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Royal Arc Electrodes Ltd (ROYALARC)

Share Analysis – Quality, Valuation Zone, Price Trend & DeciZen Rating BSE: 0 NSE: ROYALARC Electrodes & Welding Equipment | Small Cap | Royal Arc Electrodes Share Price

BSE Share Price
Not Listed

Royal Arc Electrodes Ltd (ROYALARC)

Share Analysis – Quality, Valuation Zone, Price Trend & DeciZen Rating BSE: 0 NSE: ROYALARC Electrodes & Welding Equipment | Small Cap | Royal Arc Electrodes Share Price

BSE Share Price
Not Listed
Key Metrics
Valuation Multiples
Market Cap
₹200 Cr.
Current Price
₹0
52-Week Low / High
₹0 / 0
TTM EPS
₹9.1
TTM Sales
₹116 Cr.
Book Value per Share
₹73.2
P/E Ratio
19.89
Higher than its 5-year historical median
Industry PE
45.3
Price to Book (P/B)
2.46
In line with its 5-year historical median
Price to Sales (P/S)
1.72
In line with its 5-year historical median
EV/EBITDA
10.67
Higher than its 5-year historical median
Dividend Yield
INF%
Profitability Efficiency
Return on Equity (ROE)
13.13%
Outperforms industry median
Return on Capital Employed (ROCE)
17.99%
Outperforms industry median
Return on Assets (ROA)
11.68%
Operating Profit Margin
13.3%
Net Profit Margin
8.66%
Gross Profit Margin
14.8%
Growth Momentum
1-yr vs 3-yr growth
Sales Growth (1 Year)
Improving versus 3-year growth rate
14.04%
Operating Profit Growth (1 Year)
Slowing versus 3-year growth rate
2.25%
Net Profit Growth (1 Year)
Improving versus 3-year growth rate
11.54%
Asset Quality
Promoter Holding
72.96%
Pledged shares (%) of Promoter's holding (%)
0.00%
Reserves
₹70 Cr.
Equity
₹11.1 Cr.
Face Value
₹10
All Time Low / High
- / -

Royal Arc Electrodes stock performance

Key Ratios
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Quality

Somewhat Good

Valuation

Fair

Price Trend

Strong
Q.1 Is Royal Arc Electrodes Ltd a good quality company?
Royal Arc Electrodes 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.

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.

How does Royal Arc Electrodes Ltd performance compare with that of its Peers?
Q.1 Revenue growth of Royal Arc Electrodes Ltd vs industry peers?
Royal Arc Electrodes Ltd revenue CAGR is 21.79%, compared to the industry median CAGR of 12.12%, indicating faster growth and gaining its market share.
Q.1 Promoter shareholding and pledge status of Royal Arc Electrodes Ltd?
Promoters hold 72.96% of the Royal Arc Electrodes Ltd, with 0.00% of their stake pledged, indicating no pledge risk.
Q.1 Stock return of Royal Arc Electrodes Ltd over the last decade?
Over the last 1 year(s), the stock has delivered a CAGR of 14.65% based on the current price.

10 Year X-Ray :

Analysis of Financial Track Record (Data adjusted to bonus, split, extra-ordinary income, rights issue and change in financial year end)

Data adjusted to bonus, split, extra-ordinary income, rights issue and change in financial year end

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.
Royal Arc Electrodes Ltd has performed well in some of the past ten years indicating its past ten year financial track record is somewhat good

Value Creation

Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22Mar'23Mar'24Mar'25Mar'26TTM
ROCE % 9.9%9.8%9.1%9.2%11.6%26.5%45.3%44.2%21.3%18%-
Value Creation
Index
-0.3-0.3-0.4-0.3-0.20.92.22.20.50.3-

Growth Parameters

Sales 63.867.675.864.543.362.996.9100102116116
Sales YoY Gr.-5.9%12.2%-14.8%-32.9%45.2%54.1%3.3%1.7%14%-
Adj EPS 1.11.31.40.41.81.21012.98.38.59.1
YoY Gr.-19.1%10.4%-71%337.5%-33.1%752.1%29.3%-35.8%2.4%-
BVPS (₹) 14.41617.318.620.322.332.645.564.773.273.2
Adj Net
Profit
11.21.30.41.61.19.3129.29.410
Cash Flow from Ops. 6.135.266.72.412.65.64.87.5-
Debt/CF from Ops. 3.58.63.921.23.30.100.20-

CAGR

9 Years 5 Years 3 Years 1 Years
Sales 6.9%21.8%6.2%14%
Adj EPS 26.1%37.1%-5.3%2.4%
BVPS19.8%29.3%30.9%13.2%
Share Price - - - 14.7%

Key Financial Parameters

Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22Mar'23Mar'24Mar'25Mar'26TTM
Return on
Equity %
7.68.28.32.295.536.33316.112.312.4
Op. Profit
Mgn %
7.87.46.85.46.85.815.117.314.813.3NAN
Net Profit
Mgn %
1.51.71.70.63.81.79.61298.18.7
Debt to
Equity
1.61.71.30.70.40.40.1000-
Working Cap
Days
1501611551612011491001051251300
Cash Conv.
Cycle
126139136143135704665961050

Valuation of Royal Arc Electrodes - Standalone

YTD 1Y 3Y 5Y 10Y Max
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YTD 1Y 3Y 5Y 10Y Max
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YTD 1Y 3Y 5Y 10Y Max
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YTD 1Y 3Y 5Y 10Y Max
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Analyst's Notes

data not found
No data found!

Management X-Ray

Shareholding Pattern

Promoter's Holding & Share Pledging

Pledged *0.000.000.00
* Pledged shares as % of Promoter's holding (%)

Financials

PARTICULARSMar'17Mar'18Mar'19Mar'20Mar'21Mar'22Mar'23Mar'24Mar'25Mar'26
Sales64687665436397100102116
Operating Expenses + 596371614159838387101
Manufacturing Costs5454355454
Material Costs45485648314767666984
Employee Cost 4555447878
Other Costs 4655334555
Operating Profit 55533414171515
Operating Profit Margin (%) 7.8%7.4%6.8%5.4%6.3%5.8%14.9%17.3%14.8%13.3%
Other Income + 0001221112
Exceptional Items 00000000-00
Interest 2221111000
Depreciation 2222222234
Profit Before Tax 22222313161214
Tax 1010113434
Profit After Tax 1111221012910
PAT Margin (%) 1.7%2.1%1.7%1.9%3.6%3.4%9.9%12.1%8.9%8.7%
Adjusted EPS (₹)1.11.51.41.31.72.310.313.08.19.1
Dividend Payout Ratio (%)0%0%0%0%0%0%0%0%0%11.10%
PARTICULARSMar'17Mar'18Mar'19Mar'20Mar'21Mar'22Mar'23Mar'24Mar'25Mar'26

Equity and Liabilities

Shareholders Fund + 13151617192130427281
Share Capital 222222291111
Reserves 12131415171929336170
Debt +20231912771010
Long Term Debt111184320000
Short Term Debt813108450010
Minority Interest0000000000
Trade Payables10101378108552
Others Liabilities 5553555438
Total Liabilities 48535239404244528191

Fixed Assets

Net Fixed Assets +18181615161514162025
Gross Block26282828282828323947
Accumulated Depreciation8101213131414161922
CWIP 1000000125
Investments 0000001212
Inventories12141511911691413
Trade Receivables12141411111316212126
Cash Equivalents 142100311914
Others Assets 4442443236
Total Assets 48535239404244528191
PARTICULARSMar'17Mar'18Mar'19Mar'20Mar'21Mar'22Mar'23Mar'24Mar'25Mar'26
Cash Flow From Operating Activity + 63567213658
PBT 22222313161214
Adjustment 3433333233
Changes in Working Capital 1-2012-3-3-8-7-5
Tax Paid -0-00-0-0-0-0-4-3-4
Cash Flow From Investing Activity + -2-1-01-3-1-2-6-7-11
Capex -2-2-0-0-3-1-1-5-8-11
Net Investments 010000-1-11-0
Others 0-0-01000001
Cash Flow From Financing Activity + -51-6-8-5-2-7-220-1
Net Proceeds from Shares 00000000200
Net Proceeds from Borrowing -2-1-2-4-1-1-1-000
Interest Paid -2-2-2-1-1-1-1-0-0-0
Dividend Paid 000000000-1
Others -14-2-3-3-0-5-1-0-1
Net Cash Flow -03-1-2-0-03-218-5
PARTICULARSMar'17Mar'18Mar'19Mar'20Mar'21Mar'22Mar'23Mar'24Mar'25Mar'26
Ratios
ROE (%)8.1910.138.137.148.720.4237.4333.3915.7913.13
ROCE (%)9.869.789.079.2311.5826.4645.2744.1921.2917.99
Asset Turnover Ratio1.451.351.441.411.12.962.252.081.531.35
PAT to CFO Conversion(x)63563.511.30.50.560.8
Working Capital Days
Receivable Days60.1069.3066.7070.4090.9075.9055.6067.7074.6073.40
Inventory Days65.9069.606972.9082.8062.9031.8027.5041.8043.20
Payable Days000048.9039.7049.1036.5026.7013.80

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Royal Arc Electrodes Ltd FAQs

The current trading price of Royal Arc Electrodes on 01-Jan-1970 05:30 is ₹0.00.

Market capitalization or market cap is determined by multiplying the current market price of a company's shares with the total number of shares outstanding. As of 31-Dec-1969 the market cap of Royal Arc Electrodes stood at ₹199.8 Cr

The latest P/E ratio of Royal Arc Electrodes as of 31-Dec-1969 is 19.89.

The latest P/B ratio of Royal Arc Electrodes as of 31-Dec-1969 is 2.46.

The 52-week high of Royal Arc Electrodes is ₹0.00 and the 52-week low is ₹0.00.

The TTM revenue is Trailing Twelve Months sales. The TTM revenue/sales of Royal Arc Electrodes is ₹116 ( Cr.) .

Past 10 year's financial track record analysis by Moneyworks4me indicates that Royal Arc Electrodes Ltd is a average quality company.

The key valuation ratios of Royal Arc Electrodes Ltd's currently when compared to its past seem to suggest it is in the Fair zone.

The Price Trend analysis by MoneyWorks4Me indicates it is Strong which suggest that the price of Royal Arc Electrodes Ltd is likely to Rise in the short term. However, please check the rating on Quality and Valuation before investing

About Royal Arc Electrodes Ltd

Royal Arc Electrodes Limited was incorporated in Mumbai, Maharashtra, as a ‘Royalarc Electrodes Private Limited’, a private limited company under the Companies Act, 1956, pursuant to a certificate of incorporation dated January 15, 1996, issued by the Additional Registrar of Companies, Maharashtra. Thereafter, the company was converted from a private limited company to a public limited company pursuant to a special resolution passed by its Shareholders at the Extraordinary General Meeting held on March 9, 2005, and consequent upon conversion, the name of the company was changed to ‘Royalarc Electrodes Limited’ and a certificate of change of name dated March 31, 2005, issued by Registrar of Companies, Maharashtra, Mumbai. 

Subsequently, the name of the company was changed to ‘Royal Arc Electrodes Limited’ pursuant to the special resolution passed by the Shareholders of the company at the Extra-Ordinary General Meeting held on May 29, 2023. The Assistant Registrar of Companies, Maharashtra, Mumbai / Deputy Registrar of Companies, Maharashtra, Mumbai /Registrar of Companies, Maharashtra, Mumbai issued a fresh certificate of incorporation dated June 16, 2023, upon change of the name of the Company.

The company is engaged in the business of manufacturing of welding consumables such as, welding electrodes, flux cored wire, MIG/TIG wires, which finds its application in the welding of tanks, boilers, heavy structures, beams, pipes, cylinders, pressure vessels, etc. which are used in industries like railways, roadways, airport infrastructure, refineries, shipyards, mines, sugar industries, telecom industries, thermal power stations, PEB sectors, etc. Further, the company is also engaged in the business of trading of ancillary/incidental products like wheels, electro slag, welding flux cored wire, electro slag strip cladding, saw flux and TIG /MIG wires.

It manufactures its products from copper coated wire, MS Strips, MS wire, SS strip, SS wire, nickel wire, ferro alloy powder, etc conforming to international standards, from its highly sophisticated and technically competent manufacturing facility. At its manufacturing facility, the raw materials undergo through a process of wire drawing and cutting, powder mixing, covering and baking. Accordingly, its existing manufacturing plant consists of extrusion units, baking ovens, drawing units, cutting units, forming mills, powder mixers, packing machines and testing labs. The company has the necessary instruments such as, chemical analysis instrument, spectro-meter, material testing lab equipment and is backed by related quality assurance equipment’s for measuring chemical and mechanical properties along with their sizes and shapes of its raw materials and finished goods to match international and domestic standards as well as customer specifications. 

Business area of the company

The company is engaged in the business of manufacturing of welding consumables such as, welding electrodes, flux cored wire, MIG/TIG wires.

Products of the company

  • Welding electrodes
  • Flux cored wire
  • MIG/TIG Wires- MIG

History and milestones

  • 1996: Incorporated as Private Limited Company and started manufacturing of welding consumables.
  • 2003: Expanded the manufacturing capacity by adding state-of the art facility.
  • 2005: Converted to Public Company.
  • 2014: Manufacturing facility spread over 25082.61 sq. mtr.
  • 2021: One of the few companies to have received ‘BIS CARE Certification’ for manufacturing flux cored wire.

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