Raj Oil Mills Reports Record Sales Growth Amid Long-Term Challenges in Capital Efficiency

Raj Oil Mills, a microcap company in the edible oil industry, has recently undergone an evaluation adjustment, reflecting a revision in its score. The company reported a notable growth in net sales of 19.76% for the quarter ending September 2025, achieving a record high of Rs 40.24 crore. This marks the fifth consecutive quarter of positive results, with PBDIT reaching Rs 2.13 crore and profit before tax (PBT) less other income at Rs 1.50 crore, indicating a strong performance in the short term.
Despite these positive indicators, the company faces challenges in long-term fundamental strength, as evidenced by an average Return on Capital Employed (ROCE) of 0% over the past five years. Additionally, while the stock has generated a return of 2.11% over the past year, its profits have seen a significant rise of 267.8%. The PEG ratio stands at 0.1, suggesting a valuation that may warrant further scrutiny.

Raj Oil Mills is currently trading at a fair value compared to its peers' historical valuations, with a debt-to-equity ratio averaging 0 times. This context provides a comprehensive view of the company's current standing in the market.

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