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Check Before You Invest : Rajasthan Securities Ltd

BSE: 526873 NSE: ISIN: INE184D01026
  |   Sector:  Oil & Gas   |   Industry:  Industrial Gases & Fuels

Snapshot

Q.1 Which industry/sub-sector does Rajasthan Securities Ltd belong to?
Rajasthan Securities Ltd belongs to the Oil & Gas sector, operating specifically within the Industrial Gases & Fuels segment.
Q.2 Is Rajasthan Securities Ltd a good quality company?
Rajasthan Securities Ltd is a weak quality company, based on a inconsistent 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 Rajasthan Securities Ltd undervalued or overvalued?
Rajasthan Securities Ltd appears Somewhat 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 0-year
Historic Median
Price to Earnings 17.1 -
Price to Book 6.53 0.71
Price to Sales - 7.86
EV to EBITDA 10.96 -4.02
Q.4 Is Rajasthan Securities Ltd a good buy now?
Rajasthan Securities 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 Rajasthan Securities Ltd?
Rajasthan Securities Ltd Debt-to-Equity ratio is 0.00, which is in line with the industry average of , indicating similar to debt levels in the industry.

Q.2 Debt to cash flow from operations of Rajasthan Securities Ltd?
Rajasthan Securities Ltd Debt to cash flow from operations is 0, which is at a healthy level.

Ownership & governance

D: Promoter shareholding and pledge status of Rajasthan Securities Ltd?

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

Peer comparison (industry-wise, mcap)

E: How does Rajasthan Securities Ltd performance compare with that of its Peers?

Q.1 Revenue growth of Rajasthan Securities Ltd vs industry peers?
Rajasthan Securities Ltd revenue CAGR is %, compared to the industry median CAGR of 8.4%, indicating slower growth and losing its market share.
Profit Metrics
Current Level 0-year
Industry Median
Revenue Growth (%) - 8.4
Gross Profit Growth (%) 0 -
Operating Profit Growth (%) 0 -
Net Profit Growth (%) 0 -
Operating Efficiency
Current Level 0-year
Industry Median
Asset Turnover (x) - -
ROE (%) - -
ROCE (%) - -
Cash Conversion Cycle (days) - -

Valuation & price assessment

Q.1 Stock return of Rajasthan Securities Ltd over the last decade?
Over the last 9 year(s), the stock has delivered a CAGR of 21.5% based on the current price.
9Y 5Y 3Y 1Y
Share Price
CAGR
21.5% 66.1% 67.3% 7.9%
Q.2 Valuation ratios of Rajasthan Securities Ltd vs historical?
The current P/E ratio of 17.1 is higher than its historical median of , 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 17.1 - -
Price to Book 6.53 0.71 -
Price to Sales - 7.86 -
EV to EBITDA 10.96 -4.02 -

About MoneyWorks4Me

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