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Check Before You Invest : Royal Sense Ltd

BSE: 544143 NSE: ISIN: INE0QQG01019
  |   Sector:  Miscellaneous   |   Industry:  Trading

Snapshot

Q.1 Which industry/sub-sector does Royal Sense Ltd belong to?
Royal Sense Ltd belongs to the Miscellaneous sector, operating specifically within the Trading segment.
Q.2 Is Royal Sense Ltd a good quality company?
Royal Sense Ltd is a quality company, based on a 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 Royal Sense Ltd undervalued or overvalued?
Royal Sense Ltd appears 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 0-year
Historic Median
Price to Earnings 26 10.58
Price to Book 2.81 2.87
Price to Sales 2.86 0.60
EV to EBITDA 18.73 6.85
Q.4 Is Royal Sense Ltd a good buy now?
Royal Sense 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

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.

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

Q.1 Debt to Equity ratio of Royal Sense Ltd?
Royal Sense Ltd Debt-to-Equity ratio is 0.15, which is above the industry average of , indicating higher debt levels in the industry.

Q.2 Debt to cash flow from operations of Royal Sense Ltd?
Royal Sense Ltd Debt to cash flow from operations is 1.81, which is at a moderate level.

Ownership & governance

D: Promoter shareholding and pledge status of Royal Sense Ltd?

Q.1 Promoter shareholding and pledge status of Royal Sense Ltd?
Promoters hold 62.24% of the Royal Sense Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

E: How does Royal Sense Ltd performance compare with that of its Peers?

Q.1 Revenue growth of Royal Sense Ltd vs industry peers?
Royal Sense Ltd revenue CAGR is %, compared to the industry median CAGR of 4.99%, indicating slower growth and losing its market share.
Profit Metrics
Current Level 0-year
Industry Median
Revenue Growth (%) - 5
Gross Profit Growth (%) 79.7 17.6
Operating Profit Growth (%) 79.3 20.8
Net Profit Growth (%) 78.8 18.9
Operating Efficiency
Current Level 0-year
Industry Median
Asset Turnover (x) 1.07 0.66
ROE (%) - 2.9
ROCE (%) - 4.31
Cash Conversion Cycle (days) 102.24 49

Valuation & price assessment

Q.1 Stock return of Royal Sense Ltd over the last decade?
Over the last 1 year(s), the stock has delivered a CAGR of -29.19% based on the current price.
9Y 5Y 3Y 1Y
Share Price
CAGR
- - - -29.2%
Q.2 Valuation ratios of Royal Sense Ltd vs historical?
The current P/E ratio of 26 is higher than its historical median of 10.58, indicating that the stock is trading above its historical average valuation.
Q.3 How do the current valuation ratios compare with 0-year historical median and industry numbers?
Valuation Ratios Current 0-year
Historic Median
0-year
Industry Median
Price to Earnings 26 10.58 -
Price to Book 2.81 2.87 -
Price to Sales 2.86 0.60 -
EV to EBITDA 18.73 6.85 -

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