Mehabe score: 7 G Factor: 5 Piotski Score: 6 The stock has a rating 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 5 and Piotski score of 6.
Description
Rajnandini Metal is engaged in carrying the business of manufacturing, trading or otherwise deal in the Steel, Iron, Iron Alloy, Castings, various kind of chemicals, furnace oils, petrolium products. Site:RAJMET Main Symbol:RAJMET
Stock trades at 212.0, above its 50dma 177.21. It also trades above its 200dma 132.03. The stock remains bullish on techicals
The 52 week high is at 212.30 and the 52week low is at 20.47
Price Chart
P/E Chart
Sales and Margin
Strengths
– is expected to give good quarter
-Debtor days have improved from 40.38 to 21.85 days.
Weakness
– Stock is trading at 16.69 times its book value
-Though the company is reporting repeated profits, it is not paying out dividend
Competition
– The industry trades at a mean P/E of 42.8x. Adani Enterp. trades at the industry’s max P/E of 163.25x. RAJMET trades at a P/E of 46.1x
– Industry’s mean G-Factor is 3.5 while the mean Piotski score is 8.0. RAJMET has a G-Factor of 5 and Piotski scoreof 6.
– Average 1 month return for industry is 1.0%. The max 1- month return was given by Rajnandini Metal: a return of 19.55 %
Quarterly Results
Sales for period ended Dec 2021 is Rs 260.3 cr compared to Rs 210.43 cr for period ended Dec 2020, a rise of 23.7% .
vis-vis 3.61 for period ended Dec 2020 .
Operating Margins expanded 15.9 bps for period ended Dec 2021 vis-vis Dec 2020.
Company reported operating profit of Rs 4.88 cr for period ended Dec 2021 and operating profit margin at 1.9 % for same period.
The EPS for quarter ended Dec 2021 is Rs 1.62 compared to Rs 1.23 for previous quarter ended Sep 2021 and Rs 0.99 for Dec 2020.
Profit & Loss Statement
Profit&Loss Comments
Company reported sales of Rs 895.0 cr for period ended TTM vis-vis sales of Rs 631.0 cr for the period ended Mar 2021, a healthy growth of 29.5%. The 3 year sales cagr stood at 86.9%.
Net Profit reported at Rs 8.0 cr for period ended TTM vis-vis sales of Rs 5.0 cr for the period ended Mar 2021, rising 37.5%.
Company recorded a healthy Net Profit CAGR of 100.0% over the last 3 years
Balance Sheet Statement
Cash Flow Statement
Cash Flow comments
CashFlow from operating activities was positive.
CashFlow from operating activities: Rs 5.0 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 company has improved its Return on Equity (RoE) metric. The RoE on Last Year basis was 30.0% compared to 17.0% over the last 3 Years. – The stock has given a return of 898% on a 1 Year basis vis-vis a return of 189% over the last 3 Years. – The compounded sales growth on a TTM bassis is 92% vis-vis a compounded sales growth of 65% over the last 3 Years. – The compounded profit growth on a TTM basis is 128% vis-vis a compounded profit growth of 75% over the last 3 Years.
Ratios
Conclusion
– is expected to give good quarter
-Debtor days have improved from 40.38 to 21.85 days. – Stock is trading at 16.69 times its book value
-Though the company is reporting repeated profits, it is not paying out dividend
The business fundamentals of the stock remain stable. Stronger near term results will build interest in the stock. We suggest to wait for a upturn in business performance.
Technically, the stock remains above its 50 DMA 177.21 and is trading at 212.0, thus bullish price action wise.
