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

Fundamental Analysis of RSWM Ltd

About the Company - RSWM Ltd

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

RSWM Ltd. Share Price Update

Share PriceValue
Today₹208.50
Previous Day₹203.75

Basic Stock Data of RSWM Ltd

Market Cap 933 Cr.
Current Price 198
High / Low243/144
Stock P/E
Book Value 274
Dividend Yield2.53 %
ROCE8.16 %
ROE8.30 %
Face Value 10.0

Data Source: screener.in

Competitors of RSWM Ltd

Stock NameMarket CapCurrent PriceHigh / LowStock P/EBook ValueDividend YieldROCEROEFace Value
Adinath Textiles Ltd 19.3 Cr. 28.431.9/20.532.2 3.770.00 %29.4 %31.2 % 10.0
Sangam (India) Ltd 2,484 Cr. 494630/21033.3 2150.40 %15.5 %18.6 % 10.0
Aditya Spinners Ltd 43.4 Cr. 25.932.0/17.055.6 29.30.00 %9.17 %10.3 % 10.0
Industry Average848.90 Cr182.7740.3782.690.13%18.02%20.03%10.00

RSWM Ltd Quarterly Results

MonthSep 2020Dec 2020Mar 2021Jun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023
Sales553.56721.06835.56741.91953.071,001.081,121.361,023.83953.79855.05956.23901.741,007.40
Expenses533.36629.44725.81660.77849.00885.58990.40914.38881.64836.55908.24885.43985.60
Operating Profit20.2091.62109.7581.14104.07115.50130.96109.4572.1518.5047.9916.3121.80
OPM %3.65%12.71%13.13%10.94%10.92%11.54%11.68%10.69%7.56%2.16%5.02%1.81%2.16%
Other Income8.746.7223.508.089.227.3114.1335.4715.8710.4642.8816.1414.72
Interest21.8719.0518.5118.4016.8515.3017.0618.6018.5120.7216.1221.0918.94
Depreciation32.3831.4531.8031.0728.8426.0227.1527.4434.7732.5932.5034.8734.46
Profit before tax-25.3147.8482.9439.7567.6081.49100.8898.8834.74-24.3542.25-23.51-16.88
Tax %40.73%36.12%13.94%7.14%33.80%36.59%-11.91%27.83%42.06%45.22%-5.80%42.83%45.62%
Net Profit-15.0030.5671.3836.9144.7551.67112.8971.3620.13-13.3444.70-13.44-9.18
EPS in Rs-3.186.4915.157.849.5010.9723.9715.154.27-2.839.49-2.85-1.95

RSWM Ltd Quarterly Chart

RSWM Ltd Profit & Loss

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023TTM
Sales2,1232,6373,1112,9832,9332,9872,9402,9622,7712,3263,8173,7893,843
Expenses1,9912,2842,7242,6372,5352,6602,7132,7982,5872,1513,3853,5413,741
Operating Profit132353387346398326227164184175432248101
OPM %6%13%12%12%14%11%8%6%7%8%11%7%3%
Other Income19227323035433243393810581
Interest11713313612512611011712010983687481
Depreciation98115118135149132124124132128113127144
Profit before tax-6410716011715311828-47-133290152-43
Tax %16%31%36%27%27%12%25%19%-7%-499%15%19%
Net Profit-53731028611210421-38-1321246123-12
EPS in Rs-9.2315.4921.7418.6524.2422.104.45-8.13-2.854.4252.2826.08-2.54
Dividend Payout %-0%32%29%27%26%28%22%-0%-0%-0%24%19%

RSWM Ltd Profit & Loss Yearly Chart

RSWM Ltd Growth

Compounded Sales Growth
10 Years:4%
5 Years:5%
3 Years:11%
TTM:-3%
Compounded Profit Growth
10 Years:1%
5 Years:40%
3 Years:110%
TTM:-106%
Stock Price CAGR
10 Years:9%
5 Years:11%
3 Years:24%
1 Year:21%
Return on Equity
10 Years:10%
5 Years:6%
3 Years:12%
Last Year:8%

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

RSWM Ltd 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

RSWM Ltd 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%

RSWM Ltd Financial Efficiency Indicators Chart

RSWM Ltd Share Holding Pattern

MonthMar 2021Jun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023
Promoters53.16%53.16%53.16%53.16%53.16%53.16%53.15%53.15%55.54%55.69%55.69%55.69%
FIIs0.32%0.38%2.02%3.15%3.63%2.87%1.49%1.36%1.66%1.80%1.84%2.00%
DIIs0.19%0.35%0.14%0.14%0.14%0.14%0.15%0.14%0.07%0.07%0.07%0.08%
Government0.41%0.41%0.41%0.41%0.41%0.41%0.41%0.41%0.20%0.20%0.20%0.20%
Public45.92%45.70%44.27%43.14%42.66%43.42%44.81%44.91%42.53%42.23%42.19%42.03%
No. of Shareholders13,44113,80916,02721,63422,48022,73529,36531,87633,50532,85633,54633,461

RSWM Ltd Shareholding Pattern Chart

No. of RSWM Ltd Shareholders

This stock is not held by any mutual fund

RSWM Ltd ROCE Trend

RSWM Ltd EPS Trend

RSWM Ltd Key Financial Ratios

MonthMar 23Mar 22Mar 21Mar 20Mar 19
FaceValue10.0010.0010.0010.0010.00
Basic EPS (Rs.)31.52104.558.84-5.70-16.26
Diluted EPS (Rs.)31.52104.558.84-5.70-16.26
Cash EPS (Rs.)50.30149.9163.3949.0643.13
Book Value[Excl.RevalReserv]/Share (Rs.)279.61439.66336.22313.09364.60
Book Value[Incl.RevalReserv]/Share (Rs.)279.61439.66336.22313.09364.60
Revenue From Operations / Share (Rs.)804.411620.93987.661176.621257.71
PBDIT / Share (Rs.)72.08197.0991.2889.4290.04
PBIT / Share (Rs.)45.06149.0837.0733.5237.54
PBT / Share (Rs.)29.36120.371.81-6.47-13.23
Net Profit / Share (Rs.)23.27101.909.18-6.85-9.37
NP After MI And SOA / Share (Rs.)26.08104.558.84-5.70-16.26
PBDIT Margin (%)8.9612.159.247.597.15
PBIT Margin (%)5.609.193.752.842.98
PBT Margin (%)3.647.420.18-0.54-1.05
Net Profit Margin (%)2.896.280.92-0.58-0.74
NP After MI And SOA Margin (%)3.246.440.89-0.48-1.29
Return on Networth / Equity (%)9.3223.772.63-1.81-4.50
Return on Capital Employeed (%)11.0422.397.316.095.82
Return On Assets (%)4.259.561.00-0.60-1.46
Long Term Debt / Equity (X)0.370.440.420.650.67
Total Debt / Equity (X)0.871.060.961.431.45
Asset Turnover Ratio (%)1.391.661.091.161.11
Current Ratio (X)1.441.291.131.151.02
Quick Ratio (X)0.730.780.610.590.62
Inventory Turnover Ratio (X)3.754.392.533.343.54
Dividend Payout Ratio (NP) (%)47.920.000.000.00-12.30
Dividend Payout Ratio (CP) (%)23.530.000.000.005.51
Earning Retention Ratio (%)52.080.000.000.00112.30
Cash Earning Retention Ratio (%)76.470.000.000.0094.49
Interest Coverage Ratio (X)4.596.872.591.941.77
Interest Coverage Ratio (Post Tax) (X)2.484.551.260.710.81
Enterprise Value (Cr.)1855.152054.831196.021210.961645.18
EV / Net Operating Revenue (X)0.480.530.510.430.55
EV / EBITDA (X)5.464.435.565.757.76
MarketCap / Net Operating Revenue (X)0.180.250.180.050.13
Retention Ratios (%)52.070.000.000.00112.30
Price / BV (X)0.530.920.550.220.48
Price / Net Operating Revenue (X)0.180.250.180.050.13
EarningsYield0.170.250.04-0.08-0.09

RSWM Ltd Profitability Ratios (%)

RSWM Ltd Liquidity Ratios

RSWM Ltd Liquidity Ratios (%)

RSWM Ltd Interest Coverage Ratios (X)

RSWM Ltd Valuation Ratios

Fair Value / Intrinsic Value of RSWM Ltd

Fair Value: ₹349.76

The stock is undervalued by 76.65% compared to the current price ₹198

*Investments are subject to market risks

Strength and Weakness of RSWM Ltd

StrengthWeakness
  1. The company has higher reserves (717.62 cr) compared to borrowings (0.77 cr), indicating strong financial stability.
  2. The company has shown consistent growth in sales (2.31 cr) and profit (73.92 cr) over the years.
  1. The stock is trading at a high valuation with an average P/B ratio of 60.45 and average Dividend Yield of 4.87%.
  2. The stock has a low average ROCE of 10.00%, which may not be favorable.
  3. The stock has a high average Working Capital Days of 80.00, which may not be favorable.
  4. The stock has a high average Cash Conversion Cycle of 123.58, which may not be favorable.

Should I Buy RSWM Ltd Share Now?

  • Considering various financial indicators, investors might exercise caution regarding investment in RSWM Ltd:
    1. Net Profit Margin: 2.89%
      • 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: 11.04% (Industry Average ROCE: 18.02%)
      • 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): 2.48
      • 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: 0.73
      • 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 of N/A (Industry average Stock P/E: 39.8)
      • 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: 0.87
      • 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 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