Why is RIR Power Electronics Ltd ?
1
Poor long term growth as Operating profit has grown by an annual rate 8.90% of over the last 5 years
2
Negative results in Mar 26
- PAT(Latest six months) At Rs 1.83 cr has Grown at -53.20%
- PBT LESS OI(Q) At Rs 1.41 cr has Fallen at -36.6% (vs previous 4Q average)
- ROCE(HY) Lowest at 7.47%
3
With ROE of 5.1, it has a Very Expensive valuation with a 9.8 Price to Book Value
- 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 23.60%, its profits have fallen by -7.5% ; the PEG ratio of the company is 2.5
4
Despite the size of the company, domestic mutual funds hold only 0% of the company
- Domestic mutual funds have capability to do in-depth on-the-ground research on companies- their small stake may signify either they are not comfortable at the price or the business
How much should you sell?
- All quantity irrespective of whether you are making profits or losses
(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Other Electrical Equipment)
When to re-enter? - We will constantly monitor the company and review our call based on new data
Is RIR Power Electr for you?
High Risk, High Return
Absolute
Risk Adjusted
Volatility
RIR Power Electr
23.6%
0.20
117.73%
Sensex
-7.55%
-0.58
13.06%
Quality key factors
Factor
Value
Sales Growth (5y)
16.59%
EBIT Growth (5y)
8.90%
EBIT to Interest (avg)
6.46
Debt to EBITDA (avg)
4.99
Net Debt to Equity (avg)
-0.04
Sales to Capital Employed (avg)
0.64
Tax Ratio
29.35%
Dividend Payout Ratio
20.13%
Pledged Shares
0
Institutional Holding
9.85%
ROCE (avg)
9.23%
ROE (avg)
10.37%
Valuation Key Factors 
Factor
Value
P/E Ratio
193
Industry P/E
50
Price to Book Value
9.76
EV to EBIT
152.09
EV to EBITDA
132.98
EV to Capital Employed
10.15
EV to Sales
14.91
PEG Ratio
2.46
Dividend Yield
0.12%
ROCE (Latest)
6.67%
ROE (Latest)
5.05%
Loading Valuation Snapshot...
Technical key factors
Indicator
Weekly
Monthly
MACD
Mildly Bullish
Mildly Bearish
RSI
No Signal
No Signal
Bollinger Bands
Mildly Bearish
Bearish
Moving Averages
Bearish (Daily)
KST
Mildly Bullish
Mildly Bearish
Dow Theory
Mildly Bearish
Mildly Bullish
Technical Movement
2What is working for the Company
DEBTORS TURNOVER RATIO(HY)
Highest at 4.27 times
EPS(Q)
Highest at Rs 0.87
-9What is not working for the Company
PAT(Latest six months)
At Rs 1.83 cr has Grown at -53.20%
PBT LESS OI(Q)
At Rs 1.41 cr has Fallen at -36.6% (vs previous 4Q average
ROCE(HY)
Lowest at 7.47%
NON-OPERATING INCOME(Q)
is 42.91 % of Profit Before Tax (PBT
Loading Valuation Snapshot...
Here's what is working for RIR Power Electr
Earnings per Share (EPS) - Quarterly
Highest at Rs 0.87
in the last five quartersMOJO Watch
Increasing profitability; company has created higher earnings for shareholders
EPS (Rs)
Debtors Turnover Ratio- Half Yearly
Highest at 4.27 times
in the last five half yearly periodsMOJO Watch
Company has been able to settle its Debtors faster
Debtors Turnover Ratio
Here's what is not working for RIR Power Electr
Profit Before Tax less Other Income (PBT) - Quarterly
At Rs 1.41 cr has Fallen at -36.6% (vs previous 4Q average)
over average PBT of the previous four quarters of Rs 2.23 CrMOJO Watch
Near term PBT trend is very negative
PBT less Other Income (Rs Cr)
Profit After Tax (PAT) - Latest six months
At Rs 1.83 cr has Grown at -53.20%
Year on Year (YoY)MOJO Watch
Near term PAT trend is very negative
PAT (Rs Cr)
Non Operating Income - Quarterly
is 42.91 % of Profit Before Tax (PBT)
MOJO Watch
The company's income from non business activities is high; which is not a sustainable business model
Non Operating Income to PBT
Non Operating Income - Quarterly
Highest at Rs 1.06 cr
in the last five quartersMOJO Watch
Increased income from non business activities may not be sustainable
Non Operating Income






