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Check Before You Invest : Renaissance Global Ltd

BSE: 532923 NSE: RGL ISIN: INE722H01024
  |   Sector:  Consumer Durables   |   Industry:  Diamond & Jewellery

Snapshot

Q.1 Which industry/sub-sector does Renaissance Global Ltd belong to?
Renaissance Global Ltd belongs to the Consumer Durables sector, operating specifically within the Diamond & Jewellery segment.
Q.2 Is Renaissance Global Ltd a good quality company?
Renaissance Global Ltd is a weak quality company, based on a inconsistent 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 Renaissance Global Ltd undervalued or overvalued?
Renaissance Global Ltd appears Fair, as its key valuation ratios are in line with 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 236.37 44.96
Price to Book 1.43 1.83
Price to Sales 0.81 0.83
EV to EBITDA 20.96 19.65
Q.4 Is Renaissance Global Ltd a good buy now?
Renaissance Global 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 Renaissance Global Ltd?
Renaissance Global Ltd revenue growth is 5.5% for FY-2025, which is above its 5-year CAGR of 3.09%, indicating faster growth.

Q.2 Gross Profit margin of Renaissance Global Ltd?
Renaissance Global Ltd Gross profit margin which is the profit after deduction of direct costs, is 3.9% for FY-2025, which is above its 5-year median of 3.6%, indicating increasing margins.

Q.3 Operating Profit Margin of Renaissance Global Ltd?
Renaissance Global Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 6.52% for FY-2025, which is above its 5-year median of 5.52% indicating increasing margins.

Q.4 Net Profit Margin of Renaissance Global Ltd?
Renaissance Global Ltd Net Profit Margin is 1.83% for FY-2025, is above its 5-year median of 1.74%, indicating increasing margins.
Current Level 5-year
Historic Median
Gross Profit Margin (%) 3.9 3.6
Operating Profit Margin (%) 6.52 5.52
Net Profit Margin (%) 1.83 1.74

B: Does the business utilize capital efficiently?

Q.5 Return on Asset of Renaissance Global Ltd?
Renaissance Global Ltd Return on Asset is 2.14%, which is in line with its 5-year historical median of 2.14%, indicating stable asset utilization efficiency.

Q.6 Return on capital employed (ROCE) of Renaissance Global Ltd?
Renaissance Global Ltd Return on capital employed is 6.76% for FY-2025, which is in line with its 5-year historical median of 6.76%. 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 Renaissance Global Ltd?
Renaissance Global Ltd Return on equity is 3.98% for FY-2025, which is in line with its 5-year historical median of 3.98%, indicating the business is making similar use of its shareholders capital.

Q.8 Cash conversion cycle of Renaissance Global Ltd?
Renaissance Global Ltd Cash conversion cycle is 180 days, above its 5-year historical median of 155 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) 1.17 1.28
ROE (%) 3.98 3.98
ROCE (%) 6.76 6.76
Cash Conversion Cycle 180 days 155 days

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

Q.9 Debt to Equity ratio of Renaissance Global Ltd?
Renaissance Global Ltd Debt-to-Equity ratio is 0.45, which is lower the industry average of 0.57, indicating lower debt levels in the industry.

Q.10 Debt to cash flow from operations of Renaissance Global Ltd?
Renaissance Global Ltd Debt to cash flow from operations is -47.45, which is at a unhealthy level.

Ownership & governance

D: Promoter shareholding and pledge status of Renaissance Global Ltd?

Q.1 Promoter shareholding and pledge status of Renaissance Global Ltd?
Promoters hold 61.70% of the Renaissance Global Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

E: How does Renaissance Global Ltd performance compare with that of its Peers?

Q.1 Revenue growth of Renaissance Global Ltd vs industry peers?
Renaissance Global Ltd revenue CAGR is 3.09%, compared to the industry median CAGR of 3.81%, indicating slower growth and losing its market share.
Profit Metrics
Current Level 5-year
Industry Median
Revenue Growth (%) 5.5 3.8
Gross Profit Growth (%) 45 14.9
Operating Profit Growth (%) 27.5 16.2
Net Profit Growth (%) 28.6 13.8
Operating Efficiency
Current Level 5-year
Industry Median
Asset Turnover (x) 1.17 1.29
ROE (%) 3.98 6.86
ROCE (%) 6.76 8.31
Cash Conversion Cycle (days) 179.72 132

Valuation & price assessment

Q.1 Stock return of Renaissance Global Ltd over the last decade?
Over the last 9 year(s), the stock has delivered a CAGR of 15.1% based on the current price.
9Y 5Y 3Y 1Y
Share Price
CAGR
15.1% 0.6% 5.9% -22.5%
Q.2 Valuation ratios of Renaissance Global Ltd vs historical?
The current P/E ratio of 236.37 is higher than its historical median of 44.96, indicating that the stock is trading above 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 236.37 44.96 25.97
Price to Book 1.43 1.83 1.96
Price to Sales 0.81 0.83 1.27
EV to EBITDA 20.96 19.65 16.02

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