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RSWM Ltd. Stock Analysis

Small Cap
Evaluated by 612 users | BSE: 500350 | NSE: RSWM |
Textile
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...

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.
RSWM Ltd. has not performed well majority of the past ten years indicating its past ten year financial track record is not good
Value Creation
 Mar'11Mar'12Mar'13Mar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20
Return on Capital Employed 14.48%2.51%10.8%11.66%10.09%10.66%8.43%4.01%1.74%2.44%
Growth Parameters
Growth Parameters Colour Code Guide
Net Sales (Rs. Cr.) 2,1362,1392,6563,1313,0032,9332,9872,9402,9622,771
Y-o-Y Gr. Rt.-0.2%24.2%17.9%-4.1%-2.3%1.8%-1.6%0.8%-6.5%
Adjusted EPS (Rs.) 63.58-18.2836.8443.2836.3548.442.194.95-17.84-10.55
Y-o-Y Gr. Rt.--128.8%NA17.5%-16%33.2%-12.8%-88.3%-460.4%NA
Book Value per Share (Rs.) 126.9107.54127.2157.36188.18269.6300.77417.14361.21313.09
Adjusted Net Profit 147-42.385.310084.111299.411.7-42-24.8
Net Op. Cash Flow (Rs. Cr.) 157307230348438339222166263231
Debt to Cash Flow from Ops 7.854.446.023.722.954.126.599.185.485.03
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.
RSWM Ltd. should be analysed on a Consolidated basis
CAGR
CAGR Colour Code Guide
  9 yrs 5 yrs 3 yrs 1 yr
Net Sales 2.9%-1.6%-2.5%-6.5%
Adjusted EPS -181.9%-178.1%-163%NA
Book Value per Share 10.610.71.4-13.3
Share Price -0.4% -21.5% -36.9% -17.8%
Key Financial Parameter
Performance Ratio Colour Code Guide
 Mar'11Mar'12Mar'13Mar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20
Return on Equity (%) 58.85-15.631.3930.4220.7720.9414.911.38-4.58-3.13
Operating Profit Margin (%) 17.166.2113.2712.3711.5313.6210.937.726.156.69
Net Profit Margin (%) 7.08-2.483.273.252.83.643.220.18-0.87-0.99
Debt to Equity 4.185.484.713.562.92.242.071.551.691.57
Working Capital Days 12012710096103119137148145148
Cash Conversion Cycle 85937268667796107102100
Entity Percentage Holding
Promoters 53.16%
Institutions 1.86%
Non-Institutions 44.98%
Pledged *0.000.000.000.000.000.000.000.000.000.00
* Pledged shares as % of Promoter's holding (%)

MoneyWorks4Me analysed the past 10-year performance of RSWM Ltd. and arrived at the following conclusion:

Past 10 year's financial track record indicates that RSWM Ltd. is a below average quality company. However, for specific investment actions please connect with your investment advisor.

The 5-year analysis of RSWM Ltd.'s performance infers:

RSWM Ltd. earnings have declined by -178.1%, whereas share price has depreciated -21.5% CAGR over the past five years, indicating the company's share price is likely overvalued. However, for specific investment actions please connect with your investment advisor.

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

RSWM Ltd. share price has depreciated -7.8% annually over the past ten years.

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

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.

Puchho Befikar
SEBI Registered: Investment Adviser - INA000013323
Research Analyst - INH000000719

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