Rajratan Global Wire Ltd (RAJRATAN) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

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Comparison

Company

Score

Quality

Valuation

Financial

Technical

Automotive Axles

Carraro India

Uniparts India

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Rajratan Global

NRB Bearings

MM Forgings

Federal-Mogul Go

Rane (Madras)

Divgi Torq

Sundaram Clayton

Why is Rajratan Global Wire Ltd ?

High Management Efficiency with a high ROCE of 20.17%

Poor long term growth as Operating profit has grown by an annual rate 13.67% of over the last 5 years

Positive results in Dec 25

OPERATING PROFIT TO INTEREST(Q) Highest at 5.59 times
CASH AND CASH EQUIVALENTS(HY) Highest at Rs 36.25 cr
NET SALES(Q) Highest at Rs 301.53 cr

With ROCE of 11.1, it has a Fair valuation with a 2.7 Enterprise value to Capital Employed

The stock is trading at a discount compared to its peers' average historical valuations
Over the past year, while the stock has generated a return of -4.20%, its profits have risen by 9.6% ; the PEG ratio of the company is 3.3

Majority shareholders : Promoters

Consistent Underperformance against the benchmark over the last 3 years

Along with generating -4.20% returns in the last 1 year, the stock has also underperformed BSE500 in each of the last 3 annual periods

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Rajratan Global should be less than 10%
Overall Portfolio exposure to Auto Components & Equipments should be less than 30%

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

When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock

Is Rajratan Global for you?

High Risk, Low Return

Absolute

Risk Adjusted

Volatility

Rajratan Global

-5.1%

-0.08

53.65%

Sensex

7.89%

0.71

11.23%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

17.54%

EBIT Growth (5y)

13.67%

EBIT to Interest (avg)

6.65

Debt to EBITDA (avg)

1.60

Net Debt to Equity (avg)

0.56

Sales to Capital Employed (avg)

1.40

Tax Ratio

23.47%

Dividend Payout Ratio

17.26%

Pledged Shares

Institutional Holding

8.76%

ROCE (avg)

21.18%

ROE (avg)

21.60%

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

3.69

EV to EBIT

21.77

EV to EBITDA

17.70

EV to Capital Employed

2.73

EV to Sales

2.34

PEG Ratio

3.32

Dividend Yield

0.46%

ROCE (Latest)

11.08%

ROE (Latest)

9.72%

Loading Valuation Snapshot...

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

Mildly Bullish

RSI

No Signal

Bollinger Bands

Mildly Bullish

Bearish

Moving Averages

Mildly Bullish (Daily)

KST

Bullish

Mildly Bullish

Dow Theory

Mildly Bearish

Mildly Bullish

OBV

No Trend

Bullish

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

OPERATING PROFIT TO INTEREST(Q)

Highest at 5.59 times

CASH AND CASH EQUIVALENTS(HY)

Highest at Rs 36.25 cr

NET SALES(Q)

Highest at Rs 301.53 cr

PBDIT(Q)

Highest at Rs 40.39 cr.

PBT LESS OI(Q)

Highest at Rs 26.17 cr.

PAT(Q)

Highest at Rs 20.69 cr.

EPS(Q)

Highest at Rs 4.08

-4What is not working for the Company

ROCE(HY)

Lowest at 11.02%

DEBT-EQUITY RATIO(HY)

Highest at 0.62 times

Loading Valuation Snapshot...

Here's what is working for Rajratan Global

Operating Profit to Interest - Quarterly

Highest at 5.59 times

in the last five quarters

MOJO Watch

The company's ability to manage interest payments is improving

Operating Profit to Interest

Net Sales - Quarterly

Highest at Rs 301.53 cr

in the last five quarters

MOJO Watch

Near term sales trend is positive

Net Sales (Rs Cr)

Operating Profit (PBDIT) - Quarterly

Highest at Rs 40.39 cr.

in the last five quarters

MOJO Watch

Near term Operating Profit trend is positive

Operating Profit (Rs Cr)

Profit Before Tax less Other Income (PBT) - Quarterly

Highest at Rs 26.17 cr.

in the last five quarters

MOJO Watch

Near term PBT trend is positive

PBT less Other Income (Rs Cr)

Profit After Tax (PAT) - Quarterly

Highest at Rs 20.69 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 4.08

in the last five quarters

MOJO Watch

Increasing profitability; company has created higher earnings for shareholders

EPS (Rs)

Cash and Cash Equivalents - Half Yearly

Highest at Rs 36.25 cr

in the last six half yearly periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Here's what is not working for Rajratan Global

Debt-Equity Ratio - Half Yearly

Highest at 0.62 times

in the last five half yearly periods

MOJO Watch

The company is borrowing more to fund its operations; it's liquidity situation may be stressed

Debt-Equity Ratio