RM Drip & Sprinklers Systems Ltd. - The ‘Micro’ Irrigation Player

Here is a comparison of R M Drip with its peers

Sales

R M Drip is tiny compared to others. Signet is mainly a trader.

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Source: Capitaline
Margins
Margins are in line with others.
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Source: Capitaline
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Source: Capitaline
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Source: Capitaline

Du Pont Analysis

ROE is highest in the industry.
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Source: Capitaline
But that’s mainly because of higher leverage. This has already dropped after IPO.
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Source: Capitaline
Although ROA is also highest in the industry. This ratio will improve further as sales turnover increase will increase offsetting the effect of lower leverage.
Source: Capitaline
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Source: Capitaline
Asset Turnover is already in line with industry. This ratio will improve as utilization improves.
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Source: Capitaline
Asset Utilization and Working Capital Ratios
Debtor Days - This will rise further. This is a key monitorable.
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Source: Capitaline
Creditor Days - This will drop further. I have noticed that many SMEs try to offer faster payments to their suppliers using the IPO money in order to get cash discounts so they can show improvement in margins.
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Source: Capitaline
Inventory Days - This ratio is likely to go up as company is planning to stock up so it can deliver products quickly to customers and distributors.
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Source: Capitaline
My notes on the company are here

Disc: Invested since IPO and thereafter.

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