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Rungta Irrigation
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Rungta Irrigation Ltd (RIL) was incorporated as a private limited company under the name Jindal Irrigation Pvt Ltd in Apr.'86. The Company became a public limited company in Jun.'86 and got its present name in Apr.'94. The Company was originally promoted by S R Jindal and, in 1992-93, it was taken over by R S Rungta of the Rungta Group, who is the present Chairman.
In Mar.'95, RIL came out with a public issue at a premium of Rs 50, aggregating Rs 14.28 cr, to establish a new unit to manufacture sprinkler irrigation systems/drip irrigation systems, HDPE pipes, PVC pipes, fittings and components, and to meet working capital requirements totalling Rs 24 cr.
The Company manufactures designs, assembles and markets aluminium/GI/HDPE/PVC pipe-based sprinkler irrigation system and rigid PVC and HDPC pipes for water conveyance channels and for other uses. Recently, it has diversified into drip irrigation systems and the manufacture of HDPE and PVC pipes. It has a technical collaboration with Unicor Rohrsysteme, Germany, and Ein-Tal, Israel, for drip irrigation technology.
The key products of the Company include Sprinklers and Drip irrigation systems; Aluminum, Polyvinyl chloride (PVC), and High density polyethylene (HDPE) pipes and Fountains . The company has established a strong dealership network with branches across the country. The Company has engaged in various PE, PVC, HDPE, MS, DI Pipeline Projects, Drip & Sprinkler Irrigation System Turnkey Projects, specialist Underwater Pipeline Projects, Canal Work and Irrigation Projects. On turnkey basis, it undertake Design, Supply, Welding, Testing & Installation and Commissioning, including all types of Civil & Electro-mechanical work and Canal works. For projects like Potable Water Supply Scheme, it undertake Water Pipelines, Sewage Plants & ETP Pipelines, SLF Waste Water Treatment Plant, Lift & Gravity Irrigation, Micro Irrigation System, Sprinkler Irrigation Projects, Landscape Irrigation, Main & Floater Pipes, Dust Suppression System etc.
During the year 1995-96, the company set up an additional unit at Kala-amb in Himachal Pradesh for manufacturing PVC/HDPE Pipes and Drip Irrigation system.
During 1998-99, the Company launched its pesticides products .
Rungta Irrigation share price reflects investor sentiment toward the company and is impacted by various factors such as financial performance, market trends, and economic conditions. Share price is an indicator which shows the current value of the company's shares at which buyers or sellers can transact.
Market capitalization of Rungta Irrigation indicates the total value of its outstanding shares. Marketcap is calculated by multiplying share price and outstanding shares of the company. It is a helpful metric for assessing the company's size and market Valuation. It also helps investors understand how Rungta Irrigation is valued compared to its competitors.
Rungta Irrigation PE ratio helps investors understand what is the market value of each stock compared to Rungta Irrigation 's earnings. A PE ratio higher than the average industry PE could indicate an overvaluation of the stock, whereas a lower PE compared to the average industry PE could indicate an undervaluation.
The PEG ratio of Rungta Irrigation evaluates its PE ratio in relation to its growth rate. A PEG ratio of 1 indicates a fair value, a PEG ratio of less than 1 indicates undervaluation, and a PEG ratio of more than 1 indicates overvaluation.
Return on Equity (ROE) measures how effectively Rungta Irrigation generates profit from shareholders' equity. A higher ROE of more than 20% indicates better financial performance in terms of profitability.
Return on Capital Employed (ROCE) evaluates the profitability of Rungta Irrigation in relation to its capital employed. In simple terms, ROCE provides insight to investors as to how well the company is utilizing the capital deployed. A high ROCE of more than 20% shows that the business is making profitable use of its capital.
Total debt of Rungta Irrigation shows how much the company owes to either banks or individual creditors. In simple terms, this is the amount the company has to repay. Total debt can be a very useful metric to show the financial health of the company. Total debt more than equity is considered to be a bad sign.
The Debt-to-Equity (DE) ratio of Rungta Irrigation compares its total debt to shareholders' equity. A higher Debt to Equity ratio could indicate higher financial risk, while a lower ratio suggests that the company is managing its debt efficiently.
CAGR shows the consistent growth rate of Rungta Irrigation over a specific period, whether it is over a month, a year, or 10 years. It is a key metric to evaluate the company’s long-term growth potential. Main metrics for which CAGR is calculated are net sales, net profit, operating profit, and stock returns.
Technical analysis of Rungta Irrigation helps investors get an insight into when they can enter or exit the stock. Key components of Rungta Irrigation Technical Analysis include:
There are usually multiple support levels, but the main support levels for a stock are S1, S2, S3. Support levels indicate price points where stock might get support from buyers, helping the stock stop falling and rise.
There are usually multiple resistance levels, but the main resistance levels for a stock are R1, R2, R3. Resistance levels represent price points where Rungta Irrigation shares often struggle to rise above due to selling pressure.
Dividends refer to the portion of the company’s profits distributed to its shareholders. Dividends are typically paid out in cash and reflect Rungta Irrigation ’s financial health and profitability.
Bonus shares are usually given by companies to make the stock more affordable, increase liquidity, boost investor confidence, and more.
Stock split increases the number of its outstanding shares by dividing each existing share into multiple shares. When the company offers a stock split, the face value of the stock reduces in the same proportion as the split ratio.
The financials of Rungta Irrigation provide a complete view to investors about its net sales, net profit, operating profits, expenses, and overall financial health. Investors can analyze financial data to assess the company’s stability and also understand how the company has been growing financially.
The profit and loss statement of Rungta Irrigation highlights its net sales, net profit, total expenditure, and operating profits in the current financial year. This Profit and Loss statement is crucial for evaluating the profitability and financial stability of Rungta Irrigation .
The balance sheet presents a snapshot of Rungta Irrigation ’s assets, liabilities, and equity of shareholders, providing insights into the financials of the company.
Cashflow statements track the company's cash inflows and outflows over a period. It is an essential tool for understanding how well the company manages its liquidity and finances.