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Last Updated on: 25 July, 2024
Author: Getaka|Social: Getaka Financial Services X (Earlier Twitter) Profile Getaka Financial Services LinkedIn Logo

Fundamental Analysis of Rajnandini Metal Ltd

Basic Stock Data

Last Updated: July 24, 2024, 10:42 pm

Market Cap 382 Cr.
Current Price 13.8
High / Low21.4/8.50
Stock P/E25.0
Book Value 2.05
Dividend Yield0.48 %
ROCE21.3 %
ROE31.1 %
Face Value 1.00
PEG Ratio0.36

Data Source: screener.in

Competitors of Rajnandini Metal Ltd

Stock NameMarket CapCurrent PriceHigh / LowStock P/EBook ValueDividend YieldROCEROEFace Value
Baroda Extrusion Ltd 102 Cr. 6.878.16/2.45 2.650.00 %6.20 %% 1.00
ABC Gas (International) Ltd 19.0 Cr. 96.296.2/36.0 20.00.00 %13.5 %14.8 % 10.0
Sagardeep Alloys Ltd 59.6 Cr. 34.940.4/20.278.4 16.40.00 %5.54 %2.78 % 10.0
Rajnandini Metal Ltd 382 Cr. 13.821.4/8.5025.0 2.050.48 %21.3 %31.1 % 1.00
Precision Wires India Ltd 2,798 Cr. 157176/88.038.4 28.40.55 %25.4 %15.2 % 1.00
Industry Average1,450.00 Cr66.3165.8316.510.11%10.85%8.96%5.40

Quarterly Result

MonthMar 2021Jun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023Mar 2024
Sales193.53182.30258.96260.30326.69260.86181.07251.55335.41265.86333.10297.67315.80
Expenses190.59179.20254.60255.42321.02256.01177.94245.41330.10258.64325.43292.19314.70
Operating Profit2.943.104.364.885.674.853.136.145.317.227.675.481.10
OPM %1.52%1.70%1.68%1.87%1.74%1.86%1.73%2.44%1.58%2.72%2.30%1.84%0.35%
Other Income0.340.370.430.180.272.294.141.592.140.720.943.393.45
Interest0.730.851.080.971.071.361.812.221.902.022.363.263.74
Depreciation0.270.250.260.270.370.260.330.300.300.240.310.350.31
Profit before tax2.282.373.453.824.505.525.135.215.255.685.945.260.50
Tax %28.51%33.76%34.20%21.99%29.33%34.96%34.89%34.93%36.19%19.19%-9.43%26.62%42.00%
Net Profit1.641.582.272.993.183.593.343.393.354.596.503.860.29
EPS in Rs0.060.060.080.110.120.130.120.120.120.170.240.140.01

Last Updated: July 10, 2024, 3:41 pm

Quarterly Chart

Profit & Loss - Annual Report

Last Updated: July 10, 2024, 3:41 pm

MonthMar 2011Mar 2012Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Sales6801411371486311,0281,0291,212
Expenses6801381331446201,0101,0091,191
Operating Profit0033411181921
OPM %0%1%2%2%3%2%2%2%2%
Other Income0000011108
Interest0022244711
Depreciation000001111
Profit before tax001227142117
Tax %33%32%33%32%28%28%29%35%12%
Net Profit001115101415
EPS in Rs0.000.030.050.040.040.180.360.490.55
Dividend Payout %0%0%0%0%0%0%18%202%0%

Profit & Loss Yearly Chart

YoY Net Profit Growth

Year2018-20192019-20202020-20212021-20222022-20232023-2024
YoY Net Profit Growth (%)0.00%0.00%400.00%100.00%40.00%7.14%
Change in YoY Net Profit Growth (%)0.00%0.00%400.00%-300.00%-60.00%-32.86%

Growth

Compounded Sales Growth
10 Years:%
5 Years:55%
3 Years:24%
TTM:18%
Compounded Profit Growth
10 Years:%
5 Years:71%
3 Years:45%
TTM:11%
Stock Price CAGR
10 Years:%
5 Years:88%
3 Years:21%
1 Year:54%
Return on Equity
10 Years:%
5 Years:32%
3 Years:36%
Last Year:31%

Last Updated: July 25, 2024, 6:11 am

Balance Sheet

Last Updated: July 10, 2024, 3:41 pm

MonthMar 2011Mar 2012Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Equity Capital2346612182828
Reserves004787111429
Borrowings015222540435172100
Other Liabilities698182827277
Total Liabilities82838406390108140164
Fixed Assets00171725253534
CWIP000150001
Investments000000000
Other Assets8273833416583105129
Total Assets82838406390108140164

Reserves and Borrowings Chart

Cash Flow

MonthMar 2011Mar 2012Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Cash from Operating Activity 002225-5-3-20
Cash from Investing Activity 000-3-14-4-0-92
Cash from Financing Activity 00-2112-151117
Net Cash Flow0000-0-000-0

Free Cash Flow

MonthMar 2011Mar 2012Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Free Cash Flow0.00-15.00-19.00-22.00-36.00-32.00-33.00-53.00-79.00

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 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%

Financial Efficiency Indicators Chart

Share Holding Pattern

MonthSep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023Mar 2024Jun 2024
Promoters73.23%73.23%73.23%73.23%73.24%73.24%73.23%73.24%73.24%65.27%51.68%51.68%
FIIs0.00%0.00%0.00%0.00%0.04%0.04%0.00%0.00%0.00%0.04%0.03%0.00%
Public26.76%26.76%26.76%26.76%26.72%26.72%26.76%26.76%26.76%34.70%48.29%48.32%
No. of Shareholders2,1581,3662,1172,8255,2678,75714,48920,02233,26496,4621,64,4341,68,642

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
FaceValue1.001.0010.0010.0010.00
Basic EPS (Rs.)0.550.505.434.121.88
Diluted EPS (Rs.)0.550.505.434.121.88
Cash EPS (Rs.)0.590.536.054.812.40
Book Value[Excl.RevalReserv]/Share (Rs.)2.051.5016.0615.9323.61
Book Value[Incl.RevalReserv]/Share (Rs.)2.051.5016.0615.9323.61
Dividend / Share (Rs.)0.000.100.000.000.00
Revenue From Operations / Share (Rs.)43.8537.21557.92513.44241.56
PBDIT / Share (Rs.)1.081.0710.459.397.14
PBIT / Share (Rs.)1.041.039.838.716.63
PBT / Share (Rs.)0.620.767.685.732.63
Net Profit / Share (Rs.)0.550.495.444.121.89
PBDIT Margin (%)2.472.871.871.822.95
PBIT Margin (%)2.372.761.761.692.74
PBT Margin (%)1.432.051.371.111.09
Net Profit Margin (%)1.251.320.970.800.78
Return on Networth / Equity (%)26.8733.0133.8625.887.98
Return on Capital Employeed (%)44.4153.9942.1728.6615.03
Return On Assets (%)9.279.779.305.641.84
Long Term Debt / Equity (X)0.100.220.390.840.84
Total Debt / Equity (X)1.771.741.742.182.76
Asset Turnover Ratio (%)7.978.3110.428.272.88
Current Ratio (X)1.291.201.271.241.15
Quick Ratio (X)0.310.480.580.800.67
Inventory Turnover Ratio (X)14.5818.3228.9729.824.43
Dividend Payout Ratio (NP) (%)0.0013.450.000.000.00
Dividend Payout Ratio (CP) (%)0.0012.370.000.000.00
Earning Retention Ratio (%)0.0086.550.000.000.00
Cash Earning Retention Ratio (%)0.0087.630.000.000.00
Interest Coverage Ratio (X)2.634.064.853.151.79
Interest Coverage Ratio (Post Tax) (X)2.342.883.522.381.47
Enterprise Value (Cr.)384.65380.82682.29151.2155.58
EV / Net Operating Revenue (X)0.310.370.660.230.37
EV / EBITDA (X)12.8312.8735.4313.1112.67
MarketCap / Net Operating Revenue (X)0.230.300.610.170.10
Retention Ratios (%)0.0086.540.000.000.00
Price / BV (X)5.027.4821.405.561.11
Price / Net Operating Revenue (X)0.230.300.610.170.10
EarningsYield0.050.040.010.040.07

Profitability Ratios (%)

Liquidity Ratios

Liquidity Ratios (%)

Interest Coverage Ratios (%)

Valuation Ratios

Fair Value

Fair Value: 16.02

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: 16.05% compared to the current price 13.8

Intrinsic Value: 27.05

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: 96.03% compared to the current price 13.8

Last 5 Year EPS CAGR: 68.91%

*Investments are subject to market risks

Strength and Weakness

StrengthWeakness
  1. The company has shown consistent growth in sales (127.33 cr) and profit (7.11 cr) over the years.
  1. The stock has a low average ROCE of 12.00%, which may not be favorable.
  2. The stock has a high average Working Capital Days of 66.13, which may not be favorable.
  3. The stock has a high average Cash Conversion Cycle of 92.38, which may not be favorable.
  4. The company has higher borrowings (40.89) compared to reserves (8.89), which may suggest financial risk.

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 Rajnandini Metal Ltd:
    1. Net Profit Margin: 1.25%
      • 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: 44.41% (Industry Average ROCE: 10.85%)
      • 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%: 26.87% (Industry Average ROE: 8.96%)
      • 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): 2.34
      • 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: 0.31
      • 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: 25.0 (Industry average Stock P/E: 65.83)
      • 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: 1.77
      • 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

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 - ProdPlot No. 344, Sector � 3, Phase � II, IMT Bawal, Rewari Haryana 123501cs@rajnandinimetal.com
http://www.rajnandinimetal.com
Management
NamePosition Held
Mr. Het Ram SharmaChairman & Managing Director
Mr. Ashok KalraExecutive Director
Mr. Arun SharmaInd. Non-Executive Director
Mr. Sanjeev ChhaudhaInd. Non-Executive Director
Mr. Manoj Kumar JangirExecutive Director & CFO
Ms. AnjaliInd. Non-Executive Director

FAQ

What is the latest fair value of Rajnandini Metal Ltd?

The latest fair value of Rajnandini Metal Ltd is ₹16.02.

What is the Market Cap of Rajnandini Metal Ltd?

The Market Cap of Rajnandini Metal Ltd is 382 Cr..

What is the current Stock Price of Rajnandini Metal Ltd as on 25 July 2024?

The current stock price of Rajnandini Metal Ltd as on 25 July 2024 is 13.8.

What is the High / Low of Rajnandini Metal Ltd stocks in FY 2024?

In FY 2024, the High / Low of Rajnandini Metal Ltd stocks is 21.4/8.50.

What is the Stock P/E of Rajnandini Metal Ltd?

The Stock P/E of Rajnandini Metal Ltd is 25.0.

What is the Book Value of Rajnandini Metal Ltd?

The Book Value of Rajnandini Metal Ltd is 2.05.

What is the Dividend Yield of Rajnandini Metal Ltd?

The Dividend Yield of Rajnandini Metal Ltd is 0.48 %.

What is the ROCE of Rajnandini Metal Ltd?

The ROCE of Rajnandini Metal Ltd is 21.3 %.

What is the ROE of Rajnandini Metal Ltd?

The ROE of Rajnandini Metal Ltd is 31.1 %.

What is the Face Value of Rajnandini Metal Ltd?

The Face Value of Rajnandini Metal 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 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