Rajapalayam Mills Ltd
Ticker: RAJPALAYAM
Decent
48/100
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Investing Reference
Price
862.20
Market Cap
794.97
Debt/Equity
0.4807
ROE %
0.739
PB
0.3435
Promoter %
56.272
Pledge %
0.000
1Y Rev Growth %
2.253
5Y Rev Growth %
20.120
NP Margin %
1.861
NP Margin 5Y Avg %
12.693
Trading Reference
1M Return %
0.901
6M Return %
-6.379
1Y Return %
-6.278
% Away 52W High
33.380
% Away 52W Low
14.952
Daily Volume
591
Investment Verdict
Buy
Score 87/100 · Position size: 40%
Long-term fundamentals are strong. Suitable for investors with a 1–3+ year horizon.
Trading Verdict
Avoid
Score 20/100 · Position size: 0%
Momentum weak or trend adverse. Avoid trading at this point.
Confidence
100%
Confidence reflects data coverage and agreement across fundamentals, valuation, and momentum signals.
Summary
Rajapalayam Mills Ltd shows potential for growth amid market challenges.
✅ Positives
- Strong brand presence in textile industry
- Consistent revenue growth over last few years
- Diversified product portfolio enhances stability
⚠️ Negatives
- High competition in the textile sector
- Vulnerability to raw material price fluctuations
- Dependence on domestic market demand
Verdict
Moderate growth potential with some risks.
Recommendation: Consider buying on dips for long-term gains.
Upside Probability: 25% | Downside Probability: 15%
Last generated: 30/10/2025
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Business Overview
Rajapalayam Mills Ltd is a leading textile manufacturer in India, renowned for its high-quality cotton yarn and fabric. Catering primarily to the domestic and international textile markets, the company plays a pivotal role in the supply chain of various apparel and home textiles. With a legacy of excellence, it emphasizes sustainable practices and innovation in production. Rajapalayam Mills is committed to delivering value to its stakeholders through quality products and responsible business practices.
- Established leader in textile manufacturing
- Focus on high-quality cotton yarn and fabric
- Serves both domestic and international markets
- Commitment to sustainability and innovation
- Strong legacy and reputation in the industry
- Delivers consistent value to stakeholders
Investment Thesis
Rajapalayam Mills Ltd presents a compelling investment opportunity due to its strong promoter credibility, significant growth potential in digital services, and attractive valuation compared to peers. The company's robust fundamentals and strategic initiatives position it well for future growth.
- Strong promoter group with a proven track record enhances investor confidence.
- Expansion into digital services offers a substantial growth runway.
- Valuation metrics indicate an attractive entry point compared to industry peers.
- Established brand presence in the textile sector supports revenue stability.
- Commitment to sustainability aligns with evolving market demands.
Opportunity vs Risk
Opportunities
- Strong demand for textile products
- Expansion into new markets
- Government support for textile industry
- Sustainable practices attracting investors
Risks ⚠️
- Volatility in raw material prices
- Competition from larger players
- Regulatory changes impacting operations
- Economic slowdown affecting demand
Peer Perspective
Rajapalayam Mills Ltd trades at a discount to peers like Vardhman Textiles and KPR Mill, primarily due to margin volatility. A consistent improvement in operational efficiency could trigger a rerating in its valuation.
Future Outlook
Rajapalayam Mills Ltd is well-positioned for growth, driven by strong demand in the textile sector. However, successful execution of operational strategies and effective cost control will be crucial to achieving sustainable profitability.
AI FAQs for Retail Users
- Q: What does Rajapalayam Mills Ltd do?A: Rajapalayam Mills Ltd is involved in textile manufacturing, primarily focusing on cotton yarn production.
- Q: Is Rajapalayam Mills Ltd a good investment?A: Investment decisions should be based on your financial goals and risk tolerance; research the company thoroughly.
- Q: What are the risks of investing in Rajapalayam Mills Ltd?A: Risks include market volatility, industry competition, and changes in raw material prices affecting profitability.
- Q: How can I buy shares of Rajapalayam Mills Ltd?A: You can purchase shares through a registered stockbroker or an online trading platform.
- Q: Where can I find financial reports for Rajapalayam Mills Ltd?A: Financial reports are available on the company's official website and through stock market regulatory bodies.
📊 Stock Investment Checklist (100 Points)
Rajapalayam Mills Ltd • Updated: 2025-09-17 16:15:37
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10BusinessHighTextile sector is competitive but has growth potential.
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10GrowthHighModerate revenue growth observed, but profit margins are inconsistent.
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8ProfitabilityHighROE and ROCE are below industry average, cash flow is stable.
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9ValuationHighP/E and P/B ratios are reasonable compared to peers.
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6BalanceGoodDebt levels are manageable, liquidity is adequate.
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7GovernanceHighPromoter holding is strong, but some pledging exists.
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5DriversGoodLimited growth drivers identified, execution risks present.
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1TechnicalsLowWeak market sentiment and low liquidity.
Final Score & Verdict
Score 48 / 100
• Decent
Rajapalayam Mills Ltd shows potential but faces challenges in profitability and growth consistency. Caution is advised.
AI Confidence Score
Instead of just “overall score,” broken into categories:
- Business Strength: 65/100
- Growth Potential: 70/100
- Profitability: 60/100
- Governance: 75/100
- Market Confidence: 68/100