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Check Before You Invest : RRIL Ltd

BSE: 531307 NSE: ISIN: INE951M01037
  |   Sector:  Textiles & Apparels   |   Industry:  Textile

Snapshot

Q.1 Which industry/sub-sector does RRIL Ltd belong to?
RRIL Ltd belongs to the Textiles & Apparels sector, operating specifically within the Textile segment.
Q.2 Is RRIL Ltd a good quality company?
RRIL Ltd is a quality company, based on a 10 year financial track record.
Q.3 Is RRIL Ltd undervalued or overvalued?
RRIL Ltd appears Overvalued, as its key valuation ratios are above with their past averages.
Q.4 Is RRIL Ltd a good buy now?
RRIL 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 RRIL Ltd?
RRIL Ltd revenue growth is 18.5% for FY-2025 , which is above its 5 year CAGR of 0% , indicating faster growth.
Q.2 Gross Profit margin of RRIL Ltd?
RRIL Ltd Gross profit margin which is the profit after deduction of direct costs, is 9.5% for FY-2025 , which is below its 5 year median of 10.5% , indicating decreasing margins.
Q.3 Operating Profit Margin of RRIL Ltd?
RRIL Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 7.43% for FY-2025 , which is below its 5 year median of 7.7% indicating decreasing margins.
Q.4 Net Profit Margin of RRIL Ltd?
RRIL Ltd Net Profit Margin is 6.07% for FY-2025 , is in line with with its 5 year median of 6.07%, indicating stable margins.
Current Level Historic Median
Gross Profit Margin 9.5 10.5
Operating Profit Margin 7.43 7.7
Net Profit Margin 6.07 6.07
Q.5 Return on Asset of RRIL Ltd?
RRIL Ltd Return on Asset is 5.31(x), which is above its 5 year historical median of 5.08(x), indicating improved asset utilization efficiency.
Q.6 Return on Equity (ROE) of RRIL Ltd?
RRIL Ltd Return on equity is 6.72% for FY-2025 , which is in line with its historical median of 6.72%, indicating the business is making similar use of its shareholders capital.
Q.7 Return on capital employed (ROCE) of RRIL Ltd?
RRIL Ltd Return on capital employed is 8.65% for FY-2025 , which is below its estimated weighted average cost of capital(WACC) 14%, indicating value preservation.
Q.8 Cash conversion cycle of RRIL Ltd?
RRIL Ltd Cash conversion cycle is 66 , above its historical median of 66 , indicating deteriorated working capital management. However, you need to compare this with its peers in the industry.
Current Level Historic Median
Asset Turnover 0.88 0.88
ROE 6.72 6.72
ROCE 8.65 8.65
Cash Conversion Cycle 66 66
Q.9 Debt to Equity ratio of RRIL Ltd?
RRIL Ltd Debt-to-Equity ratio is 0.28 , 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 RRIL Ltd?
RRIL Ltd Debt to cash flow from operations is -21.66 , 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 RRIL Ltd?
Promoters hold 70.75% of the RRIL Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

Q.1 Revenue growth of RRIL Ltd vs industry peers?
RRIL Ltd revenue CAGR is 0.00% , compared to the industry median CAGR of 0.00% , indicating slower growth and losing its market share.
Profit Metrics
Current Level Industry Median
Revenue 112.9 96.6
Gross Profit 10.7 3.2
Operating Profit 8 5.7
Net Profit 7 1.5
Operating Efficiency
Current Level Industry Median
Asset Turnover 0.88 0.95
ROE 6.72 4.25
ROCE 8.65 7.55
Cash Conversion Cycle 66.15 102

Valuation & price assessment

Q.1 Stock return of RRIL Ltd over the last decade?
Over the last 9 years, the stock has delivered a CAGR of -2.9% based on the current price.
Q.2 What return has the stock given over the last decade?
9Y 5Y 3Y 1Y
Share Price -2.9% 1.7% 1.2% -8.5%
Q.3 Valuation ratios of RRIL 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 24.21 0.00 30.76
Price to Book 1.69 0.00 1.39
Price to Sales 1.5 0.00 1.01
EV to EBITDA 12.64 0.00 9.47

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