NSEI:RAJVIR

Stock Analysis Report

Executive Summary

Rajvir Industries Limited primarily manufactures, processes, and sells yarns in India.

Rewards

Trading at 96% below its fair value

Risk Analysis

Earnings have declined by -25.97% per year over past 5 years

Shares are highly illiquid

Does not have a meaningful market cap (₹41M)

Currently unprofitable and not forecast to become profitable over the next 3 years



Snowflake Analysis

Slightly overvalued with imperfect balance sheet.

Share Price & News

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


Latest Share Price and Events

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


Market Performance


7 Day Return

-4.6%

RAJVIR

1.1%

IN Luxury

-0.8%

IN Market


1 Year Return

-50.5%

RAJVIR

18.4%

IN Luxury

11.1%

IN Market

Return vs Industry: RAJVIR underperformed the Indian Luxury industry which returned 16.6% over the past year.

Return vs Market: RAJVIR underperformed the Indian Market which returned 11.1% over the past year.


Shareholder returns

RAJVIRIndustryMarket
7 Day-4.6%1.1%-0.8%
30 Day-22.1%3.3%-2.3%
90 Dayn/a9.6%2.1%
1 Year-50.5%-50.5%19.2%18.4%13.1%11.1%
3 Year-75.8%-75.8%54.9%51.5%22.9%16.2%
5 Year-75.2%-75.2%106.1%99.4%34.9%22.6%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: RAJVIR (₹10.4) is trading below our estimate of fair value (₹257.36)

Significantly Below Fair Value: RAJVIR is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: RAJVIR is unprofitable, so we can't compare its PE Ratio to the Luxury industry average.

PE vs Market: RAJVIR is unprofitable, so we can't compare its PE Ratio to the Indian market.


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate RAJVIR's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: RAJVIR has negative assets, so we can't compare its PB Ratio to the IN Luxury industry average.


Next Steps

Future Growth

How is Rajvir 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 Rajvir 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 Rajvir Industries performed over the past 5 years?

-26.0%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: RAJVIR is currently unprofitable.

Growing Profit Margin: RAJVIR is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: RAJVIR is unprofitable, and losses have increased over the past 5 years at a rate of -26% per year.

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

Earnings vs Industry: RAJVIR is unprofitable, making it difficult to compare its past year earnings growth to the Luxury industry (2.5%).


Return on Equity

High ROE: RAJVIR'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 Rajvir Industries's financial position?


Financial Position Analysis

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

Long Term Liabilities: RAJVIR 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: RAJVIR has negative shareholder equity, which is a more serious situation than a high debt level.

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


Balance Sheet

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

Debt Coverage by Assets: RAJVIR 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: Whilst unprofitable RAJVIR has sufficient cash runway for more than 3 years if it maintains its current positive free cash flow level.

Forecast Cash Runway: RAJVIR is unprofitable but has sufficient cash runway for more than 3 years, due to free cash flow being positive and growing by 20.1% per year.


Next Steps

Dividend

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


Dividend Yield vs Market

company0%marketbottom25%0.6%markettop25%2.5%industryaverage0.6%forecastin3Yearsn/a

Current dividend yield vs market & industry

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

High Dividend: Unable to evaluate RAJVIR'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 RAJVIR's dividends per share have been stable in the past.

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


Current Payout to Shareholders

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


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of RAJVIR'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?

4.3yrs

Average board tenure


CEO

Ritesh Agarwal (45yo)

8.8yrs

Tenure

0

Mr. Ritesh Kumar Agarwal has been the Managing Director and Chief Executive Officer of Rajvir Industries Ltd since May 30, 2013 and since May 26, 2011 respectively and has been its Executive Director since ...


CEO Compensation Analysis

Compensation vs Market: Ritesh's total compensation ($USD0.00) is below average for companies of similar size in the Indian market ($USD50.21K).

Compensation vs Earnings: Ritesh's compensation has increased whilst the company is unprofitable.


Board Members

NamePositionTenureCompensationOwnership
Upender Agarwal
Executive Chairman6.8yrsno data32.69% 13.5m
Ritesh Agarwal
CEO, MD & Executive Director8.8yrsno data31.17% 12.9m
Sheetal Dave
Non-Executive Independent Director1.8yrs₹5.00kno data
Ritesh Agarwal
Non-Executive Independent Director1yrsno datano data

4.3yrs

Average Tenure

46yo

Average Age

Experienced Board: RAJVIR's board of directors are considered experienced (4.3 years average tenure).


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

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


Key Information

  • Name: Rajvir Industries Limited
  • Ticker: RAJVIR
  • Exchange: NSEI
  • Founded: 1962
  • Industry: Textiles
  • Sector: Consumer Durables
  • Market Cap: ₹41.427m
  • Shares outstanding: 3.99m
  • Website: https://www.rajvirindustrieslimited.com

Number of Employees


Location

  • Rajvir Industries Limited
  • Surya Towers
  • 1st Floor
  • Secunderabad
  • Andhra Pradesh
  • 500003
  • India

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
532665BSE (Mumbai Stock Exchange)YesEquity SharesININRSep 2005
RAJVIRNSEI (National Stock Exchange of India)YesEquity SharesININRSep 2005

Biography

Rajvir Industries Limited primarily manufactures, processes, and sells yarns in India. It offers cotton, organic, fair-trade, and combed yarns; blended yarns, including polyester, viscose, modal, spun silk, and flame-retardant; and melange/heather, modal, synthetic, and cheese-dyed yarns. The company also provides fashion yarns, super specialty blends, technical textile products, and eco-friendly and fancy yarns. In addition, it offers dyed products and compact yarns; and supima, silk, wool, cashmere, and angora blends. The company also exports its products to Asia, the United States, Africa, and internationally. Rajvir Industries Limited was founded in 1962 and is based in Secunderabad, India. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/17 12:53
End of Day Share Price2020/02/17 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.