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Last Updated on: 22 February, 2024|Author: Getaka | Social: X Twitter Profile

Fundamental Analysis of RM Drip & Sprinklers Systems Ltd

About the Company - RM Drip & Sprinklers Systems Ltd

RM Drip and Sprinklers Systems Ltd. is a Public Limited Listed company incorporated on 20/12/2004 and has its registered office in the State of Maharashtra, India. Company’s Corporate Identification Number(CIN) is L27200MH2004PLC150101 and registration number is 150101. Currently Company is involved in the business activities of Manufacture of rubber plates, sheets, strips, rods, tubes, pipes, hoses and profile -shapes etc.. Company’s Total Operating Revenue is Rs. 17.92 Cr. and Equity Capital is Rs. 6.69 Cr. for the Year ended 31/03/2022.
INDUSTRYADDRESSCONTACT
Micro Irrigation SystemsGat No.475, Nasik Maharashtra 422113cs@rmdrip.com
http://www.rmdrip.com
Management
NamePosition Held
Mr. Nivrutti Pandurang KedarManaging Director
Mr. Somnath Khanderao DateNon Exe.Non Ind.Director
Mr. Hiren Surendra MakwanaInd. Non-Executive Director
Mr. Mayur BhattInd. Non-Executive Director
Mrs. Kavita PandareInd. Non-Executive Director

RM Drip and Sprinklers Systems Ltd. Share Price Update

Share PriceValue
Today₹104.10
Previous Day₹109.20

Basic Stock Data of RM Drip & Sprinklers Systems Ltd

Market Cap 129 Cr.
Current Price 102
High / Low118/29.0
Stock P/E30.1
Book Value 19.8
Dividend Yield0.00 %
ROCE5.10 %
ROE0.24 %
Face Value 10.0

Data Source: screener.in

Competitors of RM Drip & Sprinklers Systems Ltd

Stock NameMarket CapCurrent PriceHigh / LowStock P/EBook ValueDividend YieldROCEROEFace Value
Industry Average0 Cr0000%0%0%0

RM Drip & Sprinklers Systems Ltd Quarterly Results

MonthSep 2019Mar 2020Sep 2020Mar 2021Sep 2021Mar 2022Sep 2022Mar 2023Sep 2023
Sales7.3515.893.3414.875.6312.293.797.168.34
Expenses6.2013.183.7712.476.5410.586.595.317.06
Operating Profit1.152.71-0.432.40-0.911.71-2.801.851.28
OPM %15.65%17.05%-12.87%16.14%-16.16%13.91%-73.88%25.84%15.35%
Other Income0.290.200.290.140.290.410.002.860.01
Interest0.550.410.520.430.460.460.430.510.15
Depreciation0.690.690.560.600.590.520.440.450.56
Profit before tax0.201.81-1.221.51-1.671.14-3.673.750.58
Tax %0.00%-43.65%0.00%11.92%-35.93%-16.67%0.00%1.33%0.00%
Net Profit0.202.61-1.221.33-2.271.33-3.663.690.58
EPS in Rs0.303.90-1.821.99-3.391.99-5.475.520.46

RM Drip & Sprinklers Systems Ltd Quarterly Chart

RM Drip & Sprinklers Systems Ltd Profit & Loss

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023TTM
Sales2.543.075.3211.7328.3442.6322.2923.2418.2117.9210.9515.50
Expenses2.192.795.2210.3624.9837.9025.7519.3716.2317.1111.8912.37
Operating Profit0.350.280.101.373.364.73-3.463.871.980.81-0.943.13
OPM %13.78%9.12%1.88%11.68%11.86%11.10%-15.52%16.65%10.87%4.52%-8.58%20.19%
Other Income0.030.020.760.020.380.270.840.480.430.692.872.87
Interest0.150.150.160.500.871.181.330.960.960.920.960.66
Depreciation0.120.110.230.410.931.551.471.381.161.110.891.01
Profit before tax0.110.040.470.481.942.27-5.422.010.29-0.530.084.33
Tax %36.36%25.00%46.81%33.33%29.90%31.28%-0.37%-39.30%62.07%-77.36%62.50%
Net Profit0.080.030.240.321.361.57-5.442.800.11-0.940.034.27
EPS in Rs80.0030.005.002.295.712.35-8.134.190.16-1.410.045.98
Dividend Payout %0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%

RM Drip & Sprinklers Systems Ltd Profit & Loss Yearly Chart

RM Drip & Sprinklers Systems Ltd Growth

Compounded Sales Growth
10 Years:16%
5 Years:-24%
3 Years:-22%
TTM:-4%
Compounded Profit Growth
10 Years:-9%
5 Years:-55%
3 Years:-78%
TTM:283%
Stock Price CAGR
10 Years:%
5 Years:14%
3 Years:51%
1 Year:332%
Return on Equity
10 Years:0%
5 Years:-5%
3 Years:-2%
Last Year:0%

RM Drip & Sprinklers Systems Ltd Balance Sheet

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Sep 2023
Equity Capital0.010.010.481.402.386.696.696.696.696.696.6912.55
Reserves0.360.390.801.121.469.494.056.856.966.026.0512.32
Borrowings1.261.332.604.1512.249.928.708.298.777.817.565.69
Other Liabilities0.610.551.323.637.706.367.505.406.3910.138.547.02
Total Liabilities2.242.285.2010.3023.7832.4626.9427.2328.8130.6528.8437.58
Fixed Assets0.740.693.072.748.188.177.296.296.975.884.977.64
CWIP0.020.000.000.240.140.090.180.000.000.000.000.00
Investments0.030.030.030.040.110.110.060.060.060.060.000.00
Other Assets1.451.562.107.2815.3524.0919.4120.8821.7824.7123.8729.94
Total Assets2.242.285.2010.3023.7832.4626.9427.2328.8130.6528.8437.58

RM Drip & Sprinklers Systems Ltd Reserves and Borrowings Chart

RM Drip & Sprinklers Systems Ltd Cash Flow

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023
Cash from Operating Activity 0.010.190.600.982.51-6.481.551.762.870.95-4.24
Cash from Investing Activity -0.39-0.02-2.23-2.20-6.29-1.400.120.29-1.430.612.93
Cash from Financing Activity 0.36-0.091.681.864.537.53-2.36-2.15-0.60-2.601.11
Net Cash Flow-0.010.070.050.630.74-0.36-0.69-0.100.85-1.04-0.20

RM Drip & Sprinklers Systems Ltd Financial Efficiency Indicators

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023
Debtor Days68.9887.9875.4790.8686.03134.77207.31224.28298.05367.44497.00
Inventory Days197.92109.2954.9678.92138.7985.3576.22100.38117.43131.21139.59
Days Payable133.6676.3076.73121.4977.0555.4280.24102.92117.00187.44263.36
Cash Conversion Cycle133.24120.9753.6948.29147.78164.70203.29221.74298.48311.21373.23
Working Capital Days116.40109.3853.5231.4385.13137.76182.42217.84285.63313.26539.00
ROCE %11.31%9.27%18.58%24.70%16.36%-17.96%14.39%5.65%1.82%5.10%

RM Drip & Sprinklers Systems Ltd Financial Efficiency Indicators Chart

RM Drip & Sprinklers Systems Ltd Share Holding Pattern

MonthMar 2019Sep 2019Mar 2020Sep 2020Mar 2021Sep 2021Mar 2022Sep 2022Mar 2023Apr 2023Sep 2023Dec 2023
Promoters60.97%60.97%61.00%61.00%60.23%60.23%60.29%59.36%51.91%33.79%27.60%22.97%
Public39.02%39.03%39.00%39.01%39.78%39.78%39.72%40.64%48.09%66.21%72.40%77.03%
No. of Shareholders394396392289301332341362353365357345

RM Drip & Sprinklers Systems Ltd Shareholding Pattern Chart

No. of RM Drip & Sprinklers Systems Ltd Shareholders

This stock is not held by any mutual fund

RM Drip & Sprinklers Systems Ltd ROCE Trend

RM Drip & Sprinklers Systems Ltd EPS Trend

RM Drip & Sprinklers Systems Ltd Key Financial Ratios

MonthMar 23Mar 22Mar 21Mar 20Mar 19
FaceValue10.0010.0010.0010.0010.00
Basic EPS (Rs.)0.04-1.410.164.19-8.98
Diluted EPS (Rs.)0.04-1.410.164.19-8.98
Cash EPS (Rs.)1.370.251.896.25-5.94
Book Value[Excl.RevalReserv]/Share (Rs.)19.0418.9920.4020.2416.05
Book Value[Incl.RevalReserv]/Share (Rs.)19.0418.9920.4020.2416.05
Revenue From Operations / Share (Rs.)16.3726.7827.2334.7333.32
PBDIT / Share (Rs.)2.852.243.596.51-3.92
PBIT / Share (Rs.)1.520.571.864.45-6.12
PBT / Share (Rs.)0.11-0.790.433.01-8.11
Net Profit / Share (Rs.)0.04-1.410.164.19-8.13
PBDIT Margin (%)17.428.3713.1818.73-11.76
PBIT Margin (%)9.292.166.8212.80-18.36
PBT Margin (%)0.70-2.961.598.67-24.33
Net Profit Margin (%)0.26-5.260.5912.07-24.40
Return on Networth / Equity (%)0.22-7.420.7820.71-50.67
Return on Capital Employeed (%)5.892.527.0917.43-26.00
Return On Assets (%)0.10-3.070.3710.29-20.19
Long Term Debt / Equity (X)0.260.100.210.190.35
Total Debt / Equity (X)0.590.610.510.520.69
Asset Turnover Ratio (%)0.360.600.650.850.75
Current Ratio (X)2.041.601.871.961.72
Quick Ratio (X)1.771.341.621.651.39
Inventory Turnover Ratio (X)1.903.542.753.453.38
Interest Coverage Ratio (X)2.031.632.524.53-1.97
Interest Coverage Ratio (Post Tax) (X)1.03-0.021.113.92-3.09
Enterprise Value (Cr.)38.2717.3819.6319.5643.64
EV / Net Operating Revenue (X)3.490.971.080.841.96
EV / EBITDA (X)20.0511.588.174.49-16.64
MarketCap / Net Operating Revenue (X)2.810.540.760.551.65
Price / BV (X)2.420.771.020.953.42
Price / Net Operating Revenue (X)2.810.540.760.551.65
EarningsYield0.00-0.090.010.21-0.14

RM Drip & Sprinklers Systems Ltd Profitability Ratios (%)

RM Drip & Sprinklers Systems Ltd Liquidity Ratios

RM Drip & Sprinklers Systems Ltd Liquidity Ratios (%)

RM Drip & Sprinklers Systems Ltd Interest Coverage Ratios (X)

RM Drip & Sprinklers Systems Ltd Valuation Ratios

Fair Value / Intrinsic Value of RM Drip & Sprinklers Systems Ltd

Fair Value: ₹1.46

The stock is overvalued by 98.57% compared to the current price ₹102

*Investments are subject to market risks

Strength and Weakness of RM Drip & Sprinklers Systems Ltd

StrengthWeakness
  1. The company has shown consistent growth in sales (16.81 cr) and profit (0.51 cr) over the years.
  1. The stock is trading at a high valuation with an average P/B ratio of 0.46 and average Dividend Yield of -3.27%.
  2. The stock has a low average ROCE of 8.11%, which may not be favorable.
  3. The stock has a high average Working Capital Days of 188.34, which may not be favorable.
  4. The stock has a high average Cash Conversion Cycle of 188.78, which may not be favorable.
  5. The company has higher borrowings (6.53) compared to reserves (4.66), which may suggest financial risk.

Should I Buy RM Drip & Sprinklers Systems Ltd Share Now?

  • Considering various financial indicators, investors might exercise caution regarding investment in RM Drip & Sprinklers Systems Ltd:
    1. Net Profit Margin: 0.26%
      • 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: 5.89% (Industry Average ROCE: 0%)
      • 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): 1.03
      • 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: 1.77
      • 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: 30.1 (Industry average Stock P/E: 0)
      • 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: 0.59
      • 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 RM Drip & Sprinklers Systems 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