RATING

RECOMMENDATION

Sell

  • ROFR Required
  • Available in Depository:

  • NSDL

  • CDSL

  • Available for Investment:

  • Primary

  • Secondary

RATING

RECOMMENDATION

Sell

Business Type

Traditional Business

RATING

RECOMMENDATION

Sell

Business Type

Traditional Business

  • Ring Plus Aqua Growth

Get detailed information about the Ring Plus Aqua Peer Comparison. In this research report, you will get to know about Ring Plus Aqua IPO, Key Ratios data. In addition, get the Complete details about the Net Profit Growth, Revenue Growth and Book Value Growth.

Ring Plus Aqua Revenue Growth

Growth in %

  • 59.04%

    1 Year

  • 7.33%

    3 Year

  • 14.16%

    5 Year

The company has witnessed a significant growth of 59% in FY22 from FY21, on account of an increase in the revenue from operations, which was a result of strong demand in the auto component sector. The COVID-19 pandemic had a significant impact on global automotive demand for passenger cars and commercial vehicles, as well as non-automotive demand. The pent up demand from the lockdown period and the strong economic revival in India, supported by a good monsoon, has aided in the strong surge in demand for the passenger segment and agricultural tractors. The company has effectively managed to ramp up its resources needed to manage the demand. As a result, the company has witnessed a strong growth in its total revenue.

Ring Plus Aqua Net Profit Growth(PAT)

Growth in %

  • 71.99%

    1 Year

  • 2.30%

    3 Year

  • 37.76%

    5 Year

The company's focus on operational excellence, relentless cost reduction measures, lean manufacturing practices, and improvised supply chain management with tight control on working capital helped the company book a higher net profit in FY22 compared to FY21. There has been overall growth in the total expenses of the company (excluding depreciation and interest expense) of 60%, but the EBIT margin of the company has shown a growth of 14%, which indicates efficient control over the resources to manage the pent-up demand after COVID-19.

Ring Plus Aqua EPS Growth

Growth in %

  • 71.99%

    1 Year

  • 2.31%

    3 Year

  • 38.10%

    5 Year

The overall increase in the EPS of the company is entirely attributable to the increase in the net profits of the company in FY22.

  • Ring Plus Aqua Book Value Growth

Growth in %

  • -3.44%

    1 Year

  • 13.03%

    3 Year

  • 23.80%

    5 Year

Ring Plus Aqua's book value per share has shown a de-growth of 3.5% in FY22 from FY21 despite higher net profits in FY22. This is attributable to lower other equity realised in FY22, which was a result of the interim dividend declared by the company of Rs. 93 per equity share, which led to an outflow of Rs. 72 Cr. from other equity, resulting in a de-growth in the total equity of 21%, and subsequently a fall in the book value per share of the company. 

Ring Plus Aqua EBITDA Growth

Growth in %

  • 56.00%

    1 Year

  • 2.32%

    3 Year

  • 21.99%

    5 Year

The increase in EBITDA of 56% from FY21 to FY22 is mostly attributable to an increase in the company's overall sales in FY22. In absolute terms, total revenue increased by Rs. 120 Cr. in FY22, whereas total expenses increased by Rs. 98 Cr., explaining the increase in EBITDA. The cost of material consumers incurred the highest expense, worth Rs. 124 Cr. in FY22, which was a result of higher sales in FY22. Although the inventory turnover of the company has improved in FY22 to 3.92x from 2.88x in FY21, which is a positive sign for the company altogether. 

Ring Plus Aqua Operating Profit Growth

Growth in %

  • 76.98%

    1 Year

  • 0.72%

    3 Year

  • 26.12%

    5 Year

EBIT in FY22 amounted to Rs. 52 Cr., which represents a growth of 77% in FY22 from FY20. The reason for the growth in EBIT is the same as for EBITDA, as depreciation has remained more or less at the same level as it was in FY21 as the company has disposed of its vehicles, which also led to a decrease in the overall assets of the company and the same level of depreciation expense. 

Ring Plus Aqua Asset Growth

Growth in %

  • -12.12%

    1 Year

  • 2.83%

    3 Year

  • 9.94%

    5 Year

Total assets of the company have shown a de-growth of 12% in FY22 compared to FY21. Although it must be noted that the asset turnover of the company has shown substantial growth of 79%, which indicates the company has been able to effectively generate sales with the given level of assets in FY22. Current assets comprise 61% of the total assets, which saw a dip of Rs. 28 Cr., which as a result impacted the total assets of the company. This was due to a Rs. 50 Cr. loan given to Raymond Apparel in FY21, but no similar loans were given in FY22. 

Ring Plus Aqua Cash Flow from Operations

Growth in %

  • 12.15%

    1 Year

  • 2.02%

    3 Year

  • 4.78%

    5 Year

The net cash flow from operations, which fell by 13% in FY21 from FY20 has now rebounded to realise a growth of 12% in FY22 from FY21. The main reason for such growth is due to higher PBT in FY22 than FY21. Overall PBT has witnessed a growth of 81% in FY22 from FY21. It must be noted that in terms of working capital adjustments, there were high outflow of cash in FY22 than in FY21, primarily on account of increase in the trade receivable of the company, which also reduced the receivable turnover ratio of the company. 

  • Ring Plus Aqua Solvency Ratios

Ring Plus Aqua D/E Ratio

The D/E ratio witness marginal decline due to decrease in the total debt of the company as Ring Plus Aqua finance most of their needs with their equity rather than debt, which can also be seen with high equity multiplier of 1.64 in FY22 from 1.55 in FY21. The company did not undertake any long term debt along with further reduction in cash credit and packing credit improved the overall debt to equity of the company. 

Ring Plus Aqua Current Ratio

The current ratio fell by 5% in FY22 compared to FY21, owing mostly to a fall in the company's current assets, which is due to a loan provided to Raymond Apparels Ltd. for Rs. 50 Cr. in FY21. In FY22, no such loans or advances were made, resulting in a decrease in the company's current ratio. Current liabilities, on the other hand, increased by 3% in FY22 over FY21 due to a rise in the company's payables. Although the payable turnover ratio improved in FY22, which is a positive sign. 

Ring Plus Aqua Quick Ratio

The quick ratio fell by 10% in FY22 from FY21 for the same reason as mentioned in the current ratio. Moreover, the level of inventory has remained constant in FY22 compared to FY21. 

Ring Plus Aqua Interest Coverage Ratio

The company's interest coverage ratio has increased significantly on account of higher realisation of EBIT as well as lower interest expenses incurred in FY22, which indicates a strong solvency position of the company. 

  • Ring Plus Aqua Operating Efficiency

The company focused on operational excellence, relentless cost reduction measures, lean manufacturing practices, and improvised supply chain management with tight control of working capital, along with pent-up demand in the auto component sector in FY22 after COVID-19, which improved the overall profitability in FY22. These measures and growth supported the mitigation of the impact on the margins and helped in delivering a higher margin of performance compared to FY21.

Ring Plus Aqua Operating Profit EBIT Margin(OPM)

Ring Plus Aqua Profit Before Tax Margin (PBT Margin)

Ring Plus Aqua Profit After Tax Margin (PAT Margin)

  • Ring Plus Aqua Profitablity Ratio

Ring Plus Aqua Return on Equity(RoE)

The ROE of the company has witnessed a significant growth of 78%. As per DuPont analysis, the increase in the ROE is due to the overall improvement in equity multiplier, net income margin, and asset turnover of the company. Asset turnover increased considerably on account of pent-up demand in the auto component sector after COVID-19 and the company's ability to cater to the demand with its established asset level, which also resulted in an increase in the net income margin of the company. The equity multiplier, on the other hand, has also improved as the company finances most of its requirements using debt rather than equity, which provide financial leverage. Overall equity of the company has reduced on account of dividends paid in FY22. 

Ring Plus Aqua Return on Capital Employed(RoCE)

ROCE has improved substantially and realised growth of 84% in FY22 over FY21. The reason for such growth is mostly attributable to growth in the EBIT of 77% in FY22 compared with FY21 and better control over the capital employed in the business. 

Ring Plus Aqua Return to Assets (RoA)

Total assets of the company declined by Rs. 29 Cr. in FY22 from FY21. Despite such a fall in the assets of the company, the company has been able to deliver a high return on its assets in FY22. The reason for such is the already established asset base, but due to COVID-19, the auto component market slowed down, leading to lower sales realisation. While these curbs and restrictions were lifted, the pent-up demand of the auto-component sector led to the conversion of higher sales and, ultimately, higher net income. Asset turnover of the company has also increased by 54%, which provided a better profitability situation in FY22 than in FY21.

  • Ring Plus Aqua Valuation Ratios

Ring Plus Aqua Dividend Yield

Ring Plus Aqua Earning Yield