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Rectitude Holdings Ltd Ordinary Shares

RECT
47
Industrial - Distribution · Industrials
Price
$1.27
-0.01 (-0.84%)
Market Cap
$18.4M
Exchange
NASDAQ Capital Market
Winston Score
47
Winston is serious
Mixed quality — meaningful strengths and weaknesses.
Data as of Aug 23, 2026 · filings through Mar 31, 2026
How the score breaks down
Quality
Mixed
Growth
Mixed
Cash Flow
Weak
Stability
Exceptional
Valuation
Good
Dividends
Good

Share count rising — dilution

+16.0% over 4y

The company has issued more shares over this period, which dilutes each existing shareholder’s stake.

Diluted shares outstanding: 12.5M (2022) → 14.5M (2026)

Winston Score History

The full picture

Rectitude Holdings Ltd is an industrial distribution company that sources and supplies a range of industrial products to businesses and commercial customers. These products typically include tools, equipment, safety gear, and maintenance supplies used by manufacturers, contractors, and other industrial end users. The company operates within the broader industrial distribution sector, acting as a middleman between product manufacturers and the businesses that need those goods.

Rectitude generates revenue by buying products in bulk and reselling them at a markup, with a gross margin around 31% suggesting a modest but typical spread for this type of business. The company appears to be relatively small, with a market cap near zero indicating it is a micro-cap or early-stage public entity. Industrial distributors generally compete on pricing, product availability, and customer relationships, making scale and supplier access key advantages. The main risk for Rectitude is its small size, which limits bargaining power with suppliers and makes it harder to compete against larger, well-established distributors.

Score breakdown

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Quality

Profit per sale
Gross Margin
27.4%
Modest — 27.4% gross margin
Profit after running costs
Operating Margin
5.7%
Thin — 5.7% operating margin
Return on the money invested
ROCE
12.7%
Good — 12.7% return on capital

ROIC between 5% and 15%. They earn 5 to 15 cents back per year on every dollar invested.

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Growth

Sales growth
Sales YoY
-9.2%
Shrinking sales (-9.2% YoY)
Profit growth
EPS YoY
+21.6%
Earnings growing fast (+21.6% YoY)

Healthy double-digit earnings growth — what compounders look like.

How steady the profit is
EPS Consistency
4/8 quarters
Earnings inconsistent quarter-to-quarter

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Cash Flow

Profit that turns into cash
Cash Conversion
-59%
Weak — only -59% of profit becomes cash
Spare cash per sale
FCF Margin
-4.5%
Burning cash (-4.5%)

Free cash flow is negative. They are burning cash, not generating it.

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Stability

What it owes vs what it owns
Debt / Equity
0.20
Conservative — low debt load (0.20)
Covers its interest
Interest Cover
24.33x
Comfortably covers interest (24.3x)

Interest coverage above 8. Profits cover interest many times over.

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Valuation

Price vs profit
P/E Ratio (TTM)
6.6x
Attractive valuation — P/E 6.6

P/E under 10. The price tag is small relative to last year's profit.

Cheaper or dearer next year
P/E vs Forward
N/A
not available
Data not available

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Dividends

Dividend
Dividend Yield
31.23%
Healthy income — 31.23% yield

Yield above 6% — often a flag the market is pricing in a cut.

Dividend record
Dividend Growth
N/A
no trend
Data not available

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