Rajapalayam Mills Ltd - Stock Valuation and Financial Performance

BSE: 532503 | NSE: RAJPALAYAM | Textile - Spinning | Small Cap

Rajapalayam Mills Share Price

954.15 -21.25 -2.18%
as on 12-Apr'24 16:59

DeciZen - make an informed investing decision on Rajapalayam Mills

Overall Rating
Bole Toh

1. Quality

2. Valuation

Overvalued

3. Price Trend

Rajapalayam Mills stock performance -

mw4me loader
P/E Ratio (SA):
19.82
Market Cap:
879.8 Cr.
52-wk low:
577
52-wk high:
1,154

Is Rajapalayam Mills Ltd an attractive stock to invest in?

1. Is Rajapalayam Mills Ltd a good quality company?

Past 10 year’s financial track record analysis by Moneyworks4me indicates that Rajapalayam Mills Ltd is a below average quality company.

2. Is Rajapalayam Mills Ltd undervalued or overvalued?

The key valuation ratios of Rajapalayam Mills Ltd's currently when compared to its past seem to suggest it is in the Overvalued zone.

3. Is Rajapalayam Mills Ltd a good buy now?

The Price Trend analysis by MoneyWorks4Me indicates it is Weak which suggest that the price of Rajapalayam Mills 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 Rajapalayam Mills:

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.
Rajapalayam Mills Ltd has not performed well majority of the past ten years indicating its past ten year financial track record is not good

Value Creation

Value Creation Index Colour Code Guide

Mar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22Mar'23TTM
ROCE % 9.2%4.7%8.5%10.4%8.1%6.8%3.2%0.9%4.4%6%-
Value Creation
Index
-0.3-0.7-0.4-0.3-0.4-0.5-0.8-0.9-0.7-0.6-

Growth Parameters

Growth Parameters Colour Code Guide

Sales 434389396410430416361415690862853
Sales YoY Gr.--10.4%2%3.5%4.7%-3.2%-13.3%15%66.3%25%-
Adj EPS 33.86.530.64938.335.710-31.216.646.148.1
YoY Gr.--80.8%371.7%60%-21.8%-6.9%-72.1%-412.9%NA177.8%-
BVPS (₹) 239.5251.1271.1316.5349.2378.9382.2362.8434.1493.1540.6
Adj Net
Profit
26.45.123.938.229.927.87.8-23.314.542.544
Cash Flow from Ops. 54.277.845.33276.521.543.333.93.7-45.7-
Debt/CF from Ops. 6.646.38.83.121.313.518.2202.3-24.3-

CAGR

CAGR Colour Code Guide

9 Years 5 Years 3 Years 1 Years
Sales 7.9%14.9%33.7%25%
Adj EPS 3.5%3.8%66.6%177.8%
BVPS8.4%7.2%8.9%13.6%
Share Price 16.2% 4.2% 12.8% 63.5%

Key Financial Parameters

Performance Ratio Colour Code Guide

Mar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22Mar'23TTM
Return on
Equity %
14.62.711.716.711.59.82.6-8.24.510.29.3
Op. Profit
Mgn %
211215.219.914.613.311.110.618.716.310.7
Net Profit
Mgn %
6.11.369.376.72.2-5.62.14.95.2
Debt to
Equity
1.91.61.41.10.91.622.322.4-
Working Cap
Days
195219179185184234294225186229113
Cash Conv.
Cycle
112141128143144154189157133173-21

Recent Performance Summary

Return on Equity has increased versus last 3 years average to 9.30%

Sales growth is growing at healthy rate in last 3 years 33.69%

Net Profit is growing at healthy rate in last 3 years 66.63%

Debt to equity has increased versus last 3 years average to 2.44

Sales growth is not so good in last 4 quarters at 0.77%

Latest Financials - Rajapalayam Mills Ltd.

Standalone Consolidated
TTM EPS (₹) 48.1 69.4
TTM Sales (₹ Cr.) 853 853
BVPS (₹.) 540.6 2,477.4
Reserves (₹ Cr.) 489 2,275
P/BV 1.77 0.39
PE 19.82 13.75
From the Market
52 Week Low / High (₹) 577.00 / 1154.00
All Time Low / High (₹) 66.70 / 1497.15
Market Cap (₹ Cr.) 880
Equity (₹ Cr.) 9.2
Face Value (₹) 10
Industry PE 31.6

Management X-Ray of Rajapalayam Mills:

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 Rajapalayam Mills

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
Sales434389396410430416361415690862
Operating Expenses 343342336332368361323373561730
Manufacturing Costs7370806061676061101122
Material Costs208209192204240218186232344463
Employee Cost 444647485159575784100
Other Costs 18171720161720223245
Operating Profit 9147607962553842129132
Operating Profit Margin (%) 21.0%12.0%15.2%19.2%14.4%13.3%10.5%10.2%18.7%15.3%
Other Income 77192142523141621
Interest 28282721182226444355
Depreciation 28172221333234485057
Exceptional Items 01000000-3267
Profit Before Tax 4119313825261-387748
Tax 15763-4-2-5-12386
Profit After Tax 2712253629286-273842
PAT Margin (%) 6.1%3.1%6.3%8.8%6.8%6.7%1.8%-6.4%5.6%4.9%
Adjusted EPS (₹)34.115.432.046.137.535.78.2-35.643.946.0
Dividend Payout Ratio (%)21%15%9%8%10%11%12%-1%2%2%

Balance Sheet

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

Equity and Liabilities

Shareholders Fund 187196211247272296298271379455
Share Capital 7777777799
Reserves 179188204239265288291264370445
Minority Interest0000000000
Debt3162592352341993965835436471,035
Long Term Debt1351031007349196310302312481
Short Term Debt181156134161150200273241336554
Trade Payables4561061915151815
Others Liabilities 1291331161078811544124207182
Total Liabilities 6365935695985658269409531,2511,686

Fixed Assets

Gross Block6546396516566647241,0051,0311,1591,230
Accumulated Depreciation331332351370390412427468500549
Net Fixed Assets323307300285274312578562659682
CWIP 130368641037262
Investments 41787877789899979773
Inventories128100108147115149147130249364
Trade Receivables4141404350625177103159
Cash Equivalents 7423246676
Others Assets9661393840116567198141
Total Assets 6365935695985658269409531,2511,686

Cash Flow

(All Figures are in Crores.)
PARTICULARSMar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22Mar'23
Cash Flow From Operating Activity 54784532772143344-46
PBT 4119313825261-365141
Adjustment 50282940352938789294
Changes in Working Capital -2934-12-3818-323-8-136-182
Tax Paid -8-3-3-8-2-11-1-32
Cash Flow From Investing Activity -24-226-5-10-209-132-25-152-304
Capex -30-17-12-9-24-212-166-41-184-335
Net Investments 0-11000-21003421
Others 6618314243416-210
Cash Flow From Financing Activity -28-59-53-26-6819092-10149349
Net Proceeds from Shares 000000006935
Net Proceeds from Borrowing -30-161-32-31169125-631148
Interest Paid -28-28-27-21-18-22-26-44-43-53
Dividend Paid -5-2-50-3-3-4-10-1
Others 36-13-2228-1646-44292220
Net Cash Flow 2-3-11-123-110
PARTICULARSMar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22Mar'23
Ratios
ROE (%)14.676.2912.2515.6811.279.82.16-9.3511.7710.17
ROCE (%)13.868.9111.4811.668.247.613.330.711.97.7
Asset Turnover Ratio0.740.630.680.70.740.60.410.450.650.6
PAT to CFO Conversion(x)26.51.80.892.660.757.17N/A0.11-1.1
Working Capital Days
Receivable Days33393737404957544654
Inventory Days871079611411111615011797126
Payable Days1481114122134241713

Rajapalayam Mills Ltd Stock News

Rajapalayam Mills Ltd FAQs

Company share prices are keep on changing according to the market conditions. The closing price of Rajapalayam Mills on 12-Apr-2024 16:59 is ₹954.1.
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 12-Apr-2024 16:59 the market cap of Rajapalayam Mills stood at ₹879.8.
The latest P/E ratio of Rajapalayam Mills as of 12-Apr-2024 16:59 is 19.82.
The latest P/B ratio of Rajapalayam Mills as of 12-Apr-2024 16:59 is 1.77.
The 52-week high of Rajapalayam Mills is ₹1,154 and the 52-week low is ₹577.0.
The TTM revenue is Trailing Twelve Months sales. The TTM revenue/sales of Rajapalayam Mills is ₹853.4 ( Cr.) .

About Rajapalayam Mills Ltd

Rajapalayam Mills, a Ramco group company, was established in 1938, founded by PAC Ramasmy Raja with 6800 spindles imported from England. Rajapalayam Mills today produces 11 million kg of yarn per year, employs more than 1000 workers and has a turnover of over Rs1818 million. It is acknowledged as the most efficient spinning mills in the industry.

Rajapalayam Mills has set the industry standard for quality and price in cotton yarn manufactured with a production increase of about 40% purely through modernization. Present capacity : 1,21,856 Spindles (including 56,080 compact spinning spindles, 11568 Eli-Twist spindles and 2400 Slub Yarn Spindles). The company is also having 2000 Rotors in Rajapalaiyam and around 2000 Rotors in Andhra Pradesh.

Textile business is the first business venture of Ramco Group with setting up of Rajapalayam Mills Ltd  in 1938.

A technologically advanced unit right from its inception, the mill’s state-of-the-art equipment ensures optimum spinning efficiency and profitability. The mill traditionally makes quality counts from 6’s to 220’s, added capacity to produce value added yarns like Compact, Elitwist, Slub, Gazzed yarn in singles and doubles. It export 80% of its spinning capacity to the highly quality-conscious markets like Japan and also to other countries like Korea, China, Hong Kong, Malaysia, Indonesia, Thailand, Pakistan, Dubai, Bahrain, Italy and Spain etc.

The mill has had stable harmonious industrial relations for over 40 years. The management has evolved a number of welfare schemes to motivate its workforce and meet the various needs of them such as cheap credit, housing loans, interest-free marriage loans, educational subsides medical aid to the public at reduced rate. It also runs many Educational Instutions to impart quality education at affordable rate to the students in and around Rajapalayam. An educational trust has been established in the name of the founder Shri PAC Ramasamy Raja, which offers many social services to uplife the living standards of people in Rajapalayam.

The instaled capacity of the mill is 96,224 spindles and 1,344 rotors. It produces over nine million Kgs of yarn per annum, employing more than 1000 workers with a turnover of over Rs. 147 crores  Rajapalayam Spintext  and Rajapalayam Textiles are the two divisions of company.

It is one of the most advanced textile mill in the country and is setting the industry standard for quality and price for many years. Rajapalayam Mills is the first in the country to acquire an Open End Spinning machine in early eighties.

Product range of the company includes:

Rajapalayam Mills Ltd is engaged in manufacture and sale of yarns

  • Ring Yarn (Ne) - 30/1 to 120/1
  • Compact Yarn (Ne) - 30/1 to 140/1
  • Elitwist Compact Yarn (Ne) - 40/2 to 200/2
  • TFO Doubled Yarn (Ne) - 40/2 to 160/2
  • Gassed Yarn (Ne) - 40/2 to 220/2
  • Slub & Multicount Yarn (Ne) - 16s to 94s
  • Model / Tencel Yarn (Ne) - 20s to 40s
  • OE Yarn (Ne) - 4s to 20s
  • Organic Cotton Yarn - 30s to 60s

Awards/ Achievements

  • Rajapalayam Mill Ltd is the first company to be awarded in South India for “Usterized” certificate from Switzerland.
  • It also bagged the coveted “Oeko-tex standard 100” certificate which assures that there are no dangerous metals present in its yarns.
  • The mill also has obtained the accredition to use “Supima Cotton” logo for excellence in quality.
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