Royal Arc Electrodes (NSE:ROYALARC) Beneish M-Score: -1.69 (As of Jul. 09, 2026)


NSE:ROYALARC Royal Arc Electrodes Ltd NSE:ROYALARC
19 GF Score
Price ₹146.05
! 4 Warning Signs
View Full Analysis

What is Royal Arc Electrodes Beneish M-Score?

Royal Arc Electrodes NSE:ROYALARC 19 Beneish M-Score is -1.69 as of Jul. 09, 2026. GuruFocus rates NSE:ROYALARC with a GF Score™ of 19/100. The stock has 4 warning signs investors should review. Among 2,916 Industrial Products companies, Royal Arc Electrodes ranks worse than 86.04% on this metric.

The zones of discrimination for M-Score is as such:

An M-Score of equal or less than -1.78 suggests that the company is unlikely to be a manipulator.
An M-Score of greater than -1.78 signals that the company is likely to be a manipulator.

Warning Sign:

Beneish M-Score -1.69 higher than -1.78, which implies that the company might have manipulated its financial results.

The historical rank and industry rank for Royal Arc Electrodes's Beneish M-Score or its related term are showing as below:

NSE:ROYALARC' s Beneish M-Score Range Over the Past 10 Years
Min: -2.35   Med: -1.69   Max: -1.48
Current: -1.69

During the past 5 years, the highest Beneish M-Score of Royal Arc Electrodes was -1.48. The lowest was -2.35. And the median was -1.69.

Royal Arc Electrodes Beneish M-Score Historical Data

* Premium members only.

The historical data trend for Royal Arc Electrodes's Beneish M-Score can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

Royal Arc Electrodes Beneish M-Score Chart

Royal Arc Electrodes Annual Data
Trend Mar22 Mar23 Mar24 Mar25 Mar26
Beneish M-Score
0.00 0.00 -1.48 -2.35 -1.69

Royal Arc Electrodes Semi-Annual Data
Mar22 Mar23 Mar24 Sep24 Mar25 Mar26
Beneish M-Score Get a 7-Day Free Trial 0.00 -1.48 0.00 -2.35 -1.69

NSE:ROYALARC vs VRT, BE: Beneish M-Score Comparison

For the Electrical Equipment & Parts subindustry, Royal Arc Electrodes's Beneish M-Score, along with its competitors' market caps and Beneish M-Score data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.

Royal Arc Electrodes Beneish M-Score vs Industrial Products Industry

For the Industrial Products industry and Industrials sector, Royal Arc Electrodes's Beneish M-Score distribution charts can be found below:

* The bar in red indicates where Royal Arc Electrodes's Beneish M-Score falls into.


NSE:ROYALARC
19GF Score
Royal Arc Electrodes Ltd NSE:ROYALARC
Beneish M-Score is just one metric. See GF Score™, valuation, warning signs, and more.
View Full Analysis

Royal Arc Electrodes Beneish M-Score Calculation

The M-score was created by Professor Messod Beneish. Instead of measuring the bankruptcy risk (Altman Z-Score) or business trend (Piotroski F-Score), M-score can be used to detect the risk of earnings manipulation. This is the original research paper on M-score.

The M-Score Variables:

The M-score of Royal Arc Electrodes for today is based on a combination of the following eight different indices:

M=-4.84+0.92 * DSRI+0.528 * GMI+0.404 * AQI+0.892 * SGI+0.115 * DEPI
=-4.84+0.92 * 1.2788+0.528 * 1.1392+0.404 * 1.0402+0.892 * 1.1404+0.115 * 1.1212
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0+4.679 * 0.027594-0.327 * 0.9994
=-1.69

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

This Year (Mar26) TTM:Last Year (Mar25) TTM:
Total Receivables was ₹307.9 Mil.
Revenue was ₹1,160.6 Mil.
Gross Profit was ₹323.4 Mil.
Total Current Assets was ₹586.5 Mil.
Total Assets was ₹912.3 Mil.
Property, Plant and Equipment(Net PPE) was ₹299.4 Mil.
Depreciation, Depletion and Amortization(DDA) was ₹35.2 Mil.
Selling, General, & Admin. Expense(SGA) was ₹0.0 Mil.
Total Current Liabilities was ₹86.3 Mil.
Long-Term Debt & Capital Lease Obligation was ₹0.0 Mil.
Net Income was ₹100.5 Mil.
Gross Profit was ₹0.0 Mil.
Cash Flow from Operations was ₹75.3 Mil.
 Total Receivables was ₹211.1 Mil.
Revenue was ₹1,017.7 Mil.
Gross Profit was ₹323.1 Mil.
Total Current Assets was ₹565.5 Mil.
Total Assets was ₹808.5 Mil.
Property, Plant and Equipment(Net PPE) was ₹220.5 Mil.
Depreciation, Depletion and Amortization(DDA) was ₹29.5 Mil.
Selling, General, & Admin. Expense(SGA) was ₹19.5 Mil.
Total Current Liabilities was ₹76.5 Mil.
Long-Term Debt & Capital Lease Obligation was ₹0.0 Mil.

1. DSRI = Days Sales in Receivables Index

Measured as the ratio of Revenue in Total Receivables in year t to year t-1.

A large increase in DSR could be indicative of revenue inflation.

DSRI=(Receivables_t / Revenue_t) / (Receivables_t-1 / Revenue_t-1)
=(307.862 / 1160.6) / (211.098 / 1017.679)
=0.265261 / 0.207431
=1.2788

2. GMI = Gross Margin Index

Measured as the ratio of gross margin in year t-1 to gross margin in year t.

Gross margin has deteriorated when this index is above 1. A firm with poorer prospects is more likely to manipulate earnings.

GMI=GrossMargin_t-1 / GrossMargin_t
=(GrossProfit_t-1 / Revenue_t-1) / (GrossProfit_t / Revenue_t)
=(323.067 / 1017.679) / (323.415 / 1160.6)
=0.317455 / 0.278662
=1.1392

3. AQI = Asset Quality Index

AQI is the ratio of asset quality in year t to year t-1.

Asset quality is measured as the ratio of non-current assets other than Property, Plant and Equipment to Total Assets.

AQI=(1 - (CurrentAssets_t + PPE_t) / TotalAssets_t) / (1 - (CurrentAssets_t-1 + PPE_t-1) / TotalAssets_t-1)
=(1 - (586.484 + 299.386) / 912.312) / (1 - (565.539 + 220.459) / 808.528)
=0.028984 / 0.027865
=1.0402

4. SGI = Sales Growth Index

Ratio of Revenue in year t to sales in year t-1.

Sales growth is not itself a measure of manipulation. However, growth companies are likely to find themselves under pressure to manipulate in order to keep up appearances.

SGI=Sales_t / Sales_t-1
=Revenue_t / Revenue_t-1
=1160.6 / 1017.679
=1.1404

5. DEPI = Depreciation Index

Measured as the ratio of the rate of Depreciation, Depletion and Amortization in year t-1 to the corresponding rate in year t.

DEPI greater than 1 indicates that assets are being depreciated at a slower rate. This suggests that the firm might be revising useful asset life assumptions upwards, or adopting a new method that is income friendly.

DEPI=(Depreciation_t-1 / (Depreciaton_t-1 + PPE_t-1)) / (Depreciation_t / (Depreciaton_t + PPE_t))
=(29.51 / (29.51 + 220.459)) / (35.232 / (35.232 + 299.386))
=0.118055 / 0.10529
=1.1212

Note: If the Depreciation, Depletion and Amortization data is not available, we assume that the depreciation rate is constant and set the Depreciation Index to 1.

6. SGAI = Sales, General and Administrative expenses Index

The ratio of Selling, General, & Admin. Expense(SGA) to Sales in year t relative to year t-1.

SGA expenses index > 1 means that the company is becoming less efficient in generate sales.

SGAI=(SGA_t / Sales_t) / (SGA_t-1 /Sales_t-1)
=(0 / 1160.6) / (19.508 / 1017.679)
=0 / 0.019169
=0

7. LVGI = Leverage Index

The ratio of total debt to Total Assets in year t relative to yeat t-1.

An LVGI > 1 indicates an increase in leverage

LVGI=((LTD_t + CurrentLiabilities_t) / TotalAssets_t) / ((LTD_t-1 + CurrentLiabilities_t-1) / TotalAssets_t-1)
=((0 + 86.275) / 912.312) / ((0 + 76.505) / 808.528)
=0.094567 / 0.094623
=0.9994

8. TATA = Total Accruals to Total Assets

Total accruals calculated as the change in working capital accounts other than cash less depreciation.

TATA=(IncomefromContinuingOperations_t - CashFlowsfromOperations_t) / TotalAssets_t
=(NetIncome_t - NonOperatingIncome_t - CashFlowsfromOperations_t) / TotalAssets_t
=(100.454 - 0 - 75.28) / 912.312
=0.027594

An M-Score of equal or less than -1.78 suggests that the company is unlikely to be a manipulator. An M-Score of greater than -1.78 signals that the company is likely to be a manipulator.

Royal Arc Electrodes has a M-score of -1.69 signals that the company is likely to be a manipulator.

Frequently Asked Questions Learn more about Beneish M-Score →
What does a Beneish M-Score of -1.69 mean?
Royal Arc Electrodes (NSE:ROYALARC) has a Beneish M-Score of -1.69 as of Jul. 09, 2026. The Beneish M-score measures the likelihood of earnings manipulation. View historical data on Royal Arc Electrodes and its competitors. According to the industry distribution chart, Royal Arc Electrodes ranks #2509 out of 2916 companies in the Industrial Products industry, placing it in the top 86%.
Is Royal Arc Electrodes' Beneish M-Score too high?
Royal Arc Electrodes' current Beneish M-Score is -1.69. Based on the distribution chart, Royal Arc Electrodes ranks #2509 out of 2916 companies in the Industrial Products industry, which is in the bottom quartile relative to peers. Overall, Royal Arc Electrodes has a GF Score™ of 19/100, reflecting its overall financial health beyond just this single metric.
How does Royal Arc Electrodes' Beneish M-Score compare to VRT and BE?
According to the Industrial Products industry distribution chart, Royal Arc Electrodes ranks #2509 out of 2916 companies for Beneish M-Score. This places Royal Arc Electrodes in the lower half of its industry. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Beneish M-Score for an Industrial Products company?
A good Beneish M-Score depends on the Industrial Products industry context. However, Beneish M-Score should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Beneish M-Score mean?
A high Beneish M-Score can signal that a stock is expensive relative to its fundamentals. The Beneish M-score measures the likelihood of earnings manipulation. View historical data on Royal Arc Electrodes and its competitors. Royal Arc Electrodes's current Beneish M-Score is -1.69. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Royal Arc Electrodes stock overvalued right now?
Royal Arc Electrodes (NSE:ROYALARC) has a current Beneish M-Score of -1.69. The current Beneish M-Score is -1.69. Royal Arc Electrodes' overall GF Score™ is 19/100 with 4 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Beneish M-Score calculated?
Beneish M-Score is calculated from a company's financial statements. For Royal Arc Electrodes (NSE:ROYALARC), the current Beneish M-Score is -1.69 as of Jul. 09, 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.

Royal Arc Electrodes Business Description

Address S.V. Road, 72 B, Bombay Talkies Compound, Malad West, Mumbai, MH, IND, 400064
Royal Arc Electrodes Ltd is engaged in the business of manufacturing welding consumables such as welding electrodes, flux cored wire, MIG/TIG wires, which finds its application in the welding of tanks, boilers, heavy structures, beams, pipes, cylinders, pressure vessels, etc. which are used in industries like railways, roadways, airport infrastructure, refineries, shipyards, mines, sugar industries, telecom industries, thermal power stations, PEB sectors, etc. Further, the Company is also engaged in the business of trading ancillary/incidental products like wheels, electro slag, welding flux cored wire, electro slag strip cladding, saw flux, and TIG /MIG wires. It manufactures its products from copper coated wire, MS Strips, MS wire, SS strip, SS wire, nickel wire, ferro alloy powder, etc.
19GF Score

Get the complete analysis for NSE:ROYALARC

Beneish M-Score is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.

₹146.05
Price