BSE:502271

Stock Analysis Report

Raasi Refractories

Executive Summary

Raasi Refractories Limited manufactures and sells refractories in India.

Rewards

Trading at 66.8% below its fair value

Risk Analysis

Debt is not well covered by operating cash flow

Shares are highly illiquid

Does not have a meaningful market cap (₹18M)

Large one-off items impacting financial results

+ 1 more risk


Snowflake Analysis

Good value with poor track record.

Share Price & News

How has Raasi Refractories's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: 502271's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

5.0%

502271

-0.4%

IN Basic Materials

0.2%

IN Market


1 Year Return

-75.8%

502271

14.8%

IN Basic Materials

7.2%

IN Market

Return vs Industry: 502271 underperformed the Indian Basic Materials industry which returned 12.6% over the past year.

Return vs Market: 502271 underperformed the Indian Market which returned 6.7% over the past year.


Shareholder returns

502271IndustryMarket
7 Day5.0%-0.4%0.2%
30 Day-8.9%8.7%2.1%
90 Day-24.4%7.3%5.7%
1 Year-75.8%-75.8%15.4%14.8%9.2%7.2%
3 Year-75.6%-75.6%18.5%16.5%33.1%26.2%
5 Year-31.7%-31.7%34.0%29.9%35.6%23.5%

Price Volatility Vs. Market

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


Simply Wall St News

No news available

Valuation

Is Raasi Refractories 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: 502271 (₹4) is trading below our estimate of fair value (₹12.05)

Significantly Below Fair Value: 502271 is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: 502271 is good value based on its PE Ratio (0.4x) compared to the Basic Materials industry average (16.4x).

PE vs Market: 502271 is good value based on its PE Ratio (0.4x) compared to the Indian market (13.8x).


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate 502271's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: 502271 has negative assets, so we can't compare its PB Ratio to the IN Basic Materials industry average.


Next Steps

Future Growth

How is Raasi Refractories forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

18.8%

Forecasted Materials 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 Raasi Refractories 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 Raasi Refractories performed over the past 5 years?

61.1%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 502271 has a large one-off gain of ₹24.9M impacting its September 30 2019 financial results.

Growing Profit Margin: 502271's current net profit margins (7.6%) are lower than last year (15.3%).


Past Earnings Growth Analysis

Earnings Trend: 502271 has become profitable over the past 5 years, growing earnings by 61.1% per year.

Accelerating Growth: 502271's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: 502271 had negative earnings growth (-6%) over the past year, making it difficult to compare to the Basic Materials industry average (10.3%).


Return on Equity

High ROE: 502271'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 Raasi Refractories's financial position?


Financial Position Analysis

Short Term Liabilities: 502271 has negative shareholder equity, which is a more serious situation than short term assets not covering short term liabilities.

Long Term Liabilities: 502271 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: 502271 has negative shareholder equity, which is a more serious situation than a high debt level.

Reducing Debt: 502271's has negative shareholder equity, so we do not need to check if its debt has reduced over time.

Debt Coverage: 502271's debt is not well covered by operating cash flow (3.4%).

Interest Coverage: 502271's interest payments on its debt are well covered by EBIT (3.6x coverage).


Balance Sheet

Inventory Level: 502271 has a high level of physical assets or inventory.

Debt Coverage by Assets: 502271 has negative shareholder equity (liabilities exceed assets) therefore debt is not covered by short term assets.


Next Steps

Dividend

What is Raasi Refractories's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

companyn/amarketbottom25%0.6%markettop25%2.3%industryaverage0.5%forecastin3Yearsn/a

Current dividend yield vs market & industry

Notable Dividend: Unable to evaluate 502271's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate 502271'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 502271's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if 502271's dividend payments have been increasing.


Current Payout to Shareholders

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


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of 502271's dividend in 3 years as they are not forecast to pay a notable one for the Indian market.


Next Steps

Management

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

1.6yrs

Average board tenure


CEO

Raasi Refractories has no CEO, or we have no data on them.


Board Age and Tenure

1.6yrs

Average Tenure

62yo

Average Age

Experienced Board: 502271's board of directors are not considered experienced ( 1.6 years average tenure), which suggests a new board.


Insider Trading

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.


Management Team

  • Sistla Sastry

    CFO & Compliance Officer


    Board Members

    • Rajendra Kandikattu (62yo)

      Nominee Director

      • Compensation: ₹2.00k
    • Venkanna Konda

      Independent Director

      • Tenure: 1.6yrs
    • Soujanya Konda

      Woman Director

      • Tenure: 1.6yrs
    • Ramakrishna Konda

      Director

      • Tenure: 1.6yrs
    • Satyanarayana Kapuganti (62yo)

      Independent Director

      • Tenure: 2.3yrs
    • Suresh Silumula (36yo)

      Independent Director

      • Tenure: 2.3yrs

    Company Information

    Raasi Refractories Limited's company bio, employee growth, exchange listings and data sources


    Key Information

    • Name: Raasi Refractories Limited
    • Ticker: 502271
    • Exchange: BSE
    • Founded: 1981
    • Industry: Construction Materials
    • Sector: Materials
    • Market Cap: ₹17.957m
    • Shares outstanding: 4.71m
    • Website: https://null

    Number of Employees


    Location

    • Raasi Refractories Limited
    • 15-145/9, Kodandaram Nagar
    • Saroornagar
    • Hyderabad
    • Andhra Pradesh
    • 500060
    • India

    Listings

    TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
    502271BSE (Mumbai Stock Exchange)YesEquity SharesININRMay 2005

    Biography

    Raasi Refractories Limited manufactures and sells refractories in India. The company was incorporated in 1981 and is based in Hyderabad, India. 


    Company Analysis and Financial Data Status

    All financial data provided by Standard & Poor's Capital IQ.
    DataLast Updated (UTC time)
    Company Analysis2020/01/20 12:34
    End of Day Share Price2020/01/17 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.