RHIM - Fundamental Analysis: Financial Health & Valuation
Back to ListFundamental Rating: 3.3
| Stock Code | RHIM | Market Cap | 8,341 Cr. | Current Price | 404 ₹ | High / Low | 538 ₹ |
| Stock P/E | 43.2 | Book Value | 199 ₹ | Dividend Yield | 0.62 % | ROCE | 7.71 % |
| ROE | 5.62 % | Face Value | 1.00 ₹ | DMA 50 | 401 ₹ | DMA 200 | 440 ₹ |
| Chg in FII Hold | -0.26 % | Chg in DII Hold | 0.68 % | PAT Qtr | 68.9 Cr. | PAT Prev Qtr | 41.3 Cr. |
| RSI | 55.1 | MACD | 6.06 | Volume | 63,320 | Avg Vol 1Wk | 73,392 |
| Low price | 323 ₹ | High price | 538 ₹ | PEG Ratio | -7.42 | Debt to equity | 0.02 |
| 52w Index | 37.7 % | Qtr Profit Var | 22.7 % | EPS | 9.35 ₹ | Industry PE | 37.3 |
📊 RHIM shows weak fundamentals despite recent profit growth. ROE (5.62%) and ROCE (7.71%) are low, while EPS is modest (₹9.35). The stock trades at a premium P/E of 43.2 vs industry average of 37.3, with a negative PEG ratio (-7.42) indicating poor growth visibility. Dividend yield is low at 0.62%. Although quarterly PAT improved (+22.7%), overall efficiency and valuation concerns limit long-term attractiveness.
💡 Ideal Entry Price Zone: ₹380 – ₹400 (near DMA 50 and below current levels for valuation comfort).
⏳ Exit Strategy / Holding Period: Existing holders should adopt a medium-term horizon (2–3 years). Partial profit booking can be considered near ₹430–₹440 if momentum sustains. Long-term holding only if ROE improves beyond 10% and growth visibility strengthens.
✅ Positive
- Quarterly PAT growth (+22.7%) shows earnings improvement.
- Low debt-to-equity ratio (0.02) ensures financial stability.
- DII holdings increased (+0.68%), showing domestic institutional support.
- MACD positive (6.06) indicates short-term bullish momentum.
⚠️ Limitation
- Weak ROE (5.62%) and ROCE (7.71%).
- High P/E (43.2) vs industry average (37.3).
- Negative PEG ratio (-7.42) signals poor growth prospects.
- Dividend yield low at 0.62%.
- Volume below average, indicating limited liquidity.
📉 Company Negative News
- FII holdings reduced (-0.26%).
- Fundamentals remain weak despite profit growth.
📈 Company Positive News
- Quarterly PAT improved (₹68.9 Cr vs ₹41.3 Cr).
- Stock delivered 37.7% gain over the past year.
🏭 Industry
- Industry P/E: 37.3, highlighting RHIM’s premium valuation.
- Sector supported by demand in steel and refractory industries.
🔎 Conclusion
RHIM shows short-term earnings improvement but weak fundamentals and premium valuation make it risky for long-term investment. New investors should wait for entry around ₹380–₹400 for safety. Existing holders may adopt a 2–3 year horizon, with partial profit booking near ₹430–₹440. Long-term holding is advisable only if ROE and growth metrics improve significantly.