Why is Rungta Irrigation Ltd ?
1
Poor Management Efficiency with a low ROCE of 4.69%
- The company has been able to generate a Return on Capital Employed (avg) of 4.69% signifying low profitability per unit of total capital (equity and debt)
2
Low ability to service debt as the company has a high Debt to EBITDA ratio of 3.94 times
- Low ability to service debt as the company has a high Debt to EBITDA ratio of 3.94 times
- The company has been able to generate a Return on Equity (avg) of 4.50% signifying low profitability per unit of shareholders funds
3
Negative results in Dec 25
- PAT(Latest six months) At Rs 1.81 cr has Grown at -58.29%
- NET SALES(Latest six months) At Rs 92.06 cr has Grown at -26.03%
- ROCE(HY) Lowest at 7.17%
4
Consistent Underperformance against the benchmark over the last 3 years
- Along with generating -22.39% returns in the last 1 year, the stock has also underperformed BSE500 in each of the last 3 annual periods
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 Plastic Products - Industrial)
When to re-enter? - We will constantly monitor the company and review our call based on new data
Is Rungta Irrigatn. for you?
High Risk, Low Return
Absolute
Risk Adjusted
Volatility
Rungta Irrigatn.
-22.39%
-0.53
42.55%
Sensex
8.53%
0.73
11.73%
Quality key factors
Factor
Value
Sales Growth (5y)
28.24%
EBIT Growth (5y)
34.51%
EBIT to Interest (avg)
2.85
Debt to EBITDA (avg)
4.89
Net Debt to Equity (avg)
0.33
Sales to Capital Employed (avg)
1.36
Tax Ratio
42.44%
Dividend Payout Ratio
0
Pledged Shares
0
Institutional Holding
0.25%
ROCE (avg)
4.48%
ROE (avg)
4.50%
Valuation Key Factors 
Factor
Value
P/E Ratio
28
Industry P/E
38
Price to Book Value
1.08
EV to EBIT
17.42
EV to EBITDA
12.73
EV to Capital Employed
1.06
EV to Sales
0.70
PEG Ratio
NA
Dividend Yield
NA
ROCE (Latest)
6.07%
ROE (Latest)
3.90%
Loading Valuation Snapshot...
Technical key factors
Indicator
Weekly
Monthly
MACD
Bearish
Bearish
RSI
No Signal
No Signal
Bollinger Bands
Bearish
Bearish
Moving Averages
Bearish (Daily)
KST
Bearish
Bearish
Dow Theory
Mildly Bearish
Mildly Bearish
Technical Movement
5What is working for the Company
PBDIT(Q)
Highest at Rs 3.67 cr.
OPERATING PROFIT TO NET SALES(Q)
Highest at 7.69%
PBT LESS OI(Q)
Highest at Rs 2.22 cr.
-12What is not working for the Company
PAT(Latest six months)
At Rs 1.81 cr has Grown at -58.29%
NET SALES(Latest six months)
At Rs 92.06 cr has Grown at -26.03%
ROCE(HY)
Lowest at 7.17%
Loading Valuation Snapshot...
Here's what is working for Rungta Irrigatn.
Profit Before Tax less Other Income (PBT) - Quarterly
At Rs 2.22 cr has Grown at 67.5% (vs previous 4Q average)
over average PBT of the previous four quarters of Rs 1.33 CrMOJO Watch
Near term PBT trend is very positive
PBT less Other Income (Rs Cr)
Operating Profit (PBDIT) - Quarterly
Highest at Rs 3.67 cr.
in the last five quartersMOJO Watch
Near term Operating Profit trend is positive
Operating Profit (Rs Cr)
Operating Profit Margin - Quarterly
Highest at 7.69%
in the last five quartersMOJO Watch
Company's efficiency has improved
Operating Profit to Sales
Profit Before Tax less Other Income (PBT) - Quarterly
Highest at Rs 2.22 cr.
in the last five quartersMOJO Watch
Near term PBT trend is positive
PBT less Other Income (Rs Cr)
Here's what is not working for Rungta Irrigatn.
Profit After Tax (PAT) - Latest six months
At Rs 1.81 cr has Grown at -58.29%
Year on Year (YoY)MOJO Watch
Near term PAT trend is very negative
PAT (Rs Cr)
Net Sales - Quarterly
At Rs 47.72 cr has Fallen at -11.3% (vs previous 4Q average)
over average Net Sales of the previous four quarters of Rs 53.82 CrMOJO Watch
Near term sales trend is very negative
Net Sales (Rs Cr)






