The global manufacturing landscape is significantly bolstered by the castings and forgings sector, which supplies critical parts for diverse industries including automotive, aerospace, construction, and energy. India holds the third position globally in terms of casting production.
Forecasts suggest that by 2028, the Indian metal casting sector could be valued at $17 billion, growing at a compound annual growth rate (CAGR) of 6.7% from 2023 to 2028. Similarly, the metal forging industry in India is on a trajectory to hit a valuation of $8 billion by 2029, with an expected CAGR of 10.69% during the same period.
In the midst of this ever-changing landscape, Rolex Rings Ltd. shines as a symbol of unparalleled expertise in the production of forged and machined components. Located in Rajkot, India, Rolex Rings has established itself as a prominent manufacturer, providing top-notch automotive components and bearing rings to customers worldwide.
This article provides a comprehensive analysis of Rolex Rings’ Q4 results, delving into the details of their performance metrics and the resulting market response.
About Rolex Rings Ltd
Rolex Rings Ltd., based in the bustling city of Rajkot, India, exemplifies the manufacturing excellence of the country in the castings and forgings industry. Having over 4 decades of experience, the company has positioned itself as one of the top five manufacturers of forged and machined components in India.
The company’s product portfolio is highly varied and tailored to meet the needs of various industries that play a crucial role in the global economy. Rolex Rings specialises in manufacturing high-precision automotive components like gear blanks, ring gears, and various shafts that play a crucial role in the smooth functioning of vehicles.
The company manufactures a range of products, including engine components like pulleys and cam lobes, chassis components like wheel hubs and bearing rings, and exhaust system components like flanges and bicones.
Rolex Rings has a wide range of products that are not limited to the automotive sector. They are also used in two-wheelers, three-wheelers, and off-highway vehicles. The company has a global presence, serving clients from various industrial sectors including railways, earth moving, windmills, textiles, electrical, defence, power, aerospace, marine, and oil & natural gas industries.
The company’s unwavering focus on excellence and attention to detail is complemented by its drive for continuous improvement and staying at the forefront of technological advancements. With a focus on cutting-edge technology and a commitment to excellence, Rolex Rings has consistently stayed ahead of the competition and raised the bar in the industry.
Rolex Rings’ success can be attributed to both its exceptional products and its advantageous location. The company’s strategic location near major shipping ports allows it to efficiently serve its global customer base, establishing itself as a dependable and responsive partner in the castings and forgings industry.
As of June 1, 2024, Rolex Rings Ltd has a market capitalisation of ₹6,394.38 crores. The company’s shareholding arrangement as of March 31, 2024 is as follows:
Rolex Rings Q4 and FY24 result financial highlights
Here are a few of the most important points from the company’s quarterly report:
- Revenue increase quarterly: Rolex Rings Ltd. saw a significant increase in revenue by 15.75%, rising from ₹273 crores in Q3 FY24 to ₹316 crores in Q4 FY24.
- Net profit decline quarterly: Despite the rise in revenue, the company’s net profit witnessed a sharp decline of -35.14%, dropping from ₹37 crores in Q3 FY24 to ₹24 crores in Q4 FY24.
- Revenue growth annually: Rolex Rings Ltd. recorded a 3.65% increase in revenue, climbing from ₹1,179 crores in FY2023 to ₹1,222 crores in FY2024.
- Net profit decrease annually: The company’s net profit saw a significant decrease of 21.21%, falling from ₹198 crores in FY2023 to ₹156 crores in FY2024.
Rolex Rings Ltd’s quarterly performance
Here are the principal financial indicators that showcase the company’s performance for the quarter, compared to the preceding one.
| Q4 FY24(₹ crores) | Q3 FY24(₹ crores) | Change(%) | |
| Revenue | 316 | 273 | 15.75 |
| Operating profit | 72 | 53 | 35.85 |
| Profit before tax | 31 | 50 | -38.00 |
| Net profit | 24 | 37 | -35.14 |
| EPS | 8.67 | 13.59 | -36.20 |
Rolex Rings Ltd’s annual performance
In comparison to the previous year, the following are the company’s most important financial indicators:
| FY2024(₹ crores) | FY2023(₹ crores) | Change(%) | |
| Revenue | 1,222 | 1,179 | 3.65 |
| Operating profit | 262 | 261 | 0.38 |
| Profit before tax | 210 | 243 | -13.58 |
| Net profit | 156 | 198 | -21.21 |
| EPS | 57.30 | 72.74 | -21.23 |
Market reaction – Rolex Rings share price NSE
Rolex Rings Ltd was listed in August 2021. During that period the Rolex Rings share price GMP was ₹480 (August 5, 2021), which was ₹30 higher than its premium of ₹450.
On May 23, 2024, the business announced the 4th quarter results for the fiscal year 2024. On that day, Rolex Rings’s share price hit a high of ₹2,615.95. After this event, the Rolex Rings’ share price started trading with a slight downturn and reached a share price of ₹2,438.80 on May 31, 2024.
When looking at the Rolex Rings share price history for the previous 5 years, the stock has given a return of 103.73%.
The Rolex Rings share price target is set at an average of ₹2500, indicating a potential increase of 6.48% compared to the recent closing price of ₹2347.90. This consensus target suggests optimistic market expectations for the company’s stock performance.
Peer analysis
Let’s see how Rolex Rings Ltd stacks up against its peers in terms of these critical financial metrics:
| Company | CMP (₹) | Market cap(₹ crores) | P/E | Earnings Yield (%) |
| Rolex Rings Ltd | 2,348 | 6,394 | 35.7 | 3.83 |
| Harsha Engineers International Ltd | 487 | 4,432 | 34.9 | 3.92 |
| NRB Bearings Ltd | 314 | 3,047 | 31.3 | 4.82 |
| Menon Bearings Ltd | 119 | 667 | 26.0 | 5.59 |
| Galaxy Bearings Ltd | 1,473 | 469 | 24.9 | 5.35 |
| Bimetal Bearings Ltd | 606 | 232 | 27.5 | 4.91 |
| SNL Bearings Ltd | 365 | 132 | 16.9 | 9.34 |
Bottomline
Rolex Rings Ltd. has established itself as a leading manufacturer with a diverse product portfolio that serves a wide range of industries.
The company’s recent financial performance underscores both its strengths and areas for improvement. Market reactions to the latest financial results followed a slight downtrend. When compared to its peers, Rolex Rings maintains a competitive position, although its price-to-earnings ratio indicates a relatively high valuation.
