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Ruchi Soya Industries Ltd. Stock Analysis

Mid Cap
Evaluated by 1966 users | BSE: 500368 | NSE: RUCHI |
Consumer Food
Ruchi Soya Industries was incorporated in 1986. It is the flagship company of the Ruchi Group of Industries and is engaged in the manufacture of edible oils, vanaspati, bakery fats and soya foods.It is highest exporter of soya meal and lecithin from India. The company is leader in the branded...

Analysis of Financial Track Record

Data adjusted to bonus, split, extra-ordinary income, rights issue and change in financial year end
Financial track record gives insight into the company's performance on key parameters over the past ten years. MoneyWorks4me’s proprietary colour codes make it easy for retail investors to gauge the company’s past performance.
Ruchi Soya Industries Ltd. has not performed well majority of the past ten years indicating its past ten year financial track record is not good
Value Creation
 Mar'10Mar'11Mar'12Mar'13Mar'14Mar'15Mar'16Mar'17Mar'18Mar'19
Return on Capital Employed 8.4%7.49%14.01%10.35%9.57%6.26%-2.22%-9.86%-124.74%3.68%
Growth Parameters
Growth Parameters Colour Code Guide
Net Sales (Rs. Cr.) 13,51416,62725,99726,14624,38128,30827,69218,52711,99412,729
Y-o-Y Gr. Rt.-23%56.4%0.6%-6.8%16.1%-2.2%-33.1%-35.3%6.1%
Adjusted EPS (Rs.) 6.665.8114.6712.287.02-0.52-32.3-38.75-170.652.64
Y-o-Y Gr. Rt.--12.8%152.5%-16.3%-42.8%-107.4%NANANANA
Book Value per Share (Rs.) 71.7464.4465.6570.5469.765.7875.7331.32-139.34-137.17
Adjusted Net Profit 175193489410235-17.2-1,054-1,265-5,57186.2
Net Op. Cash Flow (Rs. Cr.) 186-190906-2,0283,451-508-90.3577882240
Debt to Cash Flow from Ops 12.58-18.245.4-2.820.85-7.17-54.178.397.5530.61
Standalone financials take only the parent company into account while consolidated financials take into account financials of the parent company as well as of all its subsidiaries. In most companies consolidated financials should be used for analysis.
Ruchi Soya Industries Ltd. should be analysed on a Standalone basis
CAGR
CAGR Colour Code Guide
  9 yrs 5 yrs 3 yrs 1 yr
Net Sales -0.7%-12.2%-22.8%6.1%
Adjusted EPS -9.8%-17.8%NANA
Book Value per Share -207.5-214.5-221.90
Share Price 15.6% 69.4% 171.6% 12353.9%
Key Financial Parameter
Performance Ratio Colour Code Guide
 Mar'10Mar'11Mar'12Mar'13Mar'14Mar'15Mar'16Mar'17Mar'18Mar'19
Return on Equity (%) 11.269.4722.4417.969.97-0.76-45.05-72.36316.1-1.91
Operating Profit Margin (%) 3.463.274.773.463.642.060.32-3.8-42.061.1
Net Profit Margin (%) 1.31.161.881.570.96-0.06-3.81-6.83-46.450.68
Debt to Equity 1.241.612.242.431.261.661.984.74-1.46-1.64
Working Capital Days 991059311113012613917714662
Cash Conversion Cycle -418283536323431-8-33
Entity Percentage Holding
Promoters 98.97%
Non-Institutions 1.02%
Pledged *54.8646.8260.6361.4026.8941.3735.850.0099.9799.89
* Pledged shares as % of Promoter's holding (%)

MoneyWorks4Me analysed the past 10-year performance of Ruchi Soya Inds and arrived at the following conclusion:

Past 10 year's financial track record indicates that Ruchi Soya Inds is a below average quality company. However, for specific investment actions please connect with your investment advisor.

The 5-year analysis of Ruchi Soya Inds's performance infers:

Ruchi Soya Inds earnings have declined by -17.8%, whereas share price has appreciated 69.4% CAGR over the past five years, indicating the company's share price is likely overvalued. However, for specific investment actions please connect with your investment advisor.

We analysed the performance of Ruchi Soya Inds share prices over the last 10 years. Here is what we found out:

Ruchi Soya Inds share price has appreciated 12.8% annually over the past ten years.

Ruchi Soya Industries was incorporated in 1986. It is the flagship company of the Ruchi Group of Industries and is engaged in the manufacture of edible oils, vanaspati, bakery fats and soya foods.

It is highest exporter of soya meal and lecithin from India. The company is leader in the branded edible oil category as well with brands like Nutrela Soyumm (Soyabean Oil), Ruchi Gold (Palmolein Oil), Sunrich (Sunflower Oil) and Mandap (Mustard Oil).

Nutrela is the largest selling soya food

Ruchi Soya Industries was incorporated in 1986. It is the flagship company of the Ruchi Group of Industries and is engaged in the manufacture of edible oils, vanaspati, bakery fats and soya foods.

It is highest exporter of soya meal and lecithin from India. The company is leader in the branded edible oil category as well with brands like Nutrela Soyumm (Soyabean Oil), Ruchi Gold (Palmolein Oil), Sunrich (Sunflower Oil) and Mandap (Mustard Oil).

Nutrela is the largest selling soya food brand in the country, with more than 50% market share. Nutrela and Ruchi No. 1 vanaspati are regional leaders in their respective categories.

Products

Oil- It manufactures wide range edible oils such as soyabean oil, sunflower oil, cotton seed oil, groundnut oil and mustard oil. It markets these oils under the brand name Nutrela, Mahakosh and Ruchi Gold.

Vanaspati and bakery fats - The company manufactures and markets vanaspati and bakery fats under the name Nutri Gold and Ruchi No.1.

Beverages- Ruchi Soya manufactures and markets of beverages under name Nutrela N’rich.

Soya foods- It manufactures and markets of Soya chunks, granules and flour under the name Nutrela.

It is also engaged in soap manufacturing and marketing.

Milestone & Awards

In 2010 Golboil India Man of the year awarded to Mr. Nitesh Shahra Highest Importer of Edible Oil; also Ruchi Soya was honoured as highest Exporter of Oilmeals.

It was acknowledged as the No.1 highest exporter from Soyabean Processors Association of India, Indore.

The company was honoured at Dun and Bradstreet Awards.

2010-11
Set up wholly owned subsidiaries in Singapore and Dubai for overseas ventures. 

2012-13

Launched ‘Dal Analogue’ – a substitute for dal with higher proteins and less cost
Launched ‘Nutrela Table Spread’ a healthy substitute for butter with zero cholesterol

2013-14

Entered into a Joint Venture with Kagome and Mitsui to revolutionize 17 Million Tons Indian Tomato market

2014-15
Re-launched super refined healthy sunflower oil brand ‘Sunrich’'

Puchho Befikar
SEBI Registered: Investment Adviser - INA000013323
Research Analyst - INH000000719

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