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Raj Rayon Industries Ltd. Stock Analysis

Small Cap
Evaluated by 144 users | BSE: 530699 | NSE: RAJRAYON |
Textile - Manmade Fibres
 Raj Rayon Ltd. was incorporated on August 17, 1993 as a public limited company with Registrar of Companies Maharashtra and obtained Certificate of Commencement of Business on September1,1993. The original promoters of the company were Gourishankar Poddar and Ratanchand Jain. The vision...

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.
Value Creation
 Mar'10Mar'11Mar'12Mar'13Mar'14Mar'15Mar'16Mar'17Mar'18Mar'19
Return on Capital Employed 4.12%7.22%7.93%6.59%-9.24%-3.85%-43.15%-20.41%-20.47%-23.74%
Growth Parameters
Growth Parameters Colour Code Guide
Net Sales (Rs. Cr.) 32743168371347018445227476.318.2
Y-o-Y Gr. Rt.-31.6%58.5%4.5%-34.1%-61%146.1%-39.3%-72.2%-76.2%
Adjusted EPS (Rs.) -0.120.190.120.16-3.24-2.81-8.28-1.92-1.51-1.39
Y-o-Y Gr. Rt.-NA-36.8%33.3%-2125%NANANANANA
Book Value per Share (Rs.) 4.734.724.115.211.88-0.96-10.71-12.58-14.1-15.5
Adjusted Net Profit -2.13.734.2-86.2-74.9-287-66.5-52.5-48.2
Net Op. Cash Flow (Rs. Cr.) 27.810.318.916.9-56.5-44.7-4.27.4-1.1-1.8
Debt to Cash Flow from Ops 4.9215.3112.4321.01-9.83-15.54-17097.63-662.36-392.21
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.
Raj Rayon Industries Ltd. should be analysed on a Standalone basis
CAGR
CAGR Colour Code Guide
  9 yrs 5 yrs 3 yrs 1 yr
Net Sales -27.5%-47.8%-65.7%-76.2%
Adjusted EPS NANANANA
Book Value per Share -214.1-252.500
Share Price -17% -18.2% -3.3% -
Key Financial Parameter
Performance Ratio Colour Code Guide
 Mar'10Mar'11Mar'12Mar'13Mar'14Mar'15Mar'16Mar'17Mar'18Mar'19
Return on Equity (%) -2.524.123.043.25-79.15-271.83156.8916.8111.349.4
Operating Profit Margin (%) 7.349.957.858.66-10.15-1.37-33.59-6.82-20.68-64.67
Net Profit Margin (%) -0.650.860.440.59-18.34-40.8-63.49-24.26-68.76-265.51
Debt to Equity 1.611.762.262.328.67-60.56-2-1.65-1.47-1.33
Working Capital Days 137129138172219465137106254770
Cash Conversion Cycle 766649801333109051144451
Entity Percentage Holding
Promoters 34.07%
Institutions 0.34%
Non-Institutions 65.59%
Pledged *100.00100.00100.00100.00100.00100.00100.0019.7519.7519.75
* Pledged shares as % of Promoter's holding (%)
Data is not available for this company.

The 5-year analysis of Raj Rayon Industries Ltd.'s performance infers:

Raj Rayon Industries Ltd. earnings have grown by 0%, whereas share price has depreciated -18.2% CAGR over the past five years, indicating the company's share price is likely undervalued. However, for specific investment actions please connect with your investment advisor.

We analysed the performance of Raj Rayon Industries Ltd. share prices over the last 10 years. Here is what we found out:

Raj Rayon Industries Ltd. share price has depreciated -19.8% annually over the past ten years.

 

Raj Rayon Ltd. was incorporated on August 17, 1993 as a public limited company with Registrar of Companies Maharashtra and obtained Certificate of Commencement of Business on September1,1993. The original promoters of the company were Gourishankar Poddar and Ratanchand Jain. The vision of RRL’s mentors is realized by dedicated efforts of professional managers, engineers and a trained labor force. RRL has consistently posted profits right from its inception.

RRL commenced

 

Raj Rayon Ltd. was incorporated on August 17, 1993 as a public limited company with Registrar of Companies Maharashtra and obtained Certificate of Commencement of Business on September1,1993. The original promoters of the company were Gourishankar Poddar and Ratanchand Jain. The vision of RRL’s mentors is realized by dedicated efforts of professional managers, engineers and a trained labor force. RRL has consistently posted profits right from its inception.

RRL commenced operations in 1993 with just one texturising machine for PTY with production capacity of 600 tons per annum (TPA) of 80 Denier. As on date the production capacity, backed by efficient backward integration of process and machinery, is an impressive 30000 T.P.A. of PTY (based on average of 75/36 SD denier), 40000 T.P.A. of POY and 20000 T.P.A of FDY (based on average of 150/36 SD denier).

Raj Rayon Limited (RRL), a public limited company and one of the leading manufacturers of polyester yarn in India with product range including polyester texturised yarn (PTY), partially oriented yarn (POY) and fully drawn yarn (FDY), backed by high technology plants located at Silvassa in the Union Territory of Dadra & Nagar Haveli, India.

Product range of the company includes:

  • Bright Yarns (Trilobal)
  • Cationic Yarn
  • Cotluk (Full Dull)
  • Colored Yarns (Dope Dyed)
  • Yarns of various cross sections like Tri-lobal, Octa-lobal etc.
  • Fire retardant and Anti-Microbial Yarns

 Milestones

  • 1993-94- Incorporated on 17 th August, 1993 in Mumbai, Maharashtra, commencement of business on 1 st September 1993 Setting-up of Unit I at Village Dadra, Silvassa - Installed one texturising machine with a manufacturing capacity of 600 T.P.A. (capacity based on manufacturing polyester texturised yarn of 80 Denier)
  • 1994-95- Commercial production started at Unit I, commencement of expansion project to double the manufacturing capacity by installing one more texturising machine
  • 1995-96 - IPO of 14,40,000 equity shares at par, commercial production expansion project commenced, which doubled the capacity from 600 T.P.A. to 1,200 T.P.A. (capacity based on manufacturing polyester texturised yarn of 80 Denier)
  • 1996-97 - Commencement of setting-up of Unit II at village Amli, Silvassa, for manufacturing polyester texturised yarn with a capacity of 2,600 T.P.A. (capacity based on manufacturing polyester texturised yarn of 80 Denier)
  • 1997-98 - Commercial production started at Unit II
  • 1998-99 - Further expansion at Unit II - manufacturing polyester texturised yarn with a capacity of 2,600 T.P.A. (capacity based on manufacturing polyester texturised yarn of 80 Denier) by installing four draw texturising machines
  • 1999-00 - Commercial production expansion at Unit II
  • 2001-02 - Commencement of first phase of expansion project at Unit III - Installation of six texturising machines with a manufacturing capacity of 7,590 T.P.A. (capacity based on manufacturing polyester texturised yarn of 80 Denier)
  • 2002-03 - Part completion of first phase of expansion project at Unit III - Installation of four texturising machines
  • 2003-04 - Completion of first phase of expansion project at Unit III - Installation of balance two texturising machines
  • Commencement and completion of second phase of expansion project at Unit III - Installation of six more texturising machines with a manufacturing capacity of 7,650 T.P.A. (capacity based on manufacturing polyester texturised yarn of 80 Denier)
  • Commencement of backward integration project at Unit IV - For production of POY with a manufacturing capacity of 30,000 T.P.A. (capacity based on manufacturing average 150 Denier of POY)
  • 2004-05- Commencement of increase in the backward integration project for manufacturing capacity of POY Project - from earlier 30,000 T.P.A. to 60,000 T.P.A. (capacity based on manufacturing average 150 Denier of POY)
  • 2005-06- Commercial production of partially oriented yarn started at our surangi plant public issue of 85,00,000 equity shares of Rs 10/- each for cash at a price of Rs 65 per equity share aggregating Rs 5525 Lacs
  • 2006-07- Further expansion plan in production capacity of polyester texturised yarn by 14400 tons out of 18 POY lines, five POY has been converted to FDY lines , Listing of shares in NSE
  • 2007-08- Successful completion of expansion plan for PTY at our Surangi Unit.
  • 2008-09- Recognised as an approved export house with the Joint Director General of Foreign Trade, Mumbai.Received ISO 9001:2000 Certification(s) from Bureau Veritas (UKAS) and Bureau Veritas (NABCB).
  • 2010 - ISO certification has been upgraded to ISO 9001 : 2008 by Bureau veritas (UKAS) and Bureau veritas (NABCB)
  • 2011 Change of company Name from Raj Rayon Limited to Raj Rayon Industries Limited w.e.f. 18/08/2010.
Puchho Befikar
SEBI Registered: Investment Adviser - INA000013323
Research Analyst - INH000000719

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