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Ruchi soya is worth the risk

Ajay Khandelwal's picture
Submitted by Ajay Khandelwal on February 16, 2010 - 10:56

With sales of 12000 Cr and market cap of 2000 cr, Ruchi soya stocks are cheapest in it's category. Although there is debt burden of 1900 Cr, still  based on price/sales ratio this is most reasonable stock in food oil category.

KS OIL with sales of 3000 cr is at market cap of 2800 cr plus debt of 900 cr.

The key differance is profit margin , Ruchi had profit of 65 cr last year on sales of 12000 cr , while KS oil had profit of 165 cr.

I don't trust the number that much , sales and profit all can be cooked.


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