SEBI Reg. Investment Advisor

Download App

MoneyWorks4Me

Check Before You Invest : Raj Rayon Industries Ltd

BSE: 530699 NSE: RAJRILTD ISIN: INE533D01032
  |   Sector:  Textiles & Apparels   |   Industry:  Textile - Manmade Fibres

Snapshot

Q.1 Which industry/sub-sector does Raj Rayon Industries Ltd belong to?
Raj Rayon Industries Ltd belongs to the Textiles & Apparels sector, operating specifically within the Textile - Manmade Fibres segment.
Q.2 Is Raj Rayon Industries Ltd a good quality company?
Raj Rayon Industries Ltd is a weak quality company, based on a inconsistent 10 year financial track record.
Q.3 Is Raj Rayon Industries Ltd undervalued or overvalued?
Raj Rayon Industries Ltd appears Overvalued, as its key valuation ratios are above with their past averages.
Q.4 Is Raj Rayon Industries Ltd a good buy now?
Raj Rayon Industries 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

Q.1 Revenue growth of Raj Rayon Industries Ltd?
Raj Rayon Industries Ltd revenue growth is 14% for FY-2025 , which is above its 5 year CAGR of 0% , indicating faster growth.
Q.2 Gross Profit margin of Raj Rayon Industries Ltd?
Raj Rayon Industries Ltd Gross profit margin which is the profit after deduction of direct costs, is 2.4% for FY-2025 , which is above its 5 year median of 0.7% , indicating increasing margins.
Q.3 Operating Profit Margin of Raj Rayon Industries Ltd?
Raj Rayon Industries Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 3.48% for FY-2025 , which is above its 5 year median of 1.29% indicating increasing margins.
Q.4 Net Profit Margin of Raj Rayon Industries Ltd?
Raj Rayon Industries Ltd Net Profit Margin is 1.63% for FY-2025 , is above with its 5 year median of -%, indicating increasing margins.
Current Level Historic Median
Gross Profit Margin 2.4 0.7
Operating Profit Margin 3.48 1.29
Net Profit Margin 1.63 -
Q.5 Return on Asset of Raj Rayon Industries Ltd?
Raj Rayon Industries Ltd Return on Asset is 3%, which is above its 5 year historical median of 1.1%, indicating improved asset utilization efficiency.
Q.6 Return on Equity (ROE) of Raj Rayon Industries Ltd?
Raj Rayon Industries Ltd Return on equity is 15.28% for FY-2025 , which is above its historical median of 0%, indicating the business is making better use of its shareholders capital.
Q.7 Return on capital employed (ROCE) of Raj Rayon Industries Ltd?
Raj Rayon Industries Ltd Return on capital employed is 6.78% for FY-2025 , which is below its estimated weighted average cost of capital(WACC) 14%, indicating value preservation.
Q.8 Cash conversion cycle of Raj Rayon Industries Ltd?
Raj Rayon Industries Ltd Cash conversion cycle is 3 days, below its historical median of 3 days, indicating improved working capital management. However, you need to compare this with its peers in the industry.
Current Level Historic Median
Asset Turnover 1.84 0.66
ROE 15.28 -
ROCE 6.78 6.78
Cash Conversion Cycle 3 days 3 days
Q.9 Debt to Equity ratio of Raj Rayon Industries Ltd?
Raj Rayon Industries Ltd Debt-to-Equity ratio is 1.94 , which is above with the industry average of 0.36 , indicating higher debt levels in the industry.
Q.10 Debt to cash flow from operations of Raj Rayon Industries Ltd?
Raj Rayon Industries Ltd Debt to cash flow from operations is 6.45 , which is at a unhealthy level.

Ownership & governance

Q.1 Promoter shareholding and pledge status of Raj Rayon Industries Ltd?
Promoters hold 94.13% of the Raj Rayon Industries Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

Q.1 Revenue growth of Raj Rayon Industries Ltd vs industry peers?
Raj Rayon Industries Ltd revenue CAGR is 0.00% , compared to the industry median CAGR of 0.02% , indicating stable growth and maintaining its market share.
Profit Metrics
Current Level Industry Median
Revenue 849.4 74.6
Gross Profit 20.4 3.4
Operating Profit 30 3.6
Net Profit 14 1.5
Operating Efficiency
Current Level Industry Median
Asset Turnover 1.84 1.06
ROE 15.28 3.31
ROCE 6.78 6.78
Cash Conversion Cycle (days) 3.45 51

Valuation & price assessment

Q.1 Stock return of Raj Rayon Industries Ltd over the last decade?
Over the last 9 year(s), the stock has delivered a CAGR of 50% based on the current price.
Q.2 What return has the stock given over the last decade?
9Y 5Y 3Y 1Y
Share Price 50% 153.2% -25.6% -7.3%
Q.3 Valuation ratios of Raj Rayon Industries Ltd vs historical?
The current P/E is higher that its historical median.
Q.4 How do the current valuation ratios measure up against the historic numbers and the current industry numbers?
Valuation Ratios Current Historic Median Industry Median
Price to Earnings 35.69 - 20.76
Price to Book 8.37 12.43 1.12
Price to Sales 1.09 1.83 0.56
EV to EBITDA 21.31 49.07 7.26

About MoneyWorks4Me

MoneyWorks4Me is a SEBI-registered Investment Adviser (IA) dedicated to helping investors build long-term wealth through transparent, research-driven, conflict-free guidance. Founded in 2008, we started our journey as a Research Analyst (RA), providing deep fundamental analysis, intrinsic value insights, and long-term investing frameworks for Indian equities. In 2017, we transitioned to a full-fledged SEBI-registered Investment Adviser, strengthening our commitment to acting as a fiduciary—always putting the investor’s interest first.

Our Vision

To become India’s most trusted, research-powered fiduciary advisory platform—where every investor, regardless of experience, can make calm, confident, and well-reasoned investment decisions.

What Makes MoneyWorks4Me Different

Our Approach: Ensuring compounding work its magic on client portfolio.

MoneyWorks4Me ensures this through:

×