Rajapalayam Mills Ltd Stock Analysis

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

BSE Share Price 06-Dec-2022 18:01
735.85 -3.05 (-0.41%)

DeciZen - Make an Informed Decision on Rajapalayam Mills

Overall Rating

1. Quality

2. Valuation

Fair

3. Price Trend

Rajapalayam Mills Price Chart

P/E Ratio (SA) :
11.20
Market Cap :
635.9 Cr.
52-wk low :
700
52-wk high :
1,398
Bole Toh?

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 Fair 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'13Mar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22TTM
ROCE % 9.2%9.2%4.7%8.5%10.4%8.1%6.8%3.2%0.9%4.4%-
Value Creation Index -0.3-0.3-0.7-0.4-0.3-0.4-0.5-0.8-0.9-0.7-

Growth Parameters

Growth Parameters Colour Code Guide

Sales 345434389396410430416361415692793
YoY Gr. Rt. %-25.9%-10.4%2%3.5%4.7%-3.2%-13.3%15%66.9%-
Adj EPS 30.634.36.631.149.738.936.210.1-31.616.866
YoY Gr. Rt. %-12%-80.8%371.9%59.9%-21.8%-7%-72.1%-413%NA-
BVPS (₹) 228.3243254.7275321354.1384.3387.6368440.3480.7
Adj Net Profit 23.526.45.123.938.229.927.87.8-23.314.557
Cash Flow from Ops. 42.654.277.845.33276.521.543.333.93.5-
Debt/CF from Ops. 6.76.646.38.83.121.313.518.2211-

CAGR

CAGR Colour Code Guide

9 Years 5 Years 3 Years 1 Years
Sales 8.1%11%18.5%66.9%
Adj EPS -6.4%-19.5%-22.5%NA
BVPS 7.66.54.619.7
Share Price 12.7% -6.5% -0.1% -20.4%

Key Financial Parameters

Performance Ratio Colour Code Guide

Mar'13Mar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22TTM
Return on Equity % 14.214.62.711.716.711.59.82.6-8.24.514.3
Op. Profit Mgn % 21.7211215.219.914.613.311.110.61917
Net Profit Mgn % 6.86.11.369.376.72.2-5.62.17.2
Debt to Equity 1.61.91.61.41.10.91.622.321
Working Cap Days 190195219179185184234294225185225
Cash Conv. Cycle 881121411281431441541891571330

Recent Performance Summary

Return on Equity has increased versus last 3 years average to 14.30%

Sales growth is growing at healthy rate in last 3 years 18.52%

Debt to equity has declined versus last 3 years average to 1.96

Sales growth is good in last 4 quarters at 42.97%

Net Profit has been subdued in last 3 years -22.52%

Latest Financials - Rajapalayam Mills Ltd.

Standalone Consolidated
TTM EPS (₹) 66 91.7
TTM Sales (₹ Cr.) 793 793
BVPS (₹.) 480.7 2,522.8
Reserves (₹ Cr.) 405 2,162
P/BV 1.54 0.29
PE 11.20 8.06
From the Market
52 Week Low / High (₹) 700.00 / 1398.00
All Time Low / High (₹) 67.65 / 1518.51
Market Cap (₹ Cr.) 636
Equity (₹ Cr.) 8.6
Face Value (₹) 10
Industry PE 11.5

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 (%)

News

Rajapalayam Mills Ltd FAQs

Company share prices are keep on changing according to the market conditions. The closing price of Rajapalayam Mills on 06-Dec-2022 18:01 is : 735.9.
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 06-Dec-2022 18:01 the market cap of Rajapalayam Mills stood at ₹ 635.9.
The latest PE ratio of Rajapalayam Mills as of 06-Dec-2022 18:01 is 11.20.
The latest PB ratio of Rajapalayam Mills as of 06-Dec-2022 18:01 is 1.54
The 52-week high of Rajapalayam Mills is ₹ 1,398 and the 52-week low is ₹ 700.0.
The TTM revenue is Trailing Twelve Months sales. The TTM revenue / sales of Rajapalayam Mills is ₹ 792.7 ( 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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