[s2If !current_user_can(access_s2member_level4)]This is premium content. You can get immediate access by becoming a valued Premium Member for India Portfolio. Click “Pay Now” and get access. Annual Membership Fee: Rs 20,000 only. (No other fee)
Access to company research of over 3900 publicly traded Indian companies.
Different Scoring of companies enabling quick decision to Buy, Sell, Hold, Avoid.
High quality portfolios of Indian companies
Excellent support
Access to private consultation via email and telegram
or you can visit India Membership page Login below to access company research.[lwa][/s2If] [s2If current_user_can(access_s2member_level4)]
Our Rating: OBSERVE & HOLD
Mehabe score: 4 G Factor: 3 Piotski Score: 5 The stock has a rating OBSERVE & HOLD. The mehabe team score is reflective of its fundamental and technical merits. A rating above 8 is considered good buy. The stock has a G-Factor of 3 and Piotski score of 5.
Description
Rajoo Engineers is mainly engaged in the manufacturing and selling a reputed brand of Plastic Processing Machineries and Post Extrusion Equipment. The company caters to both domestic and international markets.Site:522257
Market Cap:
Rs 194 cr
Price:
31.6
Trading pe:
18.7x
Book-value:
12.8/share
Div yield:
0.00 %
Earning yield:
5.76%
Face-value:
1.00/share
52week high:
32.80
52week low:
8.50
Technical Analysis
Stock trades at 31.6, above its 50dma 25.19. It also trades above its 200dma 18.8. The stock remains bullish on techicals
The 52 week high is at 32.80 and the 52week low is at 8.50
Price Chart
P/E Chart
Sales and Margin
Strengths
– has reduced debt.
– is almost debt free.
– is expected to give good quarter
-Debtor days have improved from 40.08 to 27.23 days.
Weakness
– Though the company is reporting repeated profits, it is not paying out dividend
-The company has delivered a poor sales growth of 7.34% over past five years.
– has a low return on equity of 9.76% for last 3 years.
Competition
– The industry trades at a mean P/E of 24.5x. MTAR Technologie trades at the industry’s max P/E of 67.33x. 522257 trades at a P/E of 18.7x
– Industry’s mean G-Factor is 2.9 while the mean Piotski score is 9.0. 522257 has a G-Factor of 3 and Piotski scoreof 5.
– Average 1 month return for industry is 22.3%. The max 1- month return was given by The Anup Enginee: a return of 55.72 %
Quarterly Results
Profit & Loss Statement
Profit&Loss Comments
Company reported sales of Rs 152.0 cr for period ended Mar 2021 vis-vis sales of Rs 93.0 cr for the period ended Mar 2020, a healthy growth of 38.8%. The 3 year sales cagr stood at 1.6%.
Operating margins expanded to 12.0% for period ended Mar 2021 vis-vis 8.0% for period ended Mar 2020, expansion of 400.0 bps.
Net Profit reported at Rs 10.0 cr for period ended Mar 2021 vis-vis sales of Rs 1.0 cr for the period ended Mar 2020, rising 90.0%.
Company reported a poor Net Profit CAGR of -5.9% over the last 3 years
Balance Sheet Statement
Cash Flow Statement
Cash Flow comments
Sales Growth
Profit Growth Statement
Profit Growth Statement
Stock Price CAGR
Return of Equity
General Comments
– The company has improved its Return on Equity (RoE) metric. The RoE on Last Year basis was 14.0% compared to 10.0% over the last 3 Years. – The stock has given a return of 226% on a 1 Year basis vis-vis a return of -12% over the last 3 Years. – The compounded sales growth on a TTM bassis is 63% vis-vis a compounded sales growth of 2% over the last 3 Years. – The compounded profit growth on a TTM basis is 603% vis-vis a compounded profit growth of -5% over the last 3 Years.
Ratios
Shareholding Pattern
– FII shareholding has remained largely constant. The Mar 2021 fii holding stood at 0.0% vis-vis 0.0% for Dec 2020 – Public shareholding has remained largely constant. The Mar 2021 public holding stood at 34.19% vis-vis 34.19% for Dec 2020
Conclusion
– has reduced debt.
– is almost debt free.
– is expected to give good quarter
-Debtor days have improved from 40.08 to 27.23 days. – Though the company is reporting repeated profits, it is not paying out dividend
-The company has delivered a poor sales growth of 7.34% over past five years.
– has a low return on equity of 9.76% for last 3 years.
Fundamentally, the stock remains weak on business fundamentals. Weak near term results have dampened and questioned business drivers. We suggest to wait for a upturn in business performance.
Technically, the stock trades above its 50 DMA 25.19 and is trading at 31.6 It has shown near term bullish momentum contrary to business fundamentals. We suggest to observe price action. However as investors, who like to avoid timing the markets, we suggest to avoid the stock
