Rajoo Engineers Q1FY26 – “From Rajkot to 70 Countries: The Plastic Machine Wala With ROCE Sexier Than Bollywood Heroes”
1. At a Glance
Rajoo Engineers Ltd – the Rajkot-based extrusion machinery kingpin – is currently trading at ₹85.5, with a market cap of ₹1,527 Cr. The stock has collapsed -71% in 1 year, but fundamentals are partying: FY25 sales ₹288 Cr, PAT ₹47.7 Cr, ROE 26%, ROCE 33%, and OPM a juicy 20%. Debt = zero, order book = ₹140 Cr, and exports = 46%. P/E is 32x, P/B = 8.6x – investors are paying Apple multiples for a Rajkot factory that sells plastic machines.
2. Introduction
Rajoo is that underrated kid from Gujarat who quietly topped his engineering exam while the whole class mocked his “extrusion obsession.” Today, he’s supplying machines to Reliance, IOCL, and 5,000+ installations in 70 countries.
The irony? Despite 90% profit growth in 5 years, the stock tanked from ₹333 to ₹85 in one year. Why? Maybe the market got bored of plastic machines, or maybe operators took early retirement.
This is not a flaky multi-business circus like Kothari Industrial; this is a pure-play machinery manufacturer with a DSIR-approved R&D lab, Italian JV, Japanese machines, and repeat clients (60% orders). But the street doesn’t trust it fully – promoter holding slipped -5.7% last quarter, and QIP dilution is raising eyebrows.
Question for you: Do you like “boring compounding machines” or “sexy operator stocks”?
3. Business Model – WTF Do They Even Do?
Rajoo basically makes the machines that make plastic. Not plastic bags or straws, but the heavy-duty industrial machinery behind it. Their six segments:
Blown Film Lines – think packaging films, multilayer wraps.
Sheet Lines – used for thermoforming trays (like your airline meal box).
