Revathi Equipment India Ltd.
Revathi Equipment India Ltd. Fundamental Analysis
Revathi Equipment India Ltd. (RVTH.NS) shows weak financial fundamentals with a PE ratio of 18.96, profit margin of 6.35%, and ROE of 7.05%. The company generates $1.4B 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 64.2/100 based on profitability, valuation, growth, and balance sheet metrics. The C+ grade reflects average fundamentals, with notable risks in certain areas.
Fundamental Health Score
We analyze RVTH.NS's fundamental strength across five key dimensions:
Efficiency Score
WeakRVTH.NS struggles to generate sufficient returns from assets.
Valuation Score
ExcellentRVTH.NS trades at attractive valuation levels.
Growth Score
ModerateRVTH.NS shows steady but slowing expansion.
Financial Health Score
ExcellentRVTH.NS maintains a strong and stable balance sheet.
Profitability Score
WeakRVTH.NS struggles to sustain strong margins.
Key Financial Metrics
Is RVTH.NS Expensive or Cheap?
P/E Ratio
RVTH.NS trades at 18.96 times earnings. This indicates a fair valuation.
PEG Ratio
When adjusting for growth, RVTH.NS's PEG of -1.25 indicates potential undervaluation.
Price to Book
The market values Revathi Equipment India Ltd. at 1.33 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 4.11 times EBITDA. This is generally considered low.
How Well Does RVTH.NS Make Money?
Net Profit Margin
For every $100 in sales, Revathi Equipment India Ltd. keeps $6.35 as profit after all expenses.
Operating Margin
Core operations generate 9.01 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $7.05 in profit for every $100 of shareholder equity.
ROA
Revathi Equipment India Ltd. generates $3.92 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Revathi Equipment India Ltd. generates strong operating cash flow of $433.14M, reflecting robust business health.
Free Cash Flow
Revathi Equipment India Ltd. generates strong free cash flow of $247.24M, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $80.61 in free cash annually.
FCF Yield
RVTH.NS converts 14.64% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
18.96
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
-1.25
vs 25 benchmark
P/B Ratio
Price to book value ratio
1.33
vs 25 benchmark
P/S Ratio
Price to sales ratio
1.20
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.42
vs 25 benchmark
Current Ratio
Current assets to current liabilities
1.74
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.07
vs 25 benchmark
ROA
Return on assets percentage
0.04
vs 25 benchmark
ROCE
Return on capital employed
0.10
vs 25 benchmark
How RVTH.NS Stacks Against Its Sector Peers
| Metric | RVTH.NS Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 18.96 | 25.85 | Better (Cheaper) |
| ROE | 7.05% | 1270.00% | Weak |
| Net Margin | 6.35% | -41768.00% (disorted) | Weak |
| Debt/Equity | 0.42 | 0.79 | Strong (Low Leverage) |
| Current Ratio | 1.74 | 10.04 | Neutral |
| ROA | 3.92% | -1493983.00% (disorted) | Weak |
RVTH.NS outperforms its industry in 2 out of 6 key metrics, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Revathi Equipment India Ltd.'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, Value, Infrastructure
EPS CAGR
N/A
Industry Style: Cyclical, Value, Infrastructure
FCF CAGR
N/A
Industry Style: Cyclical, Value, Infrastructure