a YoY basis. Ecommerce contributed 17% of sales in Q2 (seasonally strong quarter), which added pressure on margins along with ESOP expenses. Cashflow turned positive on the back of better working capital management; management is confident of turning OCF positive for FY26e and beyond. We believe the pick-up in the replacement cycle for PC’s in H2FY26 coupled with improved demand for data center products will be a positive catalyst for Rashi over the next 2-years.
Strong revenue growth on the back of PES outperforming
The company reported revenue growth of 31.8% QoQ / 12.1% YoY, primarily due to strong demand for PCs in the consumer segment. Industry grew at 5-6%, while Rashi continued to grow 2x of industry growth. ICT sector is expected to grow 8-10% in H2, which bodes well for Rashi. Within the PES segment, AI-PCs have started to gain traction especially on the enterprise side. The co. is looking to participate in large deals from H2FY26, which bodes well for growth. The deal with Dell could potentially add Rs10bn of revenue annually.
EBITDA margins to remain in the range of 2.7-3%
EBITDA margins came in at a 2.5% on account of higher contribution of online sales and ESOP expenses. Lower employee costs and other expenses helped the co. to sustain margins above 2.5%. We expect the margins to normalize to 2.7-3% over the next few quarters as the company focuses on growth. The company did not clock any large deals in Q2 which helped margins. Additionally, the company increased its brand portfolio from 74 to 79 in Q1, adding global and Indian brands.
Outlook; OCF to turn positive
The strategic change from chasing larger enterprise deals (Yotta deal) to going after small and more frequent deals is reflected in better margins and predictable growth. The anticipated PC replacement cycle from H2FY26—driven by increased adoption of AI-enabled PCs—should aid growth. Cash generation improved in H1 on the back of better collection and working capital management backed by improved credit rating. We expect CFO to remain positive for FY26E, with ROCE to be in the range of 13-15%+. The exit of the Company Secretary and compliance officer is unlikely to impact business operations, as suitable replacements has already been appointed.
Valuation
We are factoring in 12.2%/21.5%/14.9% CAGR in Revenue/EBITDA/PAT over FY25-28E. We value the company at 12x Sept’28E EPS, arriving at a TP of Rs505 (Rs 525 earlier) on the back of higher PES segment growth (lower margins vs LIT). Key risks: 1) Delay in replacement cycle for PC’s, 2) Supply related issues for components (CPUs, GPUs, RAM) 3) Failure to win large deals from data center projects.
Company website: https://rptechindia.com/
| Rating | BUY |
|---|---|
| CMP | INR 325 |
| Target Price | INR 505 |
| Upside | 55% |
Click to download the full Rashi Peripherals Limited Company Update
Analyst:
- Vinay Menon - Senior Research Analyst, Institutional Equities (NISM-201600112117)
- Miloni Mehta - Research Associate, Institutional Equities (NISM-201800127664)
Frequently Asked Questions (FAQ)
1. How did Rashi Peripherals perform in Q2FY26?
The company reported 31.8% QoQ and 12.1% YoY revenue growth, driven by strong demand in the PES segment, particularly PCs and desktops, outpacing overall industry growth of 5–6%.
2. What supported the improvement in cashflows?
Rashi turned cashflow positive due to better working capital management and improved collections. Management expects operating cash flow to remain positive in FY26 and beyond.
3. What is the margin outlook for Rashi Peripherals?
EBITDA margin stood at 2.5% in Q2, impacted by higher ecommerce contribution and ESOP expenses. Margins are expected to normalize to 2.7–3% over upcoming quarters.
4. What are the key growth drivers for the coming quarters?
Growth is expected from the PC replacement cycle, rising demand for AI-enabled PCs, expansion of the brand portfolio, and participation in large potential deals, including the opportunity with Dell.
5. What is the revised target price and rating?
The stock retains a BUY rating with a target price of ₹505, based on 12x Sept’28E EPS. The earlier target price was ₹525.
6. What risks should investors be aware of?
Key risks include delay in PC replacement cycle, supply chain issues for critical components such as CPUs and GPUs, and slower-than-expected wins in data center–related deals.
Disclaimer: - You are advised to read our disclaimer here: https://www.mnclgroup.com/disclaimers
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The Anup Engineering: Through the Trough, Recovery in the offing - Company Update
We upgrade our rating on The Anup Engineering to BUY (previously HOLD) and revise our target price to Rs 2,515. The company is not yet out of the woods, with the market awaiting clear signs of a recovery in order inflows. That said, we believe the wo...
Saksoft Ltd: Temporary headwinds, normalization in sight - Company Update
We maintain our "BUY" rating with a revised target price of Rs 285 (vs 325). Saksoft delivered weak results – a) topline growth saw a de-growth of 3% despite the favourable currency mix, b) Top 2 clients have cut spends in Q3, the pain co...
Mayur Uniquoters: Riding export momentum - Company Update
We maintain our BUY rating on Mayur Uniquoters with a revised target price of Rs. 825 (earlier Rs. 770), as we roll forward our valuation to Q3 FY28E and upgrade our FY27E/FY28E earnings estimates by ~4%. The company delivered a robust operating perf...
Scoda Tubes Ltd.: Slight miss; structural thesis intact - Company Update
We retain BUY rating on Scoda Tubes but upward revise target price of Rs 250 (previously Rs 240). Increase in target price is mainly due to valuation rollover. Q3FY26 was a strong performance on offtake, marginally offset by pricing weakness and dela...
TD Power Systems: Global demand fuelling growth visibility - Company Update
We upgrade TD Power to BUY / revise our target price upwards to Rs 875 (vs. Rs 840 earlier). Q3-FY26 results were a tad lower than our expectations and reflect timing issues rather than demand or competitive weakness. Going ahead, the Tumkur facility...
SJS Enterprises Ltd - Premiumisation and Export-led Outperformance - Company Update
We revise our target price on SJS Enterprises upwards to Rs2,190 to account for an increase in revenue/ margin estimates, and valuation roll-forward to Dec’27E. SJS delivered another quarter of strong industry outperformance, with record profitabil...
Sundram Fasteners Ltd.: Exports spoil the show - Company Update
We lower target price to Rs 1035 (previously Rs 1085) and maintain Accumulate rating for Sundram Fasteners Ltd. (SFL). We downward revise our multiple to account for extended weakness on exports including delay in EV order to North America, in turn l...
ASK Automotive Ltd. - Firing on all cylinders - Company Update
We upgrade ASK Automotive to BUY rating on attractive valuation and increase our TP to Rs590 (Rs525 previously). The increase in TP is largely driven by valuation rollover. ASK delivered a strong Q3, materially ahead of our expectations, led by broad...
Kirloskar Ferrous Ind. - Casting and tubes outperform, spreads spoil the show | Company Update
We lower our target price to Rs 620 (previously Rs690) and retain BUY rating for Kirloskar Ferrous Industries Ltd. (KFIL). The decrease in TP is mainly to account for weak commodity spreads and realization across end products . KFIL’s 2QFY26 perfor...
IFGL Refractories Ltd. - Domestic focus continues to payoff; overseas improving gradually | Company Update
We decrease target price to Rs 280 (previously Rs 300) but maintain BUY rating. The change in TP is mainly due to cut of earnings estimates. IFGL delivered another quarter of strong standalone growth as its domestic-focused strategy continues to gain...
Borosil Ltd. - Glassware ignites growth; levers to power margins | Company Update
We reiterate our BUY on Borosil Ltd and revise our target price upwards to Rs. 460 (vs. Rs. 420 earlier), driven by strong demand momentum and emerging structural growth and margin levers. The company continues to deliver robust growth in its glasswa...
Venus Pipes & Tubes Ltd. - Export and welded drives confidence | Company Update
We increase Target Price to Rs 2040 (previously Rs1,950) and retain BUY for Venus Pipes & Tubes (VENUS) due to attractive valuations. Increase in TP is primarily due to valuation roll forward. Revenue in 2QFY26 was strong, supported by a sharp re...
ESAB India - Encouraging quarter; growth in focus | Company Update
We retain Buy on ESAB India with TP revised upwards to Rs 6,850 (vs Rs 6,554 earlier) on valuation rollover. The company delivered a strong quarter, with overall growth hinting at signs of recovery supported by margin gains. ESAB continues to o...
The Anup Engineering - All eyes on cash conversion | Company Update
We maintain our HOLD rating on Anup Engineering but increase TP to Rs 2,475 (vs Rs 2,375 earlier) considering steady operational performance and an unchanged growth outlook coupled with valuation rollover. The impact from higher taxes was anticipated...
Rashi Peripherals Ltd – Turns cashflow positive
We retain "BUY" rating with a Target Price of Rs. 505 (vs Rs 525 earlier). Rashi Peripherals ltd reported decent topline growth, on the back of strong sales from the PES segment (PCs, Desktops). Our dealer checks suggest demand is improving for AI-en...
Wonderla Holidays - Chennai on Track; Expansion Visibility Low | MNCL Research Update
We reiterate our HOLD rating on Wonderla Holidays Ltd while revising our target multiple downwards to 18x (from ~20x) and rolling forward our valuation to Q2FY28E. In a seasonally weak quarter, the company delivered a better-than-expected topline, pr...
R Systems International - Strong growth tempered by higher SG&A & RSU costs | MNCL Research Update
We maintain our "BUY" and retain our target price to Rs 620. R Systems delivered higher than expected topline growth (7.9% vs our estimate of 3.5% in INR terms). EBITDA was in line with our estimates / margins dipped 70bps QoQ on the back of higher R...
SJS Enterprises Ltd - Designed to outperform | MNCL Research Update
We revise our target price on SJS Enterprises upwards to Rs1,930 to account for an increase in revenue/ margin estimates, valuation roll-forward to Sept’27E and target multiple expansion. SJS delivered another quarter of strong industry outperforma...
Channel checks - Opalware and Glassware - Borosil Sets the Benchmark in Opalware Retail
We conducted channel checks across key markets in Western and Northern India to gauge demand trends (qualitative aspects) in the Opalware and Glassware categories. We also analysed balance sheet / profitability trends (quantitative parts) across key ...
Goldiam International - LGD Momentum builds; ORIGEM scaling | Company Update
We reiterate our BUY rating on Goldiam International with a target price of Rs. Rs.470. Despite near-term uncertainty around U.S. tariff implications, the company has delivered an exemplary performance driven by robust topline growth and increasing w...
ASK Automotive Ltd – Meets Expectations; ALPS & Aftermarket to Drive Growth | MNCL Research Company Update
We retain ACCUMULATE on ASK Automotive while lowering our target price to Rs 525. The lowering of TP follows downward revision in our revenue and margin estimates, partially offset by valuation rollover. ASK delivered a strong Q2, broadly in line wit...
Sundram Fasteners Ltd. - Steady Domestic Momentum Offsets Export Weakness; upgrade to Accumulate - Company Update
We increase target price to Rs 1085 (previously Rs1030) and upgrade our rating to Accumulate for Sundram Fasteners Ltd. (SFL) due to steep correction in share price. Increase in TP is mainly due to valuation roll forward. SFL’s performance in 2QFY2...
JNK India Ltd – End of Overhang, Execution to Drive Growth | Q2FY26
Our interaction with JNK India led to the following conclusions: JNK India’s legacy low-margin orders (NRL, IOCL) delayed by site and client issues are expected to conclude largely by Q2FY26, with minor spillover into Q3FY26. From Q3FY26, high-marg...
Ratnamani Metals and Tubes Ltd. - Subsidiaries outperform | Company Update
We increase target price to Rs 2710 (previously 2690) and upgrade to Accumulate rating. Increase in target price is due to valuation roll forward. In 2QFY26, the core pipes business saw modest growth as strong offtake was offset by weak realizations....
