SEBI Reg. Investment Advisor

Download App

MoneyWorks4Me

Check Before You Invest : R&B Denims Ltd

BSE: 538119 NSE: RNBDENIMS ISIN: INE012Q01039
  |   Sector:  Textiles & Apparels   |   Industry:  Textile

Snapshot

Q.1 Which industry/sub-sector does R&B Denims Ltd belong to?
R&B Denims Ltd belongs to the Textiles & Apparels sector, operating specifically within the Textile segment.
Q.2 Is R&B Denims Ltd a good quality company?
R&B Denims Ltd is a good quality company, based on a consistently good 10 year financial track record.
Q.3 Is R&B Denims Ltd undervalued or overvalued?
R&B Denims Ltd appears Overvalued, as its key valuation ratios are above with their past averages.
Q.4 Is R&B Denims Ltd a good buy now?
R&B Denims Ltd is not a good buy now, based on weak price trend analysis suggesting prices may fall. However, you need to check its quality and valuation before making a decision

Performance Analysis

Q.1 Revenue growth of R&B Denims Ltd?
R&B Denims Ltd revenue growth is -10% for FY-2025 , which is below its 5 year CAGR of -1.8% , indicating slower growth.
Q.2 Gross Profit margin of R&B Denims Ltd?
R&B Denims Ltd Gross profit margin which is the profit after deduction of direct costs, is 13.9% for FY-2025 , which is above its 5 year median of 10.6% , indicating increasing margins.
Q.3 Operating Profit Margin of R&B Denims Ltd?
R&B Denims Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 10.95% for FY-2025 , which is in line with its 5 year median of 10.95% indicating stable margins.
Q.4 Net Profit Margin of R&B Denims Ltd?
R&B Denims Ltd Net Profit Margin is 8.86% for FY-2025 , is above with its 5 year median of 7.13%, indicating increasing margins.
Current Level Historic Median
Gross Profit Margin 13.9 10.6
Operating Profit Margin 10.95 10.95
Net Profit Margin 8.86 7.13
Q.5 Return on Asset of R&B Denims Ltd?
R&B Denims Ltd Return on Asset is 8.48%, which is below its 5 year historical median of 10.01%, indicating deteriorated asset utilization efficiency.
Q.6 Return on Equity (ROE) of R&B Denims Ltd?
R&B Denims Ltd Return on equity is 12.13% for FY-2025 , which is below its historical median of 20.77%, indicating the business is making worse use of its shareholders capital.
Q.7 Return on capital employed (ROCE) of R&B Denims Ltd?
R&B Denims Ltd Return on capital employed is 14.42% for FY-2025 , which is above its estimated weighted average cost of capital(WACC) 14%, indicating value creation.
Q.8 Cash conversion cycle of R&B Denims Ltd?
R&B Denims Ltd Cash conversion cycle is 75 days, above its historical median of 55 days, indicating deteriorated working capital management. However, you need to compare this with its peers in the industry.
Current Level Historic Median
Asset Turnover 1.01 1.47
ROE 12.13 20.77
ROCE 14.42 18.29
Cash Conversion Cycle 75 days 55 days
Q.9 Debt to Equity ratio of R&B Denims Ltd?
R&B Denims Ltd Debt-to-Equity ratio is 0.26 , which is lower with the industry average of 0.42 , indicating lower debt levels in the industry.
Q.10 Debt to cash flow from operations of R&B Denims Ltd?
R&B Denims Ltd Debt to cash flow from operations is 5.26 , which is at a unhealthy level.

Ownership & governance

Q.1 Promoter shareholding and pledge status of R&B Denims Ltd?
Promoters hold 57.39% of the R&B Denims Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

Q.1 Revenue growth of R&B Denims Ltd vs industry peers?
R&B Denims Ltd revenue CAGR is -1.75% , compared to the industry median CAGR of 0.00% , indicating stable growth and maintaining its market share.
Profit Metrics
Current Level Industry Median
Revenue 236.1 96.6
Gross Profit 32.8 3.2
Operating Profit 26 5.7
Net Profit 21 1.5
Operating Efficiency
Current Level Industry Median
Asset Turnover 1.01 0.95
ROE 12.13 4.25
ROCE 14.42 7.55
Cash Conversion Cycle (days) 74.73 102

Valuation & price assessment

Q.1 Stock return of R&B Denims Ltd over the last decade?
Over the last 9 year(s), the stock has delivered a CAGR of 34.9% based on the current price.
Q.2 What return has the stock given over the last decade?
9Y 5Y 3Y 1Y
Share Price 34.9% 38.2% 18.4% -50.9%
Q.3 Valuation ratios of R&B Denims Ltd vs historical?
The current P/E is lower that its historical median.
Q.4 How do the current valuation ratios measure up against the historic numbers and the current industry numbers?
Valuation Ratios Current Historic Median Industry Median
Price to Earnings 17.98 26.32 30.76
Price to Book 1.91 0.00 1.39
Price to Sales 1.51 1.99 1.01
EV to EBITDA 11.4 16.85 9.47

About MoneyWorks4Me

MoneyWorks4Me is a SEBI-registered Investment Adviser (IA) dedicated to helping investors build long-term wealth through transparent, research-driven, conflict-free guidance. Founded in 2008, we started our journey as a Research Analyst (RA), providing deep fundamental analysis, intrinsic value insights, and long-term investing frameworks for Indian equities. In 2017, we transitioned to a full-fledged SEBI-registered Investment Adviser, strengthening our commitment to acting as a fiduciary—always putting the investor’s interest first.

Our Vision

To become India’s most trusted, research-powered fiduciary advisory platform—where every investor, regardless of experience, can make calm, confident, and well-reasoned investment decisions.

What Makes MoneyWorks4Me Different

Our Approach: Ensuring compounding work its magic on client portfolio.

MoneyWorks4Me ensures this through:

×