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Rectitude Holdings Ltd
(NASDAQ:RECT)
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Rating:55Neutral
Price Target:
$1.50
▲(17.19% Upside)
Action:Reiterated
Date:08/01/26
The score is held back primarily by weakened cash generation (negative operating and free cash flow in 2026) and a clear downtrend versus major moving averages. Offsetting these risks are a materially improved leverage profile and a low P/E multiple that makes valuation more supportive.
Positive Factors
Improving Balance Sheet
The sharp reduction in debt relative to equity indicates a stronger capital structure and greater downside protection. Lower leverage should reduce balance-sheet pressure, preserve borrowing capacity, and give Rectitude more flexibility to support operations or invest through the next several quarters.
Negative Factors
Weakening Cash Generation
Negative operating and free cash flow reduce financial flexibility even though reported earnings remain positive. Persistent cash underperformance can constrain investment, dividends, and working-capital capacity, while also raising questions about how effectively accounting profits are converting into usable funds.
Read all positive and negative factors
Positive Factors
Negative Factors
Improving Balance Sheet
The sharp reduction in debt relative to equity indicates a stronger capital structure and greater downside protection. Lower leverage should reduce balance-sheet pressure, preserve borrowing capacity, and give Rectitude more flexibility to support operations or invest through the next several quarters.
Read all positive factors
Rectitude Holdings Ltd (RECT) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$19.20M
Dividend Yield7.53%
Average Volume (3M)5.32K
Price to Earnings (P/E)8.3
Beta (1Y)0.70
Revenue Growth26.63%
EPS Growth67.76%
CountryUS
Employees145
SectorGeneral
Sector StrengthN/A
IndustryIndustrial - Distribution
Share Statistics
EPS (TTM)0.19
Shares Outstanding15,482,750
10 Day Avg. Volume10,000
30 Day Avg. Volume5,318
Financial Highlights & Ratios
PEG Ratio0.43
Price to Book (P/B)1.03
Price to Sales (P/S)0.56
P/FCF Ratio-12.55
Enterprise Value/Market Cap1.00
Enterprise Value/Revenue0.48
Enterprise Value/Gross Profit1.73
Enterprise Value/Ebitda3.89
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)N/A
Revenue Forecast (FY)N/A
Rectitude Holdings Ltd Business Overview & Revenue Model
Company Description
Rectitude Holdings Ltd. provides an extensive array of safety solutions and industrial products. Their offerings span from personal protective equipment (PPE) like clothing, gloves, and footwear, to specialized access tools such as step platform l...
Rectitude Holdings Ltd Financial Statement Overview
Summary
Income Statement
62
Positive
Balance Sheet
74
Positive
Cash Flow
38
Negative
| Breakdown | Mar 2026 | Mar 2025 | Mar 2024 | Mar 2023 | Mar 2022 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 39.68M | 43.80M | 41.35M | 20.61M | 29.81M |
| Gross Profit | 11.12M | 14.74M | 14.71M | 6.12M | 8.74M |
| EBITDA | 4.95M | 4.56M | 5.88M | 5.32M | 3.59M |
| Net Income | 2.78M | 2.24M | 3.36M | 2.15M | 2.08M |
Balance Sheet | |||||
| Total Assets | 37.61M | 43.69M | 34.21M | 16.24M | 25.25M |
| Cash, Cash Equivalents and Short-Term Investments | 4.68M | 6.65M | 3.47M | 1.38M | 1.14M |
| Total Debt | 7.09M | 8.69M | 8.94M | 4.03M | 7.53M |
| Total Liabilities | 15.92M | 18.92M | 19.62M | 9.88M | 15.80M |
| Stockholders Equity | 21.70M | 24.77M | 8.02M | 6.35M | 9.45M |
Cash Flow | |||||
| Free Cash Flow | -1.79M | -415.68K | 3.96M | 1.99M | 1.13M |
| Operating Cash Flow | -1.63M | 200.13K | 4.20M | 2.00M | 1.32M |
| Investing Cash Flow | 1.78M | -5.80M | -230.35K | -7.21K | -188.66K |
| Financing Cash Flow | -602.81K | 8.77M | -2.93M | -1.28M | -1.00M |
Rectitude Holdings Ltd Technical Analysis
Negative
1.28
Price Trends
1.27
Negative
1.21
Positive
1.26
Negative
Market Momentum
<0.01
Positive
46.91
Neutral
36.08
Neutral
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 1.28 is above the 20-day moving average (MA) of 1.27, above the 50-day MA of 1.27, and above the 200-day MA of 1.26, indicating a bearish trend. The MACD of <0.01 indicates Positive momentum. The RSI at 46.91 is Neutral, neither overbought nor oversold. The STOCH value of 36.08 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for RECT.
Rectitude Holdings Ltd Risk Analysis
Rectitude Holdings Ltd disclosed 38 risk factors in its most recent earnings report. Rectitude Holdings Ltd reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Rectitude Holdings Ltd Peers Comparison
UnderperformOutperform
Sector (55)
RECT
Rectitude Holdings Ltd
1.24
-0.93
-42.78%
HTLM
HomesToLife Ltd
1.51
-1.61
-51.52%
BRIA
BrilliA Inc. Class A
1.46
-0.40
-21.51%
PASW
Ping An Biomedical
5.01
-25.11
-83.36%
Rectitude Holdings Ltd Corporate Events
Rectitude Holdings Launches AIMS Performance Guarantee Pilot for EEG-Backed Microgrid Deployments
Oct 28, 2026
Rectitude Holdings Ltd, a Singapore-based safety equipment and industrial products provider, is expanding its technology-focused offerings in the construction sector with its SuperSun All-in-One Intelligence Micro-Grid systems, which were listed u...
Rectitude Holdings Showcases SuperSun Micro-Grid and Cleantech Suite at OS+H Asia 2026
Sep 18, 2026
Rectitude Holdings Ltd, a Singapore-based provider of safety equipment and industrial hardware for construction and other worksites, has expanded its offering into clean energy and microgrid solutions. The company distributes its products through ...
Rectitude Holdings Declares US$0.10 Cash Dividend Amid Southeast Asia Expansion
Aug 5, 2026
On August 5, 2026, Rectitude Holdings Ltd declared a cash dividend of US$0.10 per ordinary share, amounting to a total distribution of US$1,548,275 across 15,482,750 shares. The dividend is scheduled to be paid on September 21, 2026, to shareholde...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.