Check Before You Invest : RM Drip and Sprinklers System Ltd

Q: Which industry/sub-sector does RM Drip and Sprinklers System Ltd belong to?

RM Drip and Sprinklers System Ltd belongs to the Capital Goods & Industrial Consumables sector, operating specifically within the Engineering - Industrial Equipments segment.

Q: Is RM Drip and Sprinklers System Ltd a good quality company?

RM Drip and Sprinklers System 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: Is RM Drip and Sprinklers System Ltd undervalued or overvalued?

RM Drip and Sprinklers System Ltd appears Fair, as its key valuation ratios are in line with 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. Price to Earnings, Current: 33.52, Historic Median: 46.99. Price to Book, Current: 6.77, Historic Median: 5.40. Price to Sales, Current: 6.15, Historic Median: 7.66. EV to EBITDA, Current: 23.03, Historic Median: 41.23

Q: Is RM Drip and Sprinklers System Ltd a good buy now?

RM Drip and Sprinklers System 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

Q: Revenue growth of RM Drip and Sprinklers System Ltd?

RM Drip and Sprinklers System Ltd revenue growth is 159.3% for FY-2025, which is above its 5-year CAGR of 41.18%, indicating faster growth.

Q: Gross Profit margin of RM Drip and Sprinklers System Ltd?

RM Drip and Sprinklers System Ltd Gross profit margin which is the profit after deduction of direct costs, is 26.5% for FY-2025, which is above its 5-year median of 8.8%, indicating increasing margins.

Q: Operating Profit Margin of RM Drip and Sprinklers System Ltd?

RM Drip and Sprinklers System Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 27.39% for FY-2025, which is above its 5-year median of 10.87% indicating increasing margins.

Q: Net Profit Margin of RM Drip and Sprinklers System Ltd?

RM Drip and Sprinklers System Ltd Net Profit Margin is 18.36% for FY-2025, is above its 5-year median of 0.6%, indicating increasing margins. Profitability Metrics. Gross Profit Margin (%), Current: 26.5, Historic Median: 8.8. Operating Profit Margin (%), Current: 27.39, Historic Median: 10.87. Net Profit Margin (%), Current: 18.36, Historic Median: 0.6

Q: Return on Asset of RM Drip and Sprinklers System Ltd?

RM Drip and Sprinklers System Ltd Return on Asset is 21.45%, which is above its 5-year historical median of 0.4%, indicating improved asset utilization efficiency.

Q: Return on capital employed (ROCE) of RM Drip and Sprinklers System Ltd?

RM Drip and Sprinklers System Ltd Return on capital employed is 44.65% for FY-2025, which is above its 5-year historical median of 5.67%. The current ROCE is above its estimated weighted average cost of capital (WACC) of 14%, indicating value creation.

Check Before You Invest : RM Drip and Sprinklers System Ltd

Snapshot

Q.1 Which industry/sub-sector does RM Drip and Sprinklers System Ltd belong to?

RM Drip and Sprinklers System Ltd belongs to the Capital Goods & Industrial Consumables sector, operating specifically within the Engineering - Industrial Equipments segment.

Q.2 Is RM Drip and Sprinklers System Ltd a good quality company?

RM Drip and Sprinklers System 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 RM Drip and Sprinklers System Ltd undervalued or overvalued?

RM Drip and Sprinklers System Ltd appears Fair, as its key valuation ratios are in line with 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	33.52	46.99
Price to Book	6.77	5.40
Price to Sales	6.15	7.66
EV to EBITDA	23.03	41.23

Q.4 Is RM Drip and Sprinklers System Ltd a good buy now?

RM Drip and Sprinklers System 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.

A: What are the trends in revenue and profit margins?

Q.1 Revenue growth of RM Drip and Sprinklers System Ltd?

RM Drip and Sprinklers System Ltd revenue growth is 159.3% for FY-2025, which is above its 5-year CAGR of 41.18%, indicating faster growth.

Q.2 Gross Profit margin of RM Drip and Sprinklers System Ltd?

RM Drip and Sprinklers System Ltd Gross profit margin which is the profit after deduction of direct costs, is 26.5% for FY-2025, which is above its 5-year median of 8.8%, indicating increasing margins.

Q.3 Operating Profit Margin of RM Drip and Sprinklers System Ltd?

RM Drip and Sprinklers System Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 27.39% for FY-2025, which is above its 5-year median of 10.87% indicating increasing margins.

Q.4 Net Profit Margin of RM Drip and Sprinklers System Ltd?

RM Drip and Sprinklers System Ltd Net Profit Margin is 18.36% for FY-2025, is above its 5-year median of 0.6%, indicating increasing margins.

	Current Level	5-year Historic Median
Gross Profit Margin (%)	26.5	8.8
Operating Profit Margin (%)	27.39	10.87
Net Profit Margin (%)	18.36	0.6

B: Does the business utilize capital efficiently?

Q.5 Return on Asset of RM Drip and Sprinklers System Ltd?

RM Drip and Sprinklers System Ltd Return on Asset is 21.45%, which is above its 5-year historical median of 0.4%, indicating improved asset utilization efficiency.

Q.6 Return on capital employed (ROCE) of RM Drip and Sprinklers System Ltd?

RM Drip and Sprinklers System Ltd Return on capital employed is 44.65% for FY-2025, which is above its 5-year historical median of 5.67%. The current ROCE is above its estimated weighted average cost of capital (WACC) of 14%, indicating value creation.

Q.7 Return on Equity (ROE) of RM Drip and Sprinklers System Ltd?

RM Drip and Sprinklers System Ltd Return on equity is 41.45% for FY-2025, which is above its 5-year historical median of 0.8%, indicating the business is making better use of its shareholders capital.

Q.8 Cash conversion cycle of RM Drip and Sprinklers System Ltd?

RM Drip and Sprinklers System Ltd Cash conversion cycle is 199 days, below its 5-year historical median of 283 days, indicating improved working capital management. However, you need to compare this with its peers in the industry.

	Current Level	5-year Historic Median
Asset Turnover (x)	1.17	0.66
ROE (%)	41.45	0.8
ROCE (%)	44.65	5.67
Cash Conversion Cycle	199 days	283 days

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

Q.9 Debt to Equity ratio of RM Drip and Sprinklers System Ltd?

RM Drip and Sprinklers System Ltd Debt-to-Equity ratio is 0.32, which is above the industry average of 0.18, indicating higher debt levels in the industry.

Q.10 Debt to cash flow from operations of RM Drip and Sprinklers System Ltd?

RM Drip and Sprinklers System Ltd Debt to cash flow from operations is -1.14, which is at a unhealthy level.

Ownership & governance

D: Promoter shareholding and pledge status of RM Drip and Sprinklers System Ltd?

Q.1 Promoter shareholding and pledge status of RM Drip and Sprinklers System Ltd?

Promoters hold 21.06% of the RM Drip and Sprinklers System Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

E: How does RM Drip and Sprinklers System Ltd performance compare with that of its Peers?

Q.1 Revenue growth of RM Drip and Sprinklers System Ltd vs industry peers?

RM Drip and Sprinklers System Ltd revenue CAGR is 41.18%, compared to the industry median CAGR of 3.04%, indicating faster growth and gaining its market share.

Profit Metrics

	Current Level	5-year Industry Median
Revenue Growth (%)	159.3	3
Gross Profit Growth (%)	337.5	23.6
Operating Profit Growth (%)	620	21.7
Net Profit Growth (%)	380	27.1

Operating Efficiency

	Current Level	5-year Industry Median
Asset Turnover (x)	1.17	0.89
ROE (%)	41.45	12.09
ROCE (%)	44.65	14.64
Cash Conversion Cycle (days)	198.73	98

Valuation & price assessment

Q.1 Stock return of RM Drip and Sprinklers System Ltd over the last decade?

Over the last 5 year(s), the stock has delivered a CAGR of 2.84% based on the current price.

	9Y	5Y	3Y	1Y
Share Price CAGR	-	2.8%	-31%	-96.6%

Q.2 Valuation ratios of RM Drip and Sprinklers System Ltd vs historical?

The current P/E ratio of 33.52 is lower than its historical median of 46.99, 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	33.52	46.99	29.36
Price to Book	6.77	5.40	2.91
Price to Sales	6.15	7.66	2.93
EV to EBITDA	23.03	41.23	15.77

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Check Before You Invest : RM Drip and Sprinklers System Ltd

Snapshot

Performance Analysis

Ownership & governance

Peer comparison (industry-wise, mcap)

Profit Metrics

Operating Efficiency

Valuation & price assessment

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Check trending companies

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