Why is R M Drip & Sprinklers Systems Ltd ?
1
Low ability to service debt as the company has a high Debt to EBITDA ratio of 3.45 times
- Low ability to service debt as the company has a high Debt to EBITDA ratio of 3.45 times
- The company has been able to generate a Return on Equity (avg) of 9.81% signifying low profitability per unit of shareholders funds
2
Healthy long term growth as Net Sales has grown by an annual rate of 41.10% and Operating profit at 67.74%
3
With a growth in Net Sales of 55.6%, the company declared Very Positive results in Dec 25
- The company has declared positive results for the last 2 consecutive quarters
- NET SALES(Q) Highest at Rs 74.64 cr
- PBDIT(Q) Highest at Rs 22.58 cr.
- PBT LESS OI(Q) Highest at Rs 20.84 cr.
4
With ROCE of 27.2, it has a Very Expensive valuation with a 22.3 Enterprise value to Capital Employed
- Over the past year, while the stock has generated a return of 152.95%, its profits have risen by 342% ; the PEG ratio of the company is 0.7
5
Falling Participation by Institutional Investors
- Institutional investors have decreased their stake by -0.52% over the previous quarter and collectively hold 2.85% of the company
- These investors have better capability and resources to analyse fundamentals of companies than most retail investors
How much should you hold?
- Overall Portfolio exposure to R M Drip & Sprin should be less than 10%
- Overall Portfolio exposure to Miscellaneous should be less than 30%
(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Miscellaneous)
When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock
Is R M Drip & Sprin for you?
High Risk, High Return
Absolute
Risk Adjusted
Volatility
R M Drip & Sprin
152.95%
4.59
33.34%
Sensex
5.37%
0.47
11.36%
Quality key factors
Factor
Value
Sales Growth (5y)
41.10%
EBIT Growth (5y)
67.74%
EBIT to Interest (avg)
4.39
Debt to EBITDA (avg)
1.15
Net Debt to Equity (avg)
0.41
Sales to Capital Employed (avg)
1.44
Tax Ratio
25.56%
Dividend Payout Ratio
0
Pledged Shares
0
Institutional Holding
2.85%
ROCE (avg)
12.86%
ROE (avg)
9.81%
Valuation Key Factors 
Factor
Value
P/E Ratio
112
Industry P/E
34
Price to Book Value
30.96
EV to EBIT
81.84
EV to EBITDA
76.21
EV to Capital Employed
22.28
EV to Sales
20.88
PEG Ratio
0.67
Dividend Yield
0.04%
ROCE (Latest)
27.22%
ROE (Latest)
27.60%
Loading Valuation Snapshot...
25What is working for the Company
NET SALES(Q)
Highest at Rs 74.64 cr
PBDIT(Q)
Highest at Rs 22.58 cr.
PBT LESS OI(Q)
Highest at Rs 20.84 cr.
PAT(Q)
Highest at Rs 14.05 cr.
EPS(Q)
Highest at Rs 5.62
0What is not working for the Company
NO KEY NEGATIVE TRIGGERS
Loading Valuation Snapshot...
Here's what is working for R M Drip & Sprin
Net Sales - Quarterly
At Rs 74.64 cr has Grown at 55.05%
Year on Year (YoY)MOJO Watch
Near term sales trend is very positive
Net Sales (Rs Cr)
Profit Before Tax less Other Income (PBT) - Quarterly
At Rs 20.84 cr has Grown at 55.41%
Year on Year (YoY)MOJO Watch
Near term PBT trend is very positive
PBT less Other Income (Rs Cr)
Net Sales - Quarterly
Highest at Rs 74.64 cr
in the last five quartersMOJO Watch
Near term sales trend is positive
Net Sales (Rs Cr)
Operating Profit (PBDIT) - Quarterly
Highest at Rs 22.58 cr.
in the last five quartersMOJO Watch
Near term Operating Profit trend is positive
Operating Profit (Rs Cr)
Profit Before Tax less Other Income (PBT) - Quarterly
Highest at Rs 20.84 cr.
in the last five quartersMOJO Watch
Near term PBT trend is positive
PBT less Other Income (Rs Cr)
Profit After Tax (PAT) - Quarterly
Highest at Rs 14.05 cr.
in the last five quartersMOJO Watch
Near term PAT trend is positive
PAT (Rs Cr)
Profit After Tax (PAT) - Quarterly
At Rs 14.05 cr has Grown at 36.8%
Year on Year (YoY)MOJO Watch
Near term PAT trend is positive
PAT (Rs Cr)
Earnings per Share (EPS) - Quarterly
Highest at Rs 5.62
in the last five quartersMOJO Watch
Increasing profitability; company has created higher earnings for shareholders
EPS (Rs)






