Why is Rungta Irrigation Ltd ?
1
Poor Management Efficiency with a low ROCE of 4.03%
- The company has been able to generate a Return on Capital Employed (avg) of 4.03% 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 6.10 times
- Low ability to service debt as the company has a high Debt to EBITDA ratio of 6.10 times
- The company has been able to generate a Return on Equity (avg) of 4.21% signifying low profitability per unit of shareholders funds
3
Negative results in Sep 25
- OPERATING CF(Y) Lowest at Rs -14.41 Cr
- PAT(Latest six months) At Rs 1.80 cr has Grown at -47.98%
- NET SALES(Q) At Rs 44.34 cr has Fallen at -21.3% (vs previous 4Q average)
4
Underperformed the market in the last 1 year
- Even though the market (BSE500) has generated returns of 1.57% in the last 1 year, the stock has hugely underperformed and has generate negative returns of -21.23% returns
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.
-21.23%
-0.41
51.24%
Sensex
4.63%
0.37
11.83%
Quality key factors
Factor
Value
Sales Growth (5y)
28.27%
EBIT Growth (5y)
29.50%
EBIT to Interest (avg)
2.38
Debt to EBITDA (avg)
3.11
Net Debt to Equity (avg)
0.28
Sales to Capital Employed (avg)
1.26
Tax Ratio
30.59%
Dividend Payout Ratio
0
Pledged Shares
0
Institutional Holding
0.25%
ROCE (avg)
3.72%
ROE (avg)
4.21%
Valuation Key Factors 
Factor
Value
P/E Ratio
27
Industry P/E
38
Price to Book Value
1.30
EV to EBIT
20.02
EV to EBITDA
14.93
EV to Capital Employed
1.23
EV to Sales
0.70
PEG Ratio
NA
Dividend Yield
NA
ROCE (Latest)
6.15%
ROE (Latest)
4.80%
Loading Valuation Snapshot...
Technical key factors
Indicator
Weekly
Monthly
MACD
Mildly Bullish
Mildly Bearish
RSI
No Signal
No Signal
Bollinger Bands
Bearish
Bearish
Moving Averages
Bearish (Daily)
KST
Mildly Bullish
Mildly Bearish
Dow Theory
Mildly Bullish
No Trend
Technical Movement
0What is working for the Company
NO KEY POSITIVE TRIGGERS
-17What is not working for the Company
OPERATING CF(Y)
Lowest at Rs -14.41 Cr
PAT(Latest six months)
At Rs 1.80 cr has Grown at -47.98%
NET SALES(Q)
At Rs 44.34 cr has Fallen at -21.3% (vs previous 4Q average
ROCE(HY)
Lowest at 7.17%
PBT LESS OI(Q)
Lowest at Rs 0.99 cr.
EPS(Q)
Lowest at Rs 0.23
Loading Valuation Snapshot...
Here's what is not working for Rungta Irrigatn.
Net Sales - Quarterly
At Rs 44.34 cr has Fallen at -21.3% (vs previous 4Q average)
over average Net Sales of the previous four quarters of Rs 56.35 CrMOJO Watch
Near term sales trend is very negative
Net Sales (Rs Cr)
Profit After Tax (PAT) - Latest six months
At Rs 1.80 cr has Grown at -47.98%
Year on Year (YoY)MOJO Watch
Near term PAT trend is very negative
PAT (Rs Cr)
Operating Cash Flow - Annually
Lowest at Rs -14.41 Cr and Fallen
each year in the last three yearsMOJO Watch
The company's cash revenues from business operations are falling
Operating Cash Flows (Rs Cr)
Profit Before Tax less Other Income (PBT) - Quarterly
Lowest at Rs 0.99 cr. and Fallen
each quarter in the last five quartersMOJO Watch
Near term PBT trend is very negative
PBT less Other Income (Rs Cr)
Earnings per Share (EPS) - Quarterly
Lowest at Rs 0.23
in the last five quartersMOJO Watch
Declining profitability; company has created lower earnings for shareholders
EPS (Rs)






