Factors that can decide the next move of Rashi Peripherals stock?

Rashi Peripherals made a decent market debut on February 14 2024, listing at a 9.16% premium over the IPO price, with shares likely to debut in the range of Rs 340-350.

Now Let us understand that which Factors can decide the next move of “Rashi Peripherals” stock.

What is the future growth potential of rashi peripherals?

Rashi Peripherals, a tech-products distributor, has shown positive growth potential, as indicated by its sustained growth, successful expansion into new ventures, and increasing reserves and surplus. The company's future growth trajectory and market potential are also considered promising. Additionally, the ICT industry, in which Rashi Peripherals operates, is expected to have double-digit growth, supported by increasing digital penetration in Tier-II and Tier-III cities and government initiatives.

The key drivers of growth for Rashi Peripherals include:

Market Dominance:

Rashi Peripherals is a leading ICT product distributor in the Indian market, with a dominant market share in certain ICT products.

Strong Supplier Relationships:

 The company is a national distribution partner of 52 global brands, including well-known names such as Dell, Asus, HP, and Logitech.

Value-Added Services:

Rashi Peripherals offers various value-added services such as pre-sales, technical support, marketing services, credit solutions, and warranty management services, which enhance its offerings and attract customers.

Product Diversification:

The company distributes over 10,500 types of products and intends to grow the number of categories it operates in.

Industry Outlook:

The ICT industry is expected to have double-digit growth due to increasing digital penetration in Tier-II and Tier-III cities and government support.

Financial Strength:

The company's strong financial position, as indicated by increasing reserves and surplus, provides resources for future investments and expansion.

These factors collectively contribute to the growth potential of Rashi Peripherals, positioning it favorably in the market.

what is the revenue growth rate of rashi peripherals in the past year?

In the six months ended September 2023, Rashi Peripherals' revenue from operations grew by 9% year-on-year to Rs 5,467 crore. Additionally, the company achieved an annual revenue growth of 26.3% between FY21 and FY23. These figures indicate a positive revenue growth trend for Rashi Peripherals in the past year.

What is the net profit growth rate of rashi peripherals in the past year?

In the six months ended September 2023, Rashi Peripherals' net profit increased by 7% year-on-year to Rs 129 crore. However, it's important to note that the company reported a decline in profit after tax (PAT) by 3% annually between FY21 and FY23. This indicates a mixed performance in net profit growth over the past year.

The factors that contributed to the net profit growth of Rashi Peripherals in the past year include:

Revenue Growth:

In the six months ended September 2023, the company experienced a 9% year-on-year growth in revenue from operations, which contributed to the increase in net profit

Market Position:

 Rashi Peripherals is a leading national distributor of global technology brands in India, with a dominant market share in certain ICT products

Value-Added Services:

The company offers a range of value-added services such as pre-sale activities, technical support, marketing services, and credit solutions, which likely contributed to its profit growth

Industry Outlook:

 The ICT industry is expected to witness growth, which would have positively impacted Rashi Peripherals business and profitability.

These factors collectively played a role in the net profit growth of Rashi Peripherals in the past year.

Rashi Peripherals Buy, sell or Hold after IPO Listing?

After Analyzing above factors, We can say that “Multibagger stock ideas” (PS group), Company has been performing but It is a long term investment story and Valuations of Rashi Peripherals is looking bit expensive at this Price.  If investors get any chance to enter in “Rashi Peripherals” stock at lower price levels then it will be good opportunity for them.  Short term Investors should keep stoploss in “Rashi Peripherals” around 322.50rs closing basis. If Rashi Peripherals stock give close below 322.50rs or 340rs then try to take exit from Rashi Peripherals stock and wait lower prices to come.  It is better to sit in some profit instead of book loss.