Company Overview

Raj Oil Mills Ltd, incorporated in 2001, is a significant player in India's edible oil industry, built upon the legacy of the Raj Oil Mills partnership firm established in 1943. The company primarily engages in the manufacturing and trading of edible oils, operating through its "Edible Oil and Cakes" segment. With its edible oil manufacturing unit located in Mumbai, Raj Oil Mills has maintained a strong presence in the market for over eight decades. The company is involved in the buying, selling, manufacturing, and processing of edible oils, edible oil seeds, and related products. Its operational capabilities include Crushing with a capacity of 5,000 TPA and Oil Filtration with a capacity of 30,000 TPA, with commercial production commencing in 2010.

Products and Brand Portfolio

Raj Oil Mills offers a diverse range of edible oil products under various popular brands. These include Guinea, Cocoraj, Tilraj, Kacchi Ghani Mustard Oil, and Divya Shakti. The product line features refined groundnut, sunflower, soybean, cottonseed, and rice bran oils, alongside filtered groundnut oil under the Guinea brand. The Cocoraj brand is dedicated to coconut oil, while Tilraj and Guinea offer filtered til oil. Mustard oil is marketed under Mustraj and Guinea brands, and blended til oil is available under the Divya Shakti brand. Demonstrating innovation, the company launched 'Raj Filter Groundnut Oil' on August 1, 2021, in key states like Maharashtra, Madhya Pradesh, Orissa, and Goa.

Financial Performance and Market Position

Based on the latest available financial data, Raj Oil Mills Ltd has a market capitalization of approximately ₹148.90 crore, with revenue reported at ₹114 crore and a profit of ₹2.70 crore. The company's most recent quarterly performance for Q3 FY2024-2025 showed a net profit increase of 4.67% year-on-year, reaching ₹1.12 crore. However, the quarter ended June 2024 reported a net loss of ₹0.79 crore, a shift from a net profit of ₹0.26 crore in the previous year's quarter. Sales for the quarter ended June 2024 declined by 22.65% to ₹21.21 crore, compared to ₹27.42 crore in the same period the previous year.

The company has delivered a modest sales growth of 6.68% over the past five years.

Key Financial Metrics

- Q3 FY2024-2025 Performance: Net Profit of ₹1.12 Crore

- Q1 FY2024-2025 Performance: Net Loss of ₹0.79 Crore, Sales of ₹21.21 Crore

- Market Capitalization: ₹148.90 Crore (as of recent data)

- Promoter Holding: 75.0%

- EPS (Latest Quarter): ₹0.7

- PE Ratio (Current): 53.67

- PB Ratio (Current): -12.12

- Sales Growth (5 Years): 6.68% (Poor)

Business Operations and Challenges

Raj Oil Mills operates with a crushing capacity of 5,000 TPA and oil filtration capacity of 30,000 TPA. The company has faced significant financial distress historically. In 2015, it entered insolvency proceedings, which later transitioned under the Insolvency Bankruptcy Code 2016. On May 4, 2018, control and management were transferred to M/s. Rubberwala Housing & Infrastructure Limited and M/s. Mukhi Industries Limited through a Corporate Insolvency Resolution Process (CIRP). This resulted in a 95 percent reduction in the Company's Equity Share Capital on May 16, 2018, with new promoters receiving allotted equity shares as per the resolution plan.

The company continues to grapple with operational challenges, notably a significant contingent liability of ₹455 crore. Over the last five years, its revenue has grown at a yearly rate of 4.98%, which significantly underperforms the industry average of 12.98%.

Market Performance

Raj Oil Mills Ltd (ROML) was listed on August 12, 2009, and its shares are traded on both the NSE and BSE under the ticker symbol ROML. Recent market data indicates a mixed performance; the stock price has shown a 2.6% increase over the last 30 days and a 9.2% rise over the past year. However, technical analysis reveals challenges, with an EPS Rank of 15 (POOR), indicating earnings inconsistency, and an RS Rating of 38 (POOR), signifying underperformance compared to other stocks in the market.

Leadership

The key management personnel include Parvez Shafee Ahmed Shaikh as Chairman and Jay Bhansali as the Company Secretary. The management team is actively working to enhance operational efficiency and strengthen the company's market position, despite ongoing operational and financial hurdles.

Raj Oil Mills Ltd remains an established entity in India's edible oil sector, with a legacy extending over 80 years. However, investors should carefully assess the company's ongoing challenges concerning financial performance and market competitiveness.