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Check Before You Invest : Rajshree Polypack Ltd

BSE: 0 NSE: RPPL ISIN: INE760W01023
  |   Sector:  Chemicals & Fertilizers   |   Industry:  Plastic Products

Snapshot

Q.1 Which industry/sub-sector does Rajshree Polypack Ltd belong to?
Rajshree Polypack Ltd belongs to the Chemicals & Fertilizers sector, operating specifically within the Plastic Products segment.
Q.2 Is Rajshree Polypack Ltd a good quality company?
Rajshree Polypack Ltd is a average quality company, based on a somewhat consistent 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 Rajshree Polypack Ltd undervalued or overvalued?
Rajshree Polypack 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 5-year
Historic Median
Price to Earnings 8.28 20.30
Price to Book 0.66 1.61
Price to Sales 0.36 0.90
EV to EBITDA 4.54 7.72
Q.4 Is Rajshree Polypack Ltd a good buy now?
Rajshree Polypack 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 Rajshree Polypack Ltd?
Rajshree Polypack Ltd revenue growth is 20.2% for FY-2025, which is below its 5-year CAGR of 21.27%, indicating slower growth.

Q.2 Gross Profit margin of Rajshree Polypack Ltd?
Rajshree Polypack Ltd Gross profit margin which is the profit after deduction of direct costs, is 11.1% for FY-2025, which is in line with its 5-year median of 11.3%, indicating stable margins.

Q.3 Operating Profit Margin of Rajshree Polypack Ltd?
Rajshree Polypack Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 12.54% for FY-2025, which is in line with its 5-year median of 13.04% indicating stable margins.

Q.4 Net Profit Margin of Rajshree Polypack Ltd?
Rajshree Polypack Ltd Net Profit Margin is 4.37% for FY-2025, is in line with its 5-year median of 4.37%, indicating stable margins.
Current Level 5-year
Historic Median
Gross Profit Margin (%) 11.1 11.3
Operating Profit Margin (%) 12.54 13.04
Net Profit Margin (%) 4.37 4.37

B: Does the business utilize capital efficiently?

Q.5 Return on Asset of Rajshree Polypack Ltd?
Rajshree Polypack Ltd Return on Asset is 4.63%, which is in line with its 5-year historical median of 4.75%, indicating stable asset utilization efficiency.

Q.6 Return on capital employed (ROCE) of Rajshree Polypack Ltd?
Rajshree Polypack Ltd Return on capital employed is 11.57% for FY-2025, which is in line with its 5-year historical median of 11.47%. 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 Rajshree Polypack Ltd?
Rajshree Polypack Ltd Return on equity is 9% for FY-2025, which is in line with its 5-year historical median of 8.58%, indicating the business is making similar use of its shareholders capital.

Q.8 Cash conversion cycle of Rajshree Polypack Ltd?
Rajshree Polypack Ltd Cash conversion cycle is 112 days, above its 5-year historical median of 99 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) 1.06 1.06
ROE (%) 9 8.58
ROCE (%) 11.57 11.47
Cash Conversion Cycle 112 days 99 days

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

Q.9 Debt to Equity ratio of Rajshree Polypack Ltd?
Rajshree Polypack Ltd Debt-to-Equity ratio is 0.62, which is above the industry average of 0.25, indicating higher debt levels in the industry.

Q.10 Debt to cash flow from operations of Rajshree Polypack Ltd?
Rajshree Polypack Ltd Debt to cash flow from operations is 5.75, which is at a unhealthy level.

Ownership & governance

D: Promoter shareholding and pledge status of Rajshree Polypack Ltd?

Q.1 Promoter shareholding and pledge status of Rajshree Polypack Ltd?
Promoters hold 43.97% of the Rajshree Polypack Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

E: How does Rajshree Polypack Ltd performance compare with that of its Peers?

Q.1 Revenue growth of Rajshree Polypack Ltd vs industry peers?
Rajshree Polypack Ltd revenue CAGR is 21.27%, compared to the industry median CAGR of 4.71%, indicating faster growth and gaining its market share.
Profit Metrics
Current Level 5-year
Industry Median
Revenue Growth (%) 20.2 4.7
Gross Profit Growth (%) 32.1 14.3
Operating Profit Growth (%) 24.2 10.1
Net Profit Growth (%) 55.6 18.7
Operating Efficiency
Current Level 5-year
Industry Median
Asset Turnover (x) 1.06 1.06
ROE (%) 9 5.91
ROCE (%) 11.57 8.75
Cash Conversion Cycle (days) 111.57 77

Valuation & price assessment

Q.1 Stock return of Rajshree Polypack Ltd over the last decade?
Over the last 5 year(s), the stock has delivered a CAGR of -31.83% based on the current price.
9Y 5Y 3Y 1Y
Share Price
CAGR
- -31.8% -52.7% -41%
Q.2 Valuation ratios of Rajshree Polypack Ltd vs historical?
The current P/E ratio of 8.28 is lower than its historical median of 20.30, indicating that the stock is trading below 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 8.28 20.30 22.05
Price to Book 0.66 1.61 1.89
Price to Sales 0.36 0.90 1.33
EV to EBITDA 4.54 7.72 10.86

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