Current price is less than the intrinsic value

Intrinsic value

Stock has not been able to generate better return on equity than bank FD

ROE vs FD rates

Stock doesn't offer attractive dividend returns

Dividend Returns

Good time to consider, as stock is not in overbought zone

Entry point

Stock not in ASM/GSM lists and not a lot of promoter holding is pledged

No Red Flags

The textile industry is the focus of Rajapalayam Mills Ltd, a small cap company with a market valuation of ₹607.85 Cr.

Textile stock is 49% below 52-week-high, ex-date for 1:14 rights issue next week

Buzzing stocks: Mindspace Business REIT, GAIL India, Bharti Airtel, Rajapalayam Mills, Shyam Metalics, Uno Minda, VIP Clothing

Stocks that will see action on December 21, 2022

Rajapalayam MillsIts value-added products see surge in enquiries

Rajapalayam Mills charts ₹400 crore capacity expansion on strong biz outlook

Rajapalayam Mills consolidated net profit declines 36.82% in the December 2021 quarter

Rajapalayam Mills consolidated net profit rises 190.36% in the September 2021 quarter

Rajapalayam Mills consolidated net profit rises 600.20% in the June 2021 quarter

The operations of its Mills were stopped from May 24, as per guidelines from the Government of Tamil Nadu in order to prevent and contain the spread of Covid-19.

Rajapalayam Mills resumes Mill operations in Tamil Nadu

Rajapalayam Mills consolidated net profit rises 55.32% in the March 2021 quarter

The rights issue committee of Rajapalayam Mills has approved the issue of 12,29,360 shares of face value of ₹10 each at an issue price of ₹569 a share for an amount aggregating up to ₹69.95 crore. The

Rajapalayam Mills’ ₹70-cr rights issue

The issue of 12,29,360 Equity Shares of face value of Rs. 10/- each at an issue price of Rs.569/-
per Equity Share (including premium of Rs. 559/- per Equity Share) for an amount aggregating up
to Rs. 69.95 crore to all the existing equity

Rajapalayam Mills to open rights issue on 15 Mar

Board of Rajapalayam Mills approves capex of Rs 80.69 cr

The company makes yarn under it’s textiles business. The Company has wind mills with installed capacity of over 35.15 megawatts for its captive power consumption.

Rajapalayam Mills Ltd

Rajapalayam Mills Ltd

Intrinsic value
Intrinsic value is the calculated value of the company and may differ from current stock price. If intrinsic value > current price, price increase is expected in the future to reduce the gap and vice-versa

ROE vs FD rates
Fixed Deposit rate is a virtually risk-free rate where the investor assumes almost no risk on their investment. If stock's long term average ROE is lower than this rate, investors are better off investing the amount in a FD

Dividend Returns
A dividend is the distribution of reward from a portion of company's earnings and is paid to its shareholders. Good dividend returns indicate good health and outlook for the company

Entry point
High demand for a stock increases its price. If the price is pushed up to a level which is not justified, then it's considered to be in the overbought zone, which is not a good time to buy the stock

News & Opinions

Textile stock is 49% below 52-week-high, ex-date for 1:14 rights issue next week

Stocks that will see action on December 21, 2022

Rajapalayam Mills charts ₹400 crore capacity expansion on strong biz outlook

Rajapalayam Mills consolidated net profit declines 36.82% in the December 2021 quarter

Rajapalayam Mills consolidated net profit rises 190.36% in the September 2021 quarter

Rajapalayam Mills consolidated net profit rises 600.20% in the June 2021 quarter

Rajapalayam Mills resumes Mill operations in Tamil Nadu

Rajapalayam Mills Ltd

Intrinsic valueIntrinsic value is the calculated value of the company and may differ from current stock price. If intrinsic value > current price, price increase is expected in the future to reduce the gap and vice-versa

ROE vs FD ratesFixed Deposit rate is a virtually risk-free rate where the investor assumes almost no risk on their investment. If stock's long term average ROE is lower than this rate, investors are better off investing the amount in a FD

Dividend ReturnsA dividend is the distribution of reward from a portion of company's earnings and is paid to its shareholders. Good dividend returns indicate good health and outlook for the company

Entry pointHigh demand for a stock increases its price. If the price is pushed up to a level which is not justified, then it's considered to be in the overbought zone, which is not a good time to buy the stock

News & Opinions

Textile stock is 49% below 52-week-high, ex-date for 1:14 rights issue next week

Stocks that will see action on December 21, 2022

Rajapalayam Mills charts ₹400 crore capacity expansion on strong biz outlook

Rajapalayam Mills consolidated net profit declines 36.82% in the December 2021 quarter

Rajapalayam Mills consolidated net profit rises 190.36% in the September 2021 quarter

Rajapalayam Mills consolidated net profit rises 600.20% in the June 2021 quarter

Rajapalayam Mills resumes Mill operations in Tamil Nadu

Intrinsic value
Intrinsic value is the calculated value of the company and may differ from current stock price. If intrinsic value > current price, price increase is expected in the future to reduce the gap and vice-versa

ROE vs FD rates
Fixed Deposit rate is a virtually risk-free rate where the investor assumes almost no risk on their investment. If stock's long term average ROE is lower than this rate, investors are better off investing the amount in a FD

Dividend Returns
A dividend is the distribution of reward from a portion of company's earnings and is paid to its shareholders. Good dividend returns indicate good health and outlook for the company

Entry point
High demand for a stock increases its price. If the price is pushed up to a level which is not justified, then it's considered to be in the overbought zone, which is not a good time to buy the stock