NSEI:RAJRAYON

Stock Analysis Report

Executive Summary

Raj Rayon Industries Limited manufactures and trades in polyester chips, and polyester and processed yarns in India.


Snowflake Analysis

Imperfect balance sheet with weak fundamentals.

Share Price & News

How has Raj Rayon Industries's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: RAJRAYON's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

0%

RAJRAYON

1.1%

IN Luxury

-0.07%

IN Market


1 Year Return

0%

RAJRAYON

17.4%

IN Luxury

9.5%

IN Market

Return vs Industry: RAJRAYON underperformed the Indian Luxury industry which returned 17.4% over the past year.

Return vs Market: RAJRAYON underperformed the Indian Market which returned 9.5% over the past year.


Shareholder returns

RAJRAYONIndustryMarket
7 Day0%1.1%-0.07%
30 Day0%2.3%-1.3%
90 Day0%10.5%1.9%
1 Year0%0%18.1%17.4%11.5%9.5%
3 Year-83.3%-83.3%54.7%52.9%23.6%16.7%
5 Year-92.3%-92.3%107.0%100.1%35.5%22.9%

Price Volatility Vs. Market

How volatile is Raj Rayon Industries's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Raj Rayon Industries undervalued compared to its fair value and its price relative to the market?


In this section, we usually try to help investors determine whether Raj Rayon Industries is trading at an attractive price based on the cash flow it is expected to produce in the future. But as Raj Rayon Industries has not provided consistent financial data, and the stock also has no analyst forecast or coverage, its intrinsic value cannot be reliably calculated by extrapolating past data or using analyst consensus cash flow predictions.

This is quite a rare situation as 89% of companies covered by Simply Wall St do have a valuation analysis.


Next Steps

  • Take a look at our analysis of RAJRAYON’s management and see if the CEO’s compensation is within a reasonable range, who is on the board and if insiders have been trading lately.
  • When valuing a company like this, investors focus more on how they perceive the size of the opportunity, the company's ability to deliver and scale, and the strength of the team. While we are not analysing this type of data at the moment, if you don’t know where to start, we recommend reading through Raj Rayon Industries regulatory filings.
  • Explore potentially undervalued companies in the Consumer Durables industry.

Future Growth

How is Raj Rayon Industries forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

19.8%

Forecasted Consumer Durables industry annual growth in earnings


In this section we usually present revenue and earnings growth projections based on the consensus estimates of professional analysts to help investors understand the company’s ability to generate profit. But as Raj Rayon Industries has not provided enough past data and has no analyst forecast, its future earnings cannot be reliably calculated by extrapolating past data or using analyst predictions.

This is quite a rare situation as 97% of companies covered by SimplyWall St do have past financial data.


Next Steps

Past Performance

How has Raj Rayon Industries performed over the past 5 years?

19.1%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: RAJRAYON is currently unprofitable.

Growing Profit Margin: RAJRAYON is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: RAJRAYON is unprofitable, but has reduced losses over the past 5 years at a rate of 19.1% per year.

Accelerating Growth: Unable to compare RAJRAYON's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: RAJRAYON is unprofitable, making it difficult to compare its past year earnings growth to the Luxury industry (6.4%).


Return on Equity

High ROE: RAJRAYON's liabilities exceed its assets, so it is difficult to calculate its Return on Equity.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Raj Rayon Industries's financial position?


Financial Position Analysis

Short Term Liabilities: RAJRAYON has negative shareholder equity, which is a more serious situation than short term assets not covering short term liabilities.

Long Term Liabilities: RAJRAYON has negative shareholder equity, which is a more serious situation than short term assets not covering long term liabilities.


Debt to Equity History and Analysis

Debt Level: RAJRAYON has negative shareholder equity, which is a more serious situation than a high debt level.

Reducing Debt: RAJRAYON's has negative shareholder equity, so we do not need to check if its debt has reduced over time.


Balance Sheet

Inventory Level: RAJRAYON has a high level of physical assets or inventory.

Debt Coverage by Assets: RAJRAYON has negative shareholder equity (liabilities exceed assets) therefore debt is not covered by short term assets.


Cash Runway Analysis

For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.

Stable Cash Runway: RAJRAYON has sufficient cash runway for more than a year based on its current free cash flow.

Forecast Cash Runway: RAJRAYON has sufficient cash runway for 1.2 years if free cash flow continues to grow at historical rates of 66.9% each year.


Next Steps

Dividend

What is Raj Rayon Industries's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

company0%marketbottom25%0.6%markettop25%2.6%industryaverage0.6%forecastin3Yearsn/a

Current dividend yield vs market & industry

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

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


Stability and Growth of Payments

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

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


Current Payout to Shareholders

Dividend Coverage: RAJRAYON is not paying a notable dividend for the Indian market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of RAJRAYON's dividend in 3 years as they are not forecast to pay a notable one for the Indian market.


Next Steps

Management

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

1.1yrs

Average board tenure


CEO

Sushil Kumar Kanodia 0

5.6yrs

Tenure

₹1,059,000

Compensation

Mr. Sushil Kumar Radheshyam Kanodia has been the Chief Executive Officer and Chief Financial Officer of Raj Rayon Industries Limited since July 5, 2014 and served as its Compliance Officer since July 19, 2 ...


CEO Compensation Analysis

Compensation vs Market: Sushil Kumar's total compensation ($USD14.74K) is below average for companies of similar size in the Indian market ($USD50.06K).

Compensation vs Earnings: Sushil Kumar's compensation has been consistent with company performance over the past year.


Board Members

NamePositionTenureCompensationOwnership
Mayadhar Mahakud
MD & Director1.1yrsno datano data
Rajkumari Kanodia
Non Executive Chairperson5.9yrs₹10.00k2.65% 1.7m
Banti Parasar
Additional Independent Director1.1yrsno datano data
Rajendraprasad Sharma
Additional Independent Director1.1yrsno datano data

1.1yrs

Average Tenure

53.5yo

Average Age

Experienced Board: RAJRAYON's board of directors are not considered experienced ( 1.1 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: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Raj Rayon Industries Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Raj Rayon Industries Limited
  • Ticker: RAJRAYON
  • Exchange: NSEI
  • Founded: 1993
  • Industry: Textiles
  • Sector: Consumer Durables
  • Market Cap: ₹65.826m
  • Shares outstanding: 346.45m
  • Website: https://null

Number of Employees


Location

  • Raj Rayon Industries Limited
  • 5-C, 196/197, Akshay
  • Mittal Industrial Estate
  • Mumbai
  • Maharashtra
  • 400059
  • India

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
530699BSE (Mumbai Stock Exchange)YesEquity SharesININRJun 2005
RAJRAYONNSEI (National Stock Exchange of India)YesEquity SharesININRJun 2005

Biography

Raj Rayon Industries Limited manufactures and trades in polyester chips, and polyester and processed yarns in India. Its products include round, trilobal, and octalobal, as well as full dull, semi dull, bright, cationic, doped dyed, fire retardant, and anti-microbial yarns. It exports its products to countries in South America, Europe, the Middle East, Africa, the Far East, the South East Asia, etc. The company was formerly known as Raj Rayon Limited and changed its name to Raj Rayon Industries Limited in August 2010. Raj Rayon Industries Limited was founded in 1993 and is based in Mumbai, India. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/24 12:58
End of Day Share Price2020/02/24 00:00
Earnings2019/09/30
Annual Earnings2019/03/31


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.