Ritesh Properties & Industries Ltd

₹ 358 3.36%
16 Aug 11:40 a.m.
About

Ritesh Properties & Industries Ltd was incorporated in 1987, it is engaged in the development of an approved Integrated Industrial Park on the land situated at Ludhiana and engaged in the business of Trading of Fabrics, Real Estate, Shares, Derivatives, Options, Forex, commodities and other Financial instruments. Mr Sanjeev Arora is the Chairman-Cum-MD of the co. [1] [2]

Key Points

Journey
Co. was incorporated in 1987. It started its business in agricultural products as its main activity. The co. has since diversified its business and entered the real estate business and is engaged in the development of an approved integrated Industrial Park on the land situated at Ludhiana. In FY20, RPIL started Trading Shares, Derivatives, Options, Forex commodities and other Financial instruments. During the same period, the company has entered into partnership ventures in which it will be developing the affordable housing projects in Ludhiana and the project is already under process. [1]

Revenue
Trading in securities, derivatives and financial instruments: 57%
Textile: 42%
Real Estate Activities: 1% [2]

Merger and Amalgamation
As part of the group restructuring, the Board in September 2018, approved the Scheme of Amalgamation for the merger of three Group Companies, viz. Ritesh Spinning Mills Limited, Ritesh Impex Private Limited, H B Fibres Limited with Ritesh Properties and Industries Limited.
As a result of the implementation of this amalgamation, the four group companies have been dissolved without winding up. [1][3]

Issue of OFCD
The co. has got approval to issue 42 lakhs Unsecured Optionally Fully Convertible Debentures aggregating to Rs. ~9 crores- convertible into 42 lakh equity shares on a preferential basis. [4]

Current Real-Estate Projects:
Co. is currently engaged in the development of Hampton Homes, a part of a 40-acre township, which already has the fully functional Hampton Court Business Park.
The total built-up area of the project is 1.4 lakh sq mtr and comprises affordable housing and a commercial building. [5][6]

Acquisition
An Open Offer for the Acquisition of 26% of the expanded equity share capital of Ritesh Properties And Industries Limited from the public shareholders of the FindocFinvest Private Limited has been made. [7]

  • Market Cap 875 Cr.
  • Current Price 358
  • High / Low 535 / 130
  • Stock P/E 56.0
  • Book Value 45.2
  • Dividend Yield 0.00 %
  • ROCE 25.0 %
  • ROE 24.7 %
  • Face Value 10.0

Pros

  • Company is expected to give good quarter
  • Company has delivered good profit growth of 62.6% CAGR over last 5 years

Cons

  • Stock is trading at 8.00 times its book value
  • Though the company is reporting repeated profits, it is not paying out dividend
  • Tax rate seems low
  • Earnings include an other income of Rs.4.42 Cr.

* The pros and cons are machine generated. Pros / cons are based on a checklist to highlight important points. Please exercise caution and do your own analysis.

Peer comparison

Sector: Textiles Industry: Textiles - Products

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Quarterly Results

Standalone Figures in Rs. Crores / View Consolidated

Jun 2019 Sep 2019 Dec 2019 Mar 2020 Jun 2020 Sep 2020 Dec 2020 Mar 2021 Jun 2021 Sep 2021 Dec 2021 Mar 2022 Jun 2022
23.63 12.92 12.82 46.08 54.19 11.56 5.74 18.78 46.38 28.35 32.46 28.98 11.12
23.36 14.96 14.28 48.87 52.42 14.75 7.06 13.55 42.62 26.36 29.34 23.73 9.67
Operating Profit 0.27 -2.04 -1.46 -2.79 1.77 -3.19 -1.32 5.23 3.76 1.99 3.12 5.25 1.45
OPM % 1.14% -15.79% -11.39% -6.05% 3.27% -27.60% -23.00% 27.85% 8.11% 7.02% 9.61% 18.12% 13.04%
0.07 0.04 0.27 7.90 14.38 0.67 2.07 1.08 8.40 1.55 1.46 0.99 0.42
Interest 0.07 0.07 0.08 0.09 0.08 0.10 0.09 0.19 0.26 0.25 0.24 0.31 0.18
Depreciation 0.08 0.08 0.09 0.12 0.12 0.12 0.12 0.12 0.13 0.14 0.10 0.10 0.10
Profit before tax 0.19 -2.15 -1.36 4.90 15.95 -2.74 0.54 6.00 11.77 3.15 4.24 5.83 1.59
Tax % 0.00% 0.00% 0.00% 0.00% 23.01% 25.18% 25.93% 12.33% 14.44% -6.98% -7.55% 0.51% -19.50%
Net Profit 0.19 -2.16 -1.35 4.91 12.29 -2.05 0.41 5.26 10.08 3.37 4.56 5.79 1.89
EPS in Rs 0.16 -1.86 -1.16 4.24 10.60 -1.77 0.35 4.54 8.70 2.91 1.96 2.37 0.77

Profit & Loss

Standalone Figures in Rs. Crores / View Consolidated

Mar 2011 Mar 2012 Mar 2013 Mar 2014 Mar 2015 Mar 2016 Mar 2017 Mar 2018 Mar 2019 Mar 2020 Mar 2021 Mar 2022 TTM
8 10 7 10 8 13 50 47 105 106 117 136 101
2 9 6 10 7 12 48 48 105 117 96 122 89
Operating Profit 6 1 1 0 1 1 2 -1 -0 -11 21 14 12
OPM % 71% 7% 14% 2% 7% 10% 4% -2% -0% -10% 18% 10% 12%
1 1 1 2 2 1 1 3 2 14 6 12 4
Interest 0 0 0 0 0 0 0 0 0 0 0 1 1
Depreciation 1 1 0 0 0 0 0 0 0 0 0 0 0
Profit before tax 5 0 1 2 2 2 2 1 1 2 27 25 15
Tax % 3% 19% 18% 10% 0% 0% 0% 0% 0% 6% 16% 5%
Net Profit 5 0 1 2 2 2 2 1 1 2 22 24 16
EPS in Rs 4.58 0.29 0.68 1.79 1.73 1.50 1.73 1.23 0.79 1.43 19.24 9.73 8.01
Dividend Payout % 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0%
Compounded Sales Growth
10 Years: 30%
5 Years: 22%
3 Years: 9%
TTM: 22%
Compounded Profit Growth
10 Years: 52%
5 Years: 63%
3 Years: 197%
TTM: 14%
Stock Price CAGR
10 Years: 52%
5 Years: 125%
3 Years: 212%
1 Year: 149%
Return on Equity
10 Years: 10%
5 Years: 12%
3 Years: 15%
Last Year: 25%

Balance Sheet

Standalone Figures in Rs. Crores / View Consolidated

Mar 2011 Mar 2012 Mar 2013 Mar 2014 Mar 2015 Mar 2016 Mar 2017 Mar 2018 Mar 2019 Mar 2020 Mar 2021 Mar 2022
12 12 12 12 12 12 12 12 12 22 22 24
Reserves 8 9 9 11 14 15 17 19 20 38 60 86
1 1 1 0 0 0 1 1 0 7 5 11
28 53 52 38 26 27 31 30 79 22 32 5
Total Liabilities 49 74 73 61 52 54 60 61 111 79 108 127
2 2 2 2 1 2 2 2 2 5 5 4
CWIP 0 0 0 0 0 0 0 0 0 0 0 0
Investments 2 2 2 2 2 0 19 11 15 12 50 63
45 70 70 57 48 53 39 48 93 62 53 60
Total Assets 49 74 73 61 52 54 60 61 111 79 108 127

Cash Flows

Standalone Figures in Rs. Crores / View Consolidated

Mar 2011 Mar 2012 Mar 2013 Mar 2014 Mar 2015 Mar 2016 Mar 2017 Mar 2018 Mar 2019 Mar 2020 Mar 2021 Mar 2022
5 -1 1 8 6 3 -3 -10 2 -2 42 0
1 -8 -1 3 2 -0 18 0 5 2 -38 -13
-6 10 0 -10 -11 0 -16 7 -7 -0 -1 10
Net Cash Flow -0 0 0 1 -2 4 -0 -3 -0 -0 3 -3

Ratios

Standalone Figures in Rs. Crores / View Consolidated

Mar 2011 Mar 2012 Mar 2013 Mar 2014 Mar 2015 Mar 2016 Mar 2017 Mar 2018 Mar 2019 Mar 2020 Mar 2021 Mar 2022
Debtor Days 120 93 121 90 118 7 68 145 211 61 37 46
Inventory Days 1,470 2,322 2,479 2,246 777 67 34 27
Days Payable 1,630 2,528 2,690 2,434 659 11 56 1
Cash Conversion Cycle 120 -67 -84 -121 -70 126 68 145 211 116 16 72
Working Capital Days -323 592 785 275 76 15 39 131 54 169 91 129
ROCE % 21% 4% 6% 5% 5% 7% 8% -2% 4% -19% 28% 25%

Shareholding Pattern

Numbers in percentages

Sep 2019 Dec 2019 Mar 2020 Jun 2020 Sep 2020 Dec 2020 Mar 2021 Jun 2021 Sep 2021 Dec 2021 Mar 2022 Jun 2022
48.93 48.93 52.48 52.48 52.48 52.48 52.48 52.48 52.48 70.25 71.74 71.74
0.00 0.00 0.00 0.00 0.00 0.00 0.30 4.12 4.12 2.06 2.01 2.26
0.09 0.09 0.09 0.09 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
50.98 50.98 47.43 47.43 47.52 47.52 47.23 43.40 43.40 27.69 26.25 26.01

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