Rajapalayam Mill

Why is Rajapalayam Mills Ltd falling/rising?

As of 01-Sep, Rajapalayam Mills Ltd's stock price is rising due to strong financial results, including a 1,495.21% increase in profit after tax and a 29.24% growth in net sales. Increased investor interest and a favorable operating profit to interest ratio also support the stock's upward movement, despite concerns about long-term performance and debt servicing.

As of 01-Sep, Rajapalayam Mills Ltd's stock price is rising, currently at 815.00, with a change of 9.05 (1.12%) upwards. This increase can be attributed to several positive factors. The company has reported strong financial results over the last five consecutive quarters, with a significant growth in profit after tax (PAT) of 1,495.21% and net sales growth of 29.24% in the latest six months. Additionally, the operating profit to interest ratio is at its highest, indicating improved financial health.<BR><BR>Investor participation has also risen, with a delivery volume increase of 50.55% against the five-day average, suggesting growing interest in the stock. Furthermore, the stock is trading at a discount compared to its peers' average historical valuations, which may attract investors looking for value. Despite a year-to-date return of -0.40% and a one-year return of -8.10%, the company's profits have increased by 289%, and it has a PEG ratio of 0, indicating potential for future growth.<BR><BR>However, it is important to note that the stock has shown consistent underperformance against benchmarks over the last three years, and there are concerns regarding its long-term fundamental strength, including a weak ability to service debt. Despite these challenges, the current positive financial results and increased investor interest are contributing to the stock's rise.

Who are in the management team of Rajapalayam Mill?

The management team of Rajapalayam Mill includes Chairman P R Venketrama Raja, Directors S S Ramachandra Raja, A V Dharmakrishnan, P V Abinav Ramasubramaniam Raja, P V Nirmala Raju, and Independent Directors N K Ramasuwami Raja, P P S Janarthana Raja, V Santhana Raman, K B Nagendra Murthy, SOUNDARA KUMAR, and P A S Alaghar Raja, along with Company Secretary A Arulpranavam. They oversee the company's operations and strategic direction.

The management team of Rajapalayam Mill includes the following individuals:<BR><BR>1. P R Venketrama Raja - Chairman (Non-Executive)<BR>2. S S Ramachandra Raja - Director<BR>3. N K Ramasuwami Raja - Independent Director<BR>4. A V Dharmakrishnan - Director<BR>5. P P S Janarthana Raja - Independent Director<BR>6. V Santhana Raman - Independent Director<BR>7. A Arulpranavam - Company Secretary & Compliance Officer<BR>8. K B Nagendra Murthy - Independent Director<BR>9. SOUNDARA KUMAR - Independent Director<BR>10. P V Abinav Ramasubramaniam Raja - Director<BR>11. P A S Alaghar Raja - Independent Director<BR>12. P V Nirmala Raju - Director<BR><BR>This team is responsible for overseeing the operations and strategic direction of the company.

What does Rajapalayam Mill do?

Rajapalayam Mills Ltd is a micro-cap manufacturer of cotton yarn and fabrics, established in 1936, with recent net sales of ₹261 crore and a net profit of ₹18 crore as of June 2026. The company operates with a P/E ratio of 6.00 and has a market capitalization of ₹738 crore.

Overview: <BR>Rajapalayam Mills Ltd is a manufacturer of cotton yarn and fabrics, operating within the Garments & Apparels industry and categorized as a Micro Cap company.<BR><BR>History: <BR>Rajapalayam Mills Ltd was established in February 1936. The company has been operational for over six decades and set up an export-oriented spinning mill during the 1990-91 period. The latest quarterly results reported net sales and profit for June 2026.<BR><BR>Financial Snapshot: <BR>Most recent Net Sales: 261 Cr (Quarterly Results - Jun 2026) <BR>Most recent Net Profit: 18 Cr (Quarterly Results - Jun 2026) <BR>Market-cap value: INR 738 Cr (Micro Cap)<BR><BR>Key Metrics: <BR>P/E: 6.00 <BR>Industry P/E: 28 <BR>Dividend Yield: 0.06% <BR>Debt-Equity: 0.00 <BR>Return on Equity: 0.00% <BR>Price-to-Book: 0.31 <BR><BR>Contact Details: <BR>Address: Rajapalayam Mills Premises, P Box 1 PAC Ramasamy Raja Sala Rajapalaiyam Tamil Nadu : 626117 <BR>Tel: 91-4563-235666 <BR>Email: rajacot@ramcotex.com <BR>Website: http://www.rajapalayammills.co.in

Who are the peers of the Rajapalayam Mill?

Rajapalayam Mill's peers include United Polyfab, Borana Weaves, Sarla Performanc, True Green, and others. In terms of management risk, growth, and capital structure, Borana Weaves stands out positively, while Rajapalayam Mill shows below-average management risk and capital structure, with a 1-year return of -8.41%.

Peers: The peers of the Rajapalayam Mill are United Polyfab, Borana Weaves, Sarla Performanc, True Green, Virat Industries, Voith Paper, Sutlej Textiles, Orbit Exports, Karnika Industri, and Precot.<BR><BR>Quality Snapshot: Excellent management risk is observed at Borana Weaves, while Average management risk is found at United Polyfab, Sarla Performanc, Voith Paper, Sutlej Textiles, and Karnika Industri, and the rest. Below Average management risk is present at True Green, Rajapalayam Mill, Virat Industries. In terms of Growth, Excellent growth is seen at Borana Weaves, Good growth is noted at True Green, Rajapalayam Mill, Orbit Exports, and Karnika Industri, while Below Average growth is reported for United Polyfab, Sarla Performanc, Virat Industries, Voith Paper, and Sutlej Textiles, and the rest. For Capital Structure, Excellent capital structure is found at Borana Weaves and Orbit Exports, Good capital structure is noted at Sarla Performanc and Virat Industries, while Average capital structure is present at United Polyfab and Karnika Industri, and Below Average capital structure is reported for True Green, Rajapalayam Mill, Sutlej Textiles, and Precot.<BR><BR>Return Snapshot: True Green has the highest 1-year return at 296.24%, while Virat Industries has the lowest at -43.54%. Rajapalayam Mill's 1-year return is -8.41%, which is higher than that of Virat Industries but lower than True Green. Additionally, the six-month return is negative for Borana Weaves, Voith Paper, and Precot.

How big is Rajapalayam Mill?

As of 31st August, Rajapalayam Mills Ltd has a market capitalization of 738.00 Cr, with recent net sales of 1014.76 Cr and a net profit of 123.79 Cr. The company reported shareholder's funds of 2,427.79 Cr and total assets of 3,721.15 Cr for the annual period ending March 2026.

As of 31st August, Rajapalayam Mills Ltd has a market capitalization of 738.00 Cr, categorizing it as a Micro Cap company.<BR><BR>In the latest four quarters, Rajapalayam Mills reported Net Sales of 1014.76 Cr and a Net Profit of 123.79 Cr.<BR><BR>For the latest annual period ending March 2026, the company reported Shareholder's Funds of 2,427.79 Cr and Total Assets of 3,721.15 Cr.

Which are the latest news on Rajapalayam Mill?

Should I buy, sell or hold Rajapalayam Mills Ltd?

Are Rajapalayam Mills Ltd latest results good or bad?

Rajapalayam Mills Ltd's latest results show strong year-on-year revenue growth with a consolidated net profit of ₹29.61 crore, but a 50.26% decline in profits from the previous quarter and ongoing standalone losses raise concerns about profitability and financial health.

Rajapalayam Mills Ltd's latest results present a mixed picture. On one hand, the company achieved a consolidated net profit of ₹29.61 crore for Q4 FY26, which is a significant improvement compared to a loss in the same quarter last year. This reflects a year-on-year growth of 738.15%. Additionally, net sales reached ₹269.34 crore, marking a robust 21.32% increase compared to the previous year.<BR><BR>However, there are notable concerns regarding profitability. The consolidated net profit saw a sharp decline of 50.26% compared to the previous quarter, indicating volatility in earnings. The standalone operations reported a net loss of ₹3.44 crore, although this was an improvement from a loss of ₹7.92 crore in the prior quarter. The operating margin also decreased slightly to 11.08%, down from 11.21% in the previous quarter and significantly lower than the margins seen earlier in the fiscal year.<BR><BR>Furthermore, the company's interest coverage ratio is concerning at just 0.77 times, suggesting challenges in servicing its debt. The overall financial performance indicates that while revenue growth is strong, operational efficiency and cost management remain issues that need to be addressed.<BR><BR>In summary, while there are positive signs in terms of revenue growth and improved consolidated profitability, the significant drop in quarter-on-quarter profits and ongoing standalone losses raise red flags about the company's financial health.

Is Rajapalayam Mill overvalued or undervalued?

As of November 17, 2025, Rajapalayam Mill is fairly valued with a PE ratio of 14.52 and a low Price to Book Value of 0.34, despite a high EV to EBIT ratio of 99.66, positioning it attractively compared to peers like K P R Mill and Trident, although it has underperformed the Sensex year-to-date.

As of 17 November 2025, the valuation grade for Rajapalayam Mill has moved from very attractive to attractive. The company appears to be fairly valued based on its current financial metrics. The PE ratio stands at 14.52, while the Price to Book Value is notably low at 0.34, indicating potential undervaluation relative to its book value. However, the EV to EBIT ratio is quite high at 99.66, suggesting that the market may be pricing in significant future growth expectations.<BR><BR>In comparison to its peers, Rajapalayam Mill's PE ratio is significantly lower than K P R Mill Ltd, which is rated as very expensive with a PE of 44.24, and Trident, which is also attractive with a PE of 32.69. This positions Rajapalayam Mill favorably within its industry, particularly considering its PEG ratio of 0.01, which indicates that it may be undervalued relative to its growth prospects. Despite recent stock performance lagging behind the Sensex, with a year-to-date decline of 24.26% compared to the Sensex's gain of 8.72%, the overall valuation suggests that Rajapalayam Mill is fairly valued at this time.

How has been the historical performance of Rajapalayam Mill?

Rajapalayam Mill's historical performance shows rising net sales, reaching 898.48 Cr in Mar'25, but declining profitability with a profit before tax of -75.35 Cr and a profit after tax of -58.87 Cr. Despite increased total assets of 3,592.93 Cr, the company faces challenges from rising costs and negative cash flow from investing activities.

Answer:<BR>The historical performance of Rajapalayam Mill shows a fluctuating trend in net sales and profitability over the years, with a significant increase in net sales in Mar'25 reaching 898.48 Cr, up from 858.56 Cr in Mar'24 and 861.89 Cr in Mar'23. However, the total operating income also reflects a similar pattern, peaking in Mar'25. The raw material costs have risen to 473.45 Cr in Mar'25 from 454.04 Cr in Mar'24, indicating increased operational expenses. Despite the growth in sales, the operating profit (PBDIT) has decreased to 90.15 Cr in Mar'25 from 99.94 Cr in Mar'24, and the profit before tax has turned negative at -75.35 Cr in Mar'25 compared to -14.04 Cr in Mar'24. The profit after tax also reflects a loss of -58.87 Cr in Mar'25, down from -9.18 Cr in Mar'24. <BR><BR>The balance sheet indicates a steady increase in total assets, reaching 3,592.93 Cr in Mar'25, compared to 3,516.34 Cr in Mar'24. Total liabilities have also increased, amounting to 3,592.93 Cr in Mar'25, with long-term borrowings rising to 530.71 Cr. The cash flow from operating activities shows a positive trend at 115.00 Cr in Mar'25, although cash flow from investing activities remains negative at -51.00 Cr. Overall, while Rajapalayam Mill has seen growth in sales and assets, it faces challenges with profitability and rising costs.<BR><BR>Breakdown:<BR>Rajapalayam Mill's net sales have shown a consistent upward trend, increasing from 411.78 Cr in Mar'21 to 898.48 Cr in Mar'25. Despite this growth, the operating profit has declined from 144.23 Cr in Mar'22 to 90.15 Cr in Mar'25, indicating rising costs, particularly in raw materials, which reached 473.45 Cr in Mar'25. The company reported a profit before tax of -75.35 Cr in Mar'25, a significant drop from -14.04 Cr in Mar'24, and a profit after tax of -58.87 Cr, down from -9.18 Cr the previous year. The balance sheet reflects total assets of 3,592.93 Cr in Mar'25, up from 3,516.34 Cr in Mar'24, while total liabilities also increased, indicating a growing debt level with long-term borrowings at 530.71 Cr. Cash flow from operating activities remained positive at 115.00 Cr, but cash flow from investing activities was negative at -51.00 Cr, suggesting ongoing investments despite profitability challenges.

Is Rajapalayam Mill technically bullish or bearish?

As of November 12, 2025, Rajapalayam Mill's technical trend has shifted to bearish, supported by negative signals from key indicators like MACD, moving averages, and KST, despite some divergence in Dow Theory.

As of 12 November 2025, the technical trend has changed from mildly bearish to bearish. The current stance is bearish with a strong indication from multiple key indicators. The MACD is bearish on both weekly and monthly time frames, and the moving averages are also bearish on the daily chart. The KST confirms this bearish sentiment on both weekly and monthly levels. Additionally, Bollinger Bands indicate a mildly bearish outlook on both weekly and monthly time frames. While Dow Theory shows a mildly bearish stance on the weekly chart, it is bullish on the monthly chart, suggesting some divergence. Overall, the bearish indicators dominate, reflecting a weak technical position for Rajapalayam Mill.

Who are the top shareholders of the Rajapalayam Mill?

The top shareholders of Rajapalayam Mill include promoter P V Abinav Ramasubramaniam Raja with 26.46%, public shareholder Govindlal M Parikh at 5.83%, and individual investors holding 35.12%, while foreign institutional investors hold 0.07%. There are no pledged promoter holdings or mutual funds involved.

The top shareholders of Rajapalayam Mill include the promoters, who hold the majority of the shares. The promoter with the highest holding is P V Abinav Ramasubramaniam Raja, owning 26.46% of the company. Additionally, the highest public shareholder is Govindlal M Parikh, who holds 5.83%. Individual investors collectively hold 35.12% of the shares, while foreign institutional investors (FIIs) hold a small stake of 0.07%. There are no pledged promoter holdings, and no mutual funds are currently involved with the company.

When is the next results date for Rajapalayam Mill?

No Upcoming Board Meetings

What is the bonus history of the Rajapalayam Mill?

The Rajapalayam Mill issued a 1:1 bonus on July 13, 2011, with a record date of July 15, 2011, granting shareholders one additional share for each share held.

The Rajapalayam Mill has a bonus history that includes a 1:1 bonus issue announced on July 13, 2011. The record date for this bonus was July 15, 2011. This means that shareholders received one additional share for every share they held as of the record date.

Has Rajapalayam Mill declared dividend?

Rajapalayam Mills Ltd has declared a 6% dividend, amounting to ₹0.6 per share, with an ex-date of August 21, 2024. While recent performance shows mixed returns, the company has achieved positive total returns over the long term, particularly a 60.83% return over the past 5 years.

Rajapalayam Mills Ltd has declared a 6% dividend.<BR><BR>Dividend Details:<BR>- Percentage announced: 6%<BR>- Amount per share: 0.6<BR>- Ex-date: 21 Aug 24<BR><BR>Dividend Yield: 0.07%.<BR><BR>Total Returns by Period:<BR>In the last 6 months, the price return was -13.52%, with no dividend return, resulting in a total return of -13.52%.<BR><BR>Over the past year, the price return was 4.62%, with a dividend return of 0.07%, leading to a total return of 4.69%.<BR><BR>In the 2-year period, the price return was 35.58%, with a dividend return of 0.22%, resulting in a total return of 35.8%.<BR><BR>For the 3-year period, the price return was 17.35%, with a dividend return of 0.36%, culminating in a total return of 17.71%.<BR><BR>In the last 4 years, the price return was 20.69%, with a dividend return of 0.42%, leading to a total return of 21.11%.<BR><BR>Over the past 5 years, the price return was 60.14%, with a dividend return of 0.69%, resulting in a total return of 60.83%.<BR><BR>Overall, Rajapalayam Mills Ltd has declared a dividend, and while recent performance shows mixed returns, the long-term total returns have been positive, particularly over the 5-year period.