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Royal Arc Electrodes Overview

Royal Arc Electrodes Ltd, established in 1996 and headquartered in Mumbai, Maharashtra, is a leading manufacturer of welding consumables in India. The company specializes in producing welding electrodes, flux-cored wires, MIG/TIG wires, and strip cladding materials. These products are essential for welding applications in various industries, including railways, roadways, airport infrastructure, refineries, shipyards, mines, sugar industries, telecom sectors, thermal power stations, and pre-engineered buildings. Royal Arc operates a state-of-the...Read More

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Royal Arc Electrodes Key Financials

Market Cap ₹178 Cr.

Stock P/E 19.7

P/B 2.5

Current Price ₹160

Book Value ₹ 64.7

Face Value 10

52W High ₹185

Dividend Yield 0%

52W Low ₹ 126.5

Royal Arc Electrodes Share Price

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Volume
Price

Royal Arc Electrodes Quarterly Price

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Royal Arc Electrodes Peer Comparison

Royal Arc Electrodes Quarterly Results

#(Fig in Cr.)
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

Royal Arc Electrodes Profit & Loss

#(Fig in Cr.) Mar 2015 Mar 2016 Mar 2017 Mar 2018 Mar 2019 Mar 2020 Mar 2021 Mar 2022 Mar 2023 Mar 2024 Mar 2025 TTM
Net Sales 65 64 64 68 76 65 43 63 97 100 102
Other Income 0 0 0 0 0 1 2 2 1 1 1
Total Income 65 64 64 68 76 66 46 65 98 101 102
Total Expenditure 59 58 59 63 71 61 41 59 83 83 87
Operating Profit 6 6 5 5 5 5 5 6 16 18 16
Interest 3 3 2 2 2 1 1 1 1 0 0
Depreciation 2 2 2 2 2 2 2 2 2 2 3
Exceptional Income / Expenses 0 0 0 0 0 0 0 0 0 0 -0
Profit Before Tax 2 2 2 2 2 2 2 3 13 16 12
Provision for Tax 1 1 1 0 1 0 1 1 3 4 3
Profit After Tax 1 1 1 1 1 1 2 2 10 12 9
Adjustments 0 0 0 0 0 0 0 0 0 0 0
Profit After Adjustments 1 1 1 1 1 1 2 2 10 12 9
Adjusted Earnings Per Share 1 1.3 1.1 1.5 1.4 1.3 1.7 2.3 10.3 13 8.1

Growth Rates

# 1 Year 3 Year 5 Year 10 Year
Sales CAGR 2% 17% 9% 5%
Operating Profit CAGR -11% 39% 26% 10%
PAT CAGR -25% 65% 55% 25%
# 1 Year 3 Year 5 Year 10 Year
Share Price CAGR 3% NA% NA% NA%
ROE Average 16% 29% 23% 15%
ROCE Average 21% 37% 30% 19%

Royal Arc Electrodes Balance Sheet

#(Fig in Cr.) Mar 2015 Mar 2016 Mar 2017 Mar 2018 Mar 2019 Mar 2020 Mar 2021 Mar 2022 Mar 2023 Mar 2024 Mar 2025
Shareholder's Funds 11 12 13 15 16 17 19 21 30 42 72
Minority's Interest 0 0 0 0 0 0 0 0 0 0 0
Borrowings 16 13 11 11 8 4 3 2 0 0 0
Other Non-Current Liabilities 2 2 3 2 2 2 2 2 2 1 1
Total Current Liabilities 22 20 21 26 26 16 15 18 11 8 8
Total Liabilities 52 48 48 53 52 39 40 42 44 52 81
Fixed Assets 21 18 18 18 16 15 16 15 14 16 20
Other Non-Current Assets 2 1 2 1 1 1 1 1 2 4 5
Total Current Assets 29 29 29 34 34 24 23 27 28 32 57
Total Assets 52 48 48 53 52 39 40 42 44 52 81

Royal Arc Electrodes Cash Flow

#(Fig in Cr.) Mar 2015 Mar 2016 Mar 2017 Mar 2018 Mar 2019 Mar 2020 Mar 2021 Mar 2022 Mar 2023 Mar 2024 Mar 2025
Opening Cash & Cash Equivalents 4 0 1 1 4 2 1 0 0 3 1
Cash Flow from Operating Activities 7 0 6 3 5 6 7 2 13 6 4
Cash Flow from Investing Activities -8 0 -2 -1 -0 1 -3 -1 -2 -6 -7
Cash Flow from Financing Activities -1 0 -5 1 -6 -8 -5 -2 -7 -2 21
Net Cash Inflow / Outflow -2 0 -0 3 -1 -2 -0 -0 3 -2 18
Closing Cash & Cash Equivalent 1 0 1 4 2 1 0 0 3 1 19

Royal Arc Electrodes Ratios

# Mar 2015 Mar 2016 Mar 2017 Mar 2018 Mar 2019 Mar 2020 Mar 2021 Mar 2022 Mar 2023 Mar 2024 Mar 2025
Earnings Per Share (Rs) 1.04 1.27 1.13 1.54 1.35 1.28 1.69 2.28 10.29 13.04 8.11
CEPS(Rs) 2.88 3.14 2.94 3.49 3.25 3.11 3.49 4.19 12.27 14.99 10.77
DPS(Rs) 0 0 0 0 0 0 0 0 0 0 0
Book NAV/Share(Rs) 12.02 13.29 14.42 15.96 17.31 18.6 20.29 22.34 32.63 45.49 64.66
Core EBITDA Margin(%) 8.06 8.09 7.06 7.27 6.75 5.4 6.31 5.79 14.86 17.31 14.83
EBIT Margin(%) 6.11 6.15 5 5.35 4.59 4.72 7.56 6.01 14.09 16.39 12.04
Pre Tax Margin(%) 2.16 2.46 2.28 2.54 2.33 2.41 4.99 4.46 13.47 16.29 11.83
PAT Margin (%) 1.36 1.64 1.5 2.08 1.66 1.85 3.63 3.37 9.87 12.12 8.85
Cash Profit Margin (%) 3.78 4.07 3.89 4.72 3.99 4.48 7.5 6.19 11.77 13.92 11.75
ROA(%) 1.95 2.35 2.18 2.82 2.39 2.61 3.98 9.99 22.17 25.24 13.53
ROE(%) 9.01 10.01 8.19 10.13 8.13 7.14 8.7 20.42 37.43 33.39 15.79
ROCE(%) 11.88 11.66 9.86 9.78 9.07 9.23 11.58 26.46 45.27 44.19 21.29
Receivable days 49.96 52.45 60.07 69.25 66.71 70.39 90.85 75.93 55.58 67.66 74.62
Inventory Days 61.13 67.1 65.86 69.55 68.97 72.88 82.75 62.89 31.83 27.54 41.83
Payable days 37.56 0 0 0 0 0 48.86 39.72 49.14 36.46 26.7
PER(x) 0 0 0 0 0 0 0 0 0 0 18.62
Price/Book(x) 0 0 0 0 0 0 0 0 0 0 2.34
Dividend Yield(%) 0 0 0 0 0 0 0 0 0 0 0
EV/Net Sales(x) 0.44 0.38 0.35 0.35 0.26 0.21 0.23 0.15 0 0.09 1.47
EV/Core EBITDA(x) 4.72 3.97 4.31 4.26 3.76 2.8 1.97 1.72 0.01 0.47 9.5
Net Sales Growth(%) 7.93 -1.81 -0.04 5.88 12.15 -14.84 -32.87 0 54.09 3.27 1.66
EBIT Growth(%) 14.11 1.65 -20.34 4.72 -5.35 -12.52 7.6 0 261.15 20.11 -25.33
PAT Growth(%) 22.98 21.9 -10.47 35.73 -12.19 -5.23 31.93 0 351.05 26.76 -25.75
EPS Growth(%) 22.98 21.9 -10.47 35.73 -12.19 -5.23 31.93 34.93 351.05 26.76 -37.79
Debt/Equity(x) 2.52 1.94 1.61 1.71 1.26 0.71 0.44 0.38 0.05 0 0.01
Current Ratio(x) 1.3 1.41 1.37 1.32 1.34 1.48 1.54 1.49 2.51 3.78 7.39
Quick Ratio(x) 0.7 0.78 0.78 0.79 0.76 0.81 0.97 0.89 1.97 2.71 5.53
Interest Cover(x) 1.55 1.66 1.84 1.9 2.03 2.05 2.94 3.88 22.46 165.92 56.99
Total Debt/Mcap(x) 0 0 0 0 0 0 0 0 0 0 0

Royal Arc Electrodes Shareholding Pattern

# Mar 2025 Sep 2025 Mar 2026
Promoter 72.96 72.96 72.96
FII 7.14 5.24 5.57
DII 0.19 0 0
Public 19.71 21.79 21.47
Others 0 0 0
Total 100 100 100

Royal Arc Electrodes News

Royal Arc Electrodes Pros & Cons

Pros

  • Company has delivered good profit growth of 55% CAGR over last 5 years
  • Company has a good return on equity (ROE) track record: 3 Years ROE 29%
  • Debtor days have improved from 36.46 to 26.7days.
  • Company is almost debt free.

Cons

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