RSWM Ltd (RSWM) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

Comparison

Company

Score

Quality

Valuation

Financial

Technical

AB Cotspin

Sunrakshakk Inds

RSWM Ltd

Ambika Cotton

GHCL Textiles

Rajapalayam Mill

VTM

Voith Paper

Bizotic Commer.

Karnika Industri

Foce India

Why is RSWM Ltd ?

Low ability to service debt as the company has a high Debt to EBITDA ratio of 7.05 times

Low ability to service debt as the company has a high Debt to EBITDA ratio of 7.05 times
The company has been able to generate a Return on Equity (avg) of 9.22% signifying low profitability per unit of shareholders funds

Healthy long term growth as Operating profit has grown by an annual rate 31.68%

OPERATING PROFIT TO INTEREST(Q) Highest at 2.28 times
OPERATING CF(Y) Highest at Rs 426.39 Cr
PAT(Latest six months) Higher at Rs 15.80 cr

With ROCE of 4, it has a Very Attractive valuation with a 0.8 Enterprise value to Capital Employed

The stock is trading at a discount compared to its peers' average historical valuations
Over the past year, while the stock has generated a return of 1.08%, its profits have risen by 110.2% ; the PEG ratio of the company is 0.8

Despite the size of the company, domestic mutual funds hold only 0.01% of the company

Domestic mutual funds have capability to do in-depth on-the-ground research on companies- their small stake may signify either they are not comfortable at the price or the business

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to RSWM Ltd should be less than 10%
Overall Portfolio exposure to Garments & Apparels should be less than 30%

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Garments & Apparels)

When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock

Is RSWM Ltd for you?

High Risk, Low Return

Absolute

Risk Adjusted

Volatility

RSWM Ltd

1.08%

0.03

39.70%

Sensex

9.01%

0.78

11.54%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

17.38%

EBIT Growth (5y)

31.68%

EBIT to Interest (avg)

1.68

Debt to EBITDA (avg)

7.62

Net Debt to Equity (avg)

1.15

Sales to Capital Employed (avg)

1.59

Tax Ratio

43.87%

Dividend Payout Ratio

Pledged Shares

Institutional Holding

1.89%

ROCE (avg)

5.46%

ROE (avg)

9.22%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

Industry P/E

Price to Book Value

0.57

EV to EBIT

20.22

EV to EBITDA

8.46

EV to Capital Employed

0.80

EV to Sales

0.47

PEG Ratio

0.84

Dividend Yield

ROCE (Latest)

3.96%

ROE (Latest)

0.61%

Loading Valuation Snapshot...

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bullish

RSI

Bearish

No Signal

Bollinger Bands

Mildly Bullish

Mildly Bearish

Moving Averages

Mildly Bearish (Daily)

KST

Bearish

Mildly Bullish

Dow Theory

Mildly Bullish

Mildly Bearish

OBV

Bullish

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

21What is working for the Company

OPERATING PROFIT TO INTEREST(Q)

Highest at 2.28 times

OPERATING CF(Y)

Highest at Rs 426.39 Cr

PAT(Latest six months)

Higher at Rs 15.80 cr

PBT LESS OI(Q)

Highest at Rs 2.08 cr.

-3What is not working for the Company

NET SALES(Q)

Lowest at Rs 1,151.05 cr

NON-OPERATING INCOME(Q)

is 81.45 % of Profit Before Tax (PBT

Loading Valuation Snapshot...

Here's what is working for RSWM Ltd

Profit After Tax (PAT) - Latest six months

At Rs 15.80 cr has Grown at 148.95%

Year on Year (YoY)

MOJO Watch

PAT trend is very positive

PAT (Rs Cr)

Operating Profit to Interest - Quarterly

Highest at 2.28 times and Grown

each quarter in the last five quarters

MOJO Watch

The company's ability to manage interest payments is improving

Operating Profit to Interest

Profit Before Tax less Other Income (PBT) - Quarterly

At Rs 2.08 cr has Grown at 113.3% (vs previous 4Q average)

over average PBT of the previous four quarters of Rs -15.68 Cr

MOJO Watch

Near term PBT trend is very positive

PBT less Other Income (Rs Cr)

Profit Before Tax less Other Income (PBT) - Quarterly

Highest at Rs 2.08 cr. and Grown

each quarter in the last five quarters

MOJO Watch

Near term PBT trend is very positive

PBT less Other Income (Rs Cr)

Profit After Tax (PAT) - Latest six months

Higher at Rs 15.80 cr

than preceding 12 month period ended Sep 2025 of Rs -40.02 cr

MOJO Watch

In the half year the company has already crossed PAT of the previous twelve months

PAT (Rs Cr)

Operating Cash Flow - Annually

Highest at Rs 426.39 Cr

in the last three years

MOJO Watch

The company has generated higher cash revenues from business operations

Operating Cash Flows (Rs Cr)

Here's what is not working for RSWM Ltd

Net Sales - Quarterly

Lowest at Rs 1,151.05 cr

in the last five quarters

MOJO Watch

Near term sales trend is negative

Net Sales (Rs Cr)

Non Operating Income - Quarterly

is 81.45 % of Profit Before Tax (PBT)

MOJO Watch

The company's income from non business activities is high; which is not a sustainable business model

Non Operating Income to PBT