Rolex Rings (BSE:543325) - Share price, News & Analysis

Q: What is the Fair Price of 543325 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

543325 (₹1606.55) is trading above our estimate of [[fair value]] (₹0.63)

543325 fundamental analysis
Snowflake Score
Valuation	1/6
Future Growth	5/6
Past Performance	4/6
Financial Health	5/6
Dividends	0/6

543325 Stock Overview

Rolex Rings Limited manufactures and sells machined / forged rings and auto components in India and internationally.

Rewards

Earnings are forecast to grow 23.12% per year

Earnings grew by 51.7% over the past year

Risk Analysis

High level of non-cash earnings

Rolex Rings Competitors

Ingersoll-Rand (India)

BSE:500210

₹45.5b

KSB

BSE:500249

₹51.1b

ESAB India

BSE:500133

₹56.1b

MTAR Technologies

BSE:543270

₹38.4b

Price History & Performance

Summary of all time highs, changes and price drops for Rolex Rings
Historical stock prices
Current Share Price	₹1,606.55
52 Week High	₹1,692.85
52 Week Low	₹999.95
Beta	0
1 Month Change	21.21%
3 Month Change	28.18%
1 Year Change	n/a
3 Year Change	n/a
5 Year Change	n/a
Change since IPO	37.72%

Shareholder Returns

	543325	IN Machinery	IN Market
7D	8.4%	4.6%	1.8%
1Y	n/a	25.5%	0.6%

Return vs Industry: Insufficient data to determine how 543325 performed against the Indian Machinery industry.

Return vs Market: Insufficient data to determine how 543325 performed against the Indian Market.

Price Volatility

Is 543325's price volatile compared to industry and market?
543325 volatility
543325 Average Weekly Movement	6.8%
Machinery Industry Average Movement	6.5%
Market Average Movement	7.0%
10% most volatile stocks in IN Market	9.9%
10% least volatile stocks in IN Market	4.5%

Stable Share Price: 543325 is not significantly more volatile than the rest of Indian stocks over the past 3 months, typically moving +/- 7% a week.

Volatility Over Time: 543325's weekly volatility (7%) has been stable over the past year.

About the Company

Founded	Employees	CEO	Website
1977	1,815	Manesh Madeka	https://www.rolexrings.com

Rolex Rings Limited manufactures and sells machined / forged rings and auto components in India and internationally. It offers transmission components, such as gear blanks, ring gears, sun and pinion products, shafts, and lock nuts; engine components, including pullies, cam lobs, and other forged components; chasis components comprising wheel hubs, gen2 and gen3 bearing components, output shafts, and CVJ components; bearing rings; and exhaust system components consisting of flanges, biocones, and tulips. The company’s products are used in industrial, railways, off highway, earth moving, windmill, textile, electrical, defense, power, aerospace, marine, and oil and natural gas industries, as well as for two, three, and four wheelers.

Rolex Rings Fundamentals Summary

How do Rolex Rings's earnings and revenue compare to its market cap?
543325 fundamental statistics
Market Cap	₹43.75b
Earnings (TTM)	₹1.32b
Revenue (TTM)	₹10.17b

33.2x

P/E Ratio

4.3x

P/S Ratio

Is 543325 overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
543325 income statement (TTM)
Revenue	₹10.17b
Cost of Revenue	₹4.64b
Gross Profit	₹5.53b
Other Expenses	₹4.21b
Earnings	₹1.32b

Last Reported Earnings

Mar 31, 2022

Next Earnings Date

n/a

Earnings per share (EPS)	48.43
Gross Margin	54.35%
Net Profit Margin	12.97%
Debt/Equity Ratio	40.9%

How did 543325 perform over the long term?

See historical performance and comparison

We’ve recently updated our valuation analysis.

Valuation

Is 543325 undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

1/6

Valuation Score 1/6

Price-To-Earnings vs Peers
Price-To-Earnings vs Industry
Price-To-Earnings vs Fair Ratio
Below Fair Value
Significantly Below Fair Value
PEG Ratio

Key Valuation Metric

Which metric is best to use when looking at relative valuation for 543325?

Other financial metrics that can be useful for relative valuation.

The above table shows the n/a ratio for 543325. This is calculated by dividing 543325's market cap by their current preferred multiple.
What is 543325's n/a Ratio?
n/a Ratio	0x
n/a	n/a
Market Cap	₹43.75b

543325 key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue	4.5x
Enterprise Value/EBITDA	20x
PEG Ratio	1.4x

Price to Earnings Ratio vs Peers

How does 543325's PE Ratio compare to its peers?

543325 PE Ratio vs Peers

The above table shows the PE ratio for 543325 vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
Company	PE	Estimated Growth	Market Cap
Peer Average	51.5x
500210 Ingersoll-Rand (India)	41.3x	n/a	₹45.5b
500249 KSB	35.1x	21.1%	₹51.1b
500133 ESAB India	66.6x	n/a	₹56.1b
543270 MTAR Technologies	63x	n/a	₹38.4b
543325 Rolex Rings	33.2x	23.1%	₹43.8b

Forward PE

Price-To-Earnings vs Peers: 543325 is good value based on its Price-To-Earnings Ratio (33.2x) compared to the peer average (51.5x).

Price to Earnings Ratio vs Industry

How does 543325's PE Ratio compare vs other companies in the IN Machinery Industry?

Price-To-Earnings vs Industry: 543325 is expensive based on its Price-To-Earnings Ratio (33.2x) compared to the Indian Machinery industry average (24.2x)

Price to Earnings Ratio vs Fair Ratio

What is 543325's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

543325 PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio	33.2x
Fair PE Ratio	26.4x

Price-To-Earnings vs Fair Ratio: 543325 is expensive based on its Price-To-Earnings Ratio (33.2x) compared to the estimated Fair Price-To-Earnings Ratio (26.4x).

Share Price vs Fair Value

What is the Fair Price of 543325 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: 543325 (₹1606.55) is trading above our estimate of fair value (₹0.63)

Significantly Below Fair Value: 543325 is trading above our estimate of fair value.

Price to Earnings Growth Ratio

PEG Ratio: 543325 is poor value based on its PEG Ratio (1.4x)

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Future Growth

How is Rolex Rings forecast to perform in the next 1 to 3 years based on estimates from 1 analyst?

Future Growth Score

5/6

Future Growth Score 5/6

Earnings vs Savings Rate
Earnings vs Market
High Growth Earnings
Revenue vs Market
High Growth Revenue
Future ROE

23.1%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts

Analyst Future Growth Forecasts

Earnings vs Savings Rate: 543325's forecast earnings growth (23.1% per year) is above the savings rate (6.7%).

Earnings vs Market: 543325's earnings (23.1% per year) are forecast to grow faster than the Indian market (17.3% per year).

High Growth Earnings: 543325's earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: 543325's revenue (16.9% per year) is forecast to grow faster than the Indian market (11.5% per year).

High Growth Revenue: 543325's revenue (16.9% per year) is forecast to grow slower than 20% per year.

Earnings per Share Growth Forecasts

Future Return on Equity

Future ROE: 543325's Return on Equity is forecast to be high in 3 years time (25.1%)

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Past Performance

How has Rolex Rings performed over the past 5 years?

Past Performance Score

4/6

Past Performance Score 4/6

Quality Earnings
Growing Profit Margin
Earnings Trend
Accelerating Growth
Earnings vs Industry
High ROE

19.6%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: 543325 has a high level of non-cash earnings.

Growing Profit Margin: 543325's current net profit margins (13%) are lower than last year (14.1%).

Past Earnings Growth Analysis

Earnings Trend: 543325's earnings have grown by 19.6% per year over the past 5 years.

Accelerating Growth: 543325's earnings growth over the past year (51.7%) exceeds its 5-year average (19.6% per year).

Earnings vs Industry: 543325 earnings growth over the past year (51.7%) exceeded the Machinery industry 42.4%.

Return on Equity

High ROE: 543325's Return on Equity (24.2%) is considered high.

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Financial Health

How is Rolex Rings's financial position?

Financial Health Score

5/6

Financial Health Score 5/6

Short Term Liabilities
Long Term Liabilities
Debt Level
Reducing Debt
Debt Coverage
Interest Coverage

Financial Position Analysis

Short Term Liabilities: 543325's short term assets (₹5.4B) exceed its short term liabilities (₹3.4B).

Long Term Liabilities: 543325's short term assets (₹5.4B) exceed its long term liabilities (₹1.0B).

Debt to Equity History and Analysis

Debt Level: 543325's net debt to equity ratio (37.3%) is considered satisfactory.

Reducing Debt: Insufficient data to determine if 543325's debt to equity ratio has reduced over the past 5 years.

Debt Coverage: 543325's debt is well covered by operating cash flow (26.4%).

Interest Coverage: 543325's interest payments on its debt are well covered by EBIT (10x coverage).

Balance Sheet

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Dividend

What is Rolex Rings's current dividend yield, its reliability and sustainability?

Dividend Score

0/6

Dividend Score 0/6

Notable Dividend
High Dividend
Stable Dividend
Growing Dividend
Earnings Coverage
Future Dividend Coverage

Dividend Yield vs Market

Notable Dividend: Unable to evaluate 543325's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate 543325's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.

Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if 543325's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if 543325's dividend payments have been increasing.

Earnings Payout to Shareholders

Earnings Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.

Cash Payout to Shareholders

Cash Flow Coverage: Unable to calculate sustainability of dividends as 543325 has not reported any payouts.

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Management

How experienced are the management team and are they aligned to shareholders interests?

1.3yrs

Average board tenure

CEO

Manesh Madeka

no data

Tenure

₹9,600,000

Compensation

Mr. Manesh Dayashankar Madeka is Chairman & MD of Rolex Rings Limited. He has many years of work experience in marketing, production and finance.

CEO Compensation Analysis

Compensation vs Market: Manesh's total compensation ($USD121.51K) is below average for companies of similar size in the Indian market ($USD260.10K).

Compensation vs Earnings: Manesh's compensation has increased by more than 20% in the past year.

Board Members

Experienced Board: 543325's board of directors are not considered experienced ( 1.3 years average tenure), which suggests a new board.

Ownership

Who are the major shareholders and have insiders been buying or selling?

Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.

Ownership Breakdown

Dilution of Shares: 543325 only recently listed within the past 12 months.

Data	Last Updated (UTC time)
Company Analysis	2022/06/29 00:00
End of Day Share Price	2022/06/29 00:00
Earnings	2022/03/31
Annual Earnings	2022/03/31