Udaipur: BSE listed, Rajoo Engineers Ltd, (BSE code 522257)an undisputed global player in manufacture of blown film, sheet extrusion machinery, with its world-class, state-of-the-art integrated manufacturing facilities at Rajkot, is on growth path with its major expansion plans. It Caters to Wide array of Industry Sectors including FMCG, Flexible Packaging, Agriculture, Food & Beverages, Pharmaceuticals, etc. The company is the third largest player in the category competing with Windsor Machines and Kabra Extrusion in the BSE listed space.
Outperformed in terms of financial performance compared to Industry giants and peers . Rajoo’s strong relationship, commitment to quality and service, continued to ensure a robust order book in place. The Company’s 9MFY19 financial performance was significantly better .
Strong order book to give 20% plus top-line CAGR over FY20: The order inflow for Rajoo Engineers (REL) is strong and is expected to grow at 20% plus CAGR in the standard product portfolio (standalone basis). Company has launched two new products in INR 50mn price bracket which received great response from the market and is expected to provide upward push whereby turnover and profitability is expected to improve substantially. *According to some leading Analysts, this scrip is an Excellnt Investment opportunity at current levels.
Operating leverage to improve margins higher than competitors: REL on current gross block expects to achieve turnover of INR 2bn with asset turnover of 3x.
REL intends to create additional infrastructure post FY20E onwards.
Focus on high level of R&D to yield results.
REL’s team of engineers in the R&D department is over 40 in the total employee strength of nearly 500 people. This R&D is expected to yield results FY19 onwards and add to the bottom line of the company from FY20 onwards
JV with Bausano group: major beneficiary of government’s focus on agriculture: 49:51 JV with Italian major Bausano group has key clients like Astral and Finolex Industries as it manufactures machines for manufacturing of PVC pipes which find application in the residential and agricultural sector.