Radiant Cash Management Services Ltd. engages in the provision of integrated cash logistics services. It offers cash pick-up and delivery, network currency management, cash processing, and cash vans and cash in transit. The company was founded by David Devasahayam and Renuka David in March 2005 and is headquartered in Chennai, India.

India

Radiant Cash Management Services Limited

Consumer Cyclical

The company pays dividends from time to time. It has paid dividends in less than half the past ten years. Dividend per share (DPS) has grown yearly, and there is a clear trend. In the past 12 months, the dividend yield has been strong and significantly above its peers. On average, the company pays dividends annually. 

RADIANTCMS.BO reported revenue of INR 3 863mn in the last 12 months, up 9% from FY23. At the same time, the dynamics of cash flow, as measured by free cash flow (FCF), were drastically different. EPS fell 32% from FY23 to INR 4.17.

Over the last six months, the stock performance has varied, with an increase following a drop. The stock's price trend wasn't definitive when matched against its global counterparts from the same sector and industry (as depicted above). Within the past six months, its performance has trailed this peer group's by 28ppts and its growth decelerated by 9ppts in the past month. This is equally valid for peers from the same country and industry. Given the stock's valuation versus its peers, its total price movement is neither favourable nor unfavourable.

The company has reported average EBITDA margins compared to its global peers in recent years. EBITDA margin amounted to 18.2% in the last 12 months, a decline from 20.1% in FY23. 

Historically, RADIANTCMS.BO has reported strong net margins compared to its global peers. Specifically, in the last 12 months, this metric equalled 10.7%, down from 13.7% in FY23. 

Radiant Cash Management Services Limited reported a return on equity (RoE) of 18.2% in the last 12 months, down from 21.9% in FY23. 

Another important profitability metric, return on assets (RoA), amounted to 14.5% in the last 12 months, a decrease from 15.5% in FY23. 

In the last 12 months, the return on capital employed (RoCE) declined to 18.0%, above the peers. 

The ratio of return on invested capital (RoIC) to the weighted average cost of capital (WACC) has been 5.7 in the past several years. This ratio implies a excellent shareholder value creation. 

The institutional, legal, and compliance risks associated with the company's country are close to minimal. In combination with rigorous business standards, shareholder rights are well protected.

RADIANTCMS.BO has very poor trading liquidity. It will take considerable time for the average private investor to sell a common position under normal market conditions. Liquidity is very unstable and becomes extremely unfavourable on the days with the lowest activity. The trading volume mostly stays the same even under highly turbulent market conditions. The stock has a tiny market capitalisation, which usually makes its trading liquidity erratic and unpredictable. 

No other major risks have been identified.

The risk of default is moderate. We note robust profitability, solid return on capital, strong debt servicing capacity, adequate interest coverage, and an favourable capital structure, among the positive credit factors. Among the negative credit factors, we point to weak positions in its industry.

In highly turbulent market conditions, RADIANTCMS.BO is not overly volatile. In other words, the stock will fall less than the index in times of extreme market volatility or shocking company news. Standalone, the worst-day losses (less than 1% of the time) will likely be low. 

In normal market circumstances, RADIANTCMS.BO is as volatile as an index. Put differently, without outstanding market volatility or shocking company news, the stock's price will move with the index. The stock's losses on its worst days (less than 1-5% of the time) will range from very low to negligible. We would also like to highlight the negligible intraday volatility of the instrument. 

Considering past and projected metrics, the stock is moderately 'expensive' compared to its peers. Specifically, the stock is 'cheap' on P/E, undervalued on EV/EBITDA, overpriced on P/FCF. 

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Radiant Cash Management Services Limited

₹ 56.17

4

Radiant Cash Management Services Limited

₹ 56.17

4

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Profitability factor

Risk / Profitability

Risk factor

Profitability factor

₹ 56.17

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