Baroda Rayon share price target 2024 to 2030

Baroda Rayon share price target 2024 to 2030: Hello friends, today we are going to discuss a stock that has given great returns after 2022 and has multiplied investors money many times. Although this stock has not given good returns since last one year but still has the potential to hit the upper circuits again and repeat the previous performance. 

Friends, the stock we are talking about today is Baroda Rayon Corporation Ltd. The name of the company could be misleading and we will tell you why in a bit. 

About Baroda Rayon Corporation Ltd

Baroda Rayon was established in 1958 by Gaekwad Chinai. The company started by manufacturing products like Viscose Filament Yarn, Sulphuric Acid, Nylon Yarn, Polyester Yarn etc. However, in August 2008 the company stopped the textile operations due to settlement of unsecured loans and pending dues of employees.

The management of the company tried hard to revive the company and settle the loans and employees dues. The company now deals in real estate.

The company is now using its land as inventory to build industrial residences. The land of the company is worth Rs 604 crores. Baroda Rayon will build 380 industrial residences in the initial phase. The total number of houses will go up to 1080.

Baroda Rayon share price target table

Baroda Rayon share price target 2024

Baroda Rayon was listed at a price of only Rs 5.11 on 03 june 2022 which increased to Rs 501.30 on 18 Nov 2022 which is a whopping return of 9920%. I mean if you had invested only Rs 10000 at a price of Rs 5.11, your money would have become Rs 1000000 in just 6 months. 

The company has not repeated such returns again but the price is hovering between Rs 140-200. The stock is waiting for a breakout and once it breaks its resistance, it could give you very good returns. 

The initial price target for Baroda Rayon in 2024 is projected to be ₹203.12.  

With favourable market conditions, the mid-year price target for Baroda Rayon could reach ₹205.22. 

By the end of 2024, the price target for Baroda Rayon is expected to potentially reach ₹208.16, considering bullish market trends.

Baroda Rayon share price target 2024 is as follows

Baroda Rayon share price target 2025

As per the company’s numbers, Baroda Rayons was not making any sales since 2012 but the company has entered the real estate business recently and in March 2023, the company reported a sales of Rs 58 crores. In the trailing twelve months the sales have increased to Rs 107 crores. 

The sales numbers show positive trend and the company has become profitable again. All these numbers suggest a bright future of Baroda Rayon.

The initial price target for Baroda Rayon in 2025 is projected to be ₹275.55.  

With favourable market conditions, the mid-year price target for Baroda Rayon could reach ₹279.51. 

By the end of 2025, the price target for Baroda Rayon is expected to potentially reach ₹288.79, considering bullish market trends.

Baroda Rayon share price target 2025 is as follows

Baroda Rayon share price target 2026

The initial price target for Baroda Rayon in 2026 is projected to be ₹370.44.  

With favourable market conditions, the mid-year price target for Baroda Rayon could reach ₹380.41. 

By the end of 2026, the price target for Baroda Rayon is expected to potentially reach ₹395.10, considering bullish market trends.

Baroda Rayon share price target 2026 is as follows

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Baroda Rayon share price target 2027

The initial price target for Baroda Rayon in 2027 is projected to be ₹495.49.  

With favourable market conditions, the mid-year price target for Baroda Rayon could reach ₹507.19. 

By the end of 2027, the price target for Baroda Rayon is expected to potentially reach ₹515.23, considering bullish market trends.

Baroda Rayon share price target 2027 is as follows

Baroda Rayon share price target 2028

The initial price target for Baroda Rayon in 2028 is projected to be ₹558.88.  

With favourable market conditions, the mid-year price target for Baroda Rayon could reach ₹564.00. 

By the end of 2028, the price target for Baroda Rayon is expected to potentially reach ₹570.69, considering bullish market trends.

Baroda Rayon share price target 2028 is as follows

Baroda Rayon share price target 2029

The initial price target for Baroda Rayon in 2029 is projected to be ₹680.52.  

With favourable market conditions, the mid-year price target for Baroda Rayon could reach ₹701.10. 

By the end of 2029, the price target for Baroda Rayon is expected to potentially reach ₹712.81, considering bullish market trends.

Baroda Rayon share price target 2029 is as follows

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Baroda Rayon share price target 2030

Baroda Rayon will sell 503 plots in phase 4 of its real estate project. Till now the stock price was being manipulated by the traders and bulk deals because the company was in loss and the sales were zero. Now the company has started making sales but in real estate segment the profitability depends on timely completion and delivery of the projects.

If the company manages to deliver the current projects on time and acquire new orders, it will definitely improve its sales and profits in long term. Baroda Rayon is expected to face competition from bigger players in this segment. 

The company is also looking to restart and relocate manufacturing of viscose filament yarn with 15,000 MTPA capacity in Dahej, Gujarat. 

The initial price target for Baroda Rayon in 2030 is projected to be ₹826.99.  

With favourable market conditions, the mid-year price target for Baroda Rayon could reach ₹840.41. 

By the end of 2030, the price target for Baroda Rayon is expected to potentially reach ₹860.69, considering bullish market trends.

Baroda Rayon share price target 2030 is as follows

Some financial ratios of Baroda Rayon

Now lets have a look at Baroda Rayons stock performance. Right now at the time of writing this post on 27th march 2024 the stock price is Rs 165. The 52 week high for the stock has been Rs 249 and the lowest has been Rs 142. 

The market cap of the company is only Rs 377 crores and that shows that it is a micro cap company. The stock P/E is 19.4 which is fine because it is lower than the sector P/E of 28.4. These P/E numbers show that the stock is still undervalued and has the scope of going much higher. 

The current price of the stock is very close to the Book value of the share of Rs 138 again showing that the stock is not overvalued.

Baroda Rayon is making good returns on capital employed (ROCE) at a rate of 55.1%. Company has also made 143% returns on equity in the last one year. 

Moreover, the company is also profitable with a profit after tax (PAT) of Rs 19.4 crores in last one year. 

Baroda Rayon has a total debt of Rs 225 crores which appears high on paper but the debt to equity ratio of only 0.71 shows that the company can pay off the debt easily.

Sales growth of the company has been amazing at 401% in the trailing twelve months. Company is profitable but the growth rate has reduced by -96% in last one year which could be due to high expenses.

Baroda Rayon has given only 7.72% returns in last one year but it has given huge returns in the past and we will tell you about it in detail later. 

Overall the company is performing amazingly well. It is a micro cap company, hence we suggest you to use stop loss to reduce your risk and only invest small amounts initially to check the depth of the waters. 

Shareholding patterns of Baroda Rayon Corporation Ltd.

Numbers in percentages

Shareholding trends of a company demonstrate how well the company is operating and the investors are increasing or decreasing their share in the company. Lets analyse the shareholding of Baroda Rayon in the last 5 years to have a better idea about what the investors think of the company.

Promoters

When we look at the promoters of the company, they held a share of 47.54% in the company till March 2022 but they trust the company and its operations. That is why, when Baroda Rayon entered the real estate business, the promoters increased their share to 67.52% rather than reducing it. New promoters joined the company to help with their experience.

Foreign Institutional Investors

FIIs have not had any interest in the company till 2022 but they took a nominal share of only 0.01%. There are some investors that invest only when they see the presence of FIIs. 

Domestic Institutional Investors

The DIIs on the other hand have decreased their share from 1.49% in March 2022 to 1.02% in December 2023. This is a steady decline.

Public

Public shareholding has also reduced from 50.97% to 31.45%. Majority of this share has been acquired by the promoters. This decline in public shareholding could be due to lack of trust in the new business. 

Overall, the shareholding patterns do not show any points of concern and the experience of the company’s promoters will help them develop healthy relations with suppliers and customers.

Profit and loss of Baroda Rayon Ltd. 

Figures in Rs. Crores

Now lets analyse the profit and loss of Baroda Rayon to know how well the company is operating. We will analyse the company’s sales, expenses, taxes and net profit to see how well the company has progressed over the last 5 years.

As we mentioned earlier, the company was not making any sales since 2012 because the company was pursuing the textile business and was suffering from loss. However, after switching to the real estate business, Baroda Rayon has started making sales. The March 2023 sales was Rs 58 crores and in trailing twelve months the sales have almost doubled to Rs 107 crores.

The expenses in 2023 were Rs 179 crores but they have also come down to 96 crores in TTM. The operating profit has dropped from Rs 238 crores to Rs 11 crores but the company is still profitable with a net profit of Rs 53 crores. 

In summary, the company is profitable but it needs to reduce the expenses and improve profitability to sustain in the real estate business.

Conclusion

In this post we discussed the Baroda Rayon share price target from 2024 to 2030. Baroda Rayon Corporation Ltd, share price was being manipulated by the market sentiments and large traders who invest for shorter periods, make money and exit. The reason for that was zero sales of the company. When the company exists without any business, their shareholders only make money based on the short term gains. However, Baroda Rayon has never disappointed the investors till date because it has given huge returns during 2022-2023. Now the company is making sales but the share price is not fluctuating much. The increase in the promoters shareholding suggests that the company is on the right path and should remain profitable in the coming years. This will in turn increase the shareholders trust and the growth of the company will be much better compared to last year. We would suggest you to invest the money for a short period only. As soon as you make profits, book them and exit.

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