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Check Before You Invest : RSWM Ltd

BSE: 500350 NSE: RSWM ISIN: INE611A01016
  |   Sector:  Textiles & Apparels   |   Industry:  Textile

Snapshot

Q.1 Which industry/sub-sector does RSWM Ltd belong to?
RSWM Ltd belongs to the Textiles & Apparels sector, operating specifically within the Textile segment.
Q.2 Is RSWM Ltd a good quality company?
RSWM Ltd is a quality company, based on a 10 year financial track record.
Q.3 Is RSWM Ltd undervalued or overvalued?
RSWM Ltd appears Overvalued, as its key valuation ratios are above with their past averages.
Q.4 Is RSWM Ltd a good buy now?
RSWM Ltd is a good buy now, based on strong price trend analysis suggesting prices may rise. However, you need to check its quality and valuation before making a decision

Performance Analysis

Q.1 Revenue growth of RSWM Ltd?
RSWM Ltd revenue growth is 18.9% for FY-2025 , which is above its 5 year CAGR of 11.7% , indicating faster growth.
Q.2 Gross Profit margin of RSWM Ltd?
RSWM Ltd Gross profit margin which is the profit after deduction of direct costs, is 2.1% for FY-2025 , which is below its 5 year median of 5.6% , indicating decreasing margins.
Q.3 Operating Profit Margin of RSWM Ltd?
RSWM Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 4.33% for FY-2025 , which is below its 5 year median of 6.59% indicating decreasing margins.
Q.4 Net Profit Margin of RSWM Ltd?
RSWM Ltd Net Profit Margin is -0.83% for FY-2025 , is below with its 5 year median of 0.9%, indicating decreasing margins.
Current Level Historic Median
Gross Profit Margin 2.1 5.6
Operating Profit Margin 4.33 6.59
Net Profit Margin -0.83 0.9
Q.5 Return on Asset of RSWM Ltd?
RSWM Ltd Return on Asset is -1.08(x), which is below its 5 year historical median of 0.97(x), indicating deteriorated asset utilization efficiency.
Q.6 Return on Equity (ROE) of RSWM Ltd?
RSWM Ltd Return on equity is -3.09% for FY-2025 , which is below its historical median of 2.72%, indicating the business is making worse use of its shareholders capital.
Q.7 Return on capital employed (ROCE) of RSWM Ltd?
RSWM Ltd Return on capital employed is 2.64% for FY-2025 , which is below its estimated weighted average cost of capital(WACC) 14%, indicating value preservation.
Q.8 Cash conversion cycle of RSWM Ltd?
RSWM Ltd Cash conversion cycle is 87 , below its historical median of 89 , indicating improved working capital management. However, you need to compare this with its peers in the industry.
Current Level Historic Median
Asset Turnover 1.31 1.29
ROE -3.09 2.72
ROCE 2.64 4.79
Cash Conversion Cycle 87 89
Q.9 Debt to Equity ratio of RSWM Ltd?
RSWM Ltd Debt-to-Equity ratio is 1.32 , which is above with the industry average of 0.42 , indicating higher debt levels in the industry.
Q.10 Debt to cash flow from operations of RSWM Ltd?
RSWM Ltd Debt to cash flow from operations is 4.01 , which is at a unhealthy level, indicating the business is not able to service its debt comfortably.

Ownership & governance

Q.1 Promoter shareholding and pledge status of RSWM Ltd?
Promoters hold 55.69% of the RSWM Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

Q.1 Revenue growth of RSWM Ltd vs industry peers?
RSWM Ltd revenue CAGR is 11.73% , compared to the industry median CAGR of 0.00% , indicating faster growth and gaining its market share.
Profit Metrics
Current Level Industry Median
Revenue 4,825.8 96.6
Gross Profit 101.4 3.2
Operating Profit 209 5.7
Net Profit -40 1.5
Operating Efficiency
Current Level Industry Median
Asset Turnover 1.31 0.95
ROE -3.09 4.25
ROCE 2.64 7.55
Cash Conversion Cycle 86.76 102

Valuation & price assessment

Q.1 Stock return of RSWM Ltd over the last decade?
Over the last 9 years, the stock has delivered a CAGR of -3% based on the current price.
Q.2 What return has the stock given over the last decade?
9Y 5Y 3Y 1Y
Share Price -3% 5.7% -3.7% 5%
Q.3 Valuation ratios of RSWM Ltd vs historical?
The current P/E is higher 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 37.39 0.00 30.76
Price to Book 0.56 0.32 1.39
Price to Sales 0.16 0.09 1.01
EV to EBITDA 6.83 11.24 9.47

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