Raj Rayon Industries Ltd. Stock Research

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Raj Rayon Industries Ltd. Detail

Raj Rayon Industries Limited is in portfolio of Subramanian P. He is one of the top investors in India. The company belongs to Textiles sector.

As per the this website it is engaged in the manufacture and sale of polyester texturised yarn (PTY), partially oriented yarn (POY) and fully drawn yarn (FDY). The company’s products include polyester texturised yarn, partially oriented yarn, fully drawn yarn, and dope dyed yarns.

It is is having four manufacturing plants located at Silvassa, India in the Union Territory of Dadra and Nagar Haveli. They export their products to Brazil, Chile, Colombia, Egypt, Guatemala, Iran, Mexico, Morocco, Peru, Poland, Spain, Syria, Thailand, and Vietnam.

It plans to expand the installed capacity for manufacturing Polyester Texturised Yarn (PTY), Fully Drawn Yarn (FDY) and to create new capacity for manufacturing Twisted Yarn (TY), different types of coloured yarns.

I have shared long term price performance chart of the Company below.As per Dow theory of technical analysis price performance over a period of time reflects Company state.

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Raj Rayon Industries Ltd. Stock Performance

This Company can be taken as example of slow wealth destruction in stock market.It made debut on exchanges at 5 INR mark. This was not good time to get listed due to global crisis next year.

Slowly over the years it continued to move down and is now trading at 5 paise mark. Note this one is excellent case study for people who get tempted to buy stock if it is trading at 1 INR or below mark thinking prices can not get lower than this.

You can see chart of Birla Power and Birla Cotsyn. How these companies have traded near 5 and 10 paise mark for years.

Raj Rayon Industries Ltd. My Opinion

Raj Rayon Industries Limited is a Textiles sector Company. There are many companies from this sector in portfolio of Subramanian P.

Looking at the price performance above Shall I say more? Company has not performed over past 10 years or so and stock prices are at all time low. It is making new lows every year. The price is close to nothing now. So I will advice not to invest or track this Company.

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There is no need to waste money on this counter. It is not worth it. You will pay the brokerage which will make the matter worse if investing in stocks like this.


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