Why is Rungta Irrigation Ltd ?
1
Poor Management Efficiency with a low ROCE of 4.77%
- The company has been able to generate a Return on Capital Employed (avg) of 4.77% 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 2.77 times
- Low ability to service debt as the company has a high Debt to EBITDA ratio of 2.77 times
- The company has been able to generate a Return on Equity (avg) of 4.91% signifying low profitability per unit of shareholders funds
3
The company has declared Negative results for the last 3 consecutive quarters
- NET SALES(9M) At Rs 144.73 cr has Grown at -23.40%
- PBDIT(Q) Lowest at Rs 1.51 cr.
- OPERATING PROFIT TO NET SALES (Q) Lowest at 2.87%
4
Consistent Underperformance against the benchmark over the last 3 years
- Along with generating -24.24% 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.
-24.24%
-0.55
44.01%
Sensex
-7.92%
-0.61
13.09%
Quality key factors
Factor
Value
Sales Growth (5y)
32.44%
EBIT Growth (5y)
51.17%
EBIT to Interest (avg)
2.97
Debt to EBITDA (avg)
3.72
Net Debt to Equity (avg)
0.27
Sales to Capital Employed (avg)
1.44
Tax Ratio
24.55%
Dividend Payout Ratio
0
Pledged Shares
0
Institutional Holding
0.25%
ROCE (avg)
5.01%
ROE (avg)
4.91%
Valuation Key Factors 
Factor
Value
P/E Ratio
18
Industry P/E
36
Price to Book Value
1.00
EV to EBIT
18.75
EV to EBITDA
13.18
EV to Capital Employed
1.00
EV to Sales
0.70
PEG Ratio
NA
Dividend Yield
NA
ROCE (Latest)
5.35%
ROE (Latest)
5.53%
Loading Valuation Snapshot...
Technical key factors
Indicator
Weekly
Monthly
MACD
Mildly Bullish
Bearish
RSI
No Signal
No Signal
Bollinger Bands
Bearish
Bearish
Moving Averages
Bearish (Daily)
KST
Mildly Bullish
Bearish
Dow Theory
No Trend
No Trend
Technical Movement
2What is working for the Company
PAT(Q)
Highest at Rs 2.34 cr.
EPS(Q)
Highest at Rs 1.17
-8What is not working for the Company
NET SALES(9M)
At Rs 144.73 cr has Grown at -23.40%
PBDIT(Q)
Lowest at Rs 1.51 cr.
OPERATING PROFIT TO NET SALES (Q)
Lowest at 2.87%
PBT LESS OI(Q)
Lowest at Rs 0.32 cr.
NON-OPERATING INCOME(Q)
is 84.47 % of Profit Before Tax (PBT
Loading Valuation Snapshot...
Here's what is working for Rungta Irrigatn.
Profit After Tax (PAT) - Quarterly
Highest at Rs 2.34 cr.
in the last five quartersMOJO Watch
Near term PAT trend is positive
PAT (Rs Cr)
Earnings per Share (EPS) - Quarterly
Highest at Rs 1.17
in the last five quartersMOJO Watch
Increasing profitability; company has created higher earnings for shareholders
EPS (Rs)
Here's what is not working for Rungta Irrigatn.
Net Sales - Latest six months
At Rs 100.39 cr has Grown at -25.36%
Year on Year (YoY)MOJO Watch
Near term sales trend is negative
Net Sales (Rs Cr)
Operating Profit (PBDIT) - Quarterly
Lowest at Rs 1.51 cr.
in the last five quartersMOJO Watch
Near term Operating Profit trend is negative
Operating Profit (Rs Cr)
Operating Profit Margin - Quarterly
Lowest at 2.87%
in the last five quartersMOJO Watch
Company's efficiency has deteriorated
Operating Profit to Sales
Profit Before Tax less Other Income (PBT) - Quarterly
Lowest at Rs 0.32 cr.
in the last five quartersMOJO Watch
Near term PBT trend is negative
PBT less Other Income (Rs Cr)
Non Operating Income - Quarterly
is 84.47 % 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






