Rashi Peripherals: AI Growth Beyond Distribution

$RPTECH Rashi Peripherals is emerging as an indirect beneficiary of India’s artificial intelligence, cloud and data-centre expansion. The company distributes technology products for 80 global brands. The larger opportunity lies in moving from conventional distribution to higher-value technology solutions. Personal Computing and Enterprise Solutions contributes 66.3% of revenue. he segment is supported by three industry trends: the replacement cycle after Windows 10, increasing demand for AI-enabled PCs and rising component prices caused by limited memory capacity and strong AI data-centre demand. Lifestyle and IT Essentials contributes the remaining 33.7% and includes accessories, gaming products, wearables and other consumer technology. Rashi is also expanding into data-centre services. Its smaller transactions target neo-clouds, specialised cloud providers and niche AI operators. The majority acquisition of VDA Infosolutions in Q1FY27 strengthens this strategy. VDA generated ₹850 crore in FY26 and adds implementation, consulting, managed IT, cloud and cybersecurity services. This can create steadier service revenue and improve margins, although integration and execution remain important risks. At a PE of 17.4, Rashi trades below GNG Electronics’ 45.2 times, while its ROCE and ROE stood at 16.8% and 14.7%. The valuation offers comfort, but shareholders must monitor thin margins, inventory risks, component-price volatility and acquisition execution. Overall, Rashi appears valuable for investors seeking reasonably valued exposure to AI infrastructure, data centres and semiconductors, provided management converts these initiatives into durable, higher-margin growth.