MeritValue

Rectitude Holdings Ltd.

RECTdata completeness 100%3 fiscal years on file

Data notes: no data for concept 'investmentsAtFairValue'; no data for concept 'netInvestmentIncome'; no data for concept 'gainsOnRealEstateSales'; no data for concept 'realEstateImpairment'

The thesis, from the filings

Rectitude Holdings Ltd. earns about 16% on invested capital, but has diluted owners by 16% over 3 years — worth asking whether the growth reaches owners. The applicable estimate puts fair value near $1.76 a share.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 2025FY 2026
Revenue$30.7T1$32.6M2$39.7M3
Net income$2.49M4$1.66M5$2.78M6
Operating cash flow$3.12M7$148,8548−$1.67M9
Capital expenditure$174,66010$458,02111$153,02212
Free cash flow (derived)$2.94M7−$309,1678−$1.82M9
Total debt$3.17M13$2.41M14$3.11M15
Cash & equivalents$2.57M16$5.15M17$4.69M17
Diluted shares12.5M14.1M14.5M

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
$14.99
your share of equity
Profit it earned you last year
$1.92
Free cash flow it threw off
−$1.26
Debt you’d be carrying
$2.14

10 shares is a claim on $14.99 of net worth that earned you $1.92 and generated −$1.26 of cash last year, against $2.14 of debt.

iii. Is this a good business?
Moat signal · return on invested capital
16% avg · 3y
FY24 23%FY25 11%FY26 14%

It earned an average 16% on invested capital over 3 years. Compare that to what it costs to fund the business.

seeing a moat in the numbers →
Management signal · capital allocation
+16% shares · 3y

Share count is up 16% over 3 years — owners have been diluted. Worth asking what they got for it. Total debt has held roughly steady.

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 v0.5.0
DCF · Growth Exit 10Y
not applicable
3y-median FCF non-positive — growth-exit DCF not applicable (see EPV)
DCF · Growth Exit 5Y
not applicable
3y-median FCF non-positive — growth-exit DCF not applicable (see EPV)
Earnings Power Value
$1.76
assumptions (8)
  • riskFreeRate4.7%
  • equityRiskPremium5.0%
  • beta100.0%
  • equityWeight85.0%
  • costOfDebtSpread1.5%
  • taxRate21.0%
  • normalizedEarnings$2.49M
  • growthAssumed0.0%
Graham Number
$2.53
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 2026-03-31 · accession 0001213900-26-083027 (Revenues)
  4. 20-F · period ending 2024-03-31 · accession 0001013762-24-001694 (NetIncomeLoss)
  5. 20-F · period ending 2025-03-31 · accession 0001213900-25-070030 (NetIncomeLoss)
  6. 20-F · period ending 2026-03-31 · accession 0001213900-26-083027 (NetIncomeLoss)
  7. 20-F · period ending 2024-03-31 · accession 0001013762-24-001694 (NetCashProvidedByUsedInOperatingActivities)
  8. 20-F · period ending 2025-03-31 · accession 0001213900-25-070030 (NetCashProvidedByUsedInOperatingActivities)
  9. 20-F · period ending 2026-03-31 · accession 0001213900-26-083027 (NetCashProvidedByUsedInOperatingActivities)
  10. 20-F · period ending 2024-03-31 · accession 0001013762-24-001694 (PaymentsToAcquirePropertyPlantAndEquipment)
  11. 20-F · period ending 2025-03-31 · accession 0001213900-25-070030 (PaymentsToAcquirePropertyPlantAndEquipment)
  12. 20-F · period ending 2026-03-31 · accession 0001213900-26-083027 (PaymentsToAcquirePropertyPlantAndEquipment)
  13. 20-F · period ending 2024-03-31 · accession 0001013762-24-001694 (LongTermDebtCurrent)
  14. 20-F · period ending 2025-03-31 · accession 0001213900-25-070030 (LongTermDebt)
  15. 20-F · period ending 2026-03-31 · accession 0001213900-26-083027 (LongTermDebt)
  16. 20-F · period ending 2024-03-31 · accession 0001013762-24-001694 (CashAndCashEquivalentsAtCarryingValue)
  17. 20-F · period ending 2025-03-31 · accession 0001213900-26-083027 (CashCashEquivalentsRestrictedCashAndRestrictedCashEquivalents)