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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
₹167 Cr.
Current Price
₹0
52-Week Low / High
₹0 / 0
TTM EPS
₹9.1
TTM Sales
₹116 Cr.
Book Value per Share
₹64.7
P/E Ratio
16.57
Lower than its 5-year historical median
Industry PE
44.4
Price to Book (P/B)
2.32
Lower than its 5-year historical median
Price to Sales (P/S)
1.43
Lower than its 5-year historical median
EV/EBITDA
8.52
Lower than its 5-year historical median
Dividend Yield
0.00%
Profitability Efficiency
Return on Equity (ROE)
15.79%
Outperforms industry median
Return on Capital Employed (ROCE)
21.29%
Outperforms industry median
Return on Assets (ROA)
13.53%
Operating Profit Margin
14.8%
Net Profit Margin
8.85%
Gross Profit Margin
15.2%
Growth Momentum
1-yr vs 3-yr growth
Sales Growth (1 Year)
Slowing versus 3-year growth rate
1.66%
Operating Profit Growth (1 Year)
Slowing versus 3-year growth rate
-12.87%
Net Profit Growth (1 Year)
Slowing versus 3-year growth rate
-25.72%
Asset Quality
Promoter Holding
72.96%
Pledged shares (%) of Promoter's holding (%)
0.00%
Reserves
₹61 Cr.
Equity
₹11.1 Cr.
Face Value
₹10
All Time Low / High
- / -

Royal Arc Electrodes stock performance

Key Ratios
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Check Before You Invest

Quality

Somewhat Good

Valuation

Undervalued

Price Trend

Semi 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 9.54%, compared to the industry median CAGR of 7.29%, 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 -5.45% 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'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22Mar'23Mar'24Mar'25TTM
ROCE % 11.7%9.9%9.8%9.1%9.2%11.6%26.5%45.3%44.2%21.3%-
Value Creation
Index
-0.2-0.3-0.3-0.4-0.3-0.20.92.22.20.5-

Growth Parameters

Sales 63.963.867.675.864.543.362.996.9100102116
Sales YoY Gr.--0%5.9%12.2%-14.8%-32.9%45.2%54.1%3.3%1.7%-
Adj EPS 1.11.11.31.40.41.81.21012.98.29.1
YoY Gr.--1.9%19.1%10.4%-71%337.5%-33.1%752.1%29.3%-36.5%-
BVPS (₹) 13.314.41617.318.620.322.332.645.564.764.7
Adj Net
Profit
111.21.30.41.61.19.3129.110
Cash Flow from Ops. 06.135.266.72.412.65.64.2-
Debt/CF from Ops. 03.58.63.921.23.30.100.2-

CAGR

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%
BVPS19.2%28.3%42.5%42.1%
Share Price - - - -5.7%

Key Financial Parameters

Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22Mar'23Mar'24Mar'25TTM
Return on
Equity %
8.47.68.28.32.295.536.33315.914
Op. Profit
Mgn %
9.17.87.46.85.46.85.815.117.314.8NAN
Net Profit
Mgn %
1.61.51.71.70.63.81.79.6128.98.7
Debt to
Equity
1.91.61.71.30.70.40.40.100-
Working Cap
Days
1451501611551612011491001051250
Cash Conv.
Cycle
120126139136143135704665960

Profit And Loss

(All Figures are in Crores.)
PARTICULARSMar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22Mar'23Mar'24Mar'25
Sales6464687665436397100102
Operating Expenses + 58596371614159838387
Manufacturing Costs5545435545
Material Costs45454856483147676669
Employee Cost 3455544787
Other Costs 4465533455
Operating Profit 6555334141715
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 + 0000122111
Exceptional Items 000000000-0
Interest 3222111100
Depreciation 2222222223
Profit Before Tax 2222223131612
Tax 1101011343
Profit After Tax 111112210129
PAT Margin (%) 1.9%1.7%2.1%1.7%1.9%3.6%3.4%9.9%12.1%8.9%
Adjusted EPS (₹)1.31.11.51.41.31.72.310.313.08.1
Dividend Payout Ratio (%)0%0%0%0%0%0%0%0%0%0%

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!

Balance Sheet

(All Figures are in Crores.)
PARTICULARSMar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22Mar'23Mar'24Mar'25

Equity and Liabilities

Shareholders Fund + 12131516171921304272
Share Capital 22222222911
Reserves 11121314151719293361
Debt +232023191277101
Long Term Debt1311118432000
Short Term Debt1081310845001
Minority Interest0000000000
Trade Payables91010137810855
Others Liabilities 4555355543
Total Liabilities 48485352394042445281

Fixed Assets

Net Fixed Assets +18181816151615141620
Gross Block25262828282828283239
Accumulated Depreciation781012131314141619
CWIP 0100000012
Investments 0000000121
Inventories13121415119116914
Trade Receivables11121414111113162121
Cash Equivalents 11421003119
Others Assets 5444244323
Total Assets 48485352394042445281

Cash Flow

(All Figures are in Crores.)
PARTICULARSMar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22Mar'23Mar'24Mar'25
Cash Flow From Operating Activity + 06356721364
PBT 0222223131612
Adjustment 0343333323
Changes in Working Capital 01-2012-3-3-8-7
Tax Paid 0-0-00-0-0-0-0-4-3
Cash Flow From Investing Activity + 0-2-1-01-3-1-2-6-7
Capex 0-2-2-0-0-3-1-1-5-8
Net Investments 0010000-1-11
Others 00-0-0100000
Cash Flow From Financing Activity + 0-51-6-8-5-2-7-221
Net Proceeds from Shares 00000000020
Net Proceeds from Borrowing 0-2-1-2-4-1-1-1-00
Interest Paid 0-2-2-2-1-1-1-1-0-0
Dividend Paid 0000000000
Others 0-14-2-3-3-0-5-11
Net Cash Flow 0-03-1-2-0-03-218

Financial Ratio

PARTICULARSMar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22Mar'23Mar'24Mar'25
Ratios
ROE (%)10.018.1910.138.137.148.720.4237.4333.3915.79
ROCE (%)11.669.869.789.079.2311.5826.4645.2744.1921.29
Asset Turnover Ratio1.431.451.351.441.411.12.962.252.081.53
PAT to CFO Conversion(x)063563.511.30.50.44
Working Capital Days
Receivable Days52.5060.1069.3066.7070.4090.9075.9055.6067.7074.60
Inventory Days67.1065.9069.606972.9082.8062.9031.8027.5041.80
Payable Days0000048.9039.7049.1036.5026.70

Management X-Ray

Shareholding Pattern

Promoter's Holding & Share Pledging

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

Top 5 Mutual Funds Holding

Last Visited Stocks

Announcements

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 ₹166.5 Cr

The latest P/E ratio of Royal Arc Electrodes as of 31-Dec-1969 is 16.57.

The latest P/B ratio of Royal Arc Electrodes as of 31-Dec-1969 is 2.32.

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 Undervalued zone.

The Price Trend analysis by MoneyWorks4Me indicates it is Semi Strong which suggest that the price of Royal Arc Electrodes Ltd is likely to Rise-somewhat 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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