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Last Updated on: 30 May, 2024|Author: Getaka | Social: X Twitter Profile

Fundamental Analysis of Raj Rayon Industries Ltd

Basic Stock Data

Last Updated: May 30, 2024, 6:05 am

Market Cap 1,212 Cr.
Current Price 21.8
High / Low71.0/15.0
Stock P/E366
Book Value 1.95
Dividend Yield0.00 %
ROCE6.99 %
ROE12.4 %
Face Value 1.00
PEG Ratio18.55

Competitors of Raj Rayon Industries Ltd

Stock NameMarket CapCurrent PriceHigh / LowStock P/EBook ValueDividend YieldROCEROEFace Value
Weizmann Ltd 187 Cr. 118155/85.520.9 45.90.40 %16.0 %13.0 % 10.0
AYM Syntex Ltd 507 Cr. 100106/63.2449 80.00.00 %6.84 %1.88 % 10.0
Sarla Performance Fibers Ltd 694 Cr. 83.297.5/36.821.2 56.10.00 %9.19 %7.58 % 1.00
Anjani Synthetics Ltd 62.5 Cr. 42.449.9/26.516.7 54.60.00 %7.11 %4.50 % 10.0
Jakharia Fabric Ltd 13.8 Cr. 34.037.1/31.5 45.50.00 %2.85 %11.3 % 10.0
Industry Average292.86 Cr75.52101.5656.420.08%8.40%7.65%8.20

Quarterly Result

MonthDec 2020Mar 2021Jun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023
Sales0.000.000.000.000.060.000.000.5726.26110.40153.06179.63195.35
Expenses0.040.040.030.021.860.520.401.1425.14108.77150.88171.67185.13
Operating Profit-0.04-0.04-0.03-0.02-1.80-0.52-0.40-0.571.121.632.187.9610.22
OPM %-3,000.00%-100.00%4.27%1.48%1.42%4.43%5.23%
Other Income0.000.000.000.00681.40-10.270.290.150.03-0.032.840.760.65
Interest0.000.000.000.000.000.000.000.000.101.192.222.182.83
Depreciation8.888.888.698.696.893.713.343.353.343.432.552.742.59
Profit before tax-8.92-8.92-8.72-8.71672.71-14.50-3.45-3.77-2.29-3.020.253.805.45
Tax %0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%5.30%-16.00%-1.05%62.39%
Net Profit-8.92-8.92-8.72-8.71672.71-14.51-3.45-3.77-2.29-2.870.293.842.05
EPS in Rs-0.26-0.26-0.25-0.252,947.25-63.57-0.06-0.07-0.04-0.050.010.070.04

Last Updated: May 11, 2024, 1:06 pm

Quarterly Chart

Profit & Loss - Annual Report

Last Updated: May 27, 2024, 5:59 am

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023TTM
Sales6837134701844522747618000137638
Expenses6306525201866032939230102135616
Operating Profit5261-50-3-151-19-16-12-1-0-2222
OPM %8%9%-11%-1%-34%-7%-21%-65%1%3%
Other Income543822003167104
Interest293449718920000018
Depreciation24263242494837373636281311
Profit before tax56-128-108-287-66-53-48-34-35641-136
Tax %17%37%31%31%-0%0%0%0%0%0%0%1%
Net Profit44-88-75-287-66-53-48-34-35641-123
EPS in Rs0.150.14-3.29-2.81-8.27-1.91-1.52-1.39-0.98-1.002,807.32-0.220.07
Dividend Payout %0%0%0%0%0%0%0%0%0%0%0%0%

Profit & Loss Yearly Chart

YoY Net Profit Growth

Year2012-20132013-20142014-20152015-20162016-20172017-20182018-20192019-20202020-20212021-20222022-2023
YoY Net Profit Growth (%)0.00%-2300.00%14.77%-282.67%77.00%19.70%9.43%29.17%-2.94%1931.43%-101.87%
Change in YoY Net Profit Growth (%)0.00%-2300.00%2314.77%-297.44%359.67%-57.31%-10.26%19.73%-32.11%1934.37%-2033.30%

Growth

Compounded Sales Growth
10 Years:-15%
5 Years:12%
3 Years:%
TTM:2280%
Compounded Profit Growth
10 Years:%
5 Years:12%
3 Years:18%
TTM:124%
Stock Price CAGR
10 Years:44%
5 Years:237%
3 Years:378%
1 Year:-56%
Return on Equity
10 Years:%
5 Years:%
3 Years:%
Last Year:-12%

Last Updated: May 25, 2024, 10:27 am

Raj Rayon Industries Ltd Balance Sheet

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Sep 2023
Equity Capital2527272735353535353505656
Reserves7911224-51-404-471-523-572-605-6401004953
Preference Capital014141414141414141400
Borrowings2343545556947137057047006956950125178
Other Liabilities232203555393737067666628291
Total Liabilities570696661724436342285230191155102311377
Fixed Assets18015633736932027423719816112689138138
CWIP261861000000006873
Investments0000000000000
Other Assets36435431535511668483230308165166
Total Assets570696661724436342285230191155102311377

Reserves and Borrowings Chart

Raj Rayon Industries Ltd Cash Flow

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023
Cash from Operating Activity 1917-56-45-47-1-200-5-75
Cash from Investing Activity -60-136-77-242201240-6-65
Cash from Financing Activity 4111914259-17-6-1-0-4011140
Net Cash Flow-009-901-1-00000

Free Cash Flow

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023
Free Cash Flow52.0047.00-64.00-17.00-165.00-33.00-30.00-26.00-15.00-14.00-2.002.00

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 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023
Debtor Days11892131285242810833661
Inventory Days70801422243303514248
Days Payable13791268023101930249
Cash Conversion Cycle5281119428444812431960
Working Capital Days5868126293-89-322-107-642122
ROCE %10%9%-14%-6%-38%-20%-20%-24%-24%-29%-30%-7%

Financial Efficiency Indicators Chart

Share Holding Pattern

MonthJun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023Mar 2024
Promoters33.05%34.07%34.07%0.00%94.96%94.97%94.14%94.14%94.14%94.14%94.14%94.14%
DIIs0.34%0.34%0.34%0.51%0.00%0.00%0.82%0.82%0.82%0.73%0.33%0.00%
Public66.61%65.59%65.59%99.49%5.04%5.05%5.06%5.06%5.06%5.15%5.55%5.86%
No. of Shareholders11,01522,53010,91620,95420,52320,08320,00221,86121,39622,08124,70526,151

Shareholding Pattern Chart

No. of Shareholders

This stock is not held by any mutual fund

ROCE Trend

EPS Trend

Key Financial Ratios

MonthMar 23Mar 22Mar 21Mar 20Mar 19
FaceValue1.001.001.001.001.00
Basic EPS (Rs.)-0.222807.34-1.00-0.98-1.39
Diluted EPS (Rs.)-0.152807.34-1.00-0.98-1.39
Cash EPS (Rs.)0.012930.600.020.06-0.33
Book Value[Excl.RevalReserv]/Share (Rs.)1.42154.17-17.48-16.48-15.50
Book Value[Incl.RevalReserv]/Share (Rs.)1.42154.17-17.48-16.48-15.50
Revenue From Operations / Share (Rs.)2.470.240.000.000.52
PBDIT / Share (Rs.)0.03-10.370.020.06-0.33
PBIT / Share (Rs.)-0.20-133.02-1.00-0.97-1.39
PBT / Share (Rs.)-0.222807.95-1.00-0.97-1.39
Net Profit / Share (Rs.)-0.222807.95-1.00-0.97-1.39
PBDIT Margin (%)1.61-4300.540.000.00-63.58
PBIT Margin (%)-8.19-55189.810.000.00-265.65
PBT Margin (%)-9.131165042.900.000.00-265.74
Net Profit Margin (%)-9.011165042.900.000.00-265.74
Return on Networth / Equity (%)-15.631821.280.000.000.00
Return on Capital Employeed (%)-6.49-30.285.976.209.40
Return On Assets (%)-3.97626.11-22.39-17.75-20.98
Long Term Debt / Equity (X)0.860.00-0.01-0.01-0.01
Total Debt / Equity (X)1.580.00-1.15-1.22-1.30
Asset Turnover Ratio (%)0.660.000.000.000.07
Current Ratio (X)0.931.960.020.020.02
Quick Ratio (X)0.391.960.020.020.02
Inventory Turnover Ratio (X)0.000.000.000.003.18
Interest Coverage Ratio (X)1.71-739.160.000.00-717.16
Interest Coverage Ratio (Post Tax) (X)-8.54-9485.750.000.00-2996.44
Enterprise Value (Cr.)3726.110.41716.94715.95720.37
EV / Net Operating Revenue (X)27.157.440.000.0039.67
EV / EBITDA (X)1681.08-0.17988.34326.23-62.39
MarketCap / Net Operating Revenue (X)26.259.290.000.000.36
Price / BV (X)45.520.01-0.01-0.01-0.01
Price / Net Operating Revenue (X)26.259.290.000.000.36
EarningsYield0.001253.55-4.56-5.15-7.33

Profitability Ratios (%)

Liquidity Ratios

Liquidity Ratios (%)

Interest Coverage Ratios (%)

Valuation Ratios

Fair Value

Fair Value: ₹90.27

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.

Undervalued: 314.08% compared to the current price ₹21.8

Intrinsic Value: ₹104.20

Calculation basis:

  • Fair 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 fair value of the stock by analyzing its fundamental indicators along with EPS growth.

Undervalued: 378.00% compared to the current price ₹21.8

Last 5 Year EPS CAGR: 15.44%

*Investments are subject to market risks

Strength and Weakness

StrengthWeakness
  1. The stock has a low average Working Capital Days of -41.08, which is a positive sign.
  1. The stock has a low average ROCE of -16.08%, which may not be favorable.
  2. The stock has a high average Cash Conversion Cycle of 106.25, which may not be favorable.
  3. The company has higher borrowings (9.69) compared to reserves (-219.15), which may suggest financial risk.
  4. The company has not shown consistent growth in sales (280.38) and profit (-8.77).

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 Raj Rayon Industries Ltd:
    1. Net Profit Margin: -9.01%
      • 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: -6.49% (Industry Average ROCE: 8.4%)
      • 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%: -15.63% (Industry Average ROE: 7.65%)
      • 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): -8.54
      • 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: 0.39
      • 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: 366 (Industry average Stock P/E: 101.56)
      • 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: 1.58
      • 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

Raj Rayon Industries Ltd. is a Public Limited Listed company incorporated on 17/08/1993 and has its registered office in the State of Dadra & Nagar Haveli, India. Company’s Corporate Identification Number(CIN) is L17120DN1993PLC000368 and registration number is 000368. Currently company belongs to the Industry of Textiles - Processing/Texturising. Company’s Total Operating Revenue is Rs. 0.06 Cr. and Equity Capital is Rs. 0.23 Cr. for the Year ended 31/03/2022.
INDUSTRYADDRESSCONTACT
Textiles - Processing/TexturisingSurvey No. 177/1/3, Dist. Silvassa Dadra & Nagar Haveli 396230investors@rajrayon.com
http://www.rajrayon.com
Management
NamePosition Held
Mr. Rajkumar Satyanarayan AgarwalChairperson & Managing Director
Mrs. Sapna Rajkumar AgarwalNon Exe.Non Ind.Director
Mr. Sandiip Satyanarayan AgarwwalWholeTime Director & CFO
Mr. Vinodkumar Bajranglal DalmiaInd. Non-Executive Director
Prof. Ramesh Chandra AgarwalInd. Non-Executive Director
Mr. Kailashnath Jeevan KoppikarInd. Non-Executive Director
Mrs. Supriya Mahesh PujariInd. Non-Executive Woman Director

FAQ

What is the latest fair value of Raj Rayon Industries Ltd?

The latest fair value of Raj Rayon Industries Ltd is ₹90.27.

What is the Market Cap of Raj Rayon Industries Ltd?

The Market Cap of Raj Rayon Industries Ltd is 1,212 Cr..

What is the current Stock Price of Raj Rayon Industries Ltd as on 30 May 2024?

The current stock price of Raj Rayon Industries Ltd as on 30 May 2024 is ₹21.8.

What is the High / Low of Raj Rayon Industries Ltd stocks in FY 2024?

In FY 2024, the High / Low of Raj Rayon Industries Ltd stocks is 71.0/15.0.

What is the Stock P/E of Raj Rayon Industries Ltd?

The Stock P/E of Raj Rayon Industries Ltd is 366.

What is the Book Value of Raj Rayon Industries Ltd?

The Book Value of Raj Rayon Industries Ltd is 1.95.

What is the Dividend Yield of Raj Rayon Industries Ltd?

The Dividend Yield of Raj Rayon Industries Ltd is 0.00 %.

What is the ROCE of Raj Rayon Industries Ltd?

The ROCE of Raj Rayon Industries Ltd is 6.99 %.

What is the ROE of Raj Rayon Industries Ltd?

The ROE of Raj Rayon Industries Ltd is 12.4 %.

What is the Face Value of Raj Rayon Industries Ltd?

The Face Value of Raj Rayon Industries Ltd is 1.00.

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 Raj Rayon Industries 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