RSWM Ltd Gains 15.30%: Technical Momentum and Valuation Shift Drive Weekly Rally

2 February 2026: Weak Start Amid Market Downturn

RSWM Ltd began the week on a subdued note, closing at ₹136.45, down ₹4.05 or 2.88% from the previous Friday’s close of ₹140.50. This decline occurred alongside a broader market sell-off, with the Sensex falling 1.03% to 35,814.09. The stock’s underperformance relative to the benchmark reflected cautious sentiment amid sector headwinds and uncertainty over the company’s financial health. Trading volume was low at 623 shares, indicating limited buying interest at this level.

3 February 2026: Upgrade Sparks Sharp Rebound

On 3 February, RSWM Ltd surged 11.07% to close at ₹151.55, a gain of ₹15.10, on heavy volume of 5,017 shares. This sharp rebound was triggered by MarketsMOJO’s upgrade of the stock’s rating from 'Sell' to 'Hold', reflecting improved technical indicators despite mixed financial signals. The upgrade highlighted a shift from bearish to mildly bearish technical trends, supported by attractive valuation metrics such as a low enterprise value to capital employed ratio of 0.8 and a PEG ratio of 0.8. The Sensex also rallied strongly, gaining 2.63% to 36,755.96, but RSWM’s outperformance was notable.

4 February 2026: Technical Momentum Shift Amid Mixed Signals

RSWM Ltd continued its upward trajectory on 4 February, closing at ₹154.20, up 1.75% on volume of 5,150 shares. The day’s trading confirmed a technical momentum shift, with the stock moving from bearish to mildly bearish territory. Key indicators presented a complex picture: the MACD remained bearish on weekly and monthly charts, while the weekly Bollinger Bands turned bullish, signalling potential for further gains. The RSI was bearish weekly but neutral monthly, and the Know Sure Thing (KST) indicator showed bearish weekly but mildly bullish monthly trends. Despite these mixed signals, the stock’s intraday range of ₹145.00 to ₹155.85 demonstrated strong volatility and investor interest. The Sensex rose modestly by 0.37% to 36,890.21.

5 February 2026: Gains Persist Despite Market Dip

The stock maintained its positive momentum on 5 February, rising 3.96% to ₹160.30 on moderate volume of 2,390 shares. This gain came despite a 0.53% decline in the Sensex to 36,695.11, underscoring RSWM Ltd’s relative strength. The technical outlook remained cautiously optimistic, with weekly On-Balance Volume (OBV) turning mildly bullish, suggesting increasing buying interest. However, daily moving averages stayed mildly bearish, indicating the stock had yet to decisively break through key resistance levels. The company’s financial fundamentals continued to present a mixed picture, with strong operating profit growth at an annualised 31.68% but elevated debt to EBITDA ratio of 7.05 times, signalling leverage concerns.

6 February 2026: Week Closes on Positive Note

RSWM Ltd closed the week at ₹162.00, up 1.06% on volume of 1,373 shares, marking a 15.30% gain for the week. The Sensex ended slightly higher by 0.10% at 36,730.20. The stock’s sustained outperformance reflected investor confidence in the recent technical upgrade and valuation appeal. Despite the positive price action, the company’s modest return on equity of 9.22% and limited institutional interest, with domestic mutual funds holding only 0.01%, suggest that caution remains warranted. The upgrade to a Hold rating by MarketsMOJO encapsulates this balanced view, recognising improved technicals and valuation while acknowledging ongoing financial challenges.

Daily Price Performance vs Sensex

Key Takeaways

Positive Signals: RSWM Ltd’s 15.30% weekly gain significantly outpaced the Sensex’s 1.51%, driven by a technical upgrade from 'Sell' to 'Hold' and improved momentum indicators such as bullish weekly Bollinger Bands and rising On-Balance Volume. The company’s valuation remains attractive, with a low enterprise value to capital employed ratio of 0.8 and a PEG ratio of 0.8, suggesting earnings growth is not fully priced in. Operating profit growth at an annualised 31.68% and strong operating cash flow of ₹426.39 crores underpin the stock’s fundamental strength.

Cautionary Signals: Despite the positive momentum, several indicators remain bearish or mixed, including the MACD on weekly and monthly charts and the weekly RSI. The company’s debt to EBITDA ratio is elevated at 7.05 times, indicating high leverage that could limit financial flexibility. Return on equity is modest at 9.22%, and institutional interest is minimal, with domestic mutual funds holding only 0.01%. These factors temper enthusiasm and justify the Hold rating rather than a more bullish stance.

Overall, RSWM Ltd is exhibiting signs of technical recovery and valuation appeal, but persistent financial and leverage concerns warrant a cautious approach. The stock’s strong weekly outperformance reflects renewed investor interest, yet the mixed technical signals and fundamental challenges suggest that sustained gains will depend on further improvements in debt servicing and profitability metrics.

Upgrade at special rates, valid only for the next few days. Claim Your Special Rate →