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Raj Rayon Industries
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Raj Rayon Industries Ltd is engaged in the manufacture and sale of polyester texturised yarn (PTY), partially oriented yarn (POY) and fully drawn yarn (FDY). The company's products include polyester texturised yarn, partially oriented yarn, fully drawn yarn, and dope dyed yarns. They also offer yarn of various cross sections, principally triobal and octalobal, full dull, semi dull, bright yarns, cationic yarn, colored yarn, fire retardant, and anti microbial yarns.
The company is having four manufacturing plants located at Silvassa, India in the Union Territory of Dadra and Nagar Haveli. They export their products to Brazil, Chile, Colombia, Egypt, Guatemala, Iran, Mexico, Morocco, Peru, Poland, Spain, Syria, Thailand, and Vietnam.
Raj Rayon Industries Ltd was incorporated on August 17, 1993 as a public limited company with the name Raj Rayon Ltd. In the year 1994, the company started their manufacturing activities by installing one texturising machine with a manufacturing capacity of 600 TPA at Silvassa. In April 1995, they made their public issue. During the year 1995-96, the company doubled the manufacturing capacity from 600 TPA to 1200 TPA.
During the year 1996-97, the company set up their second unit at Silvassa for manufacturing Polyester Texturised Yarn with a capacity of 2,600 TPA by installing four Draw Texturising machines. During the year 1997-08, they commenced commercial production of this project. During the year 1998-99, the company further expanded their second unit, for manufacturing Polyester Texturised Yarn with a capacity of 2,600 TPA by installing four Draw Texturising machines.
During the year 2001-02, the company undertook another expansion project at their third unit at Silvassa, which was completed in two phases. In June 2003, the company completed their first phase by installing six texturing machines with a manufacturing capacity of 7,590 TPA. In March 2004, they completed their second phase of expansion at Unit III, by installing six texturing machines, with a manufacturing capacity of 7,650 TPA.
During the year 2003-04, the company set up their fourth unit as backward integration at Silvassa for manufacturing POY with the capacity of 30,000 TPA, which is the key raw material for manufacturing Polyester Texturised Yarn. During the year 2004-05, the company entered into trading activities of various imported items like ready made garments, sports items, decorative lights & other consumables and items of household / kids use. These items are sold through Pantaloon Retail (India) Ltd (BIG BAZAAR) outlets all over India.
During the year 2005-06, the company installed 18 lines of Partially Oriented Yarn (POY) which increased the total production capacity of 60,000 TPA and commenced commercial production. Also, they converted few lines from two ends to four ends to increase the production capacity.
During the year 2006-07, the company converted 5 lines of POY into Fully Drawn Yarn (FDY) Lines for better commercial realization and in March 2007 they commenced commercial production. For expanding their PTY capacity, the company installed 8 machines till March 2007 and also started trail runs for this project. During the year 2007-08, the company completed the expansion plan for PTY at their Surangi unit.
During the year 2009-10, the company's ISO Certification has been upgraded to ISO 9001:2008 by Bureau Veritas (UKAS) and Bureau Veritas (NABCB). Their Export House status was upgraded to Star Export House with effect from August 17, 2009 by the Director General of Foreign Trade. They sold their Land & Building of Unit no 3 and shifted their Plant & Machinery to Unit no 4 (Surangi) to enhance their operating efficiency. In March 2010, the company installed four Fully Drawn Yarn lines and commenced commercial production.
The name of the company was changed from Raj Rayon Ltd to Raj Rayon Industries Ltd with effect from August 18, 2010.
The company's plans to expand the installed capacity for manufacturing Polyester Texturised Yarn (PTY), Fully Drawn Yarn (FDY) and to create new capacity for manufacturing Twisted Yarn (TY), different types of coloured yarns there from which command good demand and sales margin in the market.
Raj Rayon Industries 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 Raj Rayon Industries 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 Raj Rayon Industries is valued compared to its competitors.
Raj Rayon Industries PE ratio helps investors understand what is the market value of each stock compared to Raj Rayon Industries '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 Raj Rayon Industries 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 Raj Rayon Industries 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 Raj Rayon Industries 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 Raj Rayon Industries 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 Raj Rayon Industries 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 Raj Rayon Industries 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 Raj Rayon Industries helps investors get an insight into when they can enter or exit the stock. Key components of Raj Rayon Industries 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 Raj Rayon Industries 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 Raj Rayon Industries ’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 Raj Rayon Industries 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 Raj Rayon Industries 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 Raj Rayon Industries .
The balance sheet presents a snapshot of Raj Rayon Industries ’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.