Mehabe score: 4 G Factor: 1 Piotski Score: 6 The stock has a rating SELL. 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 1 and Piotski score of 6.
Description
Raj Oil Mills is one of the front runners when it comes to offering a wide variety of pure quality oils to meet every need of the discerning customer. The company offers wide range of branded oils, ranging from pure coconut oil to a variety of cooking oils ensuring the satisfaction of its ever-expanding customer base.Site:ROML
Market Cap:
Rs 138 cr
Price:
92.4
Trading pe:
34.0x
Book-value:
-7.99/share
Div yield:
0.00 %
Earning yield:
1.15%
Face-value:
10.0/share
52week high:
201.10
52week low:
3.45
Technical Analysis
Stock trades at 92.4, below its 50dma 98.09. However it is trading above its 200dma 73.12. The stock remains weak in the short term due to near term bearish momentum. However overall bullish structure remains intact. Price action will further build up as it moves above its dma50, currently situated at 98.09.
The 52 week high is at 201.10 and the 52week low is at 3.45
Price Chart
P/E Chart
Sales and Margin
Strengths
– has reduced debt.
Weakness
– Contingent liabilities of Rs.340.23 Cr.
Competition
– The industry trades at a mean P/E of 35.8x. Ruchi Soya Inds. trades at the industry’s max P/E of 96.7x. ROML trades at a P/E of 34.0x
– Industry’s mean G-Factor is 3.6 while the mean Piotski score is 8.0. ROML has a G-Factor of 1 and Piotski scoreof 6.
– Average 1 month return for industry is 1.4%. The max 1- month return was given by BCL Industries: a return of 44.89 %
Quarterly Results
Sales for period ended Mar 2021 is Rs 27.56 cr compared to Rs 20.56 cr for period ended Mar 2020, a rise of 34.0%
Company reported operating profit of Rs 0.46 cr for period ended Mar 2021, operating profit margin at 1.7 %.
Operating profit was negative for the same period last year thus company has improved its margins this year
The EPS for Mar 2021 was Rs -0.19 compared to Rs 0.69 for previous quarter ended Dec 2020 and Rs -1.25 for Mar 2020
Profit & Loss Statement
Profit&Loss Comments
Company reported sales of Rs 104.0 cr for period ended Mar 2021 vis-vis sales of Rs 83.0 cr for the period ended Mar 2020, a healthy growth of 20.2%. The 3 year sales cagr stood at 20.1%.
Operating margins expanded to 6.0% for period ended Mar 2021 vis-vis 3.0% for period ended Mar 2020, expansion of 300.0 bps.
Net Profit reported at Rs 4.0 cr for period ended Mar 2021 vis-vis sales of Rs 1.0 cr for the period ended Mar 2020, rising 0%.
Balance Sheet Statement
Cash Flow Statement
Cash Flow comments
CashFlow from operating activities: Rs 0.0 cr for period ended Mar 2021 vis-vis Rs -2.0 cr for period ended Mar 2020
Sales Growth
Profit Growth Statement
Profit Growth Statement
Stock Price CAGR
Return of Equity
General Comments
– The stock has given a return of 5332% on a 1 Year basis vis-vis a return of 275% over the last 3 Years. – The compounded sales growth on a TTM bassis is 25% vis-vis a compounded sales growth of 20% over the last 3 Years. – The compounded profit growth on a TTM basis is 179% vis-vis a compounded profit growth of -20% over the last 3 Years.
Ratios
Shareholding Pattern
– Public shareholding has remained largely constant. The Mar 2021 public holding stood at 25.0% vis-vis 25.0% for Dec 2020
Conclusion
– has reduced debt. – Contingent liabilities of Rs.340.23 Cr.
Fundamentally, the stock remains weak. The business fundamentals are on shaky ground. Weak near term results have dampened and questioned business drivers. We suggest to wait for a upturn in business performance.
Technically, the stock reflects the poor fundamentals. The stock remains below its 50 DMA 98.09 and is trading at 92.4. It has shown near term lack of bullish momentum. We suggest to observe price action. However as investors, who like to avoid timing the markets, we suggest to avoid the stock
