Rungta Irrigation Reports Strong Q2 FY24-25 Sales Amid Management Efficiency Concerns

Feb 10 2025 06:57 PM IST
share
Share Via
Rungta Irrigation, a microcap in the plastic products sector, recently adjusted its evaluation amid strong second-quarter FY24-25 financials, including net sales of Rs 54.45 crore. However, challenges persist with a low Return on Capital Employed and a high Debt to EBITDA ratio, indicating potential management efficiency issues.
Rungta Irrigation, a microcap player in the plastic products industry, has recently undergone an evaluation adjustment reflecting its current market standing. The company reported notable financial metrics for the second quarter of FY24-25, with net sales reaching Rs 54.45 crore and a PBDIT of Rs 3.85 crore, both marking significant highs for the period. Additionally, the operating profit to net sales ratio stood at 7.07%, indicating a solid operational performance.

Despite these positive indicators, Rungta Irrigation faces challenges in management efficiency, as evidenced by a low Return on Capital Employed (ROCE) of 2.80%. This suggests limited profitability relative to the total capital employed. Furthermore, the company has a high Debt to EBITDA ratio of 6.96 times, which raises concerns about its ability to service debt effectively.

The stock's technical indicators have shown a mildly bearish trend, with a decline of 5.77% since late January 2025. Overall, the evaluation adjustment reflects a complex picture of Rungta Irrigation's financial health and market position.

Discover the Latest Mojo Score and Financial Trend Performance - SignUp in less than 2 Minutes and get FREE Premium Access.
{{stockdata.stock.stock_name.value}} Live

{{stockdata.stock.price.value}} {{stockdata.stock.price_difference.value}} ({{stockdata.stock.price_percentage.value}}%)

{{stockdata.stock.date.value}} | BSE+NSE Vol: {{stockdata.index_name}} Vol: {{stockdata.stock.bse_nse_vol.value}} ({{stockdata.stock.bse_nse_vol_per.value}}%)


Our weekly and monthly stock recommendations are here
Loading...
{{!sm.blur ? sm.comp_name : ''}}
Industry
{{sm.old_ind_name }}
Market Cap
{{sm.mcapsizerank }}
Date of Entry
{{sm.date }}
Entry Price
Target Price
{{sm.target_price }} ({{sm.performance_target }}%)
Holding Duration
{{sm.target_duration }}
Last 1 Year Return
{{sm.performance_1y}}%
{{sm.comp_name}} price as on {{sm.todays_date}}
{{sm.price_as_on}} ({{sm.performance}}%)
Industry
{{sm.old_ind_name}}
Market Cap
{{sm.mcapsizerank}}
Date of Entry
{{sm.date}}
Entry Price
{{sm.opening_price}}
Last 1 Year Return
{{sm.performance_1y}}%
Related News