Risk factor
Very poor trading liquidity
Profitability factor
Very low or no dividends
About
Established in 1993 and headquartered in Mumbai, India, Raj Rayon Industries Limited is a company focused on the production and sale of polyester chips, as well as a diverse range of polyester and processed yarns. Their extensive product line features various yarn types including round, trilobal, octalobal, full dull, semi dull, bright, cationic, doped dyed, fire retardant, and anti-microbial options. While primarily operating in India, the company also exports its goods to a wide array of international markets, such as Brazil, Chile, Colombia, Mexico, Poland, Spain, Thailand, Iran, Egypt, Syria, Vietnam, Morocco, Peru, and Guatemala. The company officially adopted its present name, Raj Rayon Industries Limited, in August 2010, having previously operated as Raj Rayon Limited.
Company Valuation
Based on key historical and expected multiples, the stock is fairly valued relative to its peers. In particular, the stock is overpriced on P/E, of fair value on EV/EBITD