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Check Before You Invest : Rajnandini Metal Ltd

BSE: 0 NSE: RAJMET ISIN: INE00KV01022
  |   Sector:  Metals & Mining   |   Industry:  Metal - Non Ferrous

Snapshot

Q.1 Which industry/sub-sector does Rajnandini Metal Ltd belong to?
Rajnandini Metal Ltd belongs to the Metals & Mining sector, operating specifically within the Metal - Non Ferrous segment.
Q.2 Is Rajnandini Metal Ltd a good quality company?
Rajnandini Metal Ltd is a average quality company, based on a somewhat consistent multi-year financial track record.

This assessment is based on company’s performance on Revenue growth, ROCE, Equity and Assets, key margin ratios, cash conversion cycle, and debt to cash flow from operations and how it compares with its long term averages.

Q.3 Is Rajnandini Metal Ltd undervalued or overvalued?
Rajnandini Metal Ltd appears Somewhat Undervalued, as its key valuation ratios are lower than their past averages.

Based on the industry it operates in, the relevant valuation ratios include one of the following, P/E, P/BV, P/Sales, EV/EBITDA or a combination of two or more.

Valuation Ratios Current 5-year
Historic Median
Price to Earnings - 20.91
Price to Book 1.97 5.24
Price to Sales 0.41 0.26
EV to EBITDA 27.19 17.40
Q.4 Is Rajnandini Metal Ltd a good buy now?
Rajnandini Metal Ltd is a neutral opportunity now, based on stable price trend analysis suggesting prices may move sideways. However, you need to check its quality and valuation before making a decision

Performance Analysis

We have analysed the performance of the company on the following:

  • How has it performed on generating Profits?

    By checking its Revenue growth, Gross, Operating and Net Margins compared to its last 5-year median.

  • How efficiently has it utilized Capital?

    By checking its ROCE, ROA, ROE and its Cash Conversion Cycle.

  • How is it managing its Debt?

    By checking its Debt to Equity and Cash Flow from Operations.

A: What are the trends in revenue and profit margins?

Q.1 Revenue growth of Rajnandini Metal Ltd?
Rajnandini Metal Ltd revenue growth is -14.8% for FY-2025, which is below its 5-year CAGR of 47.42%, indicating slower growth.

Q.2 Gross Profit margin of Rajnandini Metal Ltd?
Rajnandini Metal Ltd Gross profit margin which is the profit after deduction of direct costs, is -0.2% for FY-2025, which is below its 5-year median of 1.5%, indicating decreasing margins.

Q.3 Operating Profit Margin of Rajnandini Metal Ltd?
Rajnandini Metal Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 0.32% for FY-2025, which is below its 5-year median of 1.77% indicating decreasing margins.

Q.4 Net Profit Margin of Rajnandini Metal Ltd?
Rajnandini Metal Ltd Net Profit Margin is -0.21% for FY-2025, is below its 5-year median of 0.97%, indicating decreasing margins.
Current Level 5-year
Historic Median
Gross Profit Margin (%) -0.2 1.5
Operating Profit Margin (%) 0.32 1.77
Net Profit Margin (%) -0.21 0.97

B: Does the business utilize capital efficiently?

Q.5 Return on Asset of Rajnandini Metal Ltd?
Rajnandini Metal Ltd Return on Asset is -1.37%, which is below its 5-year historical median of 9.66%, indicating deteriorated asset utilization efficiency.

Q.6 Return on capital employed (ROCE) of Rajnandini Metal Ltd?
Rajnandini Metal Ltd Return on capital employed is 8.11% for FY-2025, which is below its 5-year historical median of 21.26%. The current ROCE is below its estimated weighted average cost of capital (WACC) of 14%, indicating value preservation.

Q.7 Return on Equity (ROE) of Rajnandini Metal Ltd?
Rajnandini Metal Ltd Return on equity is -3.84% for FY-2025, which is below its 5-year historical median of 31.06%, indicating the business is making worse use of its shareholders capital.

Q.8 Cash conversion cycle of Rajnandini Metal Ltd?
Rajnandini Metal Ltd Cash conversion cycle is 32 days, above its 5-year historical median of 21 days, indicating deteriorated working capital management. However, you need to compare this with its peers in the industry.
Current Level 5-year
Historic Median
Asset Turnover (x) 6.51 8.11
ROE (%) -3.84 31.06
ROCE (%) 8.11 21.26
Cash Conversion Cycle 32 days 21 days

C: How much debt does the business have and is it at a sustainable level?

Q.9 Debt to Equity ratio of Rajnandini Metal Ltd?
Rajnandini Metal Ltd Debt-to-Equity ratio is 0.79, which is above the industry average of 0.39, indicating higher debt levels in the industry.

Q.10 Debt to cash flow from operations of Rajnandini Metal Ltd?
Rajnandini Metal Ltd Debt to cash flow from operations is 0.71, which is at a healthy level.

Ownership & governance

D: Promoter shareholding and pledge status of Rajnandini Metal Ltd?

Q.1 Promoter shareholding and pledge status of Rajnandini Metal Ltd?
Promoters hold 31.61% of the Rajnandini Metal Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

E: How does Rajnandini Metal Ltd performance compare with that of its Peers?

Q.1 Revenue growth of Rajnandini Metal Ltd vs industry peers?
Rajnandini Metal Ltd revenue CAGR is 47.42%, compared to the industry median CAGR of 0%, indicating faster growth and gaining its market share.
Profit Metrics
Current Level 5-year
Industry Median
Revenue Growth (%) -14.8 -
Gross Profit Growth (%) -110.5 24.7
Operating Profit Growth (%) -85.7 15.9
Net Profit Growth (%) -113.3 22.6
Operating Efficiency
Current Level 5-year
Industry Median
Asset Turnover (x) 6.51 2.38
ROE (%) -3.84 4.28
ROCE (%) 8.11 8.46
Cash Conversion Cycle (days) 31.6 51

Valuation & price assessment

Q.1 Stock return of Rajnandini Metal Ltd over the last decade?
Over the last 5 year(s), the stock has delivered a CAGR of -47.45% based on the current price.
9Y 5Y 3Y 1Y
Share Price
CAGR
- -47.5% -24.1% -25%
Q.2 Valuation ratios of Rajnandini Metal Ltd vs historical?
The current P/E ratio of 0 is lower than its historical median of 20.91, indicating that the stock is trading below its historical average valuation.
Q.3 How do the current valuation ratios compare with 5-year historical median and industry numbers?
Valuation Ratios Current 5-year
Historic Median
5-year
Industry Median
Price to Earnings - 20.91 27.16
Price to Book 1.97 5.24 2.29
Price to Sales 0.41 0.26 0.62
EV to EBITDA 27.19 17.40 12.16

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