Is Royal Arc Electrodes Ltd (ROYALARC) a good quality company?

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

Is Royal Arc Electrodes Ltd (ROYALARC) undervalued or overvalued?

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 .

What is Royal Arc Electrodes Ltd (ROYALARC) share price return in the past 10 years?

Data is not available for this company

Is Royal Arc Electrodes Ltd (ROYALARC) a good buy now?

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

What is the share price of Royal Arc Electrodes Ltd (ROYALARC)?

Company share prices are keep on changing according to the market conditions. The current trading price of Royal Arc Electrodes Ltd (ROYALARC) on 01-Jan-1970 05:30:00 at 05:30 is .

What is the P/E ratio of Royal Arc Electrodes?

The latest standalone P/E ratio of Royal Arc Electrodes as of 01-Jan-1970 is 20.34.

What is the P/B ratio of Royal Arc Electrodes Ltd (ROYALARC)?

The latest standalone P/B ratio of Royal Arc Electrodes Ltd (ROYALARC) as of 01-Jan-1970 is 2.55.

What is the 52-week high and low of Royal Arc Electrodes Ltd (ROYALARC)?

The 52-week high of Royal Arc Electrodes Ltd (ROYALARC) is Rs. 0.00 and the 52-week low is Rs. 0.00.

Royal Arc Electrodes Ltd (ROYALARC) Share Analysis – Quality, Growth & Valuation Zone & DeciZen Rating

Name: Royal Arc Electrodes Ltd (ROYALARC)
Brand: Royal Arc Electrodes

Key Metrics

Market Cap

₹183 Cr.

P/E Ratio

20.34

Price to Book (P/B)

2.55

Price to Sales (P/S)

1.80

EV/EBITDA

10.49

Return on Capital Employed (ROCE)

21.29%

Current Price

₹0

Return on Equity (ROE)

15.79%

Return on Assets (ROA)

13.53%

Operating Profit Margin

14.8%

Net Profit Margin

8.85%

Gross Profit Margin

15.2%

Book Value per Share

₹64.7

Sales Growth (YoY)

1.66%

Sales Growth (3 Years)

17.39%

Operating Profit Growth (1 Year)

-12.87%

Operating Profit Growth (3 Years)

60.53%

Net Profit Growth (1 Year)

-25.72%

52-Week Low / High

₹0 / 0

Net Profit Growth (3 Years)

61.92%

Dividend Yield

0.00%

Promoter Holding

72.96%

Pledged shares (%)
of Promoter's holding (%)

0.00%

Check Before You Invest

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 8.48% based on the current price.

Q.1 Revenue growth of Royal Arc Electrodes Ltd?

Royal Arc Electrodes Ltd revenue growth is 1.7% for FY-2025, which is below its 5-year CAGR of 9.54%, indicating slower growth.

Q.1 Which industry/sub-sector does Royal Arc Electrodes Ltd belong to?

Royal Arc Electrodes Ltd belongs to the Capital Goods & Industrial Consumables sector, operating specifically within the Electrodes & Welding Equipment segment.

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 Revenue growth of Royal Arc Electrodes Ltd vs industry peers?

Royal Arc Electrodes Ltd revenue CAGR is 9.54%, compared to the industry median CAGR of 7.29%, indicating faster growth and gaining its market share.

DeciZen - make an informed investing decision on Royal Arc Electrodes

Based on:

Data

Overall Rating ⓘ
Login to view analysis. M-Cap below 500cr. High Risk from low Liquidity

1. Quality

2. Valuation ⓘ

3. Price Trend

Royal Arc Electrodes stock performance

Key Ratios

Is Royal Arc Electrodes Ltd an attractive stock to invest in?

10 Year X-Ray : Login to view analysis.

Analysis of Financial Track Record

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

Value Creation ⓘ

Value Creation Index Colour Code Guide ⓘ

	Mar'16	Mar'17	Mar'18	Mar'19	Mar'20	Mar'21	Mar'22	Mar'23	Mar'24	Mar'25	TTM
ROCE % ⓘ	11.7%	9.9%	9.8%	9.1%	9.2%	11.6%	26.5%	45.3%	44.2%	21.3%	-
Value Creation Index ⓘ	-0.2	-0.3	-0.3	-0.4	-0.3	-0.2	0.9	2.2	2.2	0.5	-
Growth Parameters ⓘ Growth Parameters Colour Code Guide ⓘ
Sales ⓘ	63.9	63.8	67.6	75.8	64.5	43.3	62.9	96.9	100	102	102
Sales YoY Gr.	-	-0%	5.9%	12.2%	-14.8%	-32.9%	45.2%	54.1%	3.3%	1.7%	-
Adj EPS ⓘ	1.1	1.1	1.3	1.4	0.4	1.8	1.2	10	12.9	8.2	8.1
YoY Gr.	-	-1.9%	19.1%	10.4%	-71%	337.5%	-33.1%	752.1%	29.3%	-36.5%	-
BVPS (₹) ⓘ	13.3	14.4	16	17.3	18.6	20.3	22.3	32.6	45.5	64.7	64.7
Adj Net Profit ⓘ	1	1	1.2	1.3	0.4	1.6	1.1	9.3	12	9.1	9
Cash Flow from Ops. ⓘ	0	6.1	3	5.2	6	6.7	2.4	12.6	5.6	4.2	-
Debt/CF from Ops. ⓘ	0	3.5	8.6	3.9	2	1.2	3.3	0.1	0	0.2	-

CAGR ⓘ

CAGR Colour Code Guide ⓘ

	9 Years	5 Years	3 Years	1 Years
Sales ⓘ	5.3%	9.5%	17.4%	1.7%
Adj EPS ⓘ	25.4%	82.9%	91.2%	-36.5%
BVPSⓘ	19.2%	28.3%	42.5%	42.1%
Share Price	-	-	-	8.5%

Key Financial Parameters ⓘ

Performance Ratio Colour Code Guide ⓘ

	Mar'16	Mar'17	Mar'18	Mar'19	Mar'20	Mar'21	Mar'22	Mar'23	Mar'24	Mar'25	TTM
Return on Equity % ⓘ	8.4	7.6	8.2	8.3	2.2	9	5.5	36.3	33	15.9	12.5
Op. Profit Mgn % ⓘ	9.1	7.8	7.4	6.8	5.4	6.8	5.8	15.1	17.3	14.8	NAN
Net Profit Mgn % ⓘ	1.6	1.5	1.7	1.7	0.6	3.8	1.7	9.6	12	8.9	8.9
Debt to Equity ⓘ	1.9	1.6	1.7	1.3	0.7	0.4	0.4	0.1	0	0	-
Working Cap Days ⓘ	145	150	161	155	161	201	149	100	105	125	0
Cash Conv. Cycle ⓘ	120	126	139	136	143	135	70	46	65	96	0

Recent Performance Summary

Latest Financials

	Standalone	Consolidated
TTM EPS (₹)	8.1	-
TTM Sales (₹ Cr.)	102	-
BVPS (₹) ⓘ	64.7	-
Reserves (₹ Cr.) ⓘ	61	-
P/BV ⓘ	2.55	-
PE ⓘ	20.34	-

From the Market
52 Week Low / High (₹)	0.00 / 0.00
All Time Low / High (₹)	- / -
Market Cap (₹ Cr.)	183
Equity (₹ Cr.)	11.1
Face Value (₹)	10
Industry PE ⓘ	42

Management X-Ray

Shareholding Pattern

Promoter's Holding & Share Pledging

Pledged ^*

0.00

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

Valuation of Royal Arc Electrodes - Standalone Basis

YTD 1Y 3Y 5Y 10Y Max

Analyst's Notes

No data found!

Key Ratios

Adj EPS (Rs.)

Sales (Cr.)

ROE (%)

ROCE (%)

Profit And Loss

(All Figures are in Crores.)

PARTICULARS	Mar'16	Mar'17	Mar'18	Mar'19	Mar'20	Mar'21	Mar'22	Mar'23	Mar'24	Mar'25
Sales	64	64	68	76	65	43	63	97	100	102
Operating Expenses ⓘ +	58	59	63	71	61	41	59	83	83	87
Manufacturing Costs	5	5	4	5	4	3	5	5	4	5
Material Costs	45	45	48	56	48	31	47	67	66	69
Employee Cost	3	4	5	5	5	4	4	7	8	7
Other Costs ⓘ	4	4	6	5	5	3	3	4	5	5
Operating Profit ⓘ	6	5	5	5	3	3	4	14	17	15
Operating Profit Margin (%)	9.1%	7.8%	7.4%	6.8%	5.4%	6.3%	5.8%	14.9%	17.3%	14.8%
Other Income ⓘ +	0	0	0	0	1	2	2	1	1	1
Exceptional Items ⓘ	0	0	0	0	0	0	0	0	0	-0
Interest ⓘ	3	2	2	2	1	1	1	1	0	0
Depreciation ⓘ	2	2	2	2	2	2	2	2	2	3
Profit Before Tax ⓘ	2	2	2	2	2	2	3	13	16	12
Tax ⓘ	1	1	0	1	0	1	1	3	4	3
Profit After Tax	1	1	1	1	1	2	2	10	12	9
PAT Margin (%)	1.9%	1.7%	2.1%	1.7%	1.9%	3.6%	3.4%	9.9%	12.1%	8.9%
Adjusted EPS (₹)	1.3	1.1	1.5	1.4	1.3	1.7	2.3	10.3	13.0	8.1
Dividend Payout Ratio (%)	0%	0%	0%	0%	0%	0%	0%	0%	0%	0%

Balance Sheet

(All Figures are in Crores.)

PARTICULARS	Mar'16	Mar'17	Mar'18	Mar'19	Mar'20	Mar'21	Mar'22	Mar'23	Mar'24	Mar'25
Equity and Liabilities
Shareholders Fund +	12	13	15	16	17	19	21	30	42	72
Share Capital ⓘ	2	2	2	2	2	2	2	2	9	11
Reserves ⓘ	11	12	13	14	15	17	19	29	33	61
Debt +	23	20	23	19	12	7	7	1	0	1
Long Term Debt	13	11	11	8	4	3	2	0	0	0
Short Term Debt	10	8	13	10	8	4	5	0	0	1
Minority Interest	0	0	0	0	0	0	0	0	0	0
Trade Payables	9	10	10	13	7	8	10	8	5	5
Others Liabilities ⓘ	4	5	5	5	3	5	5	5	4	3
Total Liabilities ⓘ	48	48	53	52	39	40	42	44	52	81
Fixed Assets
Net Fixed Assets ⓘ +	18	18	18	16	15	16	15	14	16	20
Gross Block	25	26	28	28	28	28	28	28	32	39
Accumulated Depreciation	7	8	10	12	13	13	14	14	16	19
CWIP ⓘ	0	1	0	0	0	0	0	0	1	2
Investments ⓘ	0	0	0	0	0	0	0	1	2	1
Inventories	13	12	14	15	11	9	11	6	9	14
Trade Receivables	11	12	14	14	11	11	13	16	21	21
Cash Equivalents	1	1	4	2	1	0	0	3	1	19
Others Assets ⓘ	5	4	4	4	2	4	4	3	2	3
Total Assets ⓘ	48	48	53	52	39	40	42	44	52	81

Cash Flow

(All Figures are in Crores.)

PARTICULARS	Mar'17	Mar'18	Mar'19	Mar'20	Mar'21	Mar'22	Mar'23	Mar'24	Mar'25
Cash Flow From Operating Activity ⓘ +	6	3	5	6	7	2	13	6	4
PBT ⓘ	2	2	2	2	2	3	13	16	12
Adjustment ⓘ	3	4	3	3	3	3	3	2	3
Changes in Working Capital ⓘ	1	-2	0	1	2	-3	-3	-8	-7
Tax Paid ⓘ	-0	-0	0	-0	-0	-0	-0	-4	-3
Cash Flow From Investing Activity ⓘ +	-2	-1	-0	1	-3	-1	-2	-6	-7
Capex	-2	-2	-0	-0	-3	-1	-1	-5	-8
Net Investments	0	1	0	0	0	0	-1	-1	1
Others ⓘ	0	-0	-0	1	0	0	0	0	0
Cash Flow From Financing Activity ⓘ +	-5	1	-6	-8	-5	-2	-7	-2	21
Net Proceeds from Shares ⓘ	0	0	0	0	0	0	0	0	20
Net Proceeds from Borrowing ⓘ	-2	-1	-2	-4	-1	-1	-1	-0	0
Interest Paid ⓘ	-2	-2	-2	-1	-1	-1	-1	-0	-0
Dividend Paid ⓘ	0	0	0	0	0	0	0	0	0
Others ⓘ	-1	4	-2	-3	-3	-0	-5	-1	1
Net Cash Flow ⓘ	-0	3	-1	-2	-0	-0	3	-2	18

Finance Ratio

PARTICULARS	Mar'16	Mar'17	Mar'18	Mar'19	Mar'20	Mar'21	Mar'22	Mar'23	Mar'24	Mar'25
Ratios
ROE (%)	10.01	8.19	10.13	8.13	7.14	8.7	20.42	37.43	33.39	15.79
ROCE (%)	11.66	9.86	9.78	9.07	9.23	11.58	26.46	45.27	44.19	21.29
Asset Turnover Ratio	1.43	1.45	1.35	1.44	1.41	1.1	2.96	2.25	2.08	1.53
PAT to CFO Conversion(x)	0	6	3	5	6	3.5	1	1.3	0.5	0.44
Working Capital Days
Receivable Days	52.50	60.10	69.30	66.70	70.40	90.90	75.90	55.60	67.70	74.60
Inventory Days	67.10	65.90	69.60	69	72.90	82.80	62.90	31.80	27.50	41.80
Payable Days	0	0	0	0	0	48.90	39.70	49.10	36.50	26.70

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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 ₹183.2 Cr

The latest P/E ratio of Royal Arc Electrodes as of 31-Dec-1969 is 20.34.

The latest P/B ratio of Royal Arc Electrodes as of 31-Dec-1969 is 2.55.

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 ₹102 ( Cr.) .

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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Royal Arc Electrodes Ltd (ROYALARC) Share Analysis – Quality, Valuation Zone, Price Trend & DeciZen Rating