RSWM Ltd

Ticker: RSWM
Decent 57/100

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Investing Reference

Price
153.52
Market Cap
723.11
Debt/Equity
1.3232
ROE %
-3.085
PB
0.5574
Promoter %
55.694
Pledge %
0.000
1Y Rev Growth %
16.125
5Y Rev Growth %
11.544
NP Margin %
-0.824
NP Margin 5Y Avg %
1.819

Trading Reference

1M Return %
5.920
6M Return %
6.272
1Y Return %
-19.762
% Away 52W High
43.955
% Away 52W Low
21.793
Daily Volume
17959
Investment Verdict
Hold
Score 71/100 · Position size: 30%
Fundamentals are OK but not compelling. Maintain current position; avoid fresh adds.
Trading Verdict
Avoid
Score 28/100 · 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

RSWM Ltd shows potential for growth in the textile sector, driven by strong demand and operational efficiency.

✅ Positives
  • Strong brand presence in the textile market
  • Improving operational efficiency and margins
  • Diversified product portfolio and customer base

⚠️ Negatives
  • Exposure to raw material price volatility
  • Intense competition in the textile industry
  • Dependence on domestic market demand

Verdict
Moderate growth potential with manageable risks.
Recommendation: Consider buying for long-term gains.
Upside Probability: 25%   |   Downside Probability: 15%
Last generated: 30/10/2025

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Business Overview

RSWM Ltd is a leading player in the Indian textile industry, specializing in high-quality yarn and fabric production. Catering primarily to the apparel and home textile sectors, RSWM is committed to innovation and sustainability. With a strong focus on customer satisfaction and a robust supply chain, the company is well-positioned to meet the growing demands of both domestic and international markets. RSWM's reputation for quality and reliability makes it a trusted choice for textile solutions in India.

  • Established leader in the Indian textile sector
  • Specializes in high-quality yarn and fabric
  • Focus on innovation and sustainability
  • Strong customer satisfaction and support
  • Robust supply chain for timely delivery
  • Trusted choice for domestic and international markets

Investment Thesis

RSWM Ltd stands out as a compelling investment opportunity due to its strong promoter credibility, significant growth potential in digital services, and attractive valuation compared to its peers. This combination positions RSWM as a robust player in the textile sector, appealing to both growth and value-focused investors.

  • Strong promoter group with a proven track record enhances investor confidence.
  • Digital services segment poised for substantial growth, tapping into evolving market trends.
  • Attractive valuation metrics compared to industry peers, presenting a buying opportunity.
  • Robust financial performance and consistent dividend history support long-term investment.
  • Strategic initiatives in sustainability and innovation align with market demands.

Opportunity vs Risk

Opportunities
  • Strong brand recognition in textiles
  • Expanding e-commerce presence
  • Diversification into new product lines
  • Growing demand for sustainable fabrics
Risks ⚠️
  • Fluctuating raw material prices
  • Intense competition in the market
  • Regulatory changes affecting operations
  • Economic downturn impacting consumer spending

Peer Perspective

RSWM Ltd trades at a discount to peers like Vardhman Textiles and Arvind Ltd, reflecting concerns over margin stability. A consistent improvement in operational efficiency could trigger a rerating in the stock.

Future Outlook

RSWM Ltd is well-positioned for growth, driven by strong market demand and innovative product offerings. However, successful execution and effective cost control will be crucial to fully capitalize on these opportunities.

AI FAQs for Retail Users

  • Q: What does RSWM Ltd do?
    A: RSWM Ltd is involved in manufacturing and marketing textile products, primarily yarn and fabrics.
  • Q: Is RSWM Ltd a good investment?
    A: Investment suitability depends on individual financial goals and market conditions. Research is essential.
  • Q: What are the risks of investing in RSWM Ltd?
    A: Risks include market fluctuations, industry competition, and economic factors affecting textile demand.
  • Q: How has RSWM Ltd performed recently?
    A: Recent performance can be reviewed through financial reports and stock market trends.
  • Q: Where can I find RSWM Ltd's financial information?
    A: Financial results and updates are available on their official website and stock exchange filings.
📊 Stock Investment Checklist (100 Points)
RSWM Ltd • Updated: 2025-09-17 16:22:20
  • 8
    Business
    High
    Textile sector is evolving with sustainability trends, but RSWM's competitive edge is moderate.
  • 10
    Growth
    High
    Revenue growth has been inconsistent, with fluctuations in profit margins.
  • 10
    Profitability
    High
    ROE and ROCE are decent, but OCF has shown volatility.
  • 9
    Valuation
    High
    P/E and P/B ratios are above industry average, indicating potential overvaluation.
  • 7
    Balance
    High
    Debt levels are manageable, but liquidity ratios need improvement.
  • 8
    Governance
    High
    Promoter holding is strong, but there are concerns regarding pledging.
  • 6
    Drivers
    Good
    Growth drivers are present, but execution risks are significant.
  • 5
    Technicals
    Good
    Market sentiment is neutral with low liquidity.
Final Score & Verdict
Score 57 / 100 • Decent
RSWM Ltd shows potential in the textile sector, but faces challenges in growth consistency and valuation metrics.

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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