Rajapalayam Mill

Market Cap: Micro Cap
Industry: Textile
ISIN: INE296E01026
NSEID: RAJPALAYAM
BSEID: 532503

INR

833.95

9.6 (1.16%)

BSENSE

Apr 11, 12:53 PM

BSE+NSE Vol: 2.04 k

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Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

Comparison

Company

Score

Quality

Valuation

Financial

Technical

K P R Mill Ltd

Vardhman Textile

R&B Denims

RSWM Ltd

Welspun Living

Trident

Voith Paper

Swan Energy

Rajapalayam Mill

GHCL Textiles

Le Merite Export

Why is Rajapalayam Mills Ltd ?

Weak Long Term Fundamental Strength with a -133.85% CAGR growth in Operating Profits over the last 5 years

Company's ability to service its debt is weak with a poor EBIT to Interest (avg) ratio of 0.62
The company has been able to generate a Return on Equity (avg) of 3.61% signifying low profitability per unit of shareholders funds

Stock is technically in a Bearish range

The technical trend has deteriorated from Mildly Bearish on 28-Feb-25 and has generated 4.26% returns since then
Multiple factors for the stock are Bearish like MACD, Bollinger Band and KST

Risky - Negative Operating Profits

The stock is trading risky as compared to its average historical valuations
Over the past year, while the stock has generated a return of -14.50%, its profits have fallen by -21.5%

Despite the size of the company, domestic mutual funds hold only 0% of the company

Domestic mutual funds have capability to do in-depth on-the-ground research on companies- their small stake may signify either they are not comfortable at the price or the business

Real-Time Research Report

Verdict Report

How much should you sell?

All quantity irrespective of whether you are making profits or losses

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Textile )

When to re-enter? - We will constantly monitor the company and review our call based on new data

Is Rajapalayam Mill for you?

High Risk, Low Return

Absolute

Risk Adjusted

Volatility

Rajapalayam Mill

-14.5%

-0.35

41.39%

SENSEX

0.45%

0.03

14.48%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

18.69%

EBIT Growth (5y)

-133.85%

EBIT to Interest (avg)

0.62

Debt to EBITDA (avg)

13.14

Net Debt to Equity (avg)

Sales to Capital Employed (avg)

0.22

Tax Ratio

19.24%

Dividend Payout Ratio

1.24%

Pledged Shares

Institutional Holding

0.09%

ROCE (avg)

1.04%

ROE (avg)

3.61%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

Industry P/E

Price to Book Value

0.33

EV to EBIT

-1626.73

EV to EBITDA

21.58

EV to Capital Employed

0.52

EV to Sales

1.81

PEG Ratio

Dividend Yield

0.07%

ROCE (Latest)

0.25%

ROE (Latest)

-0.23%

Loading Valuation Snapshot...

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

Mildly Bearish

RSI

No Signal

Bollinger Bands

Bearish

Mildly Bearish

Moving Averages

Bearish (Daily)

KST

Bearish

Mildly Bearish

Dow Theory

Mildly Bearish

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

17What is working for the Company

NET SALES(Q)

Highest at Rs 229.34 cr

PAT(Q)

Highest at Rs 34.05 cr.

EPS(Q)

Highest at Rs 37.28

-8What is not working for the Company

OPERATING PROFIT TO INTEREST (Q)

Lowest at 0.49 times

PBDIT(Q)

Lowest at Rs 11.18 cr.

OPERATING PROFIT TO NET SALES (Q)

Lowest at 4.87%

PBT LESS OI(Q)

Lowest at Rs -30.74 cr.

Loading Valuation Snapshot...

Here's what is working for Rajapalayam Mill

Profit After Tax (PAT) - Quarterly

At Rs 34.05 cr has Grown at 3841.8 %

Year on Year (YoY)

MOJO Watch

Near term PAT trend is very positive

PAT (Rs Cr)

Net Sales - Quarterly

Highest at Rs 229.34 cr

in the last five quarters

MOJO Watch

Near term sales trend is positive

Net Sales (Rs Cr)

Profit After Tax (PAT) - Quarterly

Highest at Rs 34.05 cr.

in the last five quarters

MOJO Watch

Near term PAT trend is positive

PAT (Rs Cr)

Earnings per Share (EPS) - Quarterly

Highest at Rs 37.28

in the last five quarters

MOJO Watch

Increasing profitability; company has created higher earnings for shareholders

EPS (Rs)

Here's what is not working for Rajapalayam Mill

Profit Before Tax less Other Income (PBT) - Quarterly

At Rs -30.74 cr has Fallen at -46.38 %

Year on Year (YoY)

MOJO Watch

Near term PBT trend is very negative

PBT less Other Income (Rs Cr)

Operating Profit to Interest - Quarterly

Lowest at 0.49 times

in the last five quarters

MOJO Watch

The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

Operating Profit (PBDIT) - Quarterly

Lowest at Rs 11.18 cr.

in the last five quarters

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (Rs Cr)

Operating Profit Margin - Quarterly

Lowest at 4.87%

in the last five quarters

MOJO Watch

Company's efficiency has deteriorated

Operating Profit to Sales

Profit Before Tax less Other Income (PBT) - Quarterly

Lowest at Rs -30.74 cr.

in the last five quarters

MOJO Watch

Near term PBT trend is negative

PBT less Other Income (Rs Cr)

Non Operating Income - Quarterly

Highest at Rs 4.82 cr

in the last five quarters

MOJO Watch

Increased income from non business activities may not be sustainable

Non Operating Income