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Last Updated on: 23 June, 2024|Author: Getaka | Social: X Twitter Profile

Fundamental Analysis of RSWM Ltd

Basic Stock Data

Last Updated: June 17, 2024, 8:16 pm

Market Cap 884 Cr.
Current Price 188
High / Low243/159
Stock P/E
Book Value 275
Dividend Yield2.67 %
ROCE0.31 %
ROE7.30 %
Face Value 10.0
PEG Ratio0.00

Competitors of RSWM Ltd

Stock NameMarket CapCurrent PriceHigh / LowStock P/EBook ValueDividend YieldROCEROEFace Value
Sangam (India) Ltd 2,260 Cr. 450630/27449.2 2190.44 %7.04 %4.98 % 10.0
Deepak Spinners Ltd 159 Cr. 221320/202122 3281.13 %2.12 %0.55 % 10.0
APM Industries Ltd 130 Cr. 60.092.0/47.031.1 79.12.67 %3.24 %2.45 % 2.00
Aditya Spinners Ltd 33.2 Cr. 19.832.0/17.417.9 29.20.00 %5.24 %3.88 % 10.0
Industry Average645.55 Cr187.7055.05163.831.06%4.41%2.97%8.00

Quarterly Result

MonthMar 2021Jun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023Mar 2024
Sales8367429531,0011,1211,0249548559569021,0079771,171
Expenses7266618498869909148828379088859869621,130
Operating Profit1108110411613110972184816221541
OPM %13%11%11%12%12%11%8%2%5%2%2%2%4%
Other Income2489714351610431615789
Interest19181715171919211621192532
Depreciation32312926272735333235344242
Profit before tax834068811019935-2442-24-17-4557
Tax %14%7%34%37%-12%28%42%45%-6%43%46%24%37%
Net Profit713745521137120-1345-13-9-3436
EPS in Rs15.157.849.5010.9723.9715.154.27-2.839.49-2.85-1.95-7.237.57

Last Updated: June 9, 2024, 11:38 pm

Quarterly Chart

Profit & Loss - Annual Report

Last Updated: May 27, 2024, 6:01 am

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Sales2,6373,1112,9832,9332,9872,9402,9622,7712,3263,8173,7894,058
Expenses2,2842,7242,6372,5352,6602,7132,7982,5872,1513,3853,5413,963
Operating Profit35338734639832622716418417543224895
OPM %13%12%12%14%11%8%6%7%8%11%7%2%
Other Income2273230354332433938105127
Interest13313612512611011712010983687497
Depreciation115118135149132124124132128113127153
Profit before tax10716011715311828-47-133290152-28
Tax %31%36%27%27%12%25%19%-7%-499%15%19%26%
Net Profit731028611210421-38-1321246123-21
EPS in Rs15.4921.7418.6524.2422.104.45-8.13-2.854.4252.2826.08-4.47
Dividend Payout %32%29%27%26%28%22%-0%-0%-0%24%19%-0%

Profit & Loss Yearly Chart

YoY Net Profit Growth

Year2013-20142014-20152015-20162016-20172017-20182018-20192019-20202020-20212021-20222022-20232023-2024
YoY Net Profit Growth (%)39.73%-15.69%30.23%-7.14%-79.81%-280.95%65.79%261.54%1071.43%-50.00%-117.07%
Change in YoY Net Profit Growth (%)0.00%-55.41%45.92%-37.38%-72.66%-201.14%346.74%195.75%809.89%-1121.43%-67.07%

Growth

Compounded Sales Growth
10 Years:3%
5 Years:7%
3 Years:20%
TTM:7%
Compounded Profit Growth
10 Years:%
5 Years:%
3 Years:%
TTM:-198%
Stock Price CAGR
10 Years:3%
5 Years:15%
3 Years:4%
1 Year:-10%
Return on Equity
10 Years:6%
5 Years:5%
3 Years:7%
Last Year:-7%

Last Updated: June 17, 2024, 2:46 pm

RSWM Ltd Balance Sheet

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Sep 2023
Equity Capital23232323232424242424244747
Reserves2262713414106016859598277147681,0121,2701,245
Preference Capital0001000000000
Borrowings1,3641,3861,2961,2921,3981,4641,5201,4411,1649261,1031,1571,377
Other Liabilities175243289315262293293321312351435416416
Total Liabilities1,7881,9231,9492,0402,2852,4662,7952,6122,2142,0692,5742,8903,085
Fixed Assets8591,0441,0071,0351,1001,1751,0991,1501,0279219431,1151,486
CWIP251121412637153957714318328
Investments2155719118018546532591122126124161
Other Assets6578128567889681,0901,1911,1331,0881,0181,3611,4681,411
Total Assets1,7881,9231,9492,0402,2852,4662,7952,6122,2142,0692,5742,8903,085

Reserves and Borrowings Chart

RSWM Ltd Cash Flow

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023
Cash from Operating Activity 30723034843833922216626323132021089
Cash from Investing Activity -317-125-95-276-124-154-61-581507-318-239
Cash from Financing Activity 5-105-253-161-215-68-97-205-390-326111147
Net Cash Flow-5000008-0-913-3

Free Cash Flow

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Free Cash Flow353.00387.00336.00398.00326.00227.00164.00184.00175.00432.00248.0095.00

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 Days333130244646545645595144
Inventory Days87997881961171138912012687107
Days Payable111513181117162126392821
Cash Conversion Cycle1081159687131146151124139147110129
Working Capital Days696655457277101839210988103
ROCE %3%16%18%14%15%11%6%3%4%4%18%8%

Financial Efficiency Indicators Chart

Share Holding Pattern

MonthJun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023Mar 2024
Promoters53.16%53.16%53.16%53.16%53.16%53.15%53.15%55.54%55.69%55.69%55.69%55.69%
FIIs0.38%2.02%3.15%3.63%2.87%1.49%1.36%1.66%1.80%1.84%2.00%2.08%
DIIs0.35%0.14%0.14%0.14%0.14%0.15%0.14%0.07%0.07%0.07%0.08%0.07%
Government0.41%0.41%0.41%0.41%0.41%0.41%0.41%0.20%0.20%0.20%0.20%0.20%
Public45.70%44.27%43.14%42.66%43.42%44.81%44.91%42.53%42.23%42.19%42.03%41.95%
No. of Shareholders13,80916,02721,63422,48022,73529,36531,87633,50532,85633,54633,46132,277

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
FaceValue10.0010.0010.0010.0010.00
Basic EPS (Rs.)-4.4731.52104.558.84-5.70
Diluted EPS (Rs.)-4.4731.52104.558.84-5.70
Cash EPS (Rs.)25.2550.30149.9163.3949.06
Book Value[Excl.RevalReserv]/Share (Rs.)275.45279.61439.66336.22313.09
Book Value[Incl.RevalReserv]/Share (Rs.)275.45279.61439.66336.22313.09
Revenue From Operations / Share (Rs.)861.54804.411620.93987.661176.62
PBDIT / Share (Rs.)27.8772.08197.0991.2889.42
PBIT / Share (Rs.)-4.6545.06149.0837.0733.52
PBT / Share (Rs.)-8.8029.36120.371.81-6.47
Net Profit / Share (Rs.)-7.2723.27101.909.18-6.85
NP After MI And SOA / Share (Rs.)-4.4726.08104.558.84-5.70
PBDIT Margin (%)3.238.9612.159.247.59
PBIT Margin (%)-0.535.609.193.752.84
PBT Margin (%)-1.023.647.420.18-0.54
Net Profit Margin (%)-0.842.896.280.92-0.58
NP After MI And SOA Margin (%)-0.513.246.440.89-0.48
Return on Networth / Equity (%)-1.629.3223.772.63-1.81
Return on Capital Employeed (%)-1.0111.0422.397.316.09
Return On Assets (%)-0.574.259.561.00-0.60
Long Term Debt / Equity (X)0.580.370.440.420.65
Total Debt / Equity (X)1.450.871.060.961.43
Asset Turnover Ratio (%)1.231.391.661.091.16
Current Ratio (X)1.171.441.291.131.15
Quick Ratio (X)0.640.730.780.610.59
Inventory Turnover Ratio (X)3.093.754.392.533.34
Dividend Payout Ratio (NP) (%)0.0047.920.000.000.00
Dividend Payout Ratio (CP) (%)0.0023.530.000.000.00
Earning Retention Ratio (%)0.0052.080.000.000.00
Cash Earning Retention Ratio (%)0.0076.470.000.000.00
Interest Coverage Ratio (X)1.364.596.872.591.94
Interest Coverage Ratio (Post Tax) (X)-0.152.484.551.260.71
Enterprise Value (Cr.)2685.701855.152054.831196.021210.96
EV / Net Operating Revenue (X)0.660.480.530.510.43
EV / EBITDA (X)20.465.464.435.565.75
MarketCap / Net Operating Revenue (X)0.190.180.250.180.05
Retention Ratios (%)0.0052.070.000.000.00
Price / BV (X)0.620.530.920.550.22
Price / Net Operating Revenue (X)0.190.180.250.180.05
EarningsYield-0.020.170.250.04-0.08

Profitability Ratios (%)

Liquidity Ratios

Liquidity Ratios (%)

Interest Coverage Ratios (%)

Valuation Ratios

Fair Value

Fair Value: 309.17

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: 64.45% compared to the current price 188

Default values used*: Deafault value of 15 for Stock P/E is used

Intrinsic Value: 254.99

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: 35.64% compared to the current price ₹188

Default values used*: Deafault value of 15 for Stock P/E is used

Last 5 Year EPS CAGR: -17.52%

*Investments are subject to market risks

Strength and Weakness

StrengthWeakness
  1. The company has higher reserves (759.00 cr) compared to borrowings (0.83 cr), indicating strong financial stability.
  2. The company has shown consistent growth in sales (2.42 cr) and profit (86.67 cr) over the years.
  1. The stock has a low average ROCE of 10.00%, which may not be favorable.
  2. The stock has a high average Working Capital Days of 80.00, which may not be favorable.
  3. The stock has a high average Cash Conversion Cycle of 123.58, which may not be favorable.

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 RSWM Ltd:
    1. Net Profit Margin: -0.84%
      • 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: -1.01% (Industry Average ROCE: %)
      • 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%: -1.62% (Industry Average ROE: %)
      • 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): -0.15
      • 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: 0.64
      • 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: (Industry average Stock P/E: )
      • 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: 1.45
      • 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

RSWM Ltd. is a Public Limited Listed company incorporated on 17/10/1960 and has its registered office in the State of Rajasthan, India. Company’s Corporate Identification Number(CIN) is L17115RJ1960PLC008216 and registration number is 008216. Currently company belongs to the Industry of Textiles - Spinning - Synthetic Blended. Company’s Total Operating Revenue is Rs. 3817.42 Cr. and Equity Capital is Rs. 23.55 Cr. for the Year ended 31/03/2022.
INDUSTRYADDRESSCONTACT
Textiles - Spinning - Synthetic BlendedKharigram, P.B.No. 28 Bhilwara District Rajasthan 311021skg@lnjbhilwara.com
www.lnjbhilwara.com
Management
NamePosition Held
Mr. Riju JhunjhunwalaChairman & M.D & CEO
Mr. Brij Mohan SharmaJoint Managing Director
Mr. Amar Nath ChoudharyDirector
Mrs. Archana CapoorDirector
Mr. Ravi JhunjhunwalaDirector
Mr. Arun ChuriwalDirector
Mr. Priya Shankar DasguptaDirector
Mr. Shekhar AgarwalDirector
Dr. Kamal GuptaDirector
Mrs. Deepak JainDirector
Mr. L N JhunjhunwalaChairman Emeritus

FAQ

What is the latest fair value of RSWM Ltd?

The latest fair value of RSWM Ltd is ₹309.17.

What is the Market Cap of RSWM Ltd?

The Market Cap of RSWM Ltd is 884 Cr..

What is the current Stock Price of RSWM Ltd as on 23 June 2024?

The current stock price of RSWM Ltd as on 23 June 2024 is ₹188.

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

In FY 2024, the High / Low of RSWM Ltd stocks is 243/159.

What is the Stock P/E of RSWM Ltd?

The Stock P/E of RSWM Ltd is .

What is the Book Value of RSWM Ltd?

The Book Value of RSWM Ltd is 275.

What is the Dividend Yield of RSWM Ltd?

The Dividend Yield of RSWM Ltd is 2.67 %.

What is the ROCE of RSWM Ltd?

The ROCE of RSWM Ltd is 0.31 %.

What is the ROE of RSWM Ltd?

The ROE of RSWM Ltd is 7.30 %.

What is the Face Value of RSWM Ltd?

The Face Value of RSWM Ltd is 10.0.

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 RSWM 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