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 4 consecutive quarters
- PAT(Q) At Rs 0.13 cr has Fallen at -90.5% (vs previous 4Q average)
- NET SALES(Q) Lowest at Rs 18.25 cr
- PBDIT(Q) Lowest at Rs 1.22 cr.
4
Consistent Underperformance against the benchmark over the last 3 years
- Along with generating -25.82% 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.
-25.82%
-0.51
50.46%
Sensex
-8.95%
-0.66
13.60%
Quality key factors
Factor
Value
Sales Growth (5y)
28.73%
EBIT Growth (5y)
43.99%
EBIT to Interest (avg)
3.02
Debt to EBITDA (avg)
3.72
Net Debt to Equity (avg)
0.27
Sales to Capital Employed (avg)
1.44
Tax Ratio
26.03%
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
24
Industry P/E
32
Price to Book Value
1.03
EV to EBIT
22.47
EV to EBITDA
14.88
EV to Capital Employed
1.03
EV to Sales
0.79
PEG Ratio
NA
Dividend Yield
NA
ROCE (Latest)
5.35%
ROE (Latest)
4.31%
Loading Valuation Snapshot...
Technical key factors
Indicator
Weekly
Monthly
MACD
Mildly Bullish
Bearish
RSI
No Signal
No Signal
Bollinger Bands
Bullish
Mildly Bearish
Moving Averages
Mildly Bearish (Daily)
KST
Bearish
Bearish
Dow Theory
Mildly Bullish
No Trend
Technical Movement
0What is working for the Company
NO KEY POSITIVE TRIGGERS
-14What is not working for the Company
PAT(Q)
At Rs 0.13 cr has Fallen at -90.5% (vs previous 4Q average
NET SALES(Q)
Lowest at Rs 18.25 cr
PBDIT(Q)
Lowest at Rs 1.22 cr.
PBT LESS OI(Q)
Lowest at Rs 0.06 cr.
EPS(Q)
Lowest at Rs 0.07
Loading Valuation Snapshot...
Here's what is not working for Rungta Irrigatn.
Net Sales - Quarterly
At Rs 18.25 cr has Fallen at -59.7% (vs previous 4Q average)
over average Net Sales of the previous four quarters of Rs 45.30 CrMOJO Watch
Near term sales trend is very negative
Net Sales (Rs Cr)
Profit After Tax (PAT) - Quarterly
At Rs 0.13 cr has Fallen at -90.5% (vs previous 4Q average)
over average PAT of the previous four quarters of Rs 1.37 CrMOJO Watch
Near term PAT trend is very negative
PAT (Rs Cr)
Net Sales - Quarterly
Lowest at Rs 18.25 cr
in the last five quartersMOJO Watch
Near term sales trend is negative
Net Sales (Rs Cr)
Operating Profit (PBDIT) - Quarterly
Lowest at Rs 1.22 cr.
in the last five quartersMOJO Watch
Near term Operating Profit trend is negative
Operating Profit (Rs Cr)
Profit Before Tax less Other Income (PBT) - Quarterly
Lowest at Rs 0.06 cr.
in the last five quartersMOJO Watch
Near term PBT trend is negative
PBT less Other Income (Rs Cr)
Earnings per Share (EPS) - Quarterly
Lowest at Rs 0.07
in the last five quartersMOJO Watch
Declining profitability; company has created lower earnings for shareholders
EPS (Rs)
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