Rectitude Holdings Ltd (RECT) AI Stock Analysis

• Market Cap: $52.49M
• Dividend Yield: N/A
• Average Volume (3M): 22.02K
• Price to Earnings (P/E): 40.8
• Beta (1Y): 0.16
• Revenue Growth: 6.70%
• EPS Growth: -30.54%
• Country: US
• Employees: 107
• Sector: General
• Sector Strength: N/A
• Industry: Industrial - Distribution
• EPS (TTM): 0.10
• Shares Outstanding: 14,500,000
• 10 Day Avg. Volume: 5,511
• 30 Day Avg. Volume: 22,017
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 1.13
• Enterprise Value/Revenue: 1.56
• Enterprise Value/Gross Profit: 4.75
• Enterprise Value/Ebitda: 16.86
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: Hold
• Number of Analyst Covering: 0

• Rating: 53 Neutral
• Price Target: $2.50 ▲(6.84% Upside)

Rectitude Holdings Ltd faces significant challenges with declining profitability margins and cash flow issues, which are the most impactful factors on the stock's score. The technical analysis indicates bearish momentum, further weighing down the score. The high P/E ratio without a dividend yield makes the stock less attractive from a valuation perspective.

Rectitude Holdings Ltd Business Overview & Revenue Model

Company Description

Rectitude Holdings Ltd (RECT) is a diversified investment holding company that operates across various sectors including technology, real estate, and renewable energy. The company focuses on identifying and investing in high-potential businesses and projects that align with its strategic vision. Rectitude Holdings aims to drive growth and innovation through its portfolio, which includes stakes in emerging technologies and sustainable solutions.

How the Company Makes Money

Rectitude Holdings generates revenue through multiple streams, primarily from equity investments in its portfolio companies, which provide dividends and capital gains as these businesses grow and succeed. Additionally, RECT earns income through strategic partnerships and joint ventures that leverage synergies in technology and real estate development. The company may also engage in consultancy services for businesses seeking to navigate investment opportunities in their respective sectors. Factors contributing to its earnings include market demand for technology solutions, growth in the real estate sector, and increasing investments in renewable energy initiatives.

Rectitude Holdings Ltd Financial Statement Overview

Summary

Rectitude Holdings Ltd shows strong revenue growth and a healthier balance sheet with reduced leverage. However, declining profitability margins and significant cash flow challenges pose risks to financial stability. The company needs to address operational inefficiencies and improve cash flow management to sustain growth and profitability.

Income Statement

Rectitude Holdings Ltd has demonstrated strong revenue growth with a 41.07% increase in the latest year, indicating robust demand and market expansion. However, the net profit margin has decreased to 5.11% from 8.11% the previous year, suggesting increased costs or pricing pressures. The gross profit margin remains healthy at 33.65%, but the decline in EBIT and EBITDA margins indicates potential operational inefficiencies.

Balance Sheet

The company's debt-to-equity ratio has improved significantly to 0.35 from 1.12, reflecting a stronger equity position and reduced leverage risk. However, the return on equity has dropped to 9.04% from 41.84%, indicating reduced profitability relative to shareholder equity. The equity ratio of 56.67% suggests a stable financial structure with a good proportion of assets financed by equity.

Cash Flow

Rectitude Holdings Ltd faces challenges in cash flow management, with a significant decline in free cash flow growth rate to -208.96%, indicating negative cash generation. The operating cash flow to net income ratio is low at 0.016, highlighting potential issues in converting income into cash. The negative free cash flow to net income ratio further underscores cash flow constraints.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	37.87M	43.80M	41.35M	20.61M	29.81M
Gross Profit	12.44M	14.74M	14.71M	6.12M	8.74M
EBITDA	3.51M	4.56M	5.88M	5.32M	3.04M
Net Income	1.75M	2.24M	3.36M	2.15M	2.08M
Balance Sheet
Total Assets	42.28M	43.69M	34.21M	16.24M	25.25M
Cash, Cash Equivalents and Short-Term Investments	3.97M	6.65M	3.47M	1.38M	1.14M
Total Debt	10.04M	8.69M	8.94M	4.03M	7.53M
Total Liabilities	18.96M	18.92M	19.62M	9.88M	15.80M
Stockholders Equity	23.32M	24.77M	8.02M	6.35M	9.45M
Cash Flow
Free Cash Flow	-1.41M	-415.68K	3.96M	1.99M	1.13M
Operating Cash Flow	-1.07M	200.13K	4.20M	2.00M	1.32M
Investing Cash Flow	-7.35M	-5.80M	-230.35K	―	-188.66K
Financing Cash Flow	9.21M	8.77M	-2.93M	-1.28M	-1.00M

Rectitude Holdings Ltd Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 2.34
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Positive
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For RECT, the sentiment is Negative. The current price of 2.34 is below the 20-day moving average (MA) of 3.41, below the 50-day MA of 3.78, and below the 200-day MA of 4.45, indicating a bearish trend. The MACD of -0.32 indicates Positive momentum. The RSI at 25.14 is Positive, neither overbought nor oversold. The STOCH value of 3.62 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for RECT.

Rectitude Holdings Ltd Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
DXPE	―	$1.88B	22.85	20.33%	―	13.93%	48.25%
GIC	―	$1.09B	16.18	22.61%	2.93%	0.16%	2.99%
EVI	―	$345.93M	55.02	4.59%	―	10.26%	29.40%
Sector *	―	$6.65B	3.83	-15.92%	6.20%	10.91%	7.18%
RECT	―	$52.49M	40.81	11.45%	―	6.70%	-30.54%
DSGR	―	$1.26B	326.25	0.65%	―	13.48%	―
TITN	―	$383.32M	-6.07	-9.63%	―	-8.12%	-204.81%

Rectitude Holdings Ltd Corporate Events

Rectitude Holdings Partners with Pansik Technology to Expand Renewable Energy Reach

On October 27, 2025, Rectitude Holdings Ltd announced a strategic partnership with Pansik Technology Pte Ltd to expand its renewable energy solutions across Southeast Asia, Australia, and the Middle East. This collaboration involves Pansik acting as a rental and leasing partner for Rectitude’s energy storage systems, expected to secure SGD $2.3 million in sales within two months. The partnership aims to broaden Rectitude’s market reach, enhance its Super Sun brand’s reputation, and attract regional distributors, positioning the company for growth in the renewable energy sector.

Rectitude Holdings Ltd Announces CFO Transition

Rectitude Holdings Ltd, based in Singapore, announced a change in its financial leadership. On September 30, 2025, Mr. Chan Yong Xian resigned as Chief Financial Officer for personal reasons, and on October 1, 2025, Mr. Chan Kah Chun was appointed as the interim CFO. Mr. Chan Kah Chun brings over a decade of experience with the company and a strong background in finance and accounting, which is expected to ensure continuity and stability in the company’s financial operations.

Rectitude Holdings Initiates $32.6 Million Bitcoin Treasury Strategy

Rectitude Holdings Ltd, a Singapore-based safety equipment provider, announced on September 8, 2025, its entry into a Standby Equity Purchase Agreement (SEPA) with Constantinople Limited and Chen Zhiqiang to initiate a Bitcoin treasury strategy. The agreement allows Rectitude to issue up to $32.6 million in ordinary shares, with proceeds primarily intended for Bitcoin purchases. This strategic move aims to leverage Bitcoin as a store of value and hedge against inflation, reflecting the company’s confidence in Bitcoin’s potential amidst growing global adoption. The SEPA provides Rectitude with a flexible capital source to support its Bitcoin strategy and enhance shareholder value.

Rectitude Holdings Partners with Agentis Intelligence to Boost Global Sales of Energy Storage Systems

On September 2, 2025, Rectitude Holdings Ltd announced a strategic partnership with Agentis Intelligence Pte Ltd to enhance the sales and global presence of its Super Sun Energy Storage Systems. This collaboration aims to leverage Agentis Intelligence’s network to broaden Rectitude’s market outreach and customer engagement, particularly in the green-energy storage market. The partnership is part of Rectitude’s ongoing efforts to expand its product offerings and strengthen its position in both safety and green-energy markets, aligning with global sustainability initiatives and creating potential for significant sales growth.

Rectitude Holdings Opens New Branch in Singapore’s Shun Li Industrial Park

On August 21, 2025, Rectitude Holdings Ltd announced the opening of a new strategic branch at 65 Kaki Bukit Ave 1, Shun Li Industrial Park, Singapore. This expansion enhances the company’s local presence, improves access to high-demand products like paint and power tools, and reinforces its position as a leading provider of safety and industrial solutions in the region. The new branch, strategically located near key customer workplaces and easily accessible via Kaki Bukit Road, covers 82 square meters and stocks essential products for local businesses and institutions. This development aligns with Rectitude’s long-term strategy to expand its presence across Singapore, ensuring customers have timely access to quality products.

Rectitude Holdings Ltd Reports Fiscal Year 2025 Financial Results

Rectitude Holdings Ltd, a Singapore-based safety equipment provider, announced its financial results for the fiscal year ended March 31, 2025, on July 31, 2025. The company reported a 5.91% increase in revenue, driven by higher demand for safety equipment due to increased construction activity. Despite this, the gross profit margin decreased by 192 basis points to 33.65%, and net income fell to S$2.24 million from S$3.36 million the previous year. The company launched its All-in-one Intelligent Micro-grid System (AIMS) battery storage system, aiming to provide clean energy solutions and enhance long-term business growth. The financial performance was impacted by increased costs in selling, marketing, and administrative expenses, as well as compliance costs related to its NASDAQ listing.