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Check Before You Invest : RM Drip and Sprinklers System Ltd

BSE: 544456 NSE: RMDRIP ISIN: INE219Y01026
  |   Sector:  Capital Goods & Industrial Consumables   |   Industry:  Engineering - Industrial Equipments

Snapshot

Q.1 Which industry/sub-sector does RM Drip and Sprinklers System Ltd belong to?
RM Drip and Sprinklers System Ltd belongs to the Capital Goods & Industrial Consumables sector, operating specifically within the Engineering - Industrial Equipments segment.
Q.2 Is RM Drip and Sprinklers System Ltd a good quality company?
RM Drip and Sprinklers System Ltd is a average quality company, based on a somewhat consistent 10 year financial track record.
Q.3 Is RM Drip and Sprinklers System Ltd undervalued or overvalued?
RM Drip and Sprinklers System Ltd appears Fair, as its key valuation ratios are in line with their past averages.
Q.4 Is RM Drip and Sprinklers System Ltd a good buy now?
RM Drip and Sprinklers System 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 RM Drip and Sprinklers System Ltd?
RM Drip and Sprinklers System Ltd revenue growth is 159.3% for FY-2025 , which is above its 5 year CAGR of 41.2% , indicating faster growth.
Q.2 Gross Profit margin of RM Drip and Sprinklers System Ltd?
RM Drip and Sprinklers System Ltd Gross profit margin which is the profit after deduction of direct costs, is 26.5% for FY-2025 , which is above its 5 year median of 8.8% , indicating increasing margins.
Q.3 Operating Profit Margin of RM Drip and Sprinklers System Ltd?
RM Drip and Sprinklers System Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 27.39% for FY-2025 , which is above its 5 year median of 10.87% indicating increasing margins.
Q.4 Net Profit Margin of RM Drip and Sprinklers System Ltd?
RM Drip and Sprinklers System Ltd Net Profit Margin is 18.36% for FY-2025 , is above with its 5 year median of 0.6%, indicating increasing margins.
Current Level Historic Median
Gross Profit Margin 26.5 8.8
Operating Profit Margin 27.39 10.87
Net Profit Margin 18.36 0.6
Q.5 Return on Asset of RM Drip and Sprinklers System Ltd?
RM Drip and Sprinklers System Ltd Return on Asset is 21.45%, which is above its 5 year historical median of 0.4%, indicating improved asset utilization efficiency.
Q.6 Return on Equity (ROE) of RM Drip and Sprinklers System Ltd?
RM Drip and Sprinklers System Ltd Return on equity is 41.45% for FY-2025 , which is above its historical median of 0.8%, indicating the business is making better use of its shareholders capital.
Q.7 Return on capital employed (ROCE) of RM Drip and Sprinklers System Ltd?
RM Drip and Sprinklers System Ltd Return on capital employed is 44.65% for FY-2025 , which is above its estimated weighted average cost of capital(WACC) 14%, indicating value creation.
Q.8 Cash conversion cycle of RM Drip and Sprinklers System Ltd?
RM Drip and Sprinklers System Ltd Cash conversion cycle is 199 days, below its historical median of 283 days, indicating improved working capital management. However, you need to compare this with its peers in the industry.
Current Level Historic Median
Asset Turnover 1.17 0.66
ROE 41.45 0.8
ROCE 44.65 5.67
Cash Conversion Cycle 199 days 283 days
Q.9 Debt to Equity ratio of RM Drip and Sprinklers System Ltd?
RM Drip and Sprinklers System Ltd Debt-to-Equity ratio is 0.32 , which is above with the industry average of 0.17 , indicating higher debt levels in the industry.
Q.10 Debt to cash flow from operations of RM Drip and Sprinklers System Ltd?
RM Drip and Sprinklers System Ltd Debt to cash flow from operations is -1.14 , which is at a unhealthy level.

Ownership & governance

Q.1 Promoter shareholding and pledge status of RM Drip and Sprinklers System Ltd?
Promoters hold 21.06% of the RM Drip and Sprinklers System Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

Q.1 Revenue growth of RM Drip and Sprinklers System Ltd vs industry peers?
RM Drip and Sprinklers System Ltd revenue CAGR is 41.18% , compared to the industry median CAGR of 1.47% , indicating faster growth and gaining its market share.
Profit Metrics
Current Level Industry Median
Revenue 130.3 101.1
Gross Profit 34.5 9.6
Operating Profit 36 9
Net Profit 24 6
Operating Efficiency
Current Level Industry Median
Asset Turnover 1.17 0.89
ROE 41.45 11.68
ROCE 44.65 14.29
Cash Conversion Cycle (days) 198.73 101

Valuation & price assessment

Q.1 Stock return of RM Drip and Sprinklers System Ltd over the last decade?
Over the last 5 year(s), the stock has delivered a CAGR of 2.72% based on the current price.
Q.2 What return has the stock given over the last decade?
9Y 5Y 3Y 1Y
Share Price - 2.7% -22.7% -94.9%
Q.3 Valuation ratios of RM Drip and Sprinklers System 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 42.94 0.00 46.24
Price to Book 8.67 2.67 2.79
Price to Sales 7.88 3.69 2.66
EV to EBITDA 29.22 48.14 15.72

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