Rajratan Global Wire (BSE:517522) - Share price, News & Analysis

Q: What is the Fair Price of 517522 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

517522 (₹1195.75) is trading above our estimate of [[fair value]] (₹683.05)

517522 fundamental analysis
Snowflake Score
Valuation	0/6
Future Growth	5/6
Past Performance	6/6
Financial Health	6/6
Dividends	3/6

517522 Stock Overview

Rajratan Global Wire Limited manufactures and sells tire bead wires in India and Thailand.

Rewards

Earnings are forecast to grow 26.79% per year

Earnings grew by 86.6% over the past year

Risk Analysis

Volatile share price over the past 3 months

Rajratan Global Wire Competitors

Jindal Stainless (Hisar)

BSE:539597

₹56.4b

Jindal Stainless

BSE:532508

₹64.2b

Maharashtra Seamless

BSE:500265

₹49.5b

Godawari Power & Ispat

BSE:532734

₹38.6b

Price History & Performance

Summary of all time highs, changes and price drops for Rajratan Global Wire
Historical stock prices
Current Share Price	₹1,195.75
52 Week High	₹1,409.05
52 Week Low	₹381.20
Beta	0.34
1 Month Change	6.51%
3 Month Change	68.10%
1 Year Change	198.72%
3 Year Change	1,655.36%
5 Year Change	2,319.64%
Change since IPO	121,208.01%

Shareholder Returns

	517522	IN Metals and Mining	IN Market
7D	-4.8%	-7.9%	-4.4%
1Y	198.7%	-13.6%	-1.9%

Return vs Industry: 517522 exceeded the Indian Metals and Mining industry which returned -10.3% over the past year.

Return vs Market: 517522 exceeded the Indian Market which returned -1.2% over the past year.

Price Volatility

Is 517522's price volatile compared to industry and market?
517522 volatility
517522 Average Weekly Movement	8.2%
Metals and Mining Industry Average Movement	5.9%
Market Average Movement	5.9%
10% most volatile stocks in IN Market	9.2%
10% least volatile stocks in IN Market	3.8%

Stable Share Price: 517522 is more volatile than 75% of Indian stocks over the past 3 months, typically moving +/- 8% a week.

Volatility Over Time: 517522's weekly volatility (8%) has been stable over the past year, but is still higher than 75% of Indian stocks.

About the Company

Founded	Employees	CEO	Website
1988	425	Sunil Chordia	https://www.rajratan.co.in

Rajratan Global Wire Limited manufactures and sells tire bead wires in India and Thailand. The company also offers high carbon steel wires that are used in mechanical springs, high performance springs, beddings and seating, wire ropes and cables, conveyor belts, automotive cables, steel fibers, and cut wire shots for shot blasting and pinning applications. Its tire bead wires are used in various kinds of automobile tires, tires of earth moving equipment, and aircraft.

Rajratan Global Wire Fundamentals Summary

How do Rajratan Global Wire's earnings and revenue compare to its market cap?
517522 fundamental statistics
Market Cap	₹60.71b
Earnings (TTM)	₹1.37b
Revenue (TTM)	₹9.62b

44.3x

P/E Ratio

6.3x

P/S Ratio

Is 517522 overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
517522 income statement (TTM)
Revenue	₹9.62b
Cost of Revenue	₹5.84b
Gross Profit	₹3.78b
Other Expenses	₹2.41b
Earnings	₹1.37b

Last Reported Earnings

Jun 30, 2022

Next Earnings Date

n/a

Earnings per share (EPS)	26.97
Gross Margin	39.31%
Net Profit Margin	14.24%
Debt/Equity Ratio	40.1%

How did 517522 perform over the long term?

See historical performance and comparison

Dividends

0.2%

Current Dividend Yield

7%

Payout Ratio

We’ve recently updated our valuation analysis.

Valuation

Is 517522 undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

0/6

Valuation Score 0/6

Price-To-Earnings vs Peers
Price-To-Earnings vs Industry
Price-To-Earnings vs Fair Ratio
Below Fair Value
Significantly Below Fair Value
Analyst Forecast

Key Valuation Metric

Which metric is best to use when looking at relative valuation for 517522?

Other financial metrics that can be useful for relative valuation.

The above table shows the n/a ratio for 517522. This is calculated by dividing 517522's market cap by their current preferred multiple.
What is 517522's n/a Ratio?
n/a Ratio	0x
n/a	n/a
Market Cap	₹60.71b

517522 key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue	6.5x
Enterprise Value/EBITDA	31.4x
PEG Ratio	1.7x

Price to Earnings Ratio vs Peers

How does 517522's PE Ratio compare to its peers?

517522 PE Ratio vs Peers

The above table shows the PE ratio for 517522 vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
Company	PE	Estimated Growth	Market Cap
Peer Average	5.1x
539597 Jindal Stainless (Hisar)	3x	-34.0%	₹56.4b
532508 Jindal Stainless	3.4x	0.4%	₹64.2b
500265 Maharashtra Seamless	11.3x	23.4%	₹49.5b
532734 Godawari Power & Ispat	2.8x	n/a	₹38.6b
517522 Rajratan Global Wire	44.3x	26.8%	₹60.7b

Price-To-Earnings vs Peers: 517522 is expensive based on its Price-To-Earnings Ratio (44.3x) compared to the peer average (5.1x).

Price to Earnings Ratio vs Industry

How does 517522's PE Ratio compare vs other companies in the IN Metals and Mining Industry?

Price-To-Earnings vs Industry: 517522 is expensive based on its Price-To-Earnings Ratio (44.3x) compared to the Indian Metals and Mining industry average (12.8x)

Price to Earnings Ratio vs Fair Ratio

What is 517522's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

517522 PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio	44.3x
Fair PE Ratio	25.7x

Price-To-Earnings vs Fair Ratio: 517522 is expensive based on its Price-To-Earnings Ratio (44.3x) compared to the estimated Fair Price-To-Earnings Ratio (25.7x).

Share Price vs Fair Value

What is the Fair Price of 517522 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: 517522 (₹1195.75) is trading above our estimate of fair value (₹683.05)

Significantly Below Fair Value: 517522 is trading above our estimate of fair value.

Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

Analyst Forecast: Target price is lower than the current share price.

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Future Growth

How is Rajratan Global Wire forecast to perform in the next 1 to 3 years based on estimates from 3 analysts?

Future Growth Score

5/6

Future Growth Score 5/6

Earnings vs Savings Rate
Earnings vs Market
High Growth Earnings
Revenue vs Market
High Growth Revenue
Future ROE

26.8%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts

Analyst Future Growth Forecasts

Earnings vs Savings Rate: 517522's forecast earnings growth (26.8% per year) is above the savings rate (6.8%).

Earnings vs Market: 517522's earnings (26.8% per year) are forecast to grow faster than the Indian market (18.5% per year).

High Growth Earnings: 517522's earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: 517522's revenue (20% per year) is forecast to grow faster than the Indian market (10.4% per year).

High Growth Revenue: 517522's revenue (20% per year) is forecast to grow slower than 20% per year.

Earnings per Share Growth Forecasts

Future Return on Equity

Future ROE: 517522's Return on Equity is forecast to be high in 3 years time (35.6%)

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Past Performance

How has Rajratan Global Wire performed over the past 5 years?

Past Performance Score

6/6

Past Performance Score 6/6

Quality Earnings
Growing Profit Margin
Earnings Trend
Accelerating Growth
Earnings vs Industry
High ROE

43.5%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: 517522 has high quality earnings.

Growing Profit Margin: 517522's current net profit margins (14.2%) are higher than last year (11.1%).

Past Earnings Growth Analysis

Earnings Trend: 517522's earnings have grown significantly by 43.5% per year over the past 5 years.

Accelerating Growth: 517522's earnings growth over the past year (86.6%) exceeds its 5-year average (43.5% per year).

Earnings vs Industry: 517522 earnings growth over the past year (86.6%) exceeded the Metals and Mining industry 28.8%.

Return on Equity

High ROE: 517522's Return on Equity (40.2%) is considered outstanding.

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Financial Health

How is Rajratan Global Wire's financial position?

Financial Health Score

6/6

Financial Health Score 6/6

Short Term Liabilities
Long Term Liabilities
Debt Level
Reducing Debt
Debt Coverage
Interest Coverage

Financial Position Analysis

Short Term Liabilities: 517522's short term assets (₹2.8B) exceed its short term liabilities (₹2.1B).

Long Term Liabilities: 517522's short term assets (₹2.8B) exceed its long term liabilities (₹636.3M).

Debt to Equity History and Analysis

Debt Level: 517522's net debt to equity ratio (39.9%) is considered satisfactory.

Reducing Debt: 517522's debt to equity ratio has reduced from 110.6% to 40.1% over the past 5 years.

Debt Coverage: 517522's debt is well covered by operating cash flow (87.2%).

Interest Coverage: 517522's interest payments on its debt are well covered by EBIT (14.3x coverage).

Balance Sheet

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Dividend

What is Rajratan Global Wire current dividend yield, its reliability and sustainability?

Dividend Score

3/6

Dividend Score 3/6

Notable Dividend
High Dividend
Stable Dividend
Growing Dividend
Earnings Coverage
Cash Flow Coverage

0.17%

Current Dividend Yield

Dividend Yield vs Market

Rajratan Global Wire Dividend Yield vs Market

How does Rajratan Global Wire dividend yield compare to the market?
Segment	Dividend Yield
Company (Rajratan Global Wire)	0.2%
Market Bottom 25% (IN)	0.4%
Market Top 25% (IN)	1.6%
Industry Average (Metals and Mining)	6.5%
Analyst forecast in 3 Years (Rajratan Global Wire)	0.6%

Notable Dividend: 517522's dividend (0.17%) isn’t notable compared to the bottom 25% of dividend payers in the Indian market (0.36%).

High Dividend: 517522's dividend (0.17%) is low compared to the top 25% of dividend payers in the Indian market (1.64%).

Stability and Growth of Payments

Stable Dividend: 517522's dividend payments have been volatile in the past 10 years.

Growing Dividend: 517522's dividend payments have increased over the past 10 years.

Earnings Payout to Shareholders

Earnings Coverage: With its low payout ratio (7.4%), 517522's dividend payments are thoroughly covered by earnings.

Cash Payout to Shareholders

Cash Flow Coverage: With its reasonably low cash payout ratio (31.9%), 517522's dividend payments are well covered by cash flows.

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Management

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

3.2yrs

Average board tenure

CEO

Sunil Chordia (59 yo)

34yrs

Tenure

₹12,540,000

Compensation

Mr. Sunil Chordia, BSc., DCMA, MBA, MD has been the Managing Director of Rajratan Global Wire Limited since April 1, 2008 and Chairman since July 22, 2019. Mr. Chordia has 23 years of experience. He has be...

CEO Compensation Analysis

Sunil Chordia's Compensation vs Rajratan Global Wire Earnings

How has Sunil Chordia's remuneration changed compared to Rajratan Global Wire's earnings?
Date	Total Comp.	Salary	Company Earnings
Jun 30 2022	n/a	n/a	₹1b
Mar 31 2022	₹13m	₹13m	₹1b
Dec 31 2021	n/a	n/a	₹1b
Sep 30 2021	n/a	n/a	₹925m
Jun 30 2021	n/a	n/a	₹734m
Mar 31 2021	₹10m	₹10m	₹531m
Dec 31 2020	n/a	n/a	₹360m
Sep 30 2020	n/a	n/a	₹287m
Jun 30 2020	n/a	n/a	₹248m
Mar 31 2020	₹10m	₹10m	₹331m
Dec 31 2019	n/a	n/a	₹348m
Sep 30 2019	n/a	n/a	₹319m
Jun 30 2019	n/a	n/a	₹281m
Mar 31 2019	₹8m	₹7m	₹267m
Dec 31 2018	n/a	n/a	₹247m
Sep 30 2018	n/a	n/a	₹221m
Jun 30 2018	n/a	n/a	₹220m
Mar 31 2018	₹8m	₹7m	₹171m
Dec 31 2017	n/a	n/a	₹190m
Sep 30 2017	n/a	n/a	₹197m
Jun 30 2017	n/a	n/a	₹184m
Mar 31 2017	₹7m	₹7m	₹189m
Dec 31 2016	n/a	n/a	₹218m
Sep 30 2016	n/a	n/a	₹230m
Jun 30 2016	n/a	n/a	₹218m
Mar 31 2016	₹7m	₹6m	₹165m

Compensation vs Market: Sunil's total compensation ($USD153.57K) is below average for companies of similar size in the Indian market ($USD385.75K).

Compensation vs Earnings: Sunil's compensation has increased by more than 20% in the past year.

Board Members

Experienced Board: 517522's board of directors are considered experienced (3.2 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

What is the ownership structure of 517522?
Owner Type	Number of Shares	Ownership Percentage
State or Government	264,890	0.5%
Institutions	4,074,139	8.0%
Individual Insiders	9,976,822	19.7%
General Public	10,198,404	20.1%
Private Companies	26,256,745	51.7%

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.

Top Shareholders

Top 17 shareholders own 79.91% of the company

Ownership	Name	Shares	Current Value	Change %	Portfolio %
18.44%	Rajratan Investments Ltd	9,361,125	₹11.2b	0%	no data
13.11%	Sangita Sunil Chordia Family Trust	6,655,050	₹8.0b	0%	no data
11.28%	Sunil Chordia Family Trust	5,727,855	₹6.8b	0%	no data
8.89%	Rajratan Resources Pvt Ltd	4,512,715	₹5.4b	0%	no data
7.76%	SBI Funds Management Limited	3,939,839	₹4.7b	-1.72%	0.11%
6.32%	Yashovardhan Chordia	3,209,165	₹3.8b	0%	no data
4.14%	Sunil Chandanmal	2,100,000	₹2.5b	0%	no data
3.07%	Karthilk Sundar	1,559,712	₹1.9b	-0.32%	no data
1.5%	Shubhika Chordia	760,665	₹909.6m	0%	no data
1.19%	D. Srimathi	601,800	₹719.6m	0%	no data
1.07%	Krishan Mohta	545,380	₹652.1m	-3.99%	no data
1.03%	Chandrakant Nagar	525,000	₹627.8m	0%	no data
1%	Sunil Chordia	505,940	₹605.0m	0%	no data
0.52%	Investor Education and Protection Fund (IEPF)	264,890	₹316.7m	0%	no data
0.26%	BOI AXA Investment Managers Private Limited	134,300	₹160.6m	-2.78%	0.74%
0.23%	Sangita Chordia	116,660	₹139.5m	0%	no data
0.1%	Mohini Chordia	52,500	₹62.8m	0%	no data

Ticker	Exchange	Primary Security	Security Type	Country	Currency	Listed on
517522	BSE (Mumbai Stock Exchange)	Yes	Equity Shares	IN	INR	Dec 2001
RAJRATAN	NSEI (National Stock Exchange of India)	Yes	Equity Shares	IN	INR	Dec 2001

Data	Last Updated (UTC time)
Company Analysis	2022/09/28 00:00
End of Day Share Price	2022/09/28 00:00
Earnings	2022/06/30
Annual Earnings	2022/03/31