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Last Updated on: 04 March, 2024|Author: Getaka | Social: X Twitter Profile

Fundamental Analysis of Rajnandini Metal Ltd

About the Company - Rajnandini Metal Ltd

Rajnandini Metal Ltd. is a Public Limited Listed company incorporated on 18/03/2010 and has its registered office in the State of Haryana, India. Company’s Corporate Identification Number(CIN) is L51109HR2010PLC040255 and registration number is 040255. Currently Company is involved in the business activities of Wholesale of metals and metal ores. Company’s Total Operating Revenue is Rs. 1028.25 Cr. and Equity Capital is Rs. 18.43 Cr. for the Year ended 31/03/2022.
INDUSTRYADDRESSCONTACT
Metals - Non Ferrous - Copper/Copper Alloys - ProdNo: 3E/17 B.P. N.I.T, Faridabad Haryana 121001info@rajnandinimetal.com
http://www.rajnandinimetal.com
Management
NamePosition Held
Mr. Het Ram SharmaChairman & Managing Director
Mr. Ashok KalraExecutive Director
Mr. Shiv KumarInd. Non-Executive Director
Mr. Arun SharmaInd. Non-Executive Director
Mr. Sanjeev ChhaudhaInd. Non-Executive Director
Ms. Kavita RaniDirector

Rajnandini Metal Ltd. Share Price Update

Share PriceValue
Today₹13.60
Previous Day₹14.30

Basic Stock Data of Rajnandini Metal Ltd

Market Cap 373 Cr.
Current Price 13.5
High / Low21.4/8.10
Stock P/E20.4
Book Value 1.90
Dividend Yield0.49 %
ROCE29.2 %
ROE38.5 %
Face Value 1.00

Data Source: screener.in

Competitors of Rajnandini Metal Ltd

Stock NameMarket CapCurrent PriceHigh / LowStock P/EBook ValueDividend YieldROCEROEFace Value
Precision Wires India Ltd 2,543 Cr. 142156/59.439.8 26.70.60 %26.8 %14.6 % 1.00
Sagardeep Alloys Ltd 49.3 Cr. 28.940.4/17.8117 16.30.00 %5.66 %3.42 % 10.0
Industry Average1,296.15 Cr85.4578.4021.500.30%16.23%9.01%5.50

Rajnandini Metal Ltd Quarterly Results

MonthSep 2020Dec 2020Mar 2021Jun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023
Sales176.15210.43193.53182.30258.96260.30326.69260.86181.07251.55335.41265.86333.10
Expenses173.06206.82190.59179.20254.60255.42321.02256.01177.94245.41330.10258.64325.43
Operating Profit3.093.612.943.104.364.885.674.853.136.145.317.227.67
OPM %1.75%1.72%1.52%1.70%1.68%1.87%1.74%1.86%1.73%2.44%1.58%2.72%2.30%
Other Income0.130.340.340.370.430.180.272.294.141.592.140.720.94
Interest0.991.320.730.851.080.971.071.361.812.221.902.022.36
Depreciation0.140.260.270.250.260.270.370.260.330.300.300.240.31
Profit before tax2.092.372.282.373.453.824.505.525.135.215.255.685.94
Tax %30.14%22.78%28.51%33.76%34.20%21.99%29.33%34.96%34.89%34.93%36.19%19.19%-9.43%
Net Profit1.461.831.641.582.272.993.183.593.343.393.354.596.50
EPS in Rs0.050.070.060.060.080.110.120.130.120.120.120.170.24

Rajnandini Metal Ltd Quarterly Chart

Rajnandini Metal Ltd Profit & Loss

MonthMar 2011Mar 2012Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023TTM
Sales6801411371486311,0281,0291,232
Expenses6801381331446201,0101,0091,206
Operating Profit0033411181926
OPM %0%1%2%2%3%2%2%2%2%
Other Income0000011107
Interest0022244710
Depreciation000001111
Profit before tax001227142122
Tax %33%32%33%32%28%28%29%35%
Net Profit001115101418
EPS in Rs0.000.030.050.040.040.180.360.490.67
Dividend Payout %0%0%0%0%0%0%18%202%

Rajnandini Metal Ltd Profit & Loss Yearly Chart

Rajnandini Metal Ltd Growth

Compounded Sales Growth
10 Years:%
5 Years:49%
3 Years:91%
TTM:21%
Compounded Profit Growth
10 Years:%
5 Years:71%
3 Years:128%
TTM:36%
Stock Price CAGR
10 Years:%
5 Years:85%
3 Years:52%
1 Year:-9%
Return on Equity
10 Years:%
5 Years:30%
3 Years:37%
Last Year:39%

Rajnandini Metal Ltd Balance Sheet

MonthMar 2011Mar 2012Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Sep 2023
Equity Capital2346612182828
Reserves004787111425
Borrowings01522254043517297
Other Liabilities6981828272728
Total Liabilities82838406390108140178
Fixed Assets00171725253534
CWIP000150000
Investments000000000
Other Assets8273833416583105144
Total Assets82838406390108140178

Rajnandini Metal Ltd Reserves and Borrowings Chart

Rajnandini Metal Ltd Cash Flow

MonthMar 2011Mar 2012Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023
Cash from Operating Activity 002225-5-3
Cash from Investing Activity 000-3-14-4-0-9
Cash from Financing Activity 00-2112-1511
Net Cash Flow0000-0-000

Rajnandini Metal Ltd Financial Efficiency Indicators

MonthMar 2011Mar 2012Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023
Debtor Days38196645445221112
Inventory Days142144141623
Days Payable213201699
Cash Conversion Cycle38196577269201826
Working Capital Days14581738080222028
ROCE %5%10%9%18%25%29%

Rajnandini Metal Ltd Financial Efficiency Indicators Chart

Rajnandini Metal Ltd Share Holding Pattern

MonthMar 2021Jun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023
Promoters73.23%73.23%73.23%73.23%73.23%73.23%73.24%73.24%73.23%73.24%73.24%65.27%
FIIs0.00%0.00%0.00%0.00%0.00%0.00%0.04%0.04%0.00%0.00%0.00%0.04%
Public26.77%26.76%26.76%26.76%26.76%26.76%26.72%26.72%26.76%26.76%26.76%34.70%
No. of Shareholders1932432,1581,3662,1172,8255,2678,75714,48920,02233,26496,462

Rajnandini Metal Ltd Shareholding Pattern Chart

No. of Rajnandini Metal Ltd Shareholders

This stock is not held by any mutual fund

Rajnandini Metal Ltd ROCE Trend

Rajnandini Metal Ltd EPS Trend

Rajnandini Metal Ltd Key Financial Ratios

MonthMar 23Mar 22Mar 21Mar 20Mar 19
FaceValue1.0010.0010.0010.0010.00
Basic EPS (Rs.)0.505.434.121.881.98
Diluted EPS (Rs.)0.505.434.121.881.98
Cash EPS (Rs.)0.536.054.812.401.93
Book Value[Excl.RevalReserv]/Share (Rs.)1.5016.0615.9323.6121.73
Book Value[Incl.RevalReserv]/Share (Rs.)1.5016.0615.9323.6121.73
Dividend / Share (Rs.)0.100.000.000.000.00
Revenue From Operations / Share (Rs.)37.21557.92513.44241.56222.60
PBDIT / Share (Rs.)1.0710.459.397.145.69
PBIT / Share (Rs.)1.039.838.716.635.46
PBT / Share (Rs.)0.767.685.732.632.51
Net Profit / Share (Rs.)0.495.444.121.891.70
PBDIT Margin (%)2.871.871.822.952.55
PBIT Margin (%)2.761.761.692.742.45
PBT Margin (%)2.051.371.111.091.12
Net Profit Margin (%)1.320.970.800.780.76
Return on Networth / Equity (%)33.0133.8625.887.987.82
Return on Capital Employeed (%)53.9942.1728.6615.0321.93
Return On Assets (%)9.779.305.641.842.60
Long Term Debt / Equity (X)0.220.390.840.840.13
Total Debt / Equity (X)1.741.742.182.761.90
Asset Turnover Ratio (%)8.3110.428.272.883.48
Current Ratio (X)1.201.271.241.151.31
Quick Ratio (X)0.480.580.800.671.00
Inventory Turnover Ratio (X)18.3228.9729.824.430.00
Dividend Payout Ratio (NP) (%)13.450.000.000.000.00
Dividend Payout Ratio (CP) (%)12.370.000.000.000.00
Earning Retention Ratio (%)86.550.000.000.000.00
Cash Earning Retention Ratio (%)87.630.000.000.000.00
Interest Coverage Ratio (X)4.064.853.151.791.93
Interest Coverage Ratio (Post Tax) (X)2.883.522.381.471.58
Enterprise Value (Cr.)380.82682.29151.2155.5840.16
EV / Net Operating Revenue (X)0.370.660.230.370.29
EV / EBITDA (X)12.8735.4313.1112.6711.49
MarketCap / Net Operating Revenue (X)0.300.610.170.100.11
Retention Ratios (%)86.540.000.000.000.00
Price / BV (X)7.4821.405.561.111.22
Price / Net Operating Revenue (X)0.300.610.170.100.11
EarningsYield0.040.010.040.070.06

Rajnandini Metal Ltd Profitability Ratios (%)

Rajnandini Metal Ltd Liquidity Ratios

Rajnandini Metal Ltd Liquidity Ratios (%)

Rajnandini Metal Ltd Interest Coverage Ratios (X)

Rajnandini Metal Ltd Valuation Ratios

Fair Value / Intrinsic Value of Rajnandini Metal Ltd

Fair Value: ₹15.00

The stock is undervalued by 11.08% compared to the current price ₹13.5

*Investments are subject to market risks

Strength and Weakness of Rajnandini Metal Ltd

StrengthWeakness
  1. The company has shown consistent growth in sales (127.33 cr) and profit (7.67 cr) over the years.
  1. The stock is trading at a high valuation with an average P/B ratio of 6.75 and average Dividend Yield of 2.28%.
  2. The stock has a low average ROCE of 12.00%, which may not be favorable.
  3. The stock has a high average Working Capital Days of 66.13, which may not be favorable.
  4. The stock has a high average Cash Conversion Cycle of 92.38, which may not be favorable.
  5. The company has higher borrowings (40.56) compared to reserves (8.44), which may suggest financial risk.

Should I Buy Rajnandini Metal Ltd Share Now?

  • Considering various financial indicators, investors might exercise caution regarding investment in Rajnandini Metal Ltd:
    1. Net Profit Margin: 1.32%
      • 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: 53.99% (Industry Average ROCE: 16.23%)
      • 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): 2.88
      • 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: 0.48
      • 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: 22.0 (Industry average Stock P/E: 77.05)
      • 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: 1.74
      • 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 Rajnandini Metal 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