RHIM - Fundamental Analysis: Financial Health & Valuation

Last Updated Time : 05 Nov 25, 7:43 am

Fundamental Rating: 3.6

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📊 Fundamental Analysis Report

• Stock Code: RHIM
• Market Cap: ₹9,904 Cr
• Current Price: ₹480
• 52W High/Low: ₹619 / ₹376
• EPS: ₹9.10
• Stock P/E: 52.7 vs Industry P/E: 39.9 ❗
• PEG Ratio: -9.06 ❗ (Negative PEG indicates unreliable growth)
• Book Value: ₹197 | P/B Ratio: ~2.44 ✅
• ROE: 5.62% | ROCE: 7.71% 🔻
• Debt to Equity: 0.01 🟢 (Virtually Debt-Free)
• Dividend Yield: 0.52% 🚫
• Quarterly PAT: ₹46.5 Cr (↑27.7%)
• RSI: 61.1 | MACD: 0.16 📈

✅ Positive

• Debt-free balance sheet enhances financial resilience and flexibility.
• Price trading near DMA 50 and 200 suggests technical support and consolidation.
• Stable volume and RSI indicate healthy investor interest.
• FII holding increased slightly (+0.01%), showing marginal foreign confidence.

⚠️ Limitation

• High P/E ratio and negative PEG suggest valuation concerns and uncertain growth trajectory.
• ROE and ROCE are modest, indicating limited capital efficiency.
• Dividend yield is low, offering minimal income potential.
• DII holding declined by 0.15%, reflecting cautious domestic sentiment.

📉 Company Negative News

• Quarterly profit variation of -43.0% raises concerns about earnings volatility.

📈 Company Positive News

• Quarterly PAT improved from ₹36.4 Cr to ₹46.5 Cr, showing operational recovery.
• Stock has gained 42.5% over the past year, indicating investor optimism.

🏦 Industry

• RHIM operates in the industrial materials and refractories sector.
• Industry P/E of 39.9 is lower than RHIM’s, suggesting a premium valuation.
• Sector benefits from infrastructure growth, steel demand, and manufacturing expansion.

🧭 Conclusion

• Entry Zone: ₹455–₹470 (near DMA 50 and RSI neutral)
• Long-Term View: Strong balance sheet and sector positioning support long-term potential, but valuation and earnings volatility warrant cautious accumulation.