Rajdarshan Industries Limited — financial distress indicators
Financial-health summary
Rajdarshan Industries Limited's reported numbers place it in the 'Weak' financial-health band (distress score 57/100). The main indicators are cash runway under 12 months, revenue collapse and operations consume cash. Independently, the Ohlson accounting model puts its 1-year failure probability at 98%. In its favour: cash on hand covers all debt (net-cash balance sheet).
Stress by dimension
Share price — last 12 months
Indicators behind the score
Each red flag shows the evidence from the company’s own filings and the financial or legal principle behind it. Points add to the 0–100 score.
At the current free-cash-flow burn, cash covers ~3 months.
Going-concern standard: management must assess ability to continue for 12 months (Ind AS 1 ¶25–26). Runway below that horizon forces dilution, asset sales or default.
Revenue changed -64% year over year.
A >30% sales drop typically breaches leverage covenants and starves fixed-cost coverage.
Operating cash flow negative in 3 of the last 3 years.
A business that cannot fund itself from operations depends on external capital to survive.
O-score 3.98 → model probability 98%.
Ohlson (1980) logit model of 1-year corporate failure; O > 0 (p > 50%) is the original failure cut-off.
Operating margin fell from -12% to -62% in two years.
Sharp margin compression signals loss of pricing power or cost control.
Revenue declined every year for three years.
Structural, not cyclical, decline.
Revenue vs net income
Cash generation
Debt vs cash vs equity
✅ Mitigating factors
- Cash on hand covers all debt (net-cash balance sheet).
- Strong current ratio (38.09).
- High insider/promoter ownership (65%) aligns management with survival.
📰 Recent news scan
- Rajdarshan Industries (ARENTERP.NS) Climbs 3.03% to ₹33.95 as Stock Approaches ₹35.65 Resistance - Arms Index - https://www.siam.in/Google News · 2026-09-30
- Rajdarshan Industries ARENTERP 45th AGM Notice September 2026 - Kalkine IndiaGoogle News · 2026-09-07
- Rajdarshan Industries Share Price Target 2026: Rs 50.6 Analyst Forecast - UnivestGoogle News · 2026-06-17
⚖️ Indian legal pathway — the IBC, 2016
How insolvency starts
- A financial creditor (§7), an operational creditor after a demand notice (§§8–9) or the company itself (§10) can apply to the NCLT once a default of at least ₹1 crore occurs (§4).
- On admission a moratorium (§14) stops suits and recovery; the board is suspended and an insolvency professional runs the company.
- The Committee of Creditors approves a resolution plan with 66% of voting share (§30(4)) within an outer limit of 330 days (§12); otherwise liquidation (§33) under the §53 waterfall — equity ranks last. Defaulting promoters are generally barred from bidding (§29A).
Earlier warning stages
- RBI's Prudential Framework for Resolution of Stressed Assets (7 June 2019): lenders must review a borrower within 30 days of default and implement a resolution plan, or provide more.
- Listed companies must disclose loan defaults to exchanges under SEBI (LODR); a rating downgrade to “D” is a public signal.
- Auditors must report going-concern uncertainty (SA 570 / Ind AS 1).
Frequently asked questions
What do Rajdarshan Industries Limited's financial-health indicators show?
As of 2026-10-09, Rajdarshan Industries Limited's public financial data places it in the 'Weak' band with a distress score of 57/100, driven by cash runway under 12 months, revenue collapse and operations consume cash. This is a statistical screen of reported numbers — it does not mean the company is insolvent, has defaulted or will enter insolvency proceedings.
What is Rajdarshan Industries Limited's financial distress score?
57/100 ('Weak'). Ohlson O-score 3.98 (model 1-year failure probability 98%).
What works in Rajdarshan Industries Limited's favour?
Cash on hand covers all debt (net-cash balance sheet). Strong current ratio (38.09). High insider/promoter ownership (65%) aligns management with survival.
How are shareholders treated if a company enters insolvency?
Under the IBC the Committee of Creditors controls the resolution; the §53 waterfall pays secured creditors and workers first and equity last. In most resolution plans existing shareholders are wiped out or left with a token stake, and the company may be delisted.
Other Metals, Mining & Chemicals companies with distress indicators
- Andhra Cements Limited (ACL)Very weak 100/100
- Astron Paper & Board Mill Limited (ASTRON)Very weak 100/100
- Burnpur Cement Limited (BURNPUR)Very weak 100/100
- Shrenik Limited (SHRENIK)Very weak 100/100
- Thirumalai Chemicals Limited (TIRUMALCHM)Very weak 100/100
- Zenith Steel Pipes & Industries Limited (ZENITHSTL)Very weak 100/100
All Metals, Mining & Chemicals companies with distress indicators →
Methodology
Score = capped sum of rule-based red flags across seven dimensions (liquidity, solvency, profitability, cash flow, sales trend, market signal, news). Ohlson O-score (1980) gives an accounting-based 1-year failure probability; Merton distance-to-default (Bharath & Shumway 2008) gives a market-implied probability. Financial institutions use a capital-based rule set. Recalculated every trading day from the latest filings, prices and news.