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Check Before You Invest : Raghav Productivity Enhancers Ltd

BSE: 539837 NSE: RPEL ISIN: INE912T01018
  |   Sector:  Capital Goods & Industrial Consumables   |   Industry:  Refractories

Snapshot

Q.1 Which industry/sub-sector does Raghav Productivity Enhancers Ltd belong to?
Raghav Productivity Enhancers Ltd belongs to the Capital Goods & Industrial Consumables sector, operating specifically within the Refractories segment.
Q.2 Is Raghav Productivity Enhancers Ltd a good quality company?
Raghav Productivity Enhancers Ltd is a good quality company, based on a consistently good 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 Raghav Productivity Enhancers Ltd undervalued or overvalued?
Raghav Productivity Enhancers Ltd appears Overvalued, as its key valuation ratios are higher 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 5-year
Historic Median
Price to Earnings 124.44 56.27
Price to Book 17.77 9.64
Price to Sales 31.75 11.35
EV to EBITDA 89.39 38.37
Q.4 Is Raghav Productivity Enhancers Ltd a good buy now?
Raghav Productivity Enhancers Ltd is a good buy now, based on strong price trend analysis suggesting prices may rise. 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 Raghav Productivity Enhancers Ltd?
Raghav Productivity Enhancers Ltd revenue growth is -2.8% for FY-2025, which is below its 5-year CAGR of 11.66%, indicating slower growth.

Q.2 Gross Profit margin of Raghav Productivity Enhancers Ltd?
Raghav Productivity Enhancers Ltd Gross profit margin which is the profit after deduction of direct costs, is 27.3% for FY-2025, which is above its 5-year median of 24.2%, indicating increasing margins.

Q.3 Operating Profit Margin of Raghav Productivity Enhancers Ltd?
Raghav Productivity Enhancers Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 25.37% for FY-2025, which is in line with its 5-year median of 25.37% indicating stable margins.

Q.4 Net Profit Margin of Raghav Productivity Enhancers Ltd?
Raghav Productivity Enhancers Ltd Net Profit Margin is 18.54% for FY-2025, is in line with its 5-year median of 18.54%, indicating stable margins.
Current Level 5-year
Historic Median
Gross Profit Margin (%) 27.3 24.2
Operating Profit Margin (%) 25.37 25.37
Net Profit Margin (%) 18.54 18.54

B: Does the business utilize capital efficiently?

Q.5 Return on Asset of Raghav Productivity Enhancers Ltd?
Raghav Productivity Enhancers Ltd Return on Asset is 11.48%, which is below its 5-year historical median of 15.45%, indicating deteriorated asset utilization efficiency.

Q.6 Return on capital employed (ROCE) of Raghav Productivity Enhancers Ltd?
Raghav Productivity Enhancers Ltd Return on capital employed is 17.15% for FY-2025, which is below its 5-year historical median of 23.25%. The current ROCE is above its estimated weighted average cost of capital (WACC) of 14%, indicating value creation.

Q.7 Return on Equity (ROE) of Raghav Productivity Enhancers Ltd?
Raghav Productivity Enhancers Ltd Return on equity is 12.7% for FY-2025, which is below its 5-year historical median of 17.22%, indicating the business is making worse use of its shareholders capital.

Q.8 Cash conversion cycle of Raghav Productivity Enhancers Ltd?
Raghav Productivity Enhancers Ltd Cash conversion cycle is 140 days, above its 5-year historical median of 101 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) 0.62 1.08
ROE (%) 12.7 17.22
ROCE (%) 17.15 23.25
Cash Conversion Cycle 140 days 101 days

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

Q.9 Debt to Equity ratio of Raghav Productivity Enhancers Ltd?
Raghav Productivity Enhancers Ltd Debt-to-Equity ratio is 0.00, which is lower the industry average of 0.11, indicating lower debt levels in the industry.

Q.10 Debt to cash flow from operations of Raghav Productivity Enhancers Ltd?
Raghav Productivity Enhancers Ltd Debt to cash flow from operations is 0, which is at a healthy level.

Ownership & governance

D: Promoter shareholding and pledge status of Raghav Productivity Enhancers Ltd?

Q.1 Promoter shareholding and pledge status of Raghav Productivity Enhancers Ltd?
Promoters hold 62.91% of the Raghav Productivity Enhancers Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

E: How does Raghav Productivity Enhancers Ltd performance compare with that of its Peers?

Q.1 Revenue growth of Raghav Productivity Enhancers Ltd vs industry peers?
Raghav Productivity Enhancers Ltd revenue CAGR is 11.66%, compared to the industry median CAGR of 4.42%, indicating faster growth and gaining its market share.
Profit Metrics
Current Level 5-year
Industry Median
Revenue Growth (%) -2.8 4.4
Gross Profit Growth (%) -16.2 12.4
Operating Profit Growth (%) -19.4 12.3
Net Profit Growth (%) -16 14.1
Operating Efficiency
Current Level 5-year
Industry Median
Asset Turnover (x) 0.62 0.85
ROE (%) 12.7 13.08
ROCE (%) 17.15 14.66
Cash Conversion Cycle (days) 140.32 95

Valuation & price assessment

Q.1 Stock return of Raghav Productivity Enhancers Ltd over the last decade?
Over the last 9 year(s), the stock has delivered a CAGR of 59.9% based on the current price.
9Y 5Y 3Y 1Y
Share Price
CAGR
59.9% 60.4% 50.3% 33.6%
Q.2 Valuation ratios of Raghav Productivity Enhancers Ltd vs historical?
The current P/E ratio of 124.44 is higher than its historical median of 56.27, 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 124.44 56.27 34.18
Price to Book 17.77 9.64 3.58
Price to Sales 31.75 11.35 3.86
EV to EBITDA 89.39 38.37 15.61

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