ScoreWhy is Raj Rayon Industries Ltd ?
1
Weak Long Term Fundamental Strength with an average Return on Capital Employed (ROCE) of 4.96%
- Low ability to service debt as the company has a high Debt to EBITDA ratio of 24.21 times
2
Stock is technically in a Bearish range
- The technical trend has deteriorated from Mildly Bearish on 12-May-26 and has generated -1.98% returns since then
- The stocks Bollinger Band and KST technical factors are also Bearish
3
Despite the size of the company, domestic mutual funds hold only 0% of the company
- Domestic mutual funds have capability to do in-depth on-the-ground research on companies- their small stake may signify either they are not comfortable at the price or the business
4
Below par performance in long term as well as near term
- Along with generating -19.14% returns in the last 1 year, the stock has also underperformed BSE500 in the last 3 years, 1 year and 3 months
Real-Time Research ReportHow much should you sell?
- All quantity irrespective of whether you are making profits or losses
(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Garments & Apparels)
When to re-enter? - We will constantly monitor the company and review our call based on new data
Is Raj Rayon Inds. for you?
Medium Risk, Low Return
Absolute
Risk Adjusted
Volatility
Raj Rayon Inds.
-27.32%
-0.74
25.81%
Sensex
-4.95%
-0.49
12.94%
Quality
Management Risk
Growth
Capital StructureQuality key factors
Factor
Value
Sales Growth (5y)
311.56%
EBIT Growth (5y)
26.72%
EBIT to Interest (avg)
-7.91
Debt to EBITDA (avg)
Negative Net Debt
Net Debt to Equity (avg)
1.12
Sales to Capital Employed (avg)
1.82
Tax Ratio
Tax Ratio is Negative%
Dividend Payout Ratio
0
Pledged Shares
0
Institutional Holding
0.04%
ROCE (avg)
-10.57%
ROE (avg)
7.34%
ValuationValuation Key Factors 
Factor
Value
P/E Ratio
34
Industry P/E
24
Price to Book Value
7.36
EV to EBIT
29.24
EV to EBITDA
20.81
EV to Capital Employed
4.01
EV to Sales
1.12
PEG Ratio
0.23
Dividend Yield
NA
ROCE (Latest)
13.70%
ROE (Latest)
21.72%
Loading Valuation Snapshot...
TechnicalsTechnical key factors
Indicator
Weekly
Monthly
MACD
Mildly Bullish
Bearish
RSI
No Signal
No Signal
Bollinger Bands
Mildly Bearish
Mildly Bearish
Moving Averages
Bearish (Daily)
KST
Mildly Bullish
Bearish
Dow Theory
No Trend
No Trend
OBV
Mildly Bullish
Mildly Bearish
Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned 
Financial Trend14What is working for the Company
NET SALES(Latest six months)
At Rs 600.21 cr has Grown at 37.92%
PAT(Q)
Highest at Rs 14.03 cr.
EPS(Q)
Highest at Rs 0.25
-5What is not working for the Company
OPERATING PROFIT TO INTEREST(Q)
Lowest at 3.37 times
INTEREST(9M)
At Rs 13.92 cr has Grown at 38.37%
Loading Valuation Snapshot...
Here's what is working for Raj Rayon Inds.
Profit After Tax (PAT) - Quarterly
At Rs 14.03 cr has Grown at 68.0% (vs previous 4Q average)
over average PAT of the previous four quarters of Rs 8.35 CrMOJO Watch
Near term PAT trend is very positive
PAT (Rs Cr)
Net Sales - Latest six months
At Rs 600.21 cr has Grown at 37.92%
Year on Year (YoY)MOJO Watch
Near term sales trend is positive
Net Sales (Rs Cr)
Profit After Tax (PAT) - Quarterly
Highest at Rs 14.03 cr.
in the last five quartersMOJO Watch
Near term PAT trend is positive
PAT (Rs Cr)
Earnings per Share (EPS) - Quarterly
Highest at Rs 0.25
in the last five quartersMOJO Watch
Increasing profitability; company has created higher earnings for shareholders
EPS (Rs)
Here's what is not working for Raj Rayon Inds.
Operating Profit to Interest - Quarterly
Lowest at 3.37 times and Fallen
each quarter in the last five quartersMOJO Watch
The company's ability to manage interest payments is deteriorating
Operating Profit to Interest
Interest - Nine Monthly
At Rs 13.92 cr has Grown at 38.37%
over preceding nine months periodMOJO Watch
Rising interest cost signifies increased borrowings
Interest Paid (Rs cr)
