Check Before You Invest : Rachit Prints Ltd

BSE: 544503 NSE: ISIN: INE0ZN101029

| Sector: Textiles & Apparels | Industry: Textile

Snapshot

Q.1 Which industry/sub-sector does Rachit Prints Ltd belong to?

Rachit Prints Ltd belongs to the Textiles & Apparels sector, operating specifically within the Textile segment.

Q.2 Is Rachit Prints Ltd a good quality company?

Rachit Prints Ltd is a quality company, based on a 4-year financial track record.

Q.3 Is Rachit Prints Ltd undervalued or overvalued?

Rachit Prints Ltd appears Overvalued, as its key valuation ratios are above with their past averages.

Q.4 Is Rachit Prints Ltd a good buy now?

Rachit Prints Ltd is not a good buy now, based on weak price trend analysis suggesting prices may fall. However, you need to check its quality and valuation before making a decision

Performance Analysis

Q.1 Revenue growth of Rachit Prints Ltd?

Rachit Prints Ltd revenue growth is 12.5% for FY-2025, which is below its 3-year CAGR of 13.2%, indicating slower growth.

Q.2 Return on capital employed (ROCE) of Rachit Prints Ltd?

Rachit Prints Ltd Return on capital employed is 38.7% for FY-2025, which is above its 3-year historical median of 22.24%. The current ROCE is above its estimated weighted average cost of capital (WACC) of 14%, indicating value creation.

Q.3 Return on Asset of Rachit Prints Ltd?

Rachit Prints Ltd Return on Asset is 20.23%, which is above its 3-year historical median of 9.6%, indicating improved asset utilization efficiency.

Q.4 Return on Equity (ROE) of Rachit Prints Ltd?

Rachit Prints Ltd Return on equity is 51.34% for FY-2025, which is above its 3-year historical median of 45.64%, indicating the business is making better use of its shareholders capital.

Q.5 Cash conversion cycle of Rachit Prints Ltd?

Rachit Prints Ltd Cash conversion cycle is 47 days, below its 3-year historical median of 52 days, indicating improved working capital management. However, you need to compare this with its peers in the industry.

	Current Level	3-year Historic Median
Asset Turnover	1.85	1.75
ROE	51.34	45.64
ROCE	38.7	22.24
Cash Conversion Cycle	47 days	52 days

Q.6 Gross Profit margin of Rachit Prints Ltd?

Rachit Prints Ltd Gross profit margin which is the profit after deduction of direct costs, is 16.6% for FY-2025, which is above its 3-year median of 10%, indicating increasing margins.

Q.7 Operating Profit Margin of Rachit Prints Ltd?

Rachit Prints Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 17.33% for FY-2025, which is above its 3-year median of 11.52% indicating increasing margins.

Q.8 Net Profit Margin of Rachit Prints Ltd?

Rachit Prints Ltd Net Profit Margin is 10.94% for FY-2025, is above with its 3-year median of 5.47%, indicating increasing margins.

	Current Level	3-year Historic Median
Gross Profit Margin	16.6	10
Operating Profit Margin	17.33	11.52
Net Profit Margin	10.94	5.47

Q.9 Debt to Equity ratio of Rachit Prints Ltd?

Rachit Prints Ltd Debt-to-Equity ratio is 0.75, which is above with the industry average of 0.51, indicating higher debt levels in the industry.

Q.10 Debt to cash flow from operations of Rachit Prints Ltd?

Rachit Prints Ltd Debt to cash flow from operations is 20.06, which is at a unhealthy level.

Ownership & governance

Q.1 Promoter shareholding and pledge status of Rachit Prints Ltd?

Promoters hold 67.68% of the Rachit Prints Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

Q.1 Revenue growth of Rachit Prints Ltd vs industry peers?

Rachit Prints Ltd revenue CAGR is 13.20%, compared to the industry median CAGR of 4.23%, indicating faster growth and gaining its market share.

Profit Metrics

	Current Level	3-year Industry Median
Revenue Growth	12.5	4.2
Gross Profit Growth	87.6	4.3
Operating Profit Growth	69.3	6
Net Profit Growth	124.6	10.7

Operating Efficiency

	Current Level	3-year Industry Median
Asset Turnover	1.85	1.01
ROE	51.34	6.67
ROCE	38.7	7.78
Cash Conversion Cycle (days)	47.44	113

Valuation & price assessment

Q.1 Stock return of Rachit Prints Ltd over the last decade?

Over the last - year(s), the stock has delivered a CAGR of N/A% based on the current price.

Q.2 What return has the stock given over the last decade?

	9Y	5Y	3Y	1Y
Share Price CAGR	-	-	-	-

Q.3 Valuation ratios of Rachit Prints Ltd vs historical?

The current P/E is higher that its historical median.

Q.4 How do the current valuation ratios compare with 3-year historical median and industry numbers?

Valuation Ratios	Current	3-year Historic Median	3-year Industry Median
Price to Earnings	18.4	13.96	21.83
Price to Book	2.64	2.02	1.40
Price to Sales	2.01	1.53	1.28
EV to EBITDA	12.69	9.92	10.27

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