Buy Rolex Rings, target price Rs 2500: JM Financial

JM Financial has buy call on Rolex Rings with a target price of Rs 2500. The current market price of Rolex Rings is Rs 1882.85.

Rolex Rings, incorporated in the year 2003, is a Small Cap company (having a market cap of Rs 5114.96 Crore) operating in Auto Ancillaries sector.

Rolex Rings key Products/Revenue Segments include Forgings, Scrap, Export Incentives and Wind Mills for the year ending 31-Mar-2022.

Financials
For the quarter ended 31-03-2023, the company has reported a Standalone Total Income of Rs 299.73 Crore, down -4.87 % from last quarter Total Income of Rs 315.07 Crore and up 1.64 % from last year same quarter Total Income of Rs 294.90 Crore. Company has reported net profit after tax of Rs 46.41 Crore in latest quarter.

The company’s top management includes Mr.Manesh Dayashankar Madeka, Mr.Bhautik Dayashankar Madeka, Mr.Mihir Rupeshkumar Madeka, Mr.Pravinchandra Ratilal Dholakia, Mr.Dipesh Dhirajlal Kundaliya, Mr.Jignasa Pravinchandra Mehta, Mr.Ashit Ravishankar Vankani. Company has S R B C & Co. LLP as its auditors. As on 31-03-2023, the company has a total of 3 Crore shares outstanding.

Investment Rationale
The brokerage expects the company to clock sales/EPS CAGR of18%/17% over FY23-25E as it expects a) increase in wallet share with customers, b)transition to EVs to provide next leg of growth and c) new customer additions.

Promoter/FII Holdings
Promoters held 57.64 per cent stake in the company as of 31-Mar-2023, while FIIs owned 4.06 per cent, DIIs 31.76 per cent.