RDB RASAYANS LIMITED (533608) - STOCK OF THE WEEK

Dear Investor friends, Today I am expressing my view on Plastic product related stock.

RDB RASAYANS LIMITED (533608)

RDB Rasayan is promoted by well known RDB group with proven track record of doing Bussiness in diversified areas such as real estate, manufacturing of cigarettes, packaging, transportation, truck terminals, manufacturing of towers & equipments and installation of transmission lines, education, retail etc. 

RDB Rasayans is Flagship Company of the RDB group, with technologically advanced functional and high quality products. With a highly robust infrastructure having capabilities to roll out 1.5 million bags of PP Woven Sacks and 60,000 Jumbo Bags (FIBC) in a month, the products ranges from high- resistant jumbo bags (FIBC) spanning the 500 Kg - 2000Kg category in the Baffle, Circular and C Panel bag design segment. Maintaining a clean and hygenic operation, Company’s employees strive for maximum satisfaction of the customers while placing emphasis on reliability, quality, civility and good service.

RDB Rasayans focus on customers delight - Its always a win win situation for company’s esteemed customers. Company strive to be a successful, reliable and dependable company in the international marketplace.

PRODUCTS

Product segment of the company mainly lies in 2 segments.

1. Bulk Bags

2. Multi wall bags

1. BULK BAGS (FIBIC)

Standard Bulk Bags

Classic, 4 point (as well as double and single point) bulk bags for use with free-flowing and bulky material in volumes of up to 3m3. Typical product -agricultural products (cereals, rice, cocoa beans, soya beans), construction materials (gravel, sand).

Baffle  Bags

Baffle Bags have wider footprints and lower centers of gravity which increase stacking stability. To benefit more efficiently from valuable shipping space, our Baffle Bags are 30% shorter for the same volume as traditional, 4-panel non-baffle bags. 

Corner Loop Bags

This is originally polypropylene bag design. These bags are with Corner loops, which are with dust protection & Coated for Moisture protections.

Full Loop Bags

These are similar to corner loop bags with circular U loop. This is also  polypropylene bag design with dust protection & Coated for Moisture protections.

Circular Bags ( Corner & Cross corner lifting)

This is a new design with cost saving benefits. 

Apart from this company also manufactures the Bags for hazardous material storage & Transportation which is called UN Bags with all chemical codes printed on it.

Company is also  manufacturing Electrostatic bags for neutralizing any electric charges generated from the materials during storage & transpiration.

2. MULTIWALL BAGS

PP Valve  Bags

This type of bags are more resistant to water & Moisture and having more tore resistance than paper. This is mainly for rough handling uses.

PE valve  Bags 

This product is mainly for chemical handling & storage. 

Lami  Bags 

This is a combination of both paper and  polypropylene. Which is having a look of paper and having strength of polypropylene. 

Company website : Clickhere

OUTLOOK

Company shares are trading in BSE. Promoter holding in company 72.67%

Company posted 18.57 Cr top line in March qtr.

(QoQ increased 39%)

Net profit is 1.33 Cr in the March qtr.

(QoQ increased 1500%!!!!! 1.32 Cr from 0.07 Cr)

Company reducing debt & virtually debt free

Stock is trading low PE 14 as compared to industry PE & its peers.

EPS 3.18

Stock is trading at Rs 45.

Company has posted stellar numbers in the qtr and shown good performance YOY basis. Company products are widely used in chemical, food, Cement and Bulk handling industries. These products are cost effective to transport the materials from place to place. As the sector related companies are growing very fast is huge positive for the stock. Company stock is attractively priced now,  

By looking at the above and significant out performance in the last qtr. , this stock will give multiple fold returns to the investors in days to come.

NOTE : THE ABOVE IS NOT A RESEARCH REPORT NOR A RECOMMENDATION  BUT INFORMATION AS AVAILABLE ON PUBLIC DOMAIN. 

Registration status with SEBI: I am not registered with SEBI under the (Research Analyst) regulations 2014 and as per clarifications provided by SEBI: “Any person who makes recommendation or offers an opinion concerning securities or public offers only through public media is not required to obtain registration as research analyst under RA Regulations”