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INVESTMENT INSIGHTS

Check Before You Invest : RJ Shah & Company Ltd

BSE: 509845 NSE: ISIN: INE712Z01019
  |   Sector:  Construction & Infrastructure   |   Industry:  Engineering - Construction

Snapshot

Q.1 Which industry/sub-sector does RJ Shah & Company Ltd belong to?
RJ Shah & Company Ltd belongs to the Construction & Infrastructure sector, operating specifically within the Engineering - Construction segment.
Q.2 Is RJ Shah & Company Ltd a good quality company?
RJ Shah & Company Ltd is a quality company, based on a 10 year financial track record.
Q.3 Is RJ Shah & Company Ltd undervalued or overvalued?
RJ Shah & Company Ltd appears Undervalued, as its key valuation ratios are below with their past averages.
Q.4 Is RJ Shah & Company Ltd a good buy now?
RJ Shah & Company 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 RJ Shah & Company Ltd?
RJ Shah & Company Ltd revenue growth is 0% for FY-2025 , which is above its 5 year CAGR of -7.7% , indicating faster growth.
Q.2 Gross Profit margin of RJ Shah & Company Ltd?
RJ Shah & Company Ltd Gross profit margin which is the profit after deduction of direct costs, is 74.4% for FY-2025 , which is above its 5 year median of 0% , indicating increasing margins.
Q.3 Operating Profit Margin of RJ Shah & Company Ltd?
RJ Shah & Company Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 58.55% for FY-2025 , which is above its 5 year median of 0% indicating increasing margins.
Q.4 Net Profit Margin of RJ Shah & Company Ltd?
RJ Shah & Company Ltd Net Profit Margin is 55.01% for FY-2025 , is above with its 5 year median of -%, indicating increasing margins.
Current Level Historic Median
Gross Profit Margin 74.4 -
Operating Profit Margin 58.55 -
Net Profit Margin 55.01 -
Q.5 Return on Asset of RJ Shah & Company Ltd?
RJ Shah & Company Ltd Return on Asset is 13.36%, which is above its 5 year historical median of 1.58%, indicating improved asset utilization efficiency.
Q.6 Return on Equity (ROE) of RJ Shah & Company Ltd?
RJ Shah & Company Ltd Return on equity is 15.14% for FY-2025 , which is above its historical median of 1.85%, indicating the business is making better use of its shareholders capital.
Q.7 Return on capital employed (ROCE) of RJ Shah & Company Ltd?
RJ Shah & Company Ltd Return on capital employed is 20% for FY-2025 , which is above its estimated weighted average cost of capital(WACC) 14%, indicating value creation.
Q.8 Cash conversion cycle of RJ Shah & Company Ltd?
RJ Shah & Company Ltd Cash conversion cycle is 191 days, above its historical median of 0 days, indicating deteriorated working capital management. However, you need to compare this with its peers in the industry.
Current Level Historic Median
Asset Turnover 0.24 -
ROE 15.14 1.85
ROCE 20 2.87
Cash Conversion Cycle 191 days -
Q.9 Debt to Equity ratio of RJ Shah & Company Ltd?
RJ Shah & Company Ltd Debt-to-Equity ratio is 0.03 , which is lower with the industry average of 0.38 , indicating lower debt levels in the industry.
Q.10 Debt to cash flow from operations of RJ Shah & Company Ltd?
RJ Shah & Company Ltd Debt to cash flow from operations is -0.68 , which is at a unhealthy level, indicating the business is not able to service its debt comfortably.

Ownership & governance

Q.1 Promoter shareholding and pledge status of RJ Shah & Company Ltd?
Promoters hold 52.89% of the RJ Shah & Company Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

Q.1 Revenue growth of RJ Shah & Company Ltd vs industry peers?
RJ Shah & Company Ltd revenue CAGR is -7.71% , compared to the industry median CAGR of 0% , indicating slower growth and losing its market share.
Profit Metrics
Current Level Industry Median
Revenue 10.5 103.6
Gross Profit 7.8 5.2
Operating Profit 6.1 6
Net Profit 5.8 2.6
Operating Efficiency
Current Level Industry Median
Asset Turnover 0.24 0.63
ROE 15.14 6.64
ROCE 20 11.13
Cash Conversion Cycle (days) 190.54 51

Valuation & price assessment

Q.1 Stock return of RJ Shah & Company Ltd over the last decade?
Over the last 9 year(s), the stock has delivered a CAGR of 5.9% based on the current price.
Q.2 What return has the stock given over the last decade?
9Y 5Y 3Y 1Y
Share Price 5.9% -10.1% 7.3% 4.3%
Q.3 Valuation ratios of RJ Shah & Company Ltd vs historical?
The current P/E is lower 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 2.43 19.05 27.03
Price to Book 0.34 0.34 1.70
Price to Sales 1.34 39.50 1.45
EV to EBITDA 1.89 12.06 11.36

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