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
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. You can see them here.
Show me the analysis anyway
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
It is not possible to calculate the future cash flow value for
Raj Rayon Industries. This is due to cash flow or dividend data being
unavailable. The share price is
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
Raj Rayon Industries's
is considered below, and whether this is a fair price.
Price based on past earnings
Raj Rayon Industries's earnings available for a low price, and how does
this compare to other companies in the same industry?
Raj Rayon Industries has negative assets, we can't compare the value of its assets to the IN Luxury industry average.
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's regulatory filings and announcements.
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 Simply Wall St do have past financial data. You can see them here.
Show me the analysis anyway
The future performance of a company is measured in the same way as past
performance, by looking at estimated
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
Expected Luxury industry annual growth in earnings.
Earnings growth vs Low Risk Savings
Raj Rayon Industries
expected to grow at an
Unable to compare Raj Rayon Industries's earnings growth to the low risk savings rate as no estimate data is available.
Growth vs Market Checks
Unable to compare Raj Rayon Industries's earnings growth to the India market average as no estimate data is available.
Unable to compare Raj Rayon Industries's revenue growth to the India market average as no estimate data is available.
Unable to determine if Raj Rayon Industries is high growth as no earnings estimate data is available.
Unable to determine if Raj Rayon Industries 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.
Raj Rayon Industries's performance over the past 5 years by checking for:
Has earnings increased in past 5 years? (1 check)
Has the earnings growth in the last year exceeded that of the
industry? (1 check)
Is the recent earnings growth over the last year higher than the average annual growth over the
past 5 years? (1 check)
Is the Return on Equity (ROE) higher than 20%? (1 check)
Is the Return on Assets (ROA) above industry average? (1 check)
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.
Raj Rayon Industries
has a total score of
0/6, see the detailed checks below.
Note: We use GAAP Net Income excluding extraordinary items in all our calculations.
A company's financial position is much like your own financial position,
it includes everything you own
The boxes below represent the relative size of what makes up
Raj Rayon Industries's finances.
The net worth of a company is the difference between its assets and liabilities.
Raj Rayon Industries's short term (1 year) commitments are greater than its holdings of cash and other short term assets.
Raj Rayon Industries's cash and other short term assets cover its long term commitments.
This treemap shows a more detailed breakdown of
Raj Rayon Industries'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
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
High level of physical assets or inventory.
Raj Rayon Industries has negative shareholder equity (liabilities exceed assets) therefore debt is not covered by short term assets.
Nearly all companies have debt. Debt in itself isn’t
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.
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.
TENURE AS CEO
Mr. Sushil Kumar Kanodia has been the Chief Executive Officer and Chief Financial Officer of Raj Rayon Industries Limited since July 5, 2014 and has been its Compliance Officer since July 19, 2017. Mr. Kanodia served as an Executive Officer at Raj Rayon Industries Limited.
Sushil's compensation has been consistent with company performance over the past year.
Sushil's remuneration is higher than average for companies of similar size in India.
CEO, CFO & Compliance Officer
General Manager of Accounts
Board of Directors Tenure
Average tenure of the
Raj Rayon Industries
board of directors in years:
The average tenure for the Raj Rayon Industries board of directors is less than 3 years, this suggests a new board.
Is Raj Rayon Industries Limited's (NSE:RAJRAYON) CEO Salary Justified?
Sushil Kanodia is the CEO of Raj Rayon Industries Limited (NSE:RAJRAYON), which has recently grown to a market capitalization of ₹79.68m. … Recognizing whether CEO incentives are aligned with shareholders is a crucial part of investing. … This is because, if incentives are aligned, more value is created for shareholders which directly impacts your returns as an investor.
Raj Rayon Industries Limited (NSE:RAJRAYON): Risks You Need To Consider Before Buying
Based on this beta value, RAJRAYON appears to be a stock that an investor with a high-beta portfolio would look for to reduce risk exposure to the market. … RAJRAYON, with its market capitalisation of ₹86.61M, is a small-cap stock, which generally have higher beta than similar companies of larger size. … This is an interesting conclusion, since both RAJRAYON’s size and industry indicates the stock should have a higher beta than it currently has.
Who Are The Major Shareholders In Raj Rayon Industries Limited (NSE:RAJRAYON)?
See our latest analysis for Raj Rayon Industries NSEI:RAJRAYON Ownership_summary May 15th 18 Insider Ownership Another important group of shareholders are company insiders. … With this size of ownership, retail investors can collectively play a role in major company policies that affect shareholders returns, including executive remuneration and the appointment of directors. … Private Company Ownership Another important group of owners for potential investors in RAJRAYON are private companies that hold a stake of 36.81% in RAJRAYON.
Is Raj Rayon Industries Limited (NSE:RAJRAYON) Overpaying Its CEO?
In the past year, RAJRAYON delivered negative earnings of -₹570.15M. … NSEI:RAJRAYON Past Future Earnings May 1st 18 Is RAJRAYON's CEO overpaid relative to the market? … Normally I would look at market cap and earnings as a proxy for performance, however, RAJRAYON's negative earnings reduces the effectiveness of this method.
Was Raj Rayon Industries Limited's (NSE:RAJRAYON) Earnings Growth Better Than The Industry's?
Examining how Raj Rayon Industries Limited (NSEI:RAJRAYON) is performing as a company requires looking at more than just a years' earnings. … Check out our latest analysis for Raj Rayon Industries Commentary On RAJRAYON's Past Performance I use data from the most recent 12 months, which either annualizes the most recent 6-month earnings update, or in some cases, the most recent annual report is already the latest available financial data. … Each year, for the past five years Raj Rayon Industries has seen an annual decline in revenue of -15.56%, on average.
Raj Rayon Industries Limited (NSE:RAJRAYON): How Does It Impact Your Portfolio?
The first risk to consider is company-specific, which can be diversified away when you invest in other companies in the same industry as RAJRAYON, because it is rare that an entire industry collapses at once. … Based on this beta value, RAJRAYON appears to be a stock that an investor with a high-beta portfolio would look for to reduce risk exposure to the market. … However, this is the opposite to what RAJRAYON’s actual beta value suggests, which is lower stock volatility relative to the market.
Should You Be Concerned About Raj Rayon Industries Limited's (NSE:RAJRAYON) Shareholders?
In this article, I'm going to take a look at Raj Rayon Industries Limited’s (NSEI:RAJRAYON) latest ownership structure, a non-fundamental factor which is important, but remains a less discussed subject among investors. … View our latest analysis for Raj Rayon Industries NSEI:RAJRAYON Ownership_summary Feb 9th 18 Insider Ownership I find insiders are another important group of stakeholders, who are directly involved in making key decisions related to the use of capital. … This size of ownership gives retail investors collective power in deciding on major policy decisions such as executive compensation, appointment of directors and acquisitions of businesses.
What Did Raj Rayon Industries Limited's (NSE:RAJRAYON) CEO Take Home Last Year?
Profitability of a company is a strong indication of RAJRAYON's ability to generate returns on shareholders' funds through corporate activities. … Normally I'd use market cap and profit as factors determining performance, however, RAJRAYON's negative earnings reduces the effectiveness of this method. … On the whole, though RAJRAYON is loss-making, it seems like the CEO’s pay is sound.
Is Raj Rayon Industries Limited (NSE:RAJRAYON) A Consumer Industry Laggard Or Leader?
See our latest analysis for Raj Rayon Industries What’s the catalyst for Raj Rayon Industries's sector growth? … However, if you’re relatively concentrated in luxury goods, you may want to value Raj Rayon Industries based on its cash flows to determine if it is overpriced based on its current growth outlook. … If Raj Rayon Industries has been on your watchlist for a while, now may be the time to enter into the stock, if you like its ability to deliver growth and are not highly concentrated in the luxury goods industry.
Are Earnings Prospects Improving For Loss-Making Raj Rayon Industries Limited's (NSE:RAJRAYON)?
Today I will take a look at Raj Rayon Industries Limited's (NSEI:RAJRAYON) most recent earnings update (30 September 2017) and compare these latest figures against its performance over the past few years, as well as how the rest of the luxury industry performed. … View our latest analysis for Raj Rayon Industries How RAJRAYON fared against its long-term earnings performance and its industry To account for any quarterly or half-yearly updates, I use data from the most recent 12 months, which either annualizes the most recent 6-month earnings update, or in some cases, the most recent annual report is already the latest available financial data. … For Raj Rayon Industries, its latest earnings is -₹660.0M, which, in comparison to the previous year's figure, has become less negative.
Raj Rayon Industries Limited manufactures and sells polyester yarns in India. Its products include polyester texturized, partially oriented, and fully drawn yarns, as well as polyester chips. The company also offers bright, cationic, cotluk, colored, and fire retardant and anti-microbial yarns, as well as yarns of various cross sections, such as tri-lobal, octa-lobal, etc. It exports its products to various countries, including Brazil, Chile, Colombia, Egypt, Guatemala, Iran, Mexico, Morocco, Peru, Poland, Spain, Syria, Thailand, Vietnam, and internationally. 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.
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