Rajoo Engineers Ltd. share price target

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 launched two new products in INR 50mn price bracket which received great response from the market and is expected to provide upward push to revenue growth. During H1FY18, the sales were relatively weaker due to poor off-take from the client side on account of GST implementation; however order flow has since stabilized. Operating leverage to improve margins higher than competitors: REL on current...

Rajoo Engineers Ltd (Rajoo or the Company) reported tepid financial result for 2Q FY18. The total revenue of the Company was flat at Rs 274 mn Y-o-Y (Rs 272 mn), whereas Q-o-Q the revenue increased more than 2 fold (Rs 126 mn). The revenue was low for 1Q FY18 due to GST impact. The sales have picked up since then and the management foresee substantial potential. The Company has robust order book, executable in next 9 to 12 months. EBITDA for the quarter increased by 22.8% Y-o-Y to Rs 45 mn (Rs 37...

Founded by Mr. Chandrakant N. Doshi in 1986, Rajoo Engineers manufactures and sells plastic processing machinery and postextrusion equipment. Listed on the BSE in 1992, it is the first extrusion company in India to be completely automated and has...