Over the past five years, Remsons Industries has recorded a sales growth rate of 10.49%, accompanied by an EBIT growth rate of 41.43%. These figures indicate a steady expansion in revenue alongside a more pronounced increase in operating earnings. The company’s average EBIT to interest coverage ratio stands at 2.91, suggesting a moderate capacity to meet interest obligations from operating profits. Meanwhile, the average debt to EBITDA ratio is 3.48, reflecting the leverage employed relative to earnings before interest, tax, depreciation, and amortisation.
Net debt to equity averages at 1.03, signalling a balanced approach to financing through debt and equity. The sales to capital employed ratio of 2.15 highlights the efficiency with which Remsons Industries utilises its capital base to generate revenue. Taxation impacts the company at a rate of 22.03%, while the dividend payout ratio remains modest at 7.86%, indicating a conservative distribution policy. Notably, pledged shares are absent, and institutional holding is relatively low at 5.92%, which may influence liquidity and investor confidence.
Momentum building strong! This Mid Cap from NBFC is on our MomentumNow radar. Other investors are catching on – will you join?
- Building momentum strength
- Investor interest growing
- Limited time advantage
Examining return metrics, Remsons Industries presents an average return on capital employed (ROCE) of 13.18% and an average return on equity (ROE) of 17.19%. These figures provide insight into the company’s ability to generate returns from its capital and shareholder equity, respectively. When compared with peers in the Auto Components & Equipments industry, Remsons Industries is positioned favourably, with its quality parameter now rated as good, whereas several competitors maintain average or below average standings.
Market performance data reveals that Remsons Industries’ stock price closed at ₹130.50, slightly down by 0.76% from the previous close of ₹131.50. The 52-week price range spans from ₹102.30 to ₹175.80, indicating notable volatility over the year. Short-term returns show a decline of 3.12% over one week, contrasting with a 0.96% gain in the Sensex index. Over one month, the stock recorded a 5.88% return, outperforming the Sensex’s 0.86% gain. However, year-to-date and one-year returns reflect negative figures of -10.80% and -15.26%, respectively, while the Sensex posted positive returns of 8.36% and 9.48% over the same periods.
Longer-term performance highlights a different narrative, with Remsons Industries delivering a 164.92% return over three years and an impressive 696.22% over five years, significantly outpacing the Sensex’s 37.31% and 91.65% returns, respectively. Over a decade, the stock’s return reaches 1405.19%, compared to the Sensex’s 232.28%, underscoring the company’s capacity for substantial wealth creation over extended periods.
Thinking about Remsons Industries ? Our real-time Verdict report breaks down everything – from financial health and peer comparison to technical signals and fair valuation for this micro-cap stock!
- Real-time Verdict available
- Financial health breakdown
- Fair valuation calculated
In summary, the revision in Remsons Industries’ quality parameter evaluation reflects a nuanced shift in its business fundamentals. The company’s financial metrics suggest a stable operational framework with moderate leverage and consistent profitability. While short-term stock performance has shown some volatility relative to the broader market, the long-term returns demonstrate a strong track record. Investors analysing Remsons Industries should consider these factors alongside sector dynamics and market conditions to form a comprehensive view of the company’s prospects.
Limited Time Only! Subscribe for Rs. 12,999 and get 1 Year of MojoOne + an Additional Year Completely FREE. Don't miss out on this exclusive offer. Claim Your Free Year →
