Ruchira Papers Ltd (RUCHIRA) 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

Ludlow Jute

Ruchira Papers

Cheviot Company

S. V. J. Enterp.

Genus Paper & Bo

Emami Paper

Star Paper Mills

Pakka

Shree Rama News.

Orient Paper

Nikita Greentech

Why is Ruchira Papers Ltd ?

High Management Efficiency with a high ROCE of 15.44%

Strong ability to service debt as the company has a low Debt to EBITDA ratio of 0.88 times

Healthy long term growth as Operating profit has grown by an annual rate 144.71%

ROCE(HY) Lowest at 13.60%
PAT(Q) At Rs 15.60 cr has Fallen at -10.3% (vs previous 4Q average)
PBDIT(Q) Lowest at Rs 24.70 cr.

With ROCE of 12.8, it has a Very Attractive valuation with a 0.8 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 -14.69%, its profits have risen by 36.8% ; the PEG ratio of the company is 0.1
At the current price, the company has a high dividend yield of 4.2

Majority shareholders : Promoters

Consistent Underperformance against the benchmark over the last 3 years

Along with generating -14.69% 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 Ruchira Papers should be less than 10%
Overall Portfolio exposure to Paper, Forest & Jute Products should be less than 30%

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Paper, Forest & Jute Products)

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

Is Ruchira Papers for you?

High Risk, Low Return

Absolute

Risk Adjusted

Volatility

Ruchira Papers

-14.5%

-0.43

33.95%

Sensex

4.83%

0.41

11.83%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

11.69%

EBIT Growth (5y)

144.71%

EBIT to Interest (avg)

16.32

Debt to EBITDA (avg)

0.99

Net Debt to Equity (avg)

0.38

Sales to Capital Employed (avg)

1.48

Tax Ratio

24.22%

Dividend Payout Ratio

22.16%

Pledged Shares

Institutional Holding

0.96%

ROCE (avg)

14.68%

ROE (avg)

12.88%

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

0.71

EV to EBIT

6.21

EV to EBITDA

5.20

EV to Capital Employed

0.79

EV to Sales

0.82

PEG Ratio

0.14

Dividend Yield

4.20%

ROCE (Latest)

12.75%

ROE (Latest)

13.54%

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Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

Mildly Bearish

RSI

No Signal

Bollinger Bands

Bearish

Moving Averages

Bearish (Daily)

KST

Bearish

Mildly Bearish

Dow Theory

No Trend

OBV

Mildly Bearish

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

5What is working for the Company

OPERATING CF(Y)

Highest at Rs 91.94 Cr

PAT(9M)

At Rs 50.98 cr has Grown at 21.12%

DPS(Y)

Highest at Rs 5.00

-12What is not working for the Company

ROCE(HY)

Lowest at 13.60%

PAT(Q)

At Rs 15.60 cr has Fallen at -10.3% (vs previous 4Q average

PBDIT(Q)

Lowest at Rs 24.70 cr.

OPERATING PROFIT TO NET SALES (Q)

Lowest at 14.82%

PBT LESS OI(Q)

Lowest at Rs 19.75 cr.

EPS(Q)

Lowest at Rs 5.23

Loading Valuation Snapshot...

Here's what is working for Ruchira Papers

Operating Cash Flow - Annually

Highest at Rs 91.94 Cr

in the last three years

MOJO Watch

The company has generated higher cash revenues from business operations

Operating Cash Flows (Rs Cr)

Dividend per Share (DPS) - Annually

Highest at Rs 5.00

in the last five years

MOJO Watch

Company is distributing higher dividend from profits generated

DPS (Rs)

Here's what is not working for Ruchira Papers

Profit After Tax (PAT) - Quarterly

At Rs 15.60 cr has Fallen at -10.3% (vs previous 4Q average)

over average PAT of the previous four quarters of Rs 17.38 Cr

MOJO Watch

Near term PAT trend is very negative

PAT (Rs Cr)

Operating Profit (PBDIT) - Quarterly

Lowest at Rs 24.70 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 14.82%

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 19.75 cr.

in the last five quarters

MOJO Watch

Near term PBT trend is negative

PBT less Other Income (Rs Cr)

Profit Before Tax less Other Income (PBT) - Quarterly

At Rs 19.75 cr has Fallen at -8.7% (vs previous 4Q average)

over average PBT of the previous four quarters of Rs 21.63 Cr

MOJO Watch

Near term PBT trend is negative

PBT less Other Income (Rs Cr)

Earnings per Share (EPS) - Quarterly

Lowest at Rs 5.23

in the last five quarters

MOJO Watch

Declining profitability; company has created lower earnings for shareholders

EPS (Rs)