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Check Before You Invest : Raghunath International Ltd

BSE: 526813 NSE: ISIN: INE753B01014
  |   Sector:  Construction & Infrastructure   |   Industry:  Construction - Real Estate

Snapshot

Q.1 Which industry/sub-sector does Raghunath International Ltd belong to?
Raghunath International Ltd belongs to the Construction & Infrastructure sector, operating specifically within the Construction - Real Estate segment.
Q.2 Is Raghunath International Ltd a good quality company?
Raghunath International 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 Raghunath International Ltd undervalued or overvalued?
Raghunath International Ltd appears Somewhat 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 5.75 5.97
Price to Book 0.43 0.63
Price to Sales 6.49 6.35
EV to EBITDA 4.16 4.40
Q.4 Is Raghunath International Ltd a good buy now?
Raghunath International 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.

Q.1 Gross Profit margin of Raghunath International Ltd?
Raghunath International Ltd Gross profit margin which is the profit after deduction of direct costs, is 1086.1% for FY-2025, which is above its 5-year median of 98.1%, indicating increasing margins.

Q.2 Operating Profit Margin of Raghunath International Ltd?
Raghunath International Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is -205.39% for FY-2025, which is below its 5-year median of -111.53% indicating decreasing margins.

Q.3 Net Profit Margin of Raghunath International Ltd?
Raghunath International Ltd Net Profit Margin is 815.36% for FY-2025, is above its 5-year median of 74%, indicating increasing margins.
Current Level 5-year
Historic Median
Gross Profit Margin (%) 1086.1 98.1
Operating Profit Margin (%) -205.39 -111.53
Net Profit Margin (%) 815.36 74

B: Does the business utilize capital efficiently?

Q.4 Return on Asset of Raghunath International Ltd?
Raghunath International Ltd Return on Asset is 19.62%, which is above its 5-year historical median of 10.25%, indicating improved asset utilization efficiency.

Q.5 Return on capital employed (ROCE) of Raghunath International Ltd?
Raghunath International Ltd Return on capital employed is 28.35% for FY-2025, which is above its 5-year historical median of 15.71%. The current ROCE is above its estimated weighted average cost of capital (WACC) of 14%, indicating value creation.

Q.6 Return on Equity (ROE) of Raghunath International Ltd?
Raghunath International Ltd Return on equity is 21.29% for FY-2025, which is above its 5-year historical median of 11.5%, indicating the business is making better use of its shareholders capital.

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

Q.7 Debt to Equity ratio of Raghunath International Ltd?
Raghunath International Ltd Debt-to-Equity ratio is 0.00, which is lower the industry average of 0.23, indicating lower debt levels in the industry.

Q.8 Debt to cash flow from operations of Raghunath International Ltd?
Raghunath International Ltd Debt to cash flow from operations is 0, which is at a healthy level.

Ownership & governance

D: Promoter shareholding and pledge status of Raghunath International Ltd?

Q.1 Promoter shareholding and pledge status of Raghunath International Ltd?
Promoters hold 41.21% of the Raghunath International Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

E: How does Raghunath International Ltd performance compare with that of its Peers?

Q.1 Revenue growth of Raghunath International Ltd vs industry peers?
Raghunath International Ltd revenue CAGR is 13.30%, compared to the industry median CAGR of 0.00%, indicating faster growth and gaining its market share.
Profit Metrics
Current Level 5-year
Industry Median
Revenue Growth (%) - 0
Gross Profit Growth (%) 1,166.7 14.9
Operating Profit Growth (%) 0 10.4
Net Profit Growth (%) 1,420 17.2
Operating Efficiency
Current Level 5-year
Industry Median
Asset Turnover (x) 0.02 0.1
ROE (%) 21.29 1.36
ROCE (%) 28.35 3.88
Cash Conversion Cycle (days) 1540.39 439

Valuation & price assessment

Q.1 Stock return of Raghunath International Ltd over the last decade?
Over the last 9 year(s), the stock has delivered a CAGR of 23.5% based on the current price.
9Y 5Y 3Y 1Y
Share Price
CAGR
23.5% 12.9% -2.2% -15.1%
Q.2 Valuation ratios of Raghunath International Ltd vs historical?
The current P/E ratio of 5.75 is in line with than its historical median of 5.97, indicating that the stock is trading near 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 5.75 5.97 33.43
Price to Book 0.43 0.63 1.53
Price to Sales 6.49 6.35 5.23
EV to EBITDA 4.16 4.40 14.43

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