Mehabe score: 7 G Factor: 4 Piotski Score: 7 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 4 and Piotski score of 7.
Description
Ruchi Soya Industries Limited is engaged primarily in the business of processing of oil-seeds and refining of crude oil for edible use.
Main Points
New Promoters
Subsequent to Ruchi being admitted to NCLT, the Mumbai bench of NCLT approved the resolution plan submitted by consortium of Patanjali Ayurveda Pvt Ltd. resulting in the complete makeover of its promoters and Board of Directors. Ruchi is now majority owned by various entities / members of Patanjali group. Patanjali group acquired Ruchi Soya for Rs 4,350 crores.Site:RUCHIMain Symbol:RUCHISOYA
Stock trades at 1127.0, above its 50dma 1073.82. It also trades above its 200dma 856.01. The stock remains bullish on techicals
The 52 week high is at 1377.00 and the 52week low is at 403.75
Price Chart
P/E Chart
Sales and Margin
Strengths
– has delivered good profit growth of 21.43% CAGR over last 5 years
Weakness
– Stock is trading at 8.20 times its book value
-Though the company is reporting repeated profits, it is not paying out dividend
-The company has delivered a poor sales growth of -10.04% over past five years.
-Tax rate seems low
-Promoters have pledged 99.97% of their holding.
Competition
– The industry trades at a mean P/E of 31.6x. Manorama Indust. trades at the industry’s max P/E of 94.24x. RUCHI trades at a P/E of 49.0x
– Industry’s mean G-Factor is 4.6 while the mean Piotski score is 7.0. RUCHI has a G-Factor of 4 and Piotski scoreof 7.
– Average 1 month return for industry is 4.8%. The max 1- month return was given by Vijay Solvex: a return of 60.23 %
Quarterly Results
Sales for period ended Jun 2021 is Rs 5266.0 cr compared to Rs 3043.0 cr for period ended Jun 2020, a rise of 73.1%
Operating Profits reported at Rs 331.0 cr for period ended Jun 2021 vis-vis 124.0 for period ended Jun 2020 .
Operating Margins expanded 221.1 bps for period ended Jun 2021 vis-vis Jun 2020 .
The EPS for Jun 2021 was Rs 5.87 compared to Rs 10.62 for previous quarter ended Mar 2021 and Rs 0.41 for Jun 2020
Profit & Loss Statement
Profit&Loss Comments
Company reported sales of Rs 18542.0 cr for period ended TTM vis-vis sales of Rs 16319.0 cr for the period ended Mar 2021, a healthy growth of 12.0%. The 3 year sales cagr stood at 13.4%.
Net Profit reported at Rs 842.0 cr for period ended TTM vis-vis sales of Rs 681.0 cr for the period ended Mar 2021, rising 19.1%.
Company recorded a healthy Net Profit CAGR of 122.0% 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 247.0 cr for period ended Mar 2021 vis-vis Rs -61.0 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 18.0% compared to 0% over the last 3 Years. – The stock has given a return of 61% on a 1 Year basis vis-vis a return of 394% over the last 3 Years. – The compounded sales growth on a TTM bassis is 24% vis-vis a compounded sales growth of 11% over the last 3 Years. – The compounded profit growth on a TTM basis is 198% vis-vis a compounded profit growth of 29% over the last 3 Years.
Ratios
Shareholding Pattern
– Public shareholding has remained largely constant. The Jun 2021 public holding stood at 1.1% vis-vis 1.1% for Mar 2021
Conclusion
– has delivered good profit growth of 21.43% CAGR over last 5 years – Stock is trading at 8.20 times its book value
-Though the company is reporting repeated profits, it is not paying out dividend
-The company has delivered a poor sales growth of -10.04% over past five years.
-Tax rate seems low
-Promoters have pledged 99.97% of their holding.
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 1073.82 and is trading at 1127.0, thus bullish price action wise.
