RSWM Ltd Stock Analysis

BSE: 500350 | NSE: RSWM | Textile | Small Cap

BSE Share Price Aug 05, 18:03
402.50 8.55 (2.17%)

DeciZen - Make an Informed Decision on RSWM

Overall Rating

1. Quality

2. Valuation

Fair

3. Price Trend

RSWM Price Chart

P/E Ratio (CD) :
3.85
Market Cap :
947.9 Cr.
52-wk low :
284.2
52-wk high :
572.6
Bole Toh?

1. Is RSWM Ltd a good quality company?

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

2. Is RSWM Ltd undervalued or overvalued?

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

3. Is RSWM Ltd a good buy now?

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

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.
RSWM 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'12Mar'13Mar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21TTM
ROCE % 2.5%10.8%11.7%10.1%10.7%8.4%4%1.7%2.4%3.7%-
Value Creation Index -0.8-0.2-0.2-0.3-0.2-0.4-0.7-0.9-0.8-0.7-

Growth Parameters

Growth Parameters Colour Code Guide

Sales 2,1392,6563,1313,0032,9332,9872,9402,9622,7712,3263,817
YoY Gr. Rt. %-24.2%17.9%-4.1%-2.3%1.8%-1.6%0.8%-6.5%-16.1%-
Adj EPS -18.336.843.336.448.442.25-17.8-10.63.4104.6
YoY Gr. Rt. %-NA17.5%-16%33.2%-12.8%-88.3%-460.4%NANA-
BVPS (₹) 107.5127.2157.4188.2269.6300.8417.1361.2313.1336.2439.7
Adj Net Profit -42.385.310084.111299.411.7-42-24.88.1246
Cash Flow from Ops. 307230348438339222166263231320-
Debt/CF from Ops. 4.463.734.16.69.25.552.9-

CAGR

CAGR Colour Code Guide

9 Years 5 Years 3 Years 1 Years
Sales 0.9%-4.5%-7.5%-16.1%
Adj EPS NA-41.1%-11.5%NA
BVPS 13.54.5-6.97.4
Share Price 15% 0.9% 51.3% -0.5%

Key Financial Parameters

Performance Ratio Colour Code Guide

Mar'12Mar'13Mar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21TTM
Return on Equity % -15.631.430.420.820.914.91.4-4.6-3.11.127
Op. Profit Mgn % 6.213.312.411.513.610.97.76.26.77.611.3
Net Profit Mgn % -2.53.33.32.83.63.20.2-0.9-10.46.5
Debt to Equity 5.54.73.62.92.22.11.61.71.61.20.4
Working Cap Days 12710096103119137148145148168100
Cash Conv. Cycle 93726866779610710210011120

Recent Performance Summary

Return on Equity has increased versus last 3 years average to 26.90%

Sales growth is good in last 4 quarters at 97.24%

Sales growth has been subdued in last 3 years -7.51%

Net Profit has been subdued in last 3 years -11.51%

Debt to equity has increased versus last 3 years average to 1.16

Latest Financials - RSWM Ltd.

Standalone Consolidated
TTM EPS (₹) 101.9 104.6
TTM Sales (₹ Cr.) 3,817 3,817
BVPS (₹.) 424 439.7
Reserves (₹ Cr.) 975 1,012
P/BV 0.95 0.91
PE 3.95 3.85
From the Market
52 Week Low / High (₹) 284.20 / 572.60
All Time Low / High (₹) 9.10 / 572.60
Market Cap (₹ Cr.) 948
Equity (₹ Cr.) 23.6
Face Value (₹) 10
Industry PE 20.6

Management X-Ray of RSWM :

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

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Key Ratios of RSWM

Adj EPS (Rs.)
Sales (Cr.)
ROE (%)
ROCE (%)

News

About RSWM Ltd

RSWM, incorporated in 1960 as Rajasthan Spinning & Weaving Mills, has business interests in areas of yarn, fabrics, garments and denim. It is one of the largest producers and exporters of polyester viscose blended yarn in the country. RSWM has built one of the most impressive textile manufacturing infrastructures in the country -- 8 state-of-the-art manufacturing plants; 360.000 spindle machines; 176 looms: 100,000 MTA yarn capacity: 35.6 MMA fabric capacity, including denim fabric. The company is part of the LNJ Bhilwara Group. RSWM markets its products under the brand name Mayur Suitings for which it roped in Salman Khan as its brand ambassador.

RSWM possesses strengths and expertise to deliver India’s largest quantities of grey, dyed and melange yarn, while specializing in technical fabric. It is equipped with in-house fabric weaving and processing facilities, with an installed capacity of 12 million metres per annum. Modern technologies and world-class skills have enabled the company to produce the finest quality adhering to stringent international norms. The company has a state-of-the-art garment unit for global customers with a capacity to deliver 13,000 units daily. RSWN also operates 46 MW Captive Thermal Power Plant at Mordi

The company acquired 50% equity stake in SISA SA, Spain that has enhances its presence in higher value added international yarn market.

RSWM exports a complete range of yarn, fabric and garments to over 60 countries across Europe, South Africa, Australia, Korea, Belgium, Singapore, Italy, Egypt and the Gulf countries. With nearly 50% of RSWM's production exported, the company has a significant presence in the world of textiles.

The compnay has also been recognised as a Golden Trading House by the Government of India, having won the prestigious SRTEPC Export Award for several consecutive years.

RSWM set up a 100% subsidiary under the name RSWM International BV Holland. The company also acquired a Bengaluru based textile unit -- Cheslind Textile.

Awards and Recognition

  • RSWM was felicitated with the Rajiv Gandhi National Quality Award.
  • RSWM received the Niryat Shree award-Certificate of Excellence in the Textile and Textile Products (non-SSI) category for the year 2005-2006.
  • RSWM's Rishabhdev unit bagged National Export Award. The unit also bagged SRTEPC Excellence award for highest production in export of 100% Polyester spun yarn.
  • RSWM won the 2007 Excellence Award for Financial Performance and Analysis by Rajasthan Chamber of Commerce and Industry, Jaipur. 

Future Plans

RSWM expects to improve in all its existing businesses, especially due to reduction in the cost of energy with the thermal power plant. Equally, it expects its technologically modern and scaled-up operations to contribute more significantly to the company's performance in the future.

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