Check Before You Invest : Raj Rayon Industries Ltd

Snapshot

Q.1 Which industry/sub-sector does Raj Rayon Industries Ltd belong to?

Raj Rayon Industries Ltd belongs to the Textiles & Apparels sector, operating specifically within the Textile - Manmade Fibres segment.

Q.2 Is Raj Rayon Industries Ltd a good quality company?

Raj Rayon Industries Ltd is a weak quality company, based on a inconsistent 7-year financial track record.

Q.3 Is Raj Rayon Industries Ltd undervalued or overvalued?

Raj Rayon Industries Ltd appears Overvalued, as its key valuation ratios are above with their past averages.

Q.4 Is Raj Rayon Industries Ltd a good buy now?

Raj Rayon Industries 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

Q.1 Revenue growth of Raj Rayon Industries Ltd?

Raj Rayon Industries Ltd revenue growth is 14% for FY-2025, which is below its 5-year CAGR of NA%, indicating slower growth.

Q.2 Return on capital employed (ROCE) of Raj Rayon Industries Ltd?

Raj Rayon Industries Ltd Return on capital employed is 6.78% for FY-2025, which is in line with its 5-year historical median of 6.78%. The current ROCE is below its estimated weighted average cost of capital (WACC) of 14%, indicating value preservation.

Q.3 Return on Asset of Raj Rayon Industries Ltd?

Raj Rayon Industries Ltd Return on Asset is 3%, which is above its 5-year historical median of 1.1%, indicating improved asset utilization efficiency.

Q.4 Gross Profit margin of Raj Rayon Industries Ltd?

Raj Rayon Industries Ltd Gross profit margin which is the profit after deduction of direct costs, is 2.4% for FY-2025, which is above its 5-year median of 0.7%, indicating increasing margins.

Q.5 Operating Profit Margin of Raj Rayon Industries Ltd?

Raj Rayon Industries Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 3.48% for FY-2025, which is above its 5-year median of 1.29% indicating increasing margins.

Q.6 Net Profit Margin of Raj Rayon Industries Ltd?

Raj Rayon Industries Ltd Net Profit Margin is 1.63% for FY-2025, is above with its 5-year median of -9.02%, indicating increasing margins.

	Current Level	5-year Historic Median
Gross Profit Margin	2.4	0.7
Operating Profit Margin	3.48	1.29
Net Profit Margin	1.63	-9.02

Q.7 Debt to Equity ratio of Raj Rayon Industries Ltd?

Raj Rayon Industries Ltd Debt-to-Equity ratio is 1.94, which is above with the industry average of 0.56, indicating higher debt levels in the industry.

Q.8 Debt to cash flow from operations of Raj Rayon Industries Ltd?

Raj Rayon Industries Ltd Debt to cash flow from operations is 6.45, which is at a unhealthy level.

Ownership & governance

Q.1 Promoter shareholding and pledge status of Raj Rayon Industries Ltd?

Promoters hold 94.13% of the Raj Rayon Industries Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

Q.1 Revenue growth of Raj Rayon Industries Ltd vs industry peers?

Raj Rayon Industries Ltd revenue CAGR is 0.00%, compared to the industry median CAGR of 0.03%, indicating stable growth and maintaining its market share.

Profit Metrics

	Current Level	5-year Industry Median
Revenue Growth	14	0
Gross Profit Growth	-	6.8
Operating Profit Growth	11.1	-4.4
Net Profit Growth	250	NAN

Operating Efficiency

	Current Level	5-year Industry Median
Asset Turnover	1.84	1.18
ROE	-	4.17
ROCE	6.78	6.78
Cash Conversion Cycle (days)	3.45	67

Valuation & price assessment

Q.1 Stock return of Raj Rayon Industries Ltd over the last decade?

Over the last 9 year(s), the stock has delivered a CAGR of 47.2% based on the current price.

Q.2 What return has the stock given over the last decade?

	9Y	5Y	3Y	1Y
Share Price CAGR	47.2%	152.2%	-23%	-8.3%

Q.3 Valuation ratios of Raj Rayon Industries Ltd vs historical?

The current P/E is similar that its historical median.

Q.4 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	35.69	35.81	17.54
Price to Book	8.37	13.19	1.12
Price to Sales	1.09	2.05	0.55
EV to EBITDA	21.31	49.69	7.32

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