Rolex Rings made a stock market debut on 9 August 2021 at a sharp premium of 39% over its issue price of Rs. 900. To elaborate, the company’s shares opened at the National Stock Exchange at Rs. 1250 and at the Bombay Stock Exchange at Rs. 1249.
Regardless, the debut did not impress investors and analysts as much as it could have. By Monday afternoon, the company’s stock was trading at almost 6% lower at a premium of 38.78% over its issue price.
Previously, analysts estimated that Rolex Rings’ shares would make a debut at a 45-50% premium.
On that note, let us take a quick look at the performance of Rolex Rings on the bourses.
A Brief Overview of Rolex Rings’ Performance on the Bourses
Following its successful initial public offer of Rs. 731 crores, Rolex Rings, made a somewhat strong debut on the stock exchange.
- Rolex Rings closed on Monday at a share price of Rs. 1167.
- On the first day, it registered a gain of Rs. 267, i.e., 29.6% over its issue price of Rs. 900.
- Rolex Rings recorded a high of Rs. 1265 on the exchange and a low mark of Rs. 1105 on the same day.
So, what’s the latest verdict on Rolex Ring’s performance on the stock exchange?
Rolex Rings has emerged as the second IPO following Glenmark Life Sciences that has registered losses. However, per market observers’, the IPO portion reserved for HNI was subscribed around 360 times.
Nonetheless, the investment segment has incurred a loss on this transaction. Notably, the break-even point turned out to be between Rs. 1400 – Rs. 1500 per equity share after interest cost for wealthy investors were factored in.
That said, the company still have ample upsides to garner favourable attention from investors. For instance, Rolex Rings’ robust financial standing and market presence continue to gather steam among prospective investors.
Rolex Rings’ Financial Standing
Rolex Rings has performed exceptionally well in the last three financial years. Between 2018 and 2020, the company had managed to slash its debt by a whopping 50%. This was courtesy of the company’s strong cash flow.
Here’s how the company fared in the last two fiscal years –
|Financial Year||Total Assets (In Rs. Million)||Total Revenue (In Rs. Million)||Profit After Tax (In Rs. Million)|
|2020 – 2021||Rs. 7,969.24||Rs. 6,197.57||Rs. 869.55|
|2019 – 2020||Rs. 6,861.73||Rs. 6,753.32||Rs. 529.41|
Also, the continued decrease in debt levels coupled with tax credit helped boost Rolex Ring’s net profit, putting it in a better position than its market peers such as RK Forgings and Bharat Forge.
Rolex Rings and Its Business Highlights – At a Glance
Rolex Rings is a recognised name in India’s top 5 forging companies. Some of its most noteworthy business highlights are listed below –
- Diverse geographical presence with 3 manufacturing units and 22 forging lines.
- The diverse product offering in automotive parts, forged rings and machine bearing rings.
- Large scale manufacturing capabilities with a total installed capacity of 1,44,750 MTPA.
- Thriving export business in over 17 international countries, including Germany, France, USA, Czech Republic, Italy, and Thailand.
Though Rolex Rings did not match analysts’ expectations, it managed to open at a premium price. Additionally, the strong customer base of the company and the prospects of the automobile industry in general offer ample room for Rolex Rings’ growth.
Judging by the market temperament and the company’s business model, experts think holding on to the allotted shares of this company could prove beneficial for this company.
Also, the company’s IPO shares were subscribed a total of 130.44 times, which helped Rolex Rings raise Rs. 56 crores through a fresh issue. With a boost in the company’s working capital, investors can expect to generate substantial revenue from their investment in due course.
Frequently Asked Questions
- What is the PE ratio of Rolex Rings?
The PE ratio of Rolex Rings is 35.41 at the time of writing.
- What is the current market capitalisation of Rolex Rings?
The current market capitalisation of Rolex Rings is Rs. 3,080.90 crores at the time of writing.
- What is the PB of Rolex Rings?
PB of Rolex rings is 7.41 at the time of writing.
- What was Rolex Rings net sales on 31 March 2021?
As of 31 March 2021, the net sales of Rolex Rings was Rs. 616.33 crores.