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Rajapalayam Mills

BSE:532503
Snowflake Description

Adequate balance sheet and fair value.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
532503
BSE
₹5B
Market Cap
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Last updated 2019/02/23 12:44
Company description

Rajapalayam Mills Limited produces and sells textile products in India. The last earnings update was 227 days ago. More info.

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532503 Share Price and Events
7 Day Returns
1.1%
BSE:532503
0.3%
IN Luxury
1%
IN Market
1 Year Returns
-38.8%
BSE:532503
-8.7%
IN Luxury
-8.2%
IN Market
532503 Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
Rajapalayam Mills (532503) 1.1% -0.3% -13.7% -38.8% 116.6% 214.7%
IN Luxury 0.3% -0.2% -2.3% -8.7% 55.9% 186.4%
IN Market 1% -2.2% -1.2% -8.2% 46.7% 78.8%
1 Year Return vs Industry and Market
  • 532503 underperformed the Luxury industry which returned -8.7% over the past year.
  • 532503 underperformed the Market in India which returned -8.2% over the past year.
Price Volatility
532503
Industry
5yr Volatility vs Market

Value

 Is Rajapalayam Mills undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of Rajapalayam Mills to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data    Our calculation method for this is changing soon.

Below are the data sources, inputs and calculation used to determine the intrinsic value for Rajapalayam Mills.

BSE:532503 Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Extrapolated from most recent financials. See below
Discount Rate (Cost of Equity) See below 13.5%
Perpetual Growth Rate 10-Year IN Government Bond Rate 7.6%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for BSE:532503
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year IN Govt Bond Rate 7.6%
Equity Risk Premium S&P Global 7.5%
Luxury Unlevered Beta Simply Wall St/ S&P Global 0.57
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.573 (1 + (1- 35%) (48.06%)) 		0.752
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)		 0.8
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 7.55% + (0.8 * 7.45%) 		13.51%

Discounted Cash Flow Calculation for BSE:532503 using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for Rajapalayam Mills is arrived at by discounting future cash flows to their present value using the 2 stage method. We use analyst's estimates of cash flows going forward 5 years for the 1st stage, the 2nd stage assumes the company grows at a stable rate into perpetuity.

BSE:532503 DCF 1st Stage: Next 5 year cash flow forecast
2019 2020 2021 2022 2023
Levered FCF (INR, Millions) 139.80 141.27 142.75 144.24 145.75
Source Est @ 1.05% Est @ 1.05% Est @ 1.05% Est @ 1.05% Est @ 1.05%
Present Value
Discounted (@ 13.51%) 		123.16 109.64 97.60 86.89 77.35
Present value of next 5 years cash flows ₹494.64
BSE:532503 DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2023 × (1 + g) ÷ (Discount Rate – g)
= ₹145.75 × (1 + 7.55%) ÷ (13.51% – 7.55%) 		₹2,630.16
Present Value of Terminal Value = Terminal Value ÷ (1 + r)5
= ₹2,630.16 ÷ (1 + 13.51%)5 		₹1,395.76
BSE:532503 Total Equity Value
Calculation Result
Total Equity Value = Present value of next 5 years cash flows + Terminal Value
= ₹494.64 + ₹1,395.76 		₹1,890.40
Equity Value per Share
(INR)		 = Total value / Shares Outstanding
= ₹1,890.40 / 7.38 		₹256.29
BSE:532503 Discount to Share Price
Calculation Result
Value per share (INR) From above. ₹256.29
Current discount Discount to share price of ₹694.75
= -1 x (₹694.75 - ₹256.29) / ₹256.29 		-171.1%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

  • The current share price of Rajapalayam Mills is above its future cash flow value.
Often investors are willing to pay a premium for a company that has a high dividend or the potential for future growth.
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for Rajapalayam Mills's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are Rajapalayam Mills's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
BSE:532503 PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2018-03-31) in INR ₹156.84
BSE:532503 Share Price ** BSE (2019-02-22) in INR ₹694.75
India Luxury Industry PE Ratio Median Figure of 236 Publicly-Listed Luxury Companies 11.69x
India Market PE Ratio Median Figure of 2,709 Publicly-Listed Companies 15.49x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of Rajapalayam Mills.

BSE:532503 PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= BSE:532503 Share Price ÷ EPS (both in INR)

= 694.75 ÷ 156.84

 4.43x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Rajapalayam Mills is good value based on earnings compared to the IN Luxury industry average.
  • Rajapalayam Mills is good value based on earnings compared to the India market.
Price based on expected Growth
Does Rajapalayam Mills's expected growth come at a high price?
Raw Data
BSE:532503 PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 4.43x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 0 Analysts		 5.8%per year
India Luxury Industry PEG Ratio Median Figure of 27 Publicly-Listed Luxury Companies 0.99x
India Market PEG Ratio Median Figure of 607 Publicly-Listed Companies 1.15x

*Line of best fit is calculated by linear regression .

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Unable to calculate PEG ratio for Rajapalayam Mills, we can't assess if its growth is good value.
Price based on value of assets
What value do investors place on Rajapalayam Mills's assets?
Raw Data
BSE:532503 PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2018-03-31) in INR ₹2,170.62
BSE:532503 Share Price * BSE (2019-02-22) in INR ₹694.75
India Luxury Industry PB Ratio Median Figure of 306 Publicly-Listed Luxury Companies 0.71x
India Market PB Ratio Median Figure of 3,588 Publicly-Listed Companies 1.05x
BSE:532503 PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= BSE:532503 Share Price ÷ Book Value per Share (both in INR)

= 694.75 ÷ 2,170.62

 0.32x

* Primary Listing of Rajapalayam Mills.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Rajapalayam Mills is good value based on assets compared to the IN Luxury industry average.
Show me more potentially undervalued companies in the Luxury industry
X
Value checks
We assess Rajapalayam Mills's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Luxury industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Luxury industry average (and greater than 0)? (1 check)
    5. Rajapalayam Mills has a total score of 3/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

Future Performance

 How is Rajapalayam Mills expected to perform in the next 1 to 3 years based on estimates from 0 analysts?

  • No analysts cover Rajapalayam Mills, future earnings growth has been estimated based on fundamentals.
The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
5.8%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Rajapalayam Mills expected to grow at an attractive rate?
  • Rajapalayam Mills's earnings growth is positive but not above the low risk savings rate of 7.6%.
Growth vs Market Checks
  • Rajapalayam Mills's earnings growth is positive but not above the India market average.
  • Unable to compare Rajapalayam Mills's revenue growth to the India market average as no estimate data is available.
Annual Growth Rates Comparison
Raw Data
BSE:532503 Future Growth Rates Data Sources
Data Point Source Value (per year)
BSE:532503 Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 0 Analysts 5.8%
India Luxury Industry Earnings Growth Rate Market Cap Weighted Average 18.4%
India Luxury Industry Revenue Growth Rate Market Cap Weighted Average 15%
India Market Earnings Growth Rate Market Cap Weighted Average 18.6%
India Market Revenue Growth Rate Market Cap Weighted Average 11.7%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
BSE:532503 Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (10 months ago) See Below
Future Estimates Average of up to 0 Analyst Estimates (S&P Global) See Below
All numbers in INR Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
BSE:532503 Future Estimates Data
Date (Data in INR Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
BSE:532503 Past Financials Data
Date (Data in INR Millions) Revenue Cash Flow Net Income *
2018-03-31 4,280 765 1,154
2017-03-31 4,086 320 1,452
2016-12-31 4,121 403
2016-09-30 4,071 320
2016-06-30 4,022 259
2016-03-31 3,935 453 1,025
2015-12-31 3,930 88
2015-09-30 3,854 56
2015-06-30 3,912 19

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Rajapalayam Mills's earnings are expected to grow by 5.8% yearly, however this is not considered high growth (20% yearly).
  • Unable to determine if Rajapalayam Mills is high growth as no revenue estimate data is available.
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
BSE:532503 Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (10 months ago) See Below
Future Estimates Average of up to 0 Analyst Estimates (S&P Global) See Below

All data from Rajapalayam Mills Company Filings, last reported 10 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

BSE:532503 Future Estimates Data
Date (Data in INR Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
BSE:532503 Past Financials Data
Date (Data in INR Millions) EPS *
2018-03-31 156.84
2017-03-31 197.28
2016-12-31 54.91
2016-09-30 42.92
2016-06-30 33.71
2016-03-31 139.93
2015-12-31 12.11
2015-09-30 7.76
2015-06-30

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • Unable to establish if Rajapalayam Mills will efficiently use shareholders’ funds in the future without estimates of Return on Equity.
X
Future performance checks
We assess Rajapalayam Mills's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the India market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the India market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
Rajapalayam Mills has a total score of 0/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

Past Performance

  How has Rajapalayam Mills performed over the past 5 years?

  • Rajapalayam Mills's last earnings update was 227 days ago.
The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare Rajapalayam Mills's growth in the last year to its industry (Luxury).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • Rajapalayam Mills has delivered over 20% year on year earnings growth in the past 5 years.
  • Rajapalayam Mills's 1-year earnings growth is negative, it can't be compared to the 5-year average.
  • Rajapalayam Mills's 1-year earnings growth is negative, it can't be compared to the IN Luxury industry average.
Earnings and Revenue History
Rajapalayam Mills's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from Rajapalayam Mills Company Filings, last reported 10 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

BSE:532503 Past Revenue, Cash Flow and Net Income Data
Date (Data in INR Millions) Revenue Net Income * G+A Expenses R&D Expenses
2018-03-31 4,280.24 1,154.36 507.19
2017-03-31 4,086.13 1,451.95 483.87
2016-12-31 4,121.16 403.09 481.29
2016-09-30 4,071.06 319.89 491.39
2016-06-30 4,022.16 259.19 489.19
2016-03-31 3,934.94 1,025.24 473.73
2015-12-31 3,930.45 88.23 643.93
2015-09-30 3,853.65 56.13 630.23
2015-06-30 3,911.95 18.93 623.53
2015-03-31 3,886.45 120.43 461.36
2014-12-31 3,952.26 185.32 621.24
2014-09-30 4,167.36 252.42 623.74
2014-06-30 4,224.96 300.72 619.14
2014-03-31 4,338.86 266.22 608.74
2013-03-31 3,667.15 206.22 507.83
2012-03-31 3,110.55 -0.58 425.98

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • Rajapalayam Mills has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
  • Rajapalayam Mills used its assets more efficiently than the IN Luxury industry average last year based on Return on Assets.
  • Rajapalayam Mills's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).
X
Past performance checks
We assess Rajapalayam Mills's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Luxury industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
Rajapalayam Mills has a total score of 2/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

Health

 How is Rajapalayam Mills's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up Rajapalayam Mills's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • Rajapalayam Mills's short term (1 year) commitments are greater than its holdings of cash and other short term assets.
  • Rajapalayam Mills's cash and other short term assets cover its long term commitments.
Balance sheet
This treemap shows a more detailed breakdown of Rajapalayam Mills's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • High level of physical assets or inventory.
  • Debt is not covered by short term assets, assets are 0.8x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from Rajapalayam Mills Company Filings, last reported 10 months ago.

BSE:532503 Past Debt and Equity Data
Date (Data in INR Millions) Total Equity Total Debt Cash & Short Term Investments
2018-03-31 16,010.84 2,462.95 11.57
2017-03-31 14,882.39 2,882.56 23.94
2016-12-31 2,337.20 1,981.60 221.50
2016-09-30 2,337.20 1,981.60 221.50
2016-06-30 2,163.46 2,974.49 23.33
2016-03-31 13,426.28 2,958.08 23.33
2015-12-31 2,073.40 2,835.00 31.00
2015-09-30 2,073.40 2,835.00 31.00
2015-06-30 1,958.41 3,172.74 37.11
2015-03-31 1,958.41 3,172.85 37.11
2014-12-31 2,039.30 2,924.20 62.70
2014-09-30 2,039.30 2,924.20 62.70
2014-06-30 1,868.20 3,410.43 68.50
2014-03-31 1,868.20 3,659.37 68.50
2013-03-31 1,665.73 3,240.16 46.80
2012-03-31 1,491.59 3,419.00 44.92
  • Rajapalayam Mills's level of debt (15.4%) compared to net worth is satisfactory (less than 40%).
  • The level of debt compared to net worth has been reduced over the past 5 years (194.5% vs 15.4% today).
  • Debt is well covered by operating cash flow (31.1%, greater than 20% of total debt).
  • Interest payments on debt are not well covered by earnings (EBIT is 2.2x annual interest expense, ideally 3x coverage).
Show me more healthy companies in the Luxury industry
X
Financial health checks
We assess Rajapalayam Mills's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
    7. Rajapalayam Mills has a total score of 4/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

Dividends

 What is Rajapalayam Mills's current dividend yield, its reliability and sustainability?

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
0.58%
Current annual income from Rajapalayam Mills dividends.
If you bought ₹2,000 of Rajapalayam Mills shares you are expected to receive ₹12 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • Rajapalayam Mills's pays a higher dividend yield than the bottom 25% of dividend payers in India (0.55%).
  • Rajapalayam Mills's dividend is below the markets top 25% of dividend payers in India (2.04%).
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
BSE:532503 Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 0 Analyst Estimates (S&P Global) See Below
India Luxury Industry Average Dividend Yield Market Cap Weighted Average of 109 Stocks 0.7%
India Market Average Dividend Yield Market Cap Weighted Average of 1397 Stocks 1.4%
India Minimum Threshold Dividend Yield 10th Percentile 0.3%
India Bottom 25% Dividend Yield 25th Percentile 0.6%
India Top 25% Dividend Yield 75th Percentile 2%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

BSE:532503 Future Dividends Estimate Data
Date (Data in ₹) Dividend per Share (annual) Avg. No. Analysts
BSE:532503 Past Annualized Dividends Data
Date (Data in ₹) Dividend per share (annual) Avg. Yield (%)
2018-07-11 4.000 0.509
2018-05-29 4.000 0.395
2017-07-13 4.000 0.356
2016-03-16 3.000 0.542
2015-07-10 2.500 0.725
2015-05-21 2.500 0.947
2015-02-11 0.000 0.000
2014-09-02 5.000 1.527
2014-07-09 7.500 2.324
2014-05-27 7.500 2.294
2014-02-03 6.000 2.577
2013-07-05 6.000 2.447
2013-05-27 6.000 2.614
2013-02-22 10.000 4.061
2012-08-13 1.000 0.438
2011-07-28 3.750 1.909
2010-05-28 3.000 1.161
2009-06-01 2.500 1.185
2009-05-27 2.500 1.342
2009-02-24 6.000 4.804

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Dividends per share have been volatile in the past 10 years (annual drop of over 20%).
  • Dividends per share have fallen over the past 10 years.
Current Payout to shareholders
What portion of Rajapalayam Mills's earnings are paid to the shareholders as a dividend.
  • Dividends paid are thoroughly covered by earnings (39.2x coverage).
Future Payout to shareholders
  • Insufficient estimate data to determine if a dividend will be paid in 3 years and that it will be sustainable.
X
Income/ dividend checks
We assess Rajapalayam Mills's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 0.3%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can Rajapalayam Mills afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
    7. Rajapalayam Mills has a total score of 2/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

Management

 What is the CEO of Rajapalayam Mills's salary, the management and board of directors tenure and is there insider trading?

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
R. Sudarsanam
COMPENSATION ₹27,180,000
AGE 76
TENURE AS CEO 11.6 years
CEO Bio

Smt. R. Sudarsanam has been the Managing Director of Rajapalayam Mills Ltd., since July 1, 2007, which she joined in July 1, 2002. Smt. Sudarsanam serves as a Director of The Ramaraju Surgical Cotton Mills Limited Sandhya Spinning Mill Ltd. and Executive Director of Rajapalayam Mills Ltd.

CEO Compensation
  • R.'s compensation has increased by more than 20% whilst company earnings have fallen more than 20% in the past year.
  • R.'s remuneration is higher than average for companies of similar size in India.
Management Team

R. Sudarsanam

TITLE
MD & Executive Director
COMPENSATION
₹27M
AGE
76
TENURE
11.6 yrs

S. Kanthimathinathan

TITLE
President
AGE
75

B. Gnanagurusamy

TITLE
Chief Financial Officer
COMPENSATION
₹3M
AGE
40

V. Raju

TITLE
Vice President of Technical
AGE
56

A. Arulpranavam

TITLE
Compliance Officer & Company Secretary
COMPENSATION
₹917K
TENURE
4.7 yrs

N. Mohanarengan

TITLE
Vice President of Marketing
AGE
49

B. Velvendan

TITLE
Chief General Manager of Electrical
AGE
50

N. Nagarajan

TITLE
Senior General Manager of HR
AGE
54
Board of Directors Tenure

Average tenure and age of the Rajapalayam Mills board of directors in years:

4.8
Average Tenure
67
Average Age
  • The tenure for the Rajapalayam Mills board of directors is about average.
Board of Directors

Pusapadi Ramasubrahmaneya Raja

TITLE
Chairman
COMPENSATION
₹210K
AGE
59
TENURE
1.8 yrs

R. Sudarsanam

TITLE
MD & Executive Director
COMPENSATION
₹27M
AGE
76

P. P. S. Raja

TITLE
Non Executive & Independent Director
COMPENSATION
₹390K
AGE
67
TENURE
5.3 yrs

S. S. Raja

TITLE
Non-Executive Director
COMPENSATION
₹180K
AGE
82
TENURE
27.1 yrs

N. K. Raja

TITLE
Non Executive & Independent Director
COMPENSATION
₹330K
AGE
75
TENURE
39.1 yrs

A. Dharmakrishnan

TITLE
Non Executive Director
COMPENSATION
₹300K
AGE
61

V. Santhanaraman

TITLE
Non Executive & Independent Director
COMPENSATION
₹180K
AGE
68
TENURE
5.2 yrs

K. B. Murthy

TITLE
Non Executive & Independent Director
COMPENSATION
₹300K
AGE
67
TENURE
4.5 yrs

Soundara Kumar

TITLE
Non-Executive & Independent Director
COMPENSATION
₹180K
AGE
64
TENURE
3.5 yrs

P. V. Abinav Raja

TITLE
Additional Director
COMPENSATION
₹150K
AGE
24
TENURE
2 yrs
Who owns this company?
Recent Insider Trading
  • No 3 month insider trading information.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price (₹) Value (₹)
X
Management checks
We assess Rajapalayam Mills's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
    5. Rajapalayam Mills has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

News

Simply Wall St News

Company Info

Map
Description

Rajapalayam Mills Limited produces and sells textile products in India. It offers ring, compact, Elitwist, TFO, gassed, slub multicount, core spun, modal/tencel, and organic cotton yarns, as well as waste cotton. The company also exports its products. Rajapalayam Mills Limited was incorporated in 1936 and is based in Rajapalayam, India.

Details
Name: Rajapalayam Mills Limited
532503
Exchange: BSE
Founded: 1936
₹5,124,587,160
7,376,160
Website: http://www.rajapalayammills.co.in
Address: Rajapalayam Mills Limited
Rajapalayam Mills Premises,
P.A.C. Ramasamy Raja Salai,
Rajapalayam,
Tamil Nadu, 626117,
India
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
BSE 532503 Equity Shares Mumbai Stock Exchange IN INR 18. Sep 2003
Number of employees
Current staff
Staff numbers
3,028
Rajapalayam Mills employees.
Industry
Textiles
Consumer Durables
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/02/23 12:44
End of day share price update: 2019/02/22 00:00
Last estimates confirmation: 2017/05/25
Last earnings filing: 2018/07/11
Last earnings reported: 2018/03/31
Last annual earnings reported: 2018/03/31


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.

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