Rashi Peripherals Q4FY26 Power Idea: 40% Upside on Memory Price Tailwinds

India’s ICT distribution space is entering a favourable pricing cycle. Rashi Peripherals stands out as a direct beneficiary of rising memory and storage prices, backed by scale, execution strength, and strong OEM partnerships.

What we like in the company

• One of India’s leading ICT distributor with a strong presence across PCs, components, peripherals, networking, and enterprise products.
• Deep OEM relationships across global brands, enabling preferred access, pricing power, and scale benefits.
• Well-established pan-India distribution network with strong reach across metros, Tier-2, and Tier-3 markets.
• Balanced revenue mix, with more than 50% of revenues coming from memory (RAM), storage (SSD), and related components, which are high-churn, high-volume categories.

Near-term triggers

• Rising RAM and SSD prices amid global demand supply disruption present a meaningful earnings tailwind, as price increases are yet to be fully reflected in near-term expectations but could drive upside in revenue and margins over the next few quarters.
• Large distributors typically plan inventory cycles well in advance. Rashi is well positioned to benefit given its scale, vendor access, and execution track record.
• With ~50% of revenues derived from memory and storage products, Rashi offers direct leverage to the current pricing cycle, which could translate into accelerated growth and improved profitability in the near term.

Earnings Outlook

• We are factoring in 12.2%/21.5%/14.9% CAGR in Revenue/EBITDA/PAT over FY25-28E.
• EBITDA margins are expected to be in the range of 2.5-3% supported by favorable product mix led by faster growth in categories such as memory and storage, and expected refresh cycle.

The penetration of PC’s is low and expected to grow 12-15% in FY24-FY27E

Valuation and view

• The stock trades at 9.4x Mar’27E P/E. Valued the stock at 12x Sept’28E EPS, arriving at a TP of Rs505 on the back of higher PES segment growth (lower margins vs LIT).
• Key risks: Delay in replacement cycle for PC’s, 2) Supply related issues for components 3) Failure to win large deals from data center projects.

EBITDA Margins to improve gradually

Key financials (Rs mn)

Open your MNCL Demat Account

FAQs on Rashi Peripherals Ltd Power Idea

Q1. Why is Rashi Peripherals a Q4FY26 Power Idea?

Rashi offers direct leverage to rising RAM and SSD prices, with over 50% revenue exposure to memory and storage products, supported by strong OEM relationships.

Q2. What is the key earnings trigger?

Improving memory pricing and inventory cycle advantages could lead to upside in revenue and margins over the next few quarters.

Q3. What are the key risks?

Delay in PC replacement cycles, supply-side disruptions, and slower execution in large data-center deals.

Q4. What valuation comfort does the stock offer?

The stock trades at a discounted valuation of 9.4x Mar’27E P/E, providing a favourable risk-reward setup.

Before You Trade, Strengthen Your Foundations with These Guides

• For a stronger understanding of indicators such as RSI, VWAP, and trendlines, check our 👉 Technical Analysis Fundamentals section.
• Want to refine your risk-reward planning? Explore our insights on 👉 Position Sizing & Risk Management Strategies.