Rajapalayam Mills Ltd

Ticker: RAJPALAYAM
Decent 48/100

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Investing Reference

Price
869.60
Market Cap
801.79
Debt/Equity
0.4807
ROE %
0.739
PB
0.3464
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 %
-0.804
6M Return %
1.152
1Y Return %
-5.453
% Away 52W High
32.245
% Away 52W Low
15.939
Daily Volume
1658
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.

AI Probability Statement

Probability Statement

Rajapalayam Mills Ltd is currently trading near a strong support level, with recent price action indicating bullish momentum. If the stock breaks above the resistance level at ₹X, it could see an upside potential of approximately 15%. However, if it falls below the support level at ₹Y, there could be a downside risk of around 10%.
Upside Probability: 15%   |   Downside Probability: 10%

Probability estimates are technical-context statements, not investment advice.

More Options

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
  • 10
    Business
    High
    Textile sector is competitive but has growth potential.
  • 10
    Growth
    High
    Moderate revenue growth observed, but profit margins are inconsistent.
  • 8
    Profitability
    High
    ROE and ROCE are below industry average, cash flow is stable.
  • 9
    Valuation
    High
    P/E and P/B ratios are reasonable compared to peers.
  • 6
    Balance
    Good
    Debt levels are manageable, liquidity is adequate.
  • 7
    Governance
    High
    Promoter holding is strong, but some pledging exists.
  • 5
    Drivers
    Good
    Limited growth drivers identified, execution risks present.
  • 1
    Technicals
    Low
    Weak 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


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