RRIL Ltd (RRIL) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

Comparison

Company

Score

Quality

Valuation

Financial

Technical

VIP Clothing

Active Clothing

Maral Overseas

Super Sales Ind.

Atvo Enterprises

RRIL

Saraswati Saree

DCM Nouvelle

Brand Concepts

Omnitex Industri

C P S Shapers

Why is RRIL Ltd ?

Weak Long Term Fundamental Strength with an average Return on Capital Employed (ROCE) of 8.37%

Poor long term growth as Net Sales has grown by an annual rate of 10.07% and Operating profit at 6.48% over the last 5 years

Flat results in Mar 26

NET SALES(Q) At Rs 27.40 cr has Fallen at -12.4% (vs previous 4Q average)
CASH AND CASH EQUIVALENTS(HY) Lowest at Rs 0.09 cr
PBDIT(Q) Lowest at Rs 1.75 cr.

With ROCE of 6.5, it has a Very Expensive valuation with a 2 Enterprise value to Capital Employed

The stock is trading at a premium compared to its peers' average historical valuations
Over the past year, while the stock has generated a return of 10.99%, its profits have risen by 26.6% ; the PEG ratio of the company is 1.1

Real-Time Research Report

Verdict Report

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 Garments & Apparels)

When to re-enter? - We will constantly monitor the company and review our call based on new data

Is RRIL for you?

High Risk, High Return

Absolute

Risk Adjusted

Volatility

RRIL

10.99%

0.28

38.75%

Sensex

-7.92%

-0.61

13.09%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

10.07%

EBIT Growth (5y)

6.48%

EBIT to Interest (avg)

6.79

Debt to EBITDA (avg)

1.35

Net Debt to Equity (avg)

0.16

Sales to Capital Employed (avg)

1.02

Tax Ratio

22.73%

Dividend Payout Ratio

Pledged Shares

Institutional Holding

0.00%

ROCE (avg)

8.08%

ROE (avg)

7.91%

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

2.16

EV to EBIT

30.61

EV to EBITDA

25.33

EV to Capital Employed

2.00

EV to Sales

2.17

PEG Ratio

1.07

Dividend Yield

ROCE (Latest)

6.53%

ROE (Latest)

7.61%

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Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

Mildly Bullish

RSI

No Signal

Bollinger Bands

Bullish

Moving Averages

Mildly Bearish (Daily)

KST

Bullish

Mildly Bullish

Dow Theory

Mildly Bullish

No Trend

OBV

Bullish

No Trend

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

7What is working for the Company

DEBTORS TURNOVER RATIO(HY)

Highest at 10.14 times

PAT(Q)

Highest at Rs 2.94 cr.

EPS(Q)

Highest at Rs 0.24

-7What is not working for the Company

NET SALES(Q)

At Rs 27.40 cr has Fallen at -12.4% (vs previous 4Q average

CASH AND CASH EQUIVALENTS(HY)

Lowest at Rs 0.09 cr

PBDIT(Q)

Lowest at Rs 1.75 cr.

OPERATING PROFIT TO NET SALES (Q)

Lowest at 6.39%

PBT LESS OI(Q)

Lowest at Rs 1.02 cr.

NON-OPERATING INCOME(Q)

is 60.31 % of Profit Before Tax (PBT

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Here's what is working for RRIL

Profit After Tax (PAT) - Quarterly

At Rs 2.94 cr has Grown at 51.9% (vs previous 4Q average)

over average PAT of the previous four quarters of Rs 1.94 Cr

MOJO Watch

Near term PAT trend is very positive

PAT (Rs Cr)

Profit After Tax (PAT) - Quarterly

Highest at Rs 2.94 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 0.24

in the last five quarters

MOJO Watch

Increasing profitability; company has created higher earnings for shareholders

EPS (Rs)

Debtors Turnover Ratio- Half Yearly

Highest at 10.14 times

in the last five half yearly periods

MOJO Watch

Company has been able to settle its Debtors faster

Debtors Turnover Ratio

Here's what is not working for RRIL

Net Sales - Quarterly

At Rs 27.40 cr has Fallen at -12.4% (vs previous 4Q average)

over average Net Sales of the previous four quarters of Rs 31.28 Cr

MOJO Watch

Near term sales trend is very negative

Net Sales (Rs Cr)

Operating Profit (PBDIT) - Quarterly

Lowest at Rs 1.75 cr.

in the last five quarters

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (Rs Cr)

Operating Profit Margin - Quarterly

Lowest at 6.39%

in the last five quarters

MOJO Watch

Company's efficiency has deteriorated

Operating Profit to Sales

Profit Before Tax less Other Income (PBT) - Quarterly

Lowest at Rs 1.02 cr.

in the last five quarters

MOJO Watch

Near term PBT trend is negative

PBT less Other Income (Rs Cr)

Non Operating Income - Quarterly

is 60.31 % 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

Cash and Cash Equivalents - Half Yearly

Lowest at Rs 0.09 cr

in the last six half yearly periods

MOJO Watch

Short Term liquidity is deteriorating

Cash and Cash Equivalents

Non Operating Income - Quarterly

Highest at Rs 1.55 cr

in the last five quarters

MOJO Watch

Increased income from non business activities may not be sustainable

Non Operating Income