Raj Rayon Industries Limited
Raj Rayon Industries Limited Fundamental Analysis
Raj Rayon Industries Limited (RAJRILTD.NS) shows weak financial fundamentals with a PE ratio of 38.19, profit margin of 3.06%, and ROE of 27.72%. The company generates $10.9B in annual revenue with N/A year-over-year growth of N/A.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 39.2/100 based on profitability, valuation, growth, and balance sheet metrics. The F grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze RAJRILTD.NS's fundamental strength across five key dimensions:
Efficiency Score
WeakRAJRILTD.NS struggles to generate sufficient returns from assets.
Valuation Score
ModerateRAJRILTD.NS shows balanced valuation metrics.
Growth Score
ModerateRAJRILTD.NS shows steady but slowing expansion.
Financial Health Score
WeakRAJRILTD.NS carries high financial risk with limited liquidity.
Profitability Score
WeakRAJRILTD.NS struggles to sustain strong margins.
Key Financial Metrics
Is RAJRILTD.NS Expensive or Cheap?
P/E Ratio
RAJRILTD.NS trades at 38.19 times earnings. This suggests a premium valuation.
PEG Ratio
When adjusting for growth, RAJRILTD.NS's PEG of -6.11 indicates potential undervaluation.
Price to Book
The market values Raj Rayon Industries Limited at 9.34 times its book value. This suggests the stock is fully valued or overvalued on an asset basis.
EV/EBITDA
Enterprise value stands at 16.88 times EBITDA. This signals the market has high growth expectations.
How Well Does RAJRILTD.NS Make Money?
Net Profit Margin
For every $100 in sales, Raj Rayon Industries Limited keeps $3.06 as profit after all expenses.
Operating Margin
Core operations generate 3.81 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $27.72 in profit for every $100 of shareholder equity.
ROA
Raj Rayon Industries Limited generates $5.68 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Raj Rayon Industries Limited generates limited operating cash flow of $0.00, signaling weaker underlying cash strength.
Free Cash Flow
Raj Rayon Industries Limited generates weak or negative free cash flow of $0.00, restricting financial flexibility.
FCF Per Share
Each share generates $0.00 in free cash annually.
FCF Yield
RAJRILTD.NS converts 0.00% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
38.19
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
-6.11
vs 25 benchmark
P/B Ratio
Price to book value ratio
9.34
vs 25 benchmark
P/S Ratio
Price to sales ratio
1.17
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
1.52
vs 25 benchmark
Current Ratio
Current assets to current liabilities
0.85
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.28
vs 25 benchmark
ROA
Return on assets percentage
0.06
vs 25 benchmark
ROCE
Return on capital employed
0.14
vs 25 benchmark
How RAJRILTD.NS Stacks Against Its Sector Peers
| Metric | RAJRILTD.NS Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 38.19 | 24.85 | Worse (Expensive) |
| ROE | 27.72% | 1165.00% | Weak |
| Net Margin | 3.06% | 749.00% | Weak |
| Debt/Equity | 1.52 | 0.76 | Weak (High Leverage) |
| Current Ratio | 0.85 | 9.23 | Weak Liquidity |
| ROA | 5.68% | 1271.00% | Weak |
RAJRILTD.NS outperforms its industry in 0 out of 6 key metrics, but lagging in P/E Ratio.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Raj Rayon Industries Limited's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
N/A
Industry Style: Cyclical, Growth, Discretionary
EPS CAGR
N/A
Industry Style: Cyclical, Growth, Discretionary
FCF CAGR
N/A
Industry Style: Cyclical, Growth, Discretionary