Overview & Key Highlights
This section provides a quick snapshot of Rajoo Engineers Limited, including its recent performance highlights and important clarifications regarding its public listing status. Rajoo Engineers is a well-established manufacturer of plastic processing machinery with a strong global presence and robust financials.
Market Cap (May 2025)
₹2,175 - ₹2,180 Cr
P/E Ratio (TTM)
56.96x
Revenue (FY2025)
₹253.66 Cr
Net Profit (FY2025)
₹38.12 Cr
Exports % of Sales
> 50%
Total Debt (Mar 2025)
₹0.27 Cr (Minimal)
Important Note on "IPO" Status
Rajoo Engineers Limited's Initial Public Offering (IPO) occurred in August 1994. Recent financial activities, such as a share buyback in February 2024 and admission to dealing on the NSE on May 29, 2025 (Symbol: RAJOOENG), are not new IPOs but rather listings of existing shares or other capital management actions like the approved Qualified Institutional Placement (QIP).
Company Profile
Delve into Rajoo Engineers' journey, from its inception to its current status as a global leader in plastic extrusion technology. This section covers its history, extensive product portfolio, and commitment to innovation. Understanding the company's operational strengths and strategic developments provides context to its market position.
History & Milestones ▼
- 1986: Commenced as a private limited company.
- 1992: Converted to a public limited company.
- 1994: First public offering (IPO) to expand manufacturing capacity.
- 2010-2011 (Effective 2013): Strategic merger of Hitesh Engineers, Shruti Engineers, and Vishwakarma Fabricators, bringing key component manufacturing in-house (vertical integration).
- Pioneered non-woven fabric technology in India.
- Rapid development of MASCON™ (N-95 Mask machines) & FABREX™ (Melt blown fabric machines).
- Launched world's highest output TQPP downward extrusion blown film line & Asia's first resin sack/seven-layer blown film lines.
- Exports constitute over 50% of total sales.
Product Portfolio ▼
Rajoo offers a diverse range of plastic processing machinery:
- Blown Film Lines: FOILEX™ (Monolayer), AQUAFLEX® (Downward Extrusion), MULTIFOIL® (Multilayer), PENTAFOIL® (5-Layer), HEPTAFOIL® (7-Layer), NONAFOIL™ (9-Layer for recyclable barrier films).
- Sheet Lines: LAMiNA® series (PS/PP/ABS/rPET/EVA), including technology for solar modules.
- Foam Extrusion Lines: FOMEX™ (pioneering in India).
- Thermoforming Machines: DISPOCON® vacuum formers, DISPOTILT™ tilting mould thermoformers.
- Specialized Machinery: MASCON™ (N-95 Mask making), FABREX™ (Melt blown fabric making).
- Pipe Extrusion Lines: DRIPEXTM (Drip Irrigation), HDPE Pipe plants, PROFILEX (UPVC Profile), GRANULEX (PVC Compounding), TUBEX (PVC Blood Pouch/Medical Tube).
- Extrusion Coating & Lamination: LAMEX™ series.
Technological Capabilities & Innovation ▼
- Utilizes advanced software like Flow 2000, IDEAS, and UNIGRAPHICS for design and simulation.
- Strong R&D department with 50 qualified engineers.
- Market leader in blown film lines, sheet lines, and thermoformers in the Indian sub-continent.
- Leadership position among Asian manufacturers of similar equipment.
- "Excellence in Extrusion" philosophy: quality, price consciousness, technology leadership.
Financial Performance
Explore Rajoo Engineers' financial health through annual and quarterly trends in revenue, profitability, and key balance sheet items. This section uses interactive charts and data tables to highlight the company's growth trajectory and financial stability.
Annual Revenue & Net Profit (₹ Crore)
Illustrates revenue and net profit growth from FY2022 to FY2025.
Annual EPS (₹)
Tracks Earnings Per Share annually.
Key Annual Financial Highlights (₹ Crore)
| Parameter | FY2022 | FY2023 | FY2024 | FY2025 |
|---|---|---|---|---|
| Revenue | 190.33 | 159.79 | 197.35 | 253.66 |
| Net Profit | 15.10 | 11.49 | 21.01 | 38.12 |
| EPS (₹) | 0.92 | 0.70 | 1.28 | 2.32 |
Market Landscape
Understand the dynamics of the Indian plastic processing and extrusion machinery market. This section covers market size, projected growth rates (CAGR), key segments, and the primary drivers fueling industry expansion. Rajoo Engineers operates in a market with significant growth potential.
Indian Plastic Processing Machinery Market Projections
Shows projected growth of the Indian plastic processing machinery market to 2030.
Key Market Insights & Growth Drivers
- Overall Indian Plastic Industry CAGR: 6.6% (2024-2030), projected to reach INR 5,784 Bn by 2030.
- India Plastic Extrusion Machinery CAGR: 5.1% (2023-2030), to US$ 571.2M by 2030.
- India Plastic Processing Machinery CAGR: 6.2% (2025-2030), to US$ 1,952.5M by 2030.
- Key End-Use Segments: Construction (largest), Medical (fastest growing for extrusion machinery), Packaging, Automotive, Electronics.
- India's Position: Fastest-growing regional market in Asia Pacific for plastic processing machinery.
- Growth Drivers:
- Increasing demand for plastic products.
- Urbanization, industrialization, infrastructure investments.
- Technological advancements (automation, smart tech).
- Supportive government policies for manufacturing and exports.
- Growth in petrochemicals sector ensuring raw material supply.
India is a key growth hub in the global plastic machinery sector.
Competitive Positioning & Valuation
This section analyzes Rajoo Engineers' standing in the competitive landscape, highlighting its advantages and comparing its valuation metrics against peers and industry averages. While Rajoo demonstrates strong operational performance, its market valuation reflects a premium.
Competitive Advantages
- Comprehensive Customer Service: Quality, pricing, delivery, after-sales, spares.
- Customization & Expertise: Over two decades of engineering experience.
- Pioneering Technology: Sole supplier of FOMEX™ foam extrusion lines in India.
- Integrated Manufacturing: World-class in-house facilities (design, tool-room, assembly, testing) ensuring quality control and efficiency.
- Strong R&D: 50 engineers fostering continuous innovation.
- Market Leadership: Ranked 1st among 24 active competitors; leader in key product segments in India.
Comparative Valuation Ratios (TTM, May 2025)
Compares Rajoo's P/E and P/B ratios with a key competitor and industry average.
Rajoo's ROE (25.13%) is superior to industry average (14.39%).
Valuation Summary
Rajoo Engineers trades at a P/E ratio of 56.96x and a P/B ratio of 13.28x. These are notably higher than its direct competitor Mamata Machinery (P/E ~28x, P/B ~7.4x) and the Plastic Products Industry averages (P/E 53.75x, P/B 8.45x). This suggests the market has priced in significant future growth, and the stock is considered "Overvalued" by some metrics despite strong fundamentals.
Investment Outlook & Recommendation
This concluding section summarizes the long-term investment potential of Rajoo Engineers, considering its strengths, market opportunities, and current valuation. It offers insights for prospective and existing investors based on the comprehensive analysis.
Long-Term Investment Outlook
Rajoo Engineers offers exposure to a high-growth sector in India, backed by strong fundamentals, innovation, and a robust financial position. Its competitive advantages and diversified revenue streams are attractive. However, the current premium valuation warrants caution. The long-term viability hinges on consistently delivering high growth to justify this premium.
Recommendation Summary
- For Prospective Investors: A disciplined approach is advised.
- Consider staggered entry to average purchase price.
- Monitor for potential market pullbacks for more attractive entry points.
- Focus on the company's ability to sustain high growth rates.
- For Existing Investors: Closely monitor performance against market expectations.
In summary, Rajoo Engineers is a high-quality company with positive long-term prospects. However, its current market valuation necessitates a cautious and strategic investment approach.