Shares of Raj Rayon Industries Ltd have logged stellar returns for investors in the last one year. Raj Rayon Industries shares, which closed at Rs 1.55 on March 22, 2022 hit a high of Rs 73.10 on March 22, translating into gains of 4,616 per cent during the period. In comparison, Sensex has risen a mere 0.4 per cent during the period. An investment of Rs 1 lakh in the stock a year ago would have grown to Rs 47.16 lakh today. The stock closed at Rs 74.59 in the previous session. It was stuck in the lower circuit of 2 per cent at Rs 73.10 through the session today. It has lost 18.24% in the last ten sessions and gained 40.44% this year. The stock hit a 52-week high of Rs 91.19 on March 9, 2023 and a 52-week low of Rs 1.55 on March 22, 2022.
A total of 710 shares of the firm changed hands, amounting to a turnover of Rs 0.51 lakh on the BSE. The market cap of the company fell to Rs 4,064 .96 crore on BSE.
In terms of technicals, the relative strength index (RSI) of Raj Rayon stands at 47.1, signaling it’s neither oversold nor overbought zone. Raj Rayon stock has a one-year beta of 1.1, indicating high volatility during the period. The stock is trading higher than the 50-day, 100-day and 200-day moving averages but lower than 5 day and 20 day moving averages.
In Q3 of this fiscal, public shareholders held 36.12 per cent stake or 19991 shares in the firm.11 promoters held 94.14 per cent stake or 52.35 crore shares in the last quarter. 19,299 public shareholders held 18.62 lakh shares of the firm, amounting to a stake of 0.34 per cent with an individual share capital of up to Rs 2 lakh. Five public shareholders held 2.53 crore shares of the firm, amounting to a stake of 4.56 per cent with an individual share capital of over Rs 2 lakh.
Weak Financials
The firm reported a weak set of earnings for the quarter ended December 2022. It posted a loss of Rs 2.29 crore in the December quarter against a profit of Rs 672.71 crore in the December 2021 quarter. However, sales surged to Rs 26.01 crore in Q3 against Rs 0.06 crore in the corresponding quarter of the previous fiscal. EBITDA climbed 148.60% to Rs 0.87 crore in the December quarter against Rs 1.79 crore (negative EBITDA) in the December quarter of the previous fiscal.
According to half yearly earnings for period ended September 2021, the firm reported narrowing of losses by 86.70 per cent to Rs 0.25 crore against a loss of Rs 1.88 crore in the year ago period. The firm did not report sales during the period.
Interestingly, the company has not reported net sales in the last few quarters yet its shares have zoomed, signalling an inverse relation between the surge in share price and financials of the company.
The firm is engaged in the manufacturing 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. It also offers yarn across various cross sections principally triobal and octalobal full dull semi dull bright yarns cationic yarn colored yarn fire retardant and anti microbial yarns.
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