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Last Updated on: 28 February, 2024|Author: Getaka | Social: X Twitter Profile

Fundamental Analysis of Raj Rayon Industries Ltd

About the Company - Raj Rayon Industries Ltd

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

Raj Rayon Industries Ltd. Share Price Update

Share PriceValue
Today₹22.24
Previous Day₹21.81

Basic Stock Data of Raj Rayon Industries Ltd

Market Cap 1,506 Cr.
Current Price 27.1
High / Low91.2/15.0
Stock P/E455
Book Value 1.95
Dividend Yield0.00 %
ROCE6.99 %
ROE12.4 %
Face Value 1.00

Data Source: screener.in

Competitors of Raj Rayon Industries Ltd

Stock NameMarket CapCurrent PriceHigh / LowStock P/EBook ValueDividend YieldROCEROEFace Value
Weizmann Ltd 170 Cr. 107155/75.020.6 43.20.47 %12.3 %6.61 % 10.0
AYM Syntex Ltd 449 Cr. 88.893.0/52.5398 80.00.00 %6.84 %1.88 % 10.0
Shekhawati Poly-Yarn Ltd 74.8 Cr. 2.172.70/0.4012.1 4.080.00 %32.2 %% 1.00
Sarla Performance Fibers Ltd 550 Cr. 65.974.0/32.425.8 48.90.00 %7.23 %5.45 % 1.00
Mohit Industries Ltd 32.6 Cr. 23.024.9/11.0 1550.00 %1.49 %0.92 % 10.0
Industry Average255.28 Cr57.3791.3066.240.09%12.01%2.97%6.40

Raj Rayon Industries Ltd Quarterly Results

MonthSep 2020Dec 2020Mar 2021Jun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023
Sales0.000.000.000.000.000.060.000.000.5726.26110.40153.06179.63
Expenses0.050.040.040.030.021.860.520.401.1425.14108.77150.88171.67
Operating Profit-0.05-0.04-0.04-0.03-0.02-1.80-0.52-0.40-0.571.121.632.187.96
OPM %-3,000.00%-100.00%4.27%1.48%1.42%4.43%
Other Income0.010.000.000.000.00681.40-10.270.290.150.03-0.032.840.76
Interest0.000.000.000.000.000.000.000.000.000.101.192.222.18
Depreciation8.888.888.888.698.696.893.713.343.353.343.432.552.74
Profit before tax-8.92-8.92-8.92-8.72-8.71672.71-14.50-3.45-3.77-2.29-3.020.253.80
Tax %0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%5.30%-16.00%-1.05%
Net Profit-8.92-8.92-8.92-8.72-8.71672.71-14.51-3.45-3.77-2.29-2.870.293.84
EPS in Rs-0.26-0.26-0.26-0.25-0.252,947.25-63.57-0.06-0.07-0.04-0.050.010.07

Raj Rayon Industries Ltd Quarterly Chart

Raj Rayon Industries Ltd Profit & Loss

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023TTM
Sales6837134701844522747618000137469
Expenses6306525201866032939230102135456
Operating Profit5261-50-3-151-19-16-12-1-0-2213
OPM %8%9%-11%-1%-34%-7%-21%-65%1%3%
Other Income543822003167104
Interest293449718920000016
Depreciation24263242494837373636281312
Profit before tax56-128-108-287-66-53-48-34-35641-13-1
Tax %17%37%31%31%-0%0%0%0%0%0%0%1%
Net Profit44-88-75-287-66-53-48-34-35641-12-1
EPS in Rs0.150.14-3.29-2.81-8.27-1.91-1.52-1.39-0.98-1.002,807.32-0.22-0.01
Dividend Payout %0%0%0%0%0%0%0%0%0%0%0%0%

Raj Rayon Industries Ltd Profit & Loss Yearly Chart

Raj Rayon Industries Ltd 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:52%
5 Years:205%
3 Years:372%
1 Year:-67%
Return on Equity
10 Years:%
5 Years:%
3 Years:%
Last Year:-12%

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

Raj Rayon Industries Ltd 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

Raj Rayon Industries Ltd 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%

Raj Rayon Industries Ltd Financial Efficiency Indicators Chart

Raj Rayon Industries Ltd Share Holding Pattern

MonthDec 2020Mar 2021Jun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023
Promoters34.07%34.07%33.05%34.07%34.07%0.00%94.96%94.97%94.14%94.14%94.14%94.14%
DIIs0.34%0.34%0.34%0.34%0.34%0.51%0.00%0.00%0.82%0.82%0.82%0.73%
Public65.59%65.59%66.61%65.59%65.59%99.49%5.04%5.05%5.06%5.06%5.06%5.15%
No. of Shareholders20,76421,03811,01522,53010,91620,95420,52320,08320,00221,86121,39622,081

Raj Rayon Industries Ltd Shareholding Pattern Chart

No. of Raj Rayon Industries Ltd Shareholders

This stock is not held by any mutual fund

Raj Rayon Industries Ltd ROCE Trend

Raj Rayon Industries Ltd EPS Trend

Raj Rayon Industries Ltd 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

Raj Rayon Industries Ltd Profitability Ratios (%)

Raj Rayon Industries Ltd Liquidity Ratios

Raj Rayon Industries Ltd Liquidity Ratios (%)

Raj Rayon Industries Ltd Interest Coverage Ratios (X)

Raj Rayon Industries Ltd Valuation Ratios

Fair Value / Intrinsic Value of Raj Rayon Industries Ltd

Fair Value: ₹112.22

The stock is undervalued by 314.09% compared to the current price ₹27.1

*Investments are subject to market risks

Strength and Weakness of Raj Rayon Industries Ltd

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 (267.38) and profit (-9.31).

Should I Buy Raj Rayon Industries Ltd Share Now?

  • Considering various financial indicators, investors might exercise caution regarding 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: 12.01%)
      • 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. 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.
    4. 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.
    5. ✗ Stock P/E: 420 (Industry average Stock P/E: 82.8)
      • 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.
    6. ✗ 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 suggests exercising caution. It's advisable to conduct further research or consult with financial experts before considering any investment.

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