MeritValue

Rectitude Holdings Ltd.

RECTdata completeness 100%2 fiscal years on file
The thesis, from the filings

Rectitude Holdings Ltd. earns about 17% on invested capital, but has diluted owners by 12% over 2 years — worth asking whether the growth reaches owners. The cash-flow models don't apply cleanly here — the ledger says why below.Whether it’s worth owning at today’s price is the last question — and yours to answer, below.

i. The business — what you’d actually own
FigureFY 2024FY 2025
Revenue$30.7T1$32.6M2
Net income$2.49M3$1.66M4
Operating cash flow$3.12M5$148,8546
Capital expenditure$174,6607$458,0218
Free cash flow (derived)$2.94M5−$309,1676
Total debt$3.17M9$2.41M10
Cash & equivalents$2.57M11$4.94M12
Diluted shares12.5M14.1M

Superscripts are receipts. Each links to the SEC filing the number came from (full list at the bottom).

ii. Your slice — ownership made literal
If you owned
shares
Net assets behind them
$13.11
your share of equity
Profit it earned you last year
$1.18
Free cash flow it threw off
−$0.22
Debt you’d be carrying
$1.71

10 shares is a claim on $13.11 of net worth that earned you $1.18 and generated −$0.22 of cash last year, against $1.71 of debt.

iii. Is this a good business?
Moat signal · return on invested capital
17% avg · 2y
FY24 23%FY25 11%

It earned an average 17% on invested capital over 2 years. Compare that to what it costs to fund the business.

seeing a moat in the numbers →
Management signal · capital allocation
+12% shares · 2y

Share count is up 12% over 2 years — owners have been diluted. Worth asking what they got for it. Total debt has fallen 24% — deleveraging.

reading capital allocation →

Signals, not verdicts — read from the filings above. Numbers don’t prove a moat; they show its footprint. You decide.

iv. What it’s worth — engine v0.1.0
DCF · Growth Exit 10Y
not applicable
only 2 years of FCF (need ≥3) — model not applicable
DCF · Growth Exit 5Y
not applicable
only 2 years of FCF (need ≥3) — model not applicable
Earnings Power Value
not applicable
only 2 years of net income (need ≥3)
Graham Number
$1.88
assumptions (1)
  • grahamMultiplier2250.0%

Different models answer different questions — which to trust when →

Sources — the receipts
  1. 20-F · period ending 2024-03-31 · accession 0001013762-24-001694 (RevenueFromContractWithCustomerIncludingAssessedTax)
  2. 20-F · period ending 2025-03-31 · accession 0001213900-25-070030 (RevenueFromContractWithCustomerIncludingAssessedTax)
  3. 20-F · period ending 2024-03-31 · accession 0001013762-24-001694 (NetIncomeLoss)
  4. 20-F · period ending 2025-03-31 · accession 0001213900-25-070030 (NetIncomeLoss)
  5. 20-F · period ending 2024-03-31 · accession 0001013762-24-001694 (NetCashProvidedByUsedInOperatingActivities)
  6. 20-F · period ending 2025-03-31 · accession 0001213900-25-070030 (NetCashProvidedByUsedInOperatingActivities)
  7. 20-F · period ending 2024-03-31 · accession 0001013762-24-001694 (PaymentsToAcquirePropertyPlantAndEquipment)
  8. 20-F · period ending 2025-03-31 · accession 0001213900-25-070030 (PaymentsToAcquirePropertyPlantAndEquipment)
  9. 20-F · period ending 2024-03-31 · accession 0001013762-24-001694 (LongTermDebtCurrent)
  10. 20-F · period ending 2025-03-31 · accession 0001213900-25-070030 (LongTermDebt)
  11. 20-F · period ending 2024-03-31 · accession 0001013762-24-001694 (CashAndCashEquivalentsAtCarryingValue)
  12. 20-F · period ending 2025-03-31 · accession 0001213900-25-070030 (CashCashEquivalentsRestrictedCashAndRestrictedCashEquivalents)