WEBSITE BSE:543285 NSE: RCAN Inc. Year: 2018 Industry: Packaging My Bucket: Add Stock
Last updated: 10:32
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1. Business Overview
Rajeshwari Cans Ltd. (RCAN) is an Indian company primarily engaged in the manufacturing and sale of metal cans. The company focuses on producing high-quality tin and metal containers for various applications. Its core business model involves sourcing raw materials (primarily tinplate and other metals), manufacturing these into finished cans through industrial processes, and supplying them to clients across different industries. The company makes money by selling these manufactured packaging products, with revenue directly tied to production volumes and sales prices.
2. Key Segments / Revenue Mix
Specific detailed breakdowns of key segments or precise revenue mix are generally not publicly available for RCAN without access to their detailed financial reports. However, based on its core business, its revenue would primarily be derived from:
Metal Cans Manufacturing: The sale of tinplate and other metal cans for food, beverages, paints, chemicals, and other industrial applications.
The mix likely depends on the demand from various end-user industries they cater to, which could include food processing, edible oils, paints & coatings, and chemical industries.
3. Industry & Positioning
The Indian packaging industry is fragmented but growing, driven by increasing consumption, organized retail, and growth in end-user industries like food & beverages, pharmaceuticals, and personal care. The metal packaging segment, while facing competition from plastics and flexible packaging, remains crucial for specific applications requiring durability, barrier properties, and recyclability (e.g., processed foods, edible oils, industrial chemicals, aerosols). Rajeshwari Cans Ltd. likely operates as a medium-sized player within the Indian metal packaging sector, competing with larger integrated packaging companies as well as other regional manufacturers. Its positioning would depend on its geographical reach, client relationships, and specific product offerings.
4. Competitive Advantage (Moat)
Rajeshwari Cans Ltd. may possess competitive advantages primarily through:
Operational Efficiency & Scale: For a manufacturing business, optimized production processes, efficient utilization of machinery, and purchasing economies for raw materials can provide a cost advantage.
Client Relationships: Long-standing relationships with key industrial clients can create sticky business, though switching costs for packaging are generally not very high.
Quality & Customization: Ability to consistently produce high-quality, reliable packaging and offer customization tailored to client needs.
Geographical Proximity: Strategic location of manufacturing facilities close to key clients or raw material sources can offer logistical advantages.
However, without unique proprietary technology or significant market dominance, the moat might be moderate, relying on operational excellence and customer service.
5. Growth Drivers
Key factors that can drive growth for Rajeshwari Cans Ltd. over the next 3-5 years include:
Growth in End-User Industries: Increased demand from the food processing, edible oils, paints, and chemical sectors will directly boost demand for metal cans.
Rising Disposable Incomes: Leading to higher consumption of packaged goods in India.
Shift to Organized Retail & E-commerce: Drives demand for standardized, durable packaging.
Sustainability Focus: Metal packaging's high recyclability could be a driver as environmental concerns push for alternatives to single-use plastics.
Product Diversification/Innovation: Expanding into new types of metal packaging or new client segments.
6. Risks
Raw Material Price Volatility: Fluctuations in the prices of tinplate, steel, and other metals are a significant risk, impacting production costs and profit margins.
Intense Competition: Competition from domestic and international players, including those offering alternative packaging materials (plastic, flexible packaging, glass), can pressure pricing and market share.
Technological Obsolescence: Failure to invest in modern manufacturing technology could lead to inefficiencies and higher costs compared to competitors.
Environmental Regulations: Stricter environmental norms regarding manufacturing processes or waste disposal could increase compliance costs.
Economic Downturns: A slowdown in economic growth can reduce industrial demand for packaging products.
7. Management & Ownership
Rajeshwari Cans Ltd., like many Indian companies, is likely promoter-driven, meaning the founding family or a core group holds significant ownership and influence over strategic decisions. Specific details about the management team's qualifications, track record, and corporate governance practices would require reviewing their annual reports and public filings. The ownership structure typically involves promoters holding a substantial stake, with the remainder held by institutional investors, retail investors, and potentially employee stock options.
8. Outlook
Rajeshwari Cans Ltd. operates in a crucial segment of the Indian packaging industry, benefiting from the country's economic growth and increasing consumption of packaged goods. The inherent advantages of metal packaging (durability, barrier properties, recyclability) provide a stable demand base. Potential for growth lies in capitalizing on the expanding food processing, paints, and industrial sectors, alongside a potential tailwind from increasing environmental consciousness favoring recyclable materials.
However, the company faces inherent challenges such as volatile raw material prices, intense competition from various packaging formats, and the need for continuous investment in technology to maintain efficiency. Its ability to navigate these risks, secure long-term client contracts, and potentially diversify its product offerings or expand its geographical footprint will be key to its sustained performance. The outlook is cautiously optimistic, dependent on the company's operational agility and strategic responses to market dynamics, balanced against the cyclical nature and competitive pressures of the packaging sector.
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Market Cap ₹19 Cr.
Stock P/E 10
P/B 1.6
Current Price ₹18.3
Book Value ₹ 11.4
Face Value 10
52W High ₹276
Dividend Yield 0%
52W Low ₹ 0
Price goes above X
Price falls below X
PE goes above X
PE falls below X
₹ | |
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| Net Sales |
| Other Income |
| Total Income |
| Total Expenditure |
| Operating Profit |
| Interest |
| Depreciation |
| Exceptional Income / Expenses |
| Profit Before Tax |
| Provision for Tax |
| Profit After Tax |
| Adjustments |
| Profit After Adjustments |
| Adjusted Earnings Per Share |
| #(Fig in Cr.) | Mar 2019 | Mar 2020 | Mar 2021 | Mar 2022 | Mar 2023 | Mar 2024 | Mar 2025 | TTM |
|---|---|---|---|---|---|---|---|---|
| Net Sales | 21 | 22 | 20 | 25 | 33 | 35 | 40 | |
| Other Income | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |
| Total Income | 21 | 22 | 20 | 25 | 33 | 35 | 40 | |
| Total Expenditure | 20 | 20 | 18 | 24 | 30 | 32 | 35 | |
| Operating Profit | 2 | 2 | 2 | 2 | 3 | 3 | 5 | |
| Interest | 1 | 1 | 1 | 1 | 1 | 0 | 1 | |
| Depreciation | 1 | 1 | 1 | 1 | 1 | 1 | 1 | |
| Exceptional Income / Expenses | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |
| Profit Before Tax | 0 | 0 | 0 | 1 | 2 | 2 | 3 | |
| Provision for Tax | 0 | 0 | 0 | 0 | 0 | 1 | 1 | |
| Profit After Tax | 0 | 0 | 0 | 0 | 1 | 1 | 2 | |
| Adjustments | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |
| Profit After Adjustments | 0 | 0 | 0 | 0 | 1 | 1 | 2 | |
| Adjusted Earnings Per Share | 0.4 | 0.4 | 0.3 | 0.4 | 1 | 1.3 | 1.8 |
| # | 1 Year | 3 Year | 5 Year | 10 Year |
|---|---|---|---|---|
| Sales CAGR | 14% | 17% | 13% | 0% |
| Operating Profit CAGR | 67% | 36% | 20% | 0% |
| PAT CAGR | 100% | 0% | 0% | 0% |
| # | 1 Year | 3 Year | 5 Year | 10 Year |
|---|---|---|---|---|
| Share Price CAGR | -93% | -38% | 15% | NA% |
| ROE Average | 17% | 15% | 12% | 11% |
| ROCE Average | 20% | 17% | 14% | 13% |
| #(Fig in Cr.) | Mar 2019 | Mar 2020 | Mar 2021 | Mar 2022 | Mar 2023 | Mar 2024 | Mar 2025 |
|---|---|---|---|---|---|---|---|
| Shareholder's Funds | 2 | 2 | 4 | 8 | 9 | 10 | 12 |
| Minority's Interest | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Borrowings | 3 | 4 | 4 | 3 | 4 | 3 | 5 |
| Other Non-Current Liabilities | -0 | -0 | -0 | -0 | -0 | -0 | 0 |
| Total Current Liabilities | 9 | 6 | 8 | 8 | 7 | 8 | 12 |
| Total Liabilities | 13 | 12 | 15 | 19 | 19 | 22 | 29 |
| Fixed Assets | 4 | 4 | 5 | 5 | 7 | 8 | 15 |
| Other Non-Current Assets | 0 | 0 | 0 | 0 | 1 | 1 | 0 |
| Total Current Assets | 9 | 8 | 10 | 14 | 11 | 12 | 14 |
| Total Assets | 13 | 12 | 15 | 19 | 19 | 22 | 29 |
| #(Fig in Cr.) | Mar 2019 | Mar 2020 | Mar 2021 | Mar 2022 | Mar 2023 | Mar 2024 | Mar 2025 |
|---|---|---|---|---|---|---|---|
| Opening Cash & Cash Equivalents | 1 | 0 | 1 | 1 | 1 | 0 | 0 |
| Cash Flow from Operating Activities | 1 | 1 | 1 | -2 | 3 | 2 | 6 |
| Cash Flow from Investing Activities | -1 | -1 | -2 | -0 | -4 | -2 | -7 |
| Cash Flow from Financing Activities | -0 | 0 | 1 | 2 | -0 | -1 | 1 |
| Net Cash Inflow / Outflow | -1 | 0 | -0 | 0 | -0 | 0 | -0 |
| Closing Cash & Cash Equivalent | 0 | 1 | 1 | 1 | 0 | 0 | 0 |
| # | Mar 2019 | Mar 2020 | Mar 2021 | Mar 2022 | Mar 2023 | Mar 2024 | Mar 2025 |
|---|---|---|---|---|---|---|---|
| Earnings Per Share (Rs) | 0.42 | 0.44 | 0.33 | 0.36 | 1.01 | 1.26 | 1.83 |
| CEPS(Rs) | 2.39 | 2.33 | 1.46 | 1.03 | 1.6 | 1.87 | 3.23 |
| DPS(Rs) | 0 | 0 | 0 | 0.13 | 0 | 0 | 0 |
| Book NAV/Share(Rs) | 5.42 | 5.86 | 5.84 | 7.29 | 8.3 | 9.57 | 11.44 |
| Core EBITDA Margin(%) | 8.02 | 7.31 | 7.7 | 6.5 | 8.37 | 8.21 | 12.26 |
| EBIT Margin(%) | 4.59 | 4.16 | 4.55 | 4.09 | 6.54 | 6.41 | 8.66 |
| Pre Tax Margin(%) | 1.11 | 1.18 | 1.55 | 2.09 | 4.64 | 5.37 | 6.98 |
| PAT Margin (%) | 0.74 | 0.75 | 1.09 | 1.51 | 3.26 | 3.83 | 4.76 |
| Cash Profit Margin (%) | 4.19 | 3.94 | 4.78 | 4.29 | 5.14 | 5.68 | 8.42 |
| ROA(%) | 1.2 | 1.31 | 1.57 | 2.23 | 5.61 | 6.53 | 7.55 |
| ROE(%) | 7.77 | 7.86 | 7.25 | 6.66 | 13.02 | 14.14 | 17.39 |
| ROCE(%) | 11.44 | 10.79 | 9.6 | 8.37 | 15.12 | 16 | 19.67 |
| Receivable days | 61.96 | 63.75 | 70.45 | 51.77 | 33.58 | 41.66 | 55.47 |
| Inventory Days | 74.14 | 53.67 | 57.17 | 77.94 | 77.51 | 64.92 | 49.41 |
| Payable days | 108.08 | 109.44 | 133.95 | 100.69 | 76.63 | 90.84 | 95.58 |
| PER(x) | 0 | 0 | 0 | 28.41 | 86.22 | 48.8 | 152.9 |
| Price/Book(x) | 0 | 0 | 0 | 1.41 | 10.54 | 6.44 | 24.42 |
| Dividend Yield(%) | 0 | 0 | 0 | 1.21 | 0 | 0 | 0 |
| EV/Net Sales(x) | 0.39 | 0.34 | 0.46 | 0.67 | 2.96 | 1.97 | 7.52 |
| EV/Core EBITDA(x) | 4.79 | 4.62 | 5.56 | 9.72 | 35.17 | 23.86 | 61.05 |
| Net Sales Growth(%) | 0 | 3.61 | -10.56 | 27.29 | 29.85 | 5.89 | 16.38 |
| EBIT Growth(%) | 0 | -6.08 | -2.24 | 14.53 | 107.51 | 3.81 | 57.27 |
| PAT Growth(%) | 0 | 5.32 | 30.26 | 76.04 | 179.9 | 24.49 | 44.63 |
| EPS Growth(%) | 0 | 5.32 | -24.58 | 8.39 | 179.92 | 24.49 | 44.63 |
| Debt/Equity(x) | 3.22 | 2.86 | 1.71 | 0.88 | 0.59 | 0.38 | 0.8 |
| Current Ratio(x) | 1.02 | 1.25 | 1.27 | 1.67 | 1.59 | 1.5 | 1.2 |
| Quick Ratio(x) | 0.52 | 0.91 | 0.75 | 0.87 | 0.56 | 0.88 | 0.72 |
| Interest Cover(x) | 1.32 | 1.39 | 1.52 | 2.04 | 3.46 | 6.18 | 5.16 |
| Total Debt/Mcap(x) | 0 | 0 | 0 | 0.62 | 0.06 | 0.06 | 0.03 |
| # | Sep 2021 | Mar 2022 | Sep 2022 | Mar 2023 | Sep 2023 | Mar 2024 | Sep 2024 | Mar 2025 | Sep 2025 | Mar 2026 |
|---|---|---|---|---|---|---|---|---|---|---|
| Promoter | 61.57 | 61.57 | 61.57 | 61.57 | 61.57 | 61.57 | 61.57 | 61.57 | 61.57 | 61.57 |
| FII | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0.02 | 0.02 |
| DII | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Public | 38.43 | 38.43 | 38.43 | 38.43 | 38.43 | 38.43 | 38.43 | 38.43 | 38.41 | 38.41 |
| Others | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Total | 100 | 100 | 100 | 100 | 100 | 100 | 100 | 100 | 100 | 100 |
| # | Sep 2021 | Mar 2022 | Sep 2022 | Mar 2023 | Sep 2023 | Mar 2024 | Sep 2024 | Mar 2025 | Sep 2025 | Mar 2026 |
|---|---|---|---|---|---|---|---|---|---|---|
| Promoter | 0.32 | 0.32 | 0.32 | 0.32 | 0.32 | 0.32 | 0.32 | 0.65 | 0.65 | 0.65 |
| FII | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| DII | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Public | 0.2 | 0.2 | 0.2 | 0.2 | 0.2 | 0.2 | 0.2 | 0.4 | 0.4 | 0.4 |
| Others | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Total | 0.52 | 0.52 | 0.52 | 0.52 | 0.52 | 0.52 | 0.52 | 1.05 | 1.05 | 1.05 |
* The pros and cons are machine generated.
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