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Last Updated on: 28 November, 2024
Author: Getaka|Social: Getaka Financial Services X (Earlier Twitter) Profile Getaka Financial Services LinkedIn Logo

Ruby Mills Ltd: Intrinsic Value and Fundamental Analysis

Share Price and Basic Stock Data

Last Updated: November 27, 2024, 9:04 pm

Market Cap 961 Cr.
Current Price 288
High / Low325/177
Stock P/E24.7
Book Value 181
Dividend Yield0.61 %
ROCE7.33 %
ROE7.52 %
Face Value 5.00
PEG Ratio2.48

Stock P/E, Current Price, and Intrinsic Value Over Time

View Share Price Target for Ruby Mills Ltd

Competitors of Ruby Mills Ltd

Stock NameMarket CapCurrent PriceHigh / LowStock P/EBook ValueDividend YieldROCEROEFace Value
Ruby Mills Ltd 961 Cr. 288325/17724.7 1810.61 %7.33 %7.52 % 5.00
Soma Textiles & Industries Ltd 151 Cr. 45.755.3/18.841.4 47.80.00 %2.57 %1.94 % 10.0
Nahar Industrial Enterprises Ltd 602 Cr. 139175/10827.4 2220.00 %2.72 %0.76 % 10.0
Mohota Industries Ltd 6.77 Cr. 4.60/ 99.80.00 %1.19 %1.89 % 10.0
Industry Average571.33 Cr119.3331.17137.650.15%3.45%3.03%8.75

All Competitor Stocks of Ruby Mills Ltd

Quarterly Result

MonthMar 2021Jun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023Mar 2024
Sales54264659686261597754535773
Expenses35223646414749506344424155
Operating Profit1951013271612101410111619
OPM %35%18%22%22%40%25%20%16%18%19%21%27%25%
Other Income9000101223335
Interest3223311111211
Depreciation2222222222222
Profit before tax231582213108139111521
Tax %15%25%25%19%12%24%23%15%15%21%7%24%23%
Net Profit20147201087117101116
EPS in Rs5.930.181.221.975.932.912.282.033.312.202.983.324.84

Last Updated: Unknown

Quarterly Chart

Profit & Loss - Annual Report

Last Updated: Unknown

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Sales158187197211202199193183123199260237
Expenses12013413914514514515313885144208182
Operating Profit395358665754404538555255
OPM %24%28%29%31%28%27%21%25%31%28%20%23%
Other Income48394217179810101513
Interest1919151312119581045
Depreciation24231920151514128998
Profit before tax435166504637253832374456
Tax %30%11%18%19%19%5%30%27%20%16%19%20%
Net Profit304554413735182826313545
EPS in Rs9.1313.4416.1512.2111.2010.535.338.297.749.3010.5413.32
Dividend Payout %5%4%4%5%8%8%16%11%5%16%12%13%

Profit & Loss Yearly Chart

YoY Net Profit Growth

Year2013-20142014-20152015-20162016-20172017-20182018-20192019-20202020-20212021-20222022-20232023-2024
YoY Net Profit Growth (%)50.00%20.00%-24.07%-9.76%-5.41%-48.57%55.56%-7.14%19.23%12.90%28.57%
Change in YoY Net Profit Growth (%)0.00%-30.00%-44.07%14.32%4.35%-43.17%104.13%-62.70%26.37%-6.33%15.67%

Ruby Mills Ltd has shown an inconsistent trend in YoY Net Profit Growth (%) in the last 11 years from 2013-2014 to 2023-2024.

Growth

Compounded Sales Growth
10 Years:2%
5 Years:4%
3 Years:24%
TTM:-6%
Compounded Profit Growth
10 Years:0%
5 Years:20%
3 Years:28%
TTM:11%
Stock Price CAGR
10 Years:15%
5 Years:23%
3 Years:32%
1 Year:29%
Return on Equity
10 Years:8%
5 Years:6%
3 Years:7%
Last Year:8%

Last Updated: Unknown

Balance Sheet

Last Updated: November 14, 2024, 6:43 pm

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024Sep 2024
Equity Capital4448888888171717
Reserves232275326360398430444465491521543584590
Borrowings611582518425351381383390395280241213208
Other Liabilities1701671751792151601541681541571636170
Total Liabilities1,0181,0291,0239729729809901,0301,048966963875884
Fixed Assets182170151132125112988982121121135138
CWIP36293032333435373766814
Investments0000000129005549
Other Assets800829842808814834857893921839836677684
Total Assets1,0181,0291,0239729729809901,0301,048966963875884

Reserves and Borrowings Chart

Cash Flow

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Cash from Operating Activity +-141729383549616189412550
Cash from Investing Activity +2475-90-2-11121-1-78
Cash from Financing Activity +-42-183-15-23-27-41-11-5-4-127-47-35
Net Cash Flow-54-8221-17-7-015-1278-63

Free Cash Flow

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Free Cash Flow-572.00-529.00-460.00-359.00-294.00-327.00-343.00-345.00-357.00-225.00-189.00-158.00

Free Cash Flow = Income Generated from Operational Activities - Borrowings - Capital Work in Progress (CWIP)

Consistent positive free cash flow is crucial for businesses as it indicates their ability to generate cash from their core operations. It provides financial flexibility, allowing companies to invest in growth opportunities, pay dividends to shareholders, reduce debt, and weather economic downturns more effectively.

Free Cash Flow Chart

Financial Efficiency Indicators

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Debtor Days454631322533282646323432
Inventory Days277331312272293336263350330220208321
Days Payable123153156205183201122158193159102125
Cash Conversion Cycle2002251869913416816921918393141228
Working Capital Days272-1197134-39-1737-3-492566248
ROCE %7%8%9%8%8%6%4%5%4%5%6%7%

Financial Efficiency Indicators Chart

Share Holding Pattern

MonthSep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023Mar 2024Jun 2024
Promoters74.90%74.90%74.90%74.90%74.91%74.91%74.91%74.91%74.91%74.91%74.91%74.91%
FIIs0.00%0.02%0.07%0.05%0.03%0.06%0.00%0.00%0.00%0.00%0.03%0.00%
Public25.10%25.08%25.03%25.05%25.06%25.04%25.09%25.09%25.10%25.10%25.07%25.10%
No. of Shareholders8,0347,8328,9008,26616,21615,26214,56414,25014,46913,73813,14912,792

Shareholding Pattern Chart

No. of Shareholders

This stock is not held by any mutual fund

ROCE Trend

EPS Trend

Key Financial Ratios

MonthMar 24Mar 23Mar 22Mar 21Mar 20
FaceValue5.005.005.005.005.00
Basic EPS (Rs.)13.3210.5318.5715.4616.56
Diluted EPS (Rs.)13.3210.5318.5715.4616.56
Cash EPS (Rs.)15.8313.1324.0320.4923.75
Book Value[Excl.RevalReserv]/Share (Rs.)179.52167.36316.62298.64282.96
Book Value[Incl.RevalReserv]/Share (Rs.)179.52167.36316.62298.64282.96
Dividend / Share (Rs.)1.751.253.000.751.75
Revenue From Operations / Share (Rs.)70.8877.65118.9973.76109.50
PBDIT / Share (Rs.)20.5516.9033.2829.0032.88
PBIT / Share (Rs.)18.0314.3027.8223.9725.70
PBT / Share (Rs.)16.6413.0722.0419.2722.65
Net Profit / Share (Rs.)13.3210.5318.5715.4616.56
PBDIT Margin (%)28.9821.7727.9639.3230.02
PBIT Margin (%)25.4418.4223.3732.5023.46
PBT Margin (%)23.4816.8318.5226.1120.68
Net Profit Margin (%)18.7913.5615.6020.9515.12
Return on Networth / Equity (%)7.416.295.865.175.85
Return on Capital Employeed (%)7.596.066.004.735.26
Return On Assets (%)5.093.663.212.462.68
Long Term Debt / Equity (X)0.280.370.420.650.67
Total Debt / Equity (X)0.350.420.520.760.80
Asset Turnover Ratio (%)0.250.260.190.110.18
Current Ratio (X)3.431.570.850.850.92
Quick Ratio (X)2.721.280.660.690.71
Inventory Turnover Ratio (X)1.282.381.770.601.25
Dividend Payout Ratio (NP) (%)9.3814.2316.140.0025.49
Dividend Payout Ratio (CP) (%)7.8911.4212.470.0017.78
Earning Retention Ratio (%)90.6285.7783.860.0074.51
Cash Earning Retention Ratio (%)92.1188.5887.530.0082.22
Interest Coverage Ratio (X)14.7813.695.766.1610.80
Interest Coverage Ratio (Post Tax) (X)10.589.534.224.286.44
Enterprise Value (Cr.)806.38655.80806.34609.81558.34
EV / Net Operating Revenue (X)3.402.534.054.943.05
EV / EBITDA (X)11.7411.6014.4912.5710.16
MarketCap / Net Operating Revenue (X)2.611.932.702.231.15
Retention Ratios (%)90.6185.7683.850.0074.50
Price / BV (X)1.030.891.020.540.44
Price / Net Operating Revenue (X)2.611.932.702.231.15
EarningsYield0.070.070.050.090.13

Profitability Ratios (%)

Liquidity Ratios

Liquidity Ratios (%)

Interest Coverage Ratios (%)

Valuation Ratios

Fair Value

Fair Value of Ruby Mills Ltd as of November 28, 2024 is: 338.25

Calculation basis:

  • Fair value = P/E Ratio * (Return on Equity / 100) * Book Value * (1 + Dividend Yield / 100)
  • P/E Ratio (Price-to-Earnings Ratio): Represents the price of the stock relative to its earnings per share. A higher P/E ratio indicates that investors are willing to pay a higher price for the stock.
  • Return on Equity (ROE): Measures a company's profitability relative to its shareholder equity. It showcases the company's ability to generate profits using the investment made by its shareholders, offering valuable insight into its operational efficiency and financial performance.
  • Book Value: Represents the net asset value of the company per share. It is calculated as the total assets minus intangible assets and liabilities, divided by the number of outstanding shares.
  • Dividend Yield: The ratio of the annual dividend per share to the current market price per share. It offers valuable insights into the profitability of an investment through dividends.

This formula allows us to gauge the fair value of the stock by analyzing its fundamental indicators.

As of November 28, 2024, Ruby Mills Ltd is Undervalued by 17.45% compared to the current share price 288.00

Intrinsic Value of Ruby Mills Ltd as of November 28, 2024 is: 371.90

Calculation basis:

  • Intrinsic value = P/E Ratio * (Return on Equity / 100) * Book Value * (1 + Dividend Yield / 100) * (1 + EPS CAGR for Last 5 Years)
  • P/E Ratio (Price-to-Earnings Ratio): Represents the price of the stock relative to its earnings per share. A higher P/E ratio indicates that investors are willing to pay a higher price for the stock.
  • Return on Equity (ROE): Measures a company's profitability relative to its shareholder equity. It showcases the company's ability to generate profits using the investment made by its shareholders, offering valuable insight into its operational efficiency and financial performance.
  • Book Value: Represents the net asset value of the company per share. It is calculated as the total assets minus intangible assets and liabilities, divided by the number of outstanding shares.
  • Dividend Yield: The ratio of the annual dividend per share to the current market price per share. It offers valuable insights into the profitability of an investment through dividends.
  • EPS CAGR (Compound Annual Growth Rate): Represents the geometric mean growth rate of earnings per share over the last 5 years. It provides insight into the historical growth trajectory of the company's earnings.

This formula allows us to gauge the intrinsic value of the stock by analyzing its fundamental indicators along with EPS growth.

As of November 28, 2024, Ruby Mills Ltd is Undervalued by 29.13% compared to the current share price 288.00

Last 5 Year EPS CAGR: 9.95%

*Investments are subject to market risks

Strength and Weakness

StrengthWeakness
  1. The company has higher reserves (435.31 cr) compared to borrowings (382.92 cr), indicating strong financial stability.
  2. The company has shown consistent growth in sales (195.75 cr) and profit (43.75 cr) over the years.
  1. The stock has a low average ROCE of 6.42%, which may not be favorable.
  2. The stock has a high average Working Capital Days of 63.33, which may not be favorable.
  3. The stock has a high average Cash Conversion Cycle of 170.42, which may not be favorable.

Stock Analysis

  • Considering all of the following key financial indicators, prospective investors are encouraged to conduct thorough research and seek professional guidance before considering any investment in Ruby Mills Ltd:
    1. Net Profit Margin: 18.79%
      • Net Profit Margin: This metric indicates the percentage of profit a company makes from its total revenue. A higher net profit margin is generally desirable as it reflects better profitability.
    2. ROCE: 7.59% (Industry Average ROCE: 3.45%)
      • ROCE (Return on Capital Employed): ROCE measures a company's profitability and the efficiency with which its capital is employed. A higher ROCE indicates efficient use of capital.
    3. ROE%: 7.41% (Industry Average ROE: 3.03%)
      • ROE (Return on Equity): ROE measures a company's profitability relative to shareholders' equity. A higher ROE indicates efficient use of shareholders' funds.
    4. Interest Coverage Ratio (Post Tax): 10.58
      • Interest Coverage Ratio: The interest coverage ratio measures a company's ability to cover its interest payments on outstanding debt. A ratio greater than 2 is generally considered healthy as it indicates the company can meet its interest obligations comfortably.
    5. Quick Ratio: 2.72
      • Quick Ratio: The quick ratio assesses a company's ability to cover its short-term liabilities with its most liquid assets. A ratio higher than 1 suggests the company can meet its short-term obligations without relying heavily on inventory.
    6. Stock P/E: 24.7 (Industry average Stock P/E: 31.17)
      • Stock P/E (Price-to-Earnings) Ratio: The P/E ratio compares a company's current share price to its earnings per share. A lower P/E ratio relative to industry peers or historical values may indicate that the stock is undervalued.
    7. Total Debt / Equity: 0.35
      • Total Debt / Equity: This ratio measures a company's financial leverage by comparing its total debt to its total equity. A lower ratio indicates lower financial risk and greater financial stability.
    The current analysis is available for review. It's important to conduct thorough research and consider consulting with financial professionals before making any investment decisions.
    Stock Rating:

About the Company - Qualitative Analysis

Ruby Mills Ltd. is a Public Limited Listed company incorporated on 09/01/1917 and has its registered office in the State of Maharashtra, India. Company’s Corporate Identification Number(CIN) is L17120MH1917PLC000447 and registration number is 000447. Currently Company is involved in the business activities of Finishing of cotton and blended cotton textiles.. Company’s Total Operating Revenue is Rs. 198.95 Cr. and Equity Capital is Rs. 8.36 Cr. for the Year ended 31/03/2022.
INDUSTRYADDRESSCONTACT
Textiles - Composite MillsRuby House, J K Sawant Marg, Mumbai Maharashtra 400028info@rubymills.com
http://www.rubymills.com
Management
NamePosition Held
Mrs. Aruna Manharlal ShahChairman Emeritus
Mr. Hiren Manharlal ShahExecutive Chairman
Mr. Viraj Manharlal ShahManaging Director
Mr. Bharat Manharlal ShahManaging Director
Mr. Purav Hiren ShahExecutive Director
Mr. Deepak R ShahNon Exe.Non Ind.Director
Mr. Rahul G DivanInd. Non-Executive Director
Mr. Yogen S LathiaInd. Non-Executive Director
Mrs. Jasvanti PatelInd. Non-Executive Director
Mr. Shardul J ThackerInd. Non-Executive Director
Mr. Mehernosh R CurrawallaInd. Non-Executive Director

FAQ

What is the latest intrinsic value of Ruby Mills Ltd?

The latest intrinsic value of Ruby Mills Ltd as on 28 November 2024 is ₹338.25, which is 17.45% higher than the current market price of ₹288.00. The stock has a market capitalization of 961 Cr. and recorded a high/low of ₹325/177 during the current fiscal year 2024-2025. As of Sep 2024, the company has reserves of ₹590 Cr and total liabilities of ₹884 Cr.

What is the Market Cap of Ruby Mills Ltd?

The Market Cap of Ruby Mills Ltd is 961 Cr..

What is the current Stock Price of Ruby Mills Ltd as on 28 November 2024?

The current stock price of Ruby Mills Ltd as on 28 November 2024 is ₹288.

What is the High / Low of Ruby Mills Ltd stocks in FY 2024-2025?

In FY 2024-2025, the High / Low of Ruby Mills Ltd stocks is 325/177.

What is the Stock P/E of Ruby Mills Ltd?

The Stock P/E of Ruby Mills Ltd is 24.7.

What is the Book Value of Ruby Mills Ltd?

The Book Value of Ruby Mills Ltd is 181.

What is the Dividend Yield of Ruby Mills Ltd?

The Dividend Yield of Ruby Mills Ltd is 0.61 %.

What is the ROCE of Ruby Mills Ltd?

The ROCE of Ruby Mills Ltd is 7.33 %.

What is the ROE of Ruby Mills Ltd?

The ROE of Ruby Mills Ltd is 7.52 %.

What is the Face Value of Ruby Mills Ltd?

The Face Value of Ruby Mills Ltd is 5.00.

About the Author

Author Avatar
Getaka

Getaka, CFA, a financial analyst with 15 years of experience in the industry. Getaka holds an MBA degree and the Chartered Financial Analyst designation, demonstrating his profound understanding of financial analysis and investment management. Throughout his career, he has conducted numerous financial analyses and due diligence processes for companies in the industry, and has a strong track record of identifying key trends and opportunities. He leverages his expertise to deliver a thorough financial analysis of a company, encompassing its financial performance, key ratios, future prospects, and risks. Getaka is committed to providing accurate, reliable, and trustworthy information to help readers make informed decisions about their finances and investments.

Disclaimer: This article is for informational purposes only and should not be construed as financial advice. The author is not a SEBI registered financial advisor and does not have any vested interest in Ruby Mills Ltd. Investors are advised to conduct their own due diligence and consult with a financial professional before making any investment decisions. The information provided in this article is based on publicly available data and the author's analysis, but it may not be comprehensive or up-to-date. The author and getaka.co.in are not responsible for any errors or omissions in the content. This article is not intended to promote any particular investment strategy or recommendation, and readers should consult with their own financial advisors before making any investment decisions. Data Source: NSE