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INVESTMENT INSIGHTS

Check Before You Invest : Richa Industries Ltd

BSE: 532766 NSE: ISIN: INE516H01012
  |   Sector:  Textiles & Apparels   |   Industry:  Textile

Snapshot

Q.1 Which industry/sub-sector does Richa Industries Ltd belong to?
Richa Industries Ltd belongs to the Textiles & Apparels sector, operating specifically within the Textile segment.
Q.2 Is Richa Industries Ltd a good quality company?
Richa Industries Ltd is a quality company, based on a 10 year financial track record.
Q.3 Is Richa Industries Ltd undervalued or overvalued?
Richa Industries Ltd appears Overvalued, as its key valuation ratios are above with their past averages.
Q.4 Is Richa Industries Ltd a good buy now?
Richa Industries 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

Q.1 Revenue growth of Richa Industries Ltd?
Richa Industries Ltd revenue growth is -58.3% for FY-2024 , which is below its 5 year CAGR of -41.5% , indicating slower growth.
Q.2 Gross Profit margin of Richa Industries Ltd?
Richa Industries Ltd Gross profit margin which is the profit after deduction of direct costs, is -101.1% for FY-2024 , which is in line with its 5 year median of -101.1% , indicating stable margins.
Q.3 Operating Profit Margin of Richa Industries Ltd?
Richa Industries Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is -101.78% for FY-2024 , which is below its 5 year median of -23.27% indicating decreasing margins.
Q.4 Net Profit Margin of Richa Industries Ltd?
Richa Industries Ltd Net Profit Margin is -157.6% for FY-2024 , is below with its 5 year median of -131.75%, indicating decreasing margins.
Current Level Historic Median
Gross Profit Margin -101.1 -101.1
Operating Profit Margin -101.78 -23.27
Net Profit Margin -157.6 -131.75
Q.5 Return on Asset of Richa Industries Ltd?
Richa Industries Ltd Return on Asset is -5.95(x), which is above its 5 year historical median of -15.1(x), indicating improved asset utilization efficiency.
Q.6 Return on Equity (ROE) of Richa Industries Ltd?
Richa Industries Ltd Return on equity is 0% for FY-2024 , which is in line with its historical median of 0%, indicating the business is making similar use of its shareholders capital.
Q.7 Return on capital employed (ROCE) of Richa Industries Ltd?
Richa Industries Ltd Return on capital employed is -21.88% for FY-2024 , which is below its estimated weighted average cost of capital(WACC) 14%, indicating value preservation.
Q.8 Cash conversion cycle of Richa Industries Ltd?
Richa Industries Ltd Cash conversion cycle is 1462 , above its historical median of 266 , indicating deteriorated working capital management. However, you need to compare this with its peers in the industry.
Current Level Historic Median
Asset Turnover 0.04 0.16
ROE - -
ROCE -21.88 -16.82
Cash Conversion Cycle 1462 266
Q.9 Debt to Equity ratio of Richa Industries Ltd?
Richa Industries Ltd Debt-to-Equity ratio is -1.22 , which is lower with the industry average of 0.42 , indicating lower debt levels in the industry.
Q.10 Debt to cash flow from operations of Richa Industries Ltd?
Richa Industries Ltd Debt to cash flow from operations is 252.26 , which is at a unhealthy level, indicating the business is not able to service its debt comfortably.

Ownership & governance

Q.1 Promoter shareholding and pledge status of Richa Industries Ltd?
Promoters hold 59.41% of the Richa Industries Ltd, with 62.67% of their stake pledged, indicating high pledge risk.

Peer comparison (industry-wise, mcap)

Q.1 Revenue growth of Richa Industries Ltd vs industry peers?
Richa Industries Ltd revenue CAGR is -41.53% , compared to the industry median CAGR of 0.00% , indicating stable growth and maintaining its market share.
Profit Metrics
Current Level Industry Median
Revenue 10.6 96.6
Gross Profit -10.8 3.2
Operating Profit -10.8 5.7
Net Profit -16.8 1.5
Operating Efficiency
Current Level Industry Median
Asset Turnover 0.04 0.95
ROE - 4.25
ROCE -21.88 7.55
Cash Conversion Cycle 1461.82 102

Valuation & price assessment

Q.1 Stock return of Richa Industries Ltd over the last decade?
Over the last 9 years, the stock has delivered a CAGR of -26.4% based on the current price.
Q.2 What return has the stock given over the last decade?
9Y 5Y 3Y 1Y
Share Price -26.4% 23.7% 3.2% 14.6%
Q.3 Valuation ratios of Richa Industries Ltd vs historical?
The current P/E is similar that its historical median.
Q.4 How do the current valuation ratios measure up against the historic numbers and the current industry numbers?
Valuation Ratios Current Historic Median Industry Median
Price to Earnings - 0.00 30.76
Price to Book - 0.00 1.39
Price to Sales 0.36 0.03 1.01
EV to EBITDA -35.6 0.00 9.47

Check more companies

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9. Garware Tech. Fibres
10. Gokaldas Exports
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