Rajratan Global Wire Ltd - Stock Valuation and Financial Performance

BSE: 517522 | NSE: RAJRATAN | Auto Ancillary | Small Cap

Rajratan Global Wire Share Price

581.05 -8.80 -1.49%
as on 28-Mar'24 16:01

DeciZen - make an informed investing decision on Rajratan Global Wire

Overall Rating
Bole Toh

1. Quality

2. Valuation

Somewhat overvalued

3. Price Trend

Rajratan Global Wire stock performance -

mw4me loader
P/E Ratio (SA):
51.42
Market Cap:
2,950.1 Cr.
52-wk low:
578
52-wk high:
919

Is Rajratan Global Wire Ltd an attractive stock to invest in?

1. Is Rajratan Global Wire Ltd a good quality company?

Past 10 year's financial track record analysis by Moneyworks4me indicates that Rajratan Global Wire Ltd is a average quality company.

2. Is Rajratan Global Wire Ltd undervalued or overvalued?

The key valuation ratios of Rajratan Global Wire Ltd's currently when compared to its past seem to suggest it is in the Somewhat overvalued zone.

3. Is Rajratan Global Wire Ltd a good buy now?

The Price Trend analysis by MoneyWorks4Me indicates it is Weak which suggest that the price of Rajratan Global Wire Ltd is likely to Fall in the short term. However, please check the rating on Quality and Valuation before investing.

10 Year X-Ray of Rajratan Global Wire:

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.
Rajratan Global Wire Ltd has performed well in some of the past ten years indicating its past ten year financial track record is somewhat good

Value Creation

Value Creation Index Colour Code Guide

Mar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22Mar'23TTM
ROCE % 10.4%9.1%10.5%8.8%7.3%13.3%13.2%17.4%25.7%21.1%-
Value Creation
Index
-0.3-0.4-0.3-0.4-0.5-0.1-0.10.20.80.5-

Growth Parameters

Growth Parameters Colour Code Guide

Sales 232239207177218315286337540612578
Sales YoY Gr.-3%-13.4%-14.6%23.7%44.1%-9%17.9%60%13.4%-
Adj EPS 1.41.31.91.61.53.64.47.313.513.811.3
YoY Gr.--10.7%49.6%-12.8%-8.6%142.3%22.4%65.2%85.2%1.9%-
BVPS (₹) 15.216.117.919.42124.628.335.647.659.565.4
Adj Net
Profit
7.16.39.58.37.518.322.437.168.769.957
Cash Flow from Ops. 17.38.214.519.517.729.532.831.884.8105-
Debt/CF from Ops. 3.18.23.62.92.72.62.62.611.1-

CAGR

CAGR Colour Code Guide

9 Years 5 Years 3 Years 1 Years
Sales 11.4%22.9%28.9%13.4%
Adj EPS 28.9%56%46.1%1.9%
BVPS16.4%23.1%28.1%25.2%
Share Price 55.7% 59.1% 55.7% -20.4%

Key Financial Parameters

Performance Ratio Colour Code Guide

Mar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22Mar'23TTM
Return on
Equity %
9.78118.57.115.316.222.331.925.418.1
Op. Profit
Mgn %
9.58.711.911.48.710.81618.620.219.317.5
Net Profit
Mgn %
3.12.74.64.73.55.87.81112.711.49.9
Debt to
Equity
0.70.80.60.60.40.60.60.50.40.4-
Working Cap
Days
12614014915414211614113711211456
Cash Conv.
Cycle
61708210295687374504012

Recent Performance Summary

Sales growth is growing at healthy rate in last 3 years 28.87%

Net Profit is growing at healthy rate in last 3 years 46.05%

Return on Equity has declined versus last 3 years average to 18.10%

Sales growth is not so good in last 4 quarters at -2.28%

Latest Financials - Rajratan Global Wire Ltd.

Standalone Consolidated
TTM EPS (₹) 11.3 14.2
TTM Sales (₹ Cr.) 578 870
BVPS (₹.) 65.4 92.9
Reserves (₹ Cr.) 322 461
P/BV 8.89 6.26
PE 51.42 41.05
From the Market
52 Week Low / High (₹) 578.00 / 919.00
All Time Low / High (₹) 0.27 / 1409.05
Market Cap (₹ Cr.) 2,950
Equity (₹ Cr.) 10.2
Face Value (₹) 2
Industry PE 46.3

Management X-Ray of Rajratan Global Wire:

Shareholding Pattern

Promoter's Holding & Share Pledging

Pledged *0.000.000.000.000.000.000.000.000.000.00
* Pledged shares as % of Promoter's holding (%)

Event Update

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Analyst's Notes

Key Ratios of Rajratan Global Wire

Adj EPS (Rs.)

Sales (Cr.)

ROE (%)

ROCE (%)

Profit And Loss

(All Figures are in Crores.)
PARTICULARSMar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22Mar'23
Sales232239207177218315286337540612
Operating Expenses 210218182156199281240275431494
Manufacturing Costs26272827303739355774
Material Costs165172132108146216170208325369
Employee Cost 10101011121315152023
Other Costs 9101111111416173030
Operating Profit 2221252019344663109118
Operating Profit Margin (%) 9.5%8.7%11.9%11.4%8.7%10.8%16.0%18.5%20.2%19.3%
Other Income 1112222112
Interest 998768991214
Depreciation 43333457810
Exceptional Items 0000200000
Profit Before Tax 10101512132433479097
Tax 33545610102126
Profit After Tax 7610891923376971
PAT Margin (%) 3.1%2.7%4.7%4.7%4.0%5.9%8.1%11.0%12.7%11.6%
Adjusted EPS (₹)1.41.31.91.61.73.74.67.313.514.0
Dividend Payout Ratio (%)6%7%5%8%7%5%9%22%15%14%

Balance Sheet

(All Figures are in Crores.)
PARTICULARSMar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22Mar'23

Equity and Liabilities

Shareholders Fund 778291103111129148185245306
Share Capital 44444410101010
Reserves 73788798107124138175235296
Minority Interest0000000000
Debt49614550416877727199
Long Term Debt51814823144524267
Short Term Debt44433242393733213032
Trade Payables282874102622276468
Others Liabilities 19202319212832525371
Total Liabilities 174190166176183251278335433544

Fixed Assets

Gross Block787779525588131148196223
Accumulated Depreciation35373936915212939
Net Fixed Assets434140495078116127167185
CWIP 003141910717101
Investments 34393939383838515151
Inventories15201513162623253546
Trade Receivables6666475053616187113104
Cash Equivalents 15323437810
Others Assets15192023192426314347
Total Assets 174190166176183251278335433544

Cash Flow

(All Figures are in Crores.)
PARTICULARSMar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22Mar'23
Cash Flow From Operating Activity 17814191829333285105
PBT 10101512132433479097
Adjustment 1312111081214151922
Changes in Working Capital -2-10-711-1-6-19-410
Tax Paid -3-3-4-4-4-6-8-11-21-23
Cash Flow From Investing Activity -8-7-5-7-5-48-34-28-69-114
Capex -2-2-5-7-7-48-34-19-66-111
Net Investments -6-500000-125-2
Others 00002003-80
Cash Flow From Financing Activity -143-12-13-12191-2-189
Net Proceeds from Shares 0000000000
Net Proceeds from Borrowing -513-4-5-528147-729
Interest Paid -9-9-8-7-6-8-9-9-12-13
Dividend Paid 000-1-1-1-30-8-10
Others 000000-1093
Net Cash Flow -54-301102-20
PARTICULARSMar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22Mar'23
Ratios
ROE (%)9.848.0411.168.718.5616.1517.2222.832.2726.09
ROCE (%)14.9613.3415.6512.9112.4218.2719.612334.329.6
Asset Turnover Ratio1.531.441.281.161.241.451.081.11.411.27
PAT to CFO Conversion(x)2.431.331.42.3821.531.430.861.231.48
Working Capital Days
Receivable Days84929089846678806764
Inventory Days19252826242531262024
Payable Days53604819183051435165

Rajratan Global Wire Ltd Stock News

Rajratan Global Wire Ltd FAQs

Company share prices are keep on changing according to the market conditions. The closing price of Rajratan Global Wire on 28-Mar-2024 16:01 is ₹581.0.
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 28-Mar-2024 16:01 the market cap of Rajratan Global Wire stood at ₹2,950.1.
The latest P/E ratio of Rajratan Global Wire as of 28-Mar-2024 16:01 is 51.42.
The latest P/B ratio of Rajratan Global Wire as of 28-Mar-2024 16:01 is 8.89.
The 52-week high of Rajratan Global Wire is ₹919.0 and the 52-week low is ₹578.0.
The TTM revenue is Trailing Twelve Months sales. The TTM revenue/sales of Rajratan Global Wire is ₹578.1 ( Cr.) .

About Rajratan Global Wire Ltd

Rajratan Global Wire (RGWL) incorporated on September 9, 1988 is one of the leading manufacturers of high carbon steel wire in India – specializing in automotive tyre bead wire, high quality spring & rope wires are other speciality products of the company.

RGWL has most modern factory at Pithampur, which is 25 Km from Indore, a prominent industrial city in Central India. The quest for quality, excellence and progress driven by the total dedication of a competent and professional team is the hallmark of RGWL. With its “state of art” plant RGWL is equipped to produce high value steel wires with precise product characteristics.

In a short span of time RGWL has achieved leadership position in tyre bead wire business in India having a global scale of operation & to take the tradition of quality & excellence further, RGWL has formed a 100% subsidiary company Rajratan Thai Wire Co. and started an ultra modern facility to produce automotive tyre bead wire in Thailand. This is a true step towards globalization efforts of RGWL.

Product range of the company includes:

Tyre bead wire- Tyre bead wire is a high carbon bronze coated steel wire used in all tyres. The main function of bead wire is to hold the tyre on the rim and to resist the action of the inflated pressure, which constantly tries to force it off.

Following sizes of bead wire are being regularly manufactured by the company:

  • 0.89 MM NT / HT
  • 0.96 MM NT / HT
  • 1.295 MM HT
  • 1.60 MM HT
  • 1.65 MM HT
  • 1.83 MM NT / HT
  • 2.00 MM NT
  • 2.20 MM NT
  • 2.40 MM NT

PC Wire & Strands

  • PC single wire - As Drawn- This wire is mostly used for the manufacture of pre-stressed concrete pipes. The wire has a drawn finish and is supplied with plain surface without indentation.
  • PC Single Wire-Stress Relieved- This wire is supplied in large coils and pays out straight when uncoiled. It is used in pre-tensioning and post-tensioning operations for mass produced small components as well as pre-stressed constructions at site. The wire can be supplied in plain or indented finish.
  • PC Strands - P.C. Strands are being increasingly used because of larger pre-stressing loads that are possible. Strands also afford a better mechanical bond with concrete as compared to single wires.

Achievements/ recognition:-

  • RGWL's Tyre Bead Wire manufacturing unit is certified by ISO/TS 16949:2002
  • PC Wire and Strand unit is certified for ISO 9001:2000

 

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