ScoreWhy is Ratnaveer Precision Engineering Ltd ?
1
Strong ability to service debt as the company has a low Debt to EBITDA ratio of 1.06 times
2
Healthy long term growth as Net Sales has grown by an annual rate of 39.51%
3
The company has declared Positive results for the last 6 consecutive quarters
- NET SALES(Q) At Rs 285.87 cr has Grown at 20.1% (vs previous 4Q average)
- PBDIT(Q) Highest at Rs 28.30 cr.
- PBT LESS OI(Q) Highest at Rs 18.06 cr.
4
With ROCE of 12.3, it has a Attractive valuation with a 1.7 Enterprise value to Capital Employed
- The stock is trading at a discount compared to its peers' average historical valuations
- Over the past year, while the stock has generated a return of -31.69%, its profits have risen by 32.1% ; the PEG ratio of the company is 0.7
5
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
6
Underperformed the market in the last 1 year
- Even though the market (BSE500) has generated returns of 2.33% in the last 1 year, the stock has hugely underperformed and has generate negative returns of -31.69% returns
Real-Time Research ReportHow much should you hold?
- Overall Portfolio exposure to Ratnaveer Precis should be less than 10%
- Overall Portfolio exposure to Iron & Steel Products should be less than 30%
(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Iron & Steel Products)
When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock
Is Ratnaveer Precis for you?
High Risk, Low Return
Absolute
Risk Adjusted
Volatility
Ratnaveer Precis
23.84%
-0.69
45.80%
Sensex
-5.06%
0.44
11.83%
Quality
Management Risk
Growth
Capital StructureQuality key factors
Factor
Value
Sales Growth (5y)
30.60%
EBIT Growth (5y)
27.76%
EBIT to Interest (avg)
4.18
Debt to EBITDA (avg)
3.12
Net Debt to Equity (avg)
0.10
Sales to Capital Employed (avg)
1.41
Tax Ratio
15.36%
Dividend Payout Ratio
0
Pledged Shares
0
Institutional Holding
9.34%
ROCE (avg)
13.10%
ROE (avg)
11.52%
ValuationValuation Key Factors 
Factor
Value
P/E Ratio
19
Industry P/E
26
Price to Book Value
1.84
EV to EBIT
14.96
EV to EBITDA
11.57
EV to Capital Employed
1.77
EV to Sales
1.21
PEG Ratio
2.67
Dividend Yield
NA
ROCE (Latest)
11.80%
ROE (Latest)
9.61%
Loading Valuation Snapshot...
TechnicalsTechnical key factors
Indicator
Weekly
Monthly
MACD
Bullish
Mildly Bearish
RSI
No Signal
No Signal
Bollinger Bands
Bullish
Bullish
Moving Averages
Bullish (Daily)
KST
Bearish
Dow Theory
Mildly Bearish
Mildly Bullish
OBV
No Trend
No Trend
Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned 
Financial Trend9What is working for the Company
PAT(Q)
Highest at Rs 17.03 cr.
-14What is not working for the Company
INTEREST(Latest six months)
At Rs 13.20 cr has Grown at 81.07%
OPERATING PROFIT TO INTEREST(Q)
Lowest at 3.52 times
PBT LESS OI(Q)
At Rs 13.42 cr has Fallen at -14.9% (vs previous 4Q average
NON-OPERATING INCOME(Q)
is 35.33 % of Profit Before Tax (PBT
Loading Valuation Snapshot...
Here's what is working for Ratnaveer Precis
Profit After Tax (PAT) - Quarterly
Highest at Rs 17.03 cr. and Grown
each quarter in the last five quartersMOJO Watch
Near term PAT trend is very positive
PAT (Rs Cr)
Here's what is not working for Ratnaveer Precis
Interest - Latest six months
At Rs 13.20 cr has Grown at 81.07%
over previous Half yearly periodMOJO Watch
Rising interest cost signifies increased borrowings
Interest Paid (Rs cr)
Operating Profit to Interest - Quarterly
Lowest at 3.52 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
Profit Before Tax less Other Income (PBT) - Quarterly
At Rs 13.42 cr has Fallen at -14.9% (vs previous 4Q average)
over average PBT of the previous four quarters of Rs 15.77 CrMOJO Watch
Near term PBT trend is very negative
PBT less Other Income (Rs Cr)
Non Operating Income - Quarterly
is 35.33 % of Profit Before Tax (PBT)
MOJO Watch
The company's income from non business activities is high; which is not a sustainable business model
Non Operating Income to PBT
