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Rajapalayam Mills Ltd (RAJPALAYAM)

Share Analysis – Quality, Valuation Zone, Price Trend & DeciZen Rating BSE: 532503 NSE: RAJPALAYAM Textile - Spinning | Small Cap | Rajapalayam Mills Share Price

₹844 2.35 (0.28%)

As on 04-Jun'26 16:59

Rajapalayam Mills Ltd (RAJPALAYAM)

Share Analysis – Quality, Valuation Zone, Price Trend & DeciZen Rating BSE: 532503 NSE: RAJPALAYAM Textile - Spinning | Small Cap | Rajapalayam Mills Share Price

₹844 2.35 (0.28%)

As on 04-Jun'26 16:59

Key Metrics
Valuation Multiples
Market Cap
₹778 Cr.
Current Price
₹844
52-Week Low / High
₹668 / 1,020
TTM EPS
₹-16.4
TTM Sales
₹942 Cr.
Book Value per Share
₹452
P/E Ratio
0.00
Lower than its 5-year historical median
Industry PE
21.5
Price to Book (P/B)
1.87
In line with its 5-year historical median
Price to Sales (P/S)
0.83
Lower than its 5-year historical median
EV/EBITDA
13.06
Lower than its 5-year historical median
Dividend Yield
0.06%
Profitability Efficiency
Return on Equity (ROE)
-10.99%
Return on Capital Employed (ROCE)
1.56%
Return on Assets (ROA)
-2.95%
Operating Profit Margin
8.2%
Net Profit Margin
-5.59%
Gross Profit Margin
0.9%
Growth Momentum
1-yr vs 3-yr growth
Sales Growth (1 Year)
Slowing versus 3-year growth rate
4.65%
Operating Profit Growth (1 Year)
Slowing versus 3-year growth rate
-18.58%
Net Profit Growth (1 Year)
-
-277.39%
Asset Quality
Promoter Holding
56.27%
Pledged shares (%) of Promoter's holding (%)
0.00%
Reserves
₹408 Cr.
Equity
₹9.2 Cr.
Face Value
₹10
All Time Low / High
₹66.70 / 1497.15

Rajapalayam Mills stock performance

Key Ratios
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Quality

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Valuation

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Price Trend

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Q.1 Is Rajapalayam Mills Ltd a good quality company?
Rajapalayam Mills Ltd is a weak quality company, based on a inconsistent multi-year financial track record.

This assessment is based on company’s performance on Revenue growth, ROCE, Equity and Assets, key margin ratios, cash conversion cycle, and debt to cash flow from operations and how it compares with its long term averages.

We have analysed the performance of the company on the following:

  • How has it performed on generating Profits?

    By checking its Revenue growth, Gross, Operating and Net Margins compared to its last 5-year median.

  • How efficiently has it utilized Capital?

    By checking its ROCE, ROA, ROE and its Cash Conversion Cycle.

  • How is it managing its Debt?

    By checking its Debt to Equity and Cash Flow from Operations.

How does Rajapalayam Mills Ltd performance compare with that of its Peers?
Q.1 Revenue growth of Rajapalayam Mills Ltd vs industry peers?
Rajapalayam Mills Ltd revenue CAGR is 20.02%, compared to the industry median CAGR of 1.47%, indicating faster growth and gaining its market share.
Q.1 Promoter shareholding and pledge status of Rajapalayam Mills Ltd?
Promoters hold 56.27% of the Rajapalayam Mills Ltd, with 0.00% of their stake pledged, indicating no pledge risk.
Q.1 Stock return of Rajapalayam Mills Ltd over the last decade?
Over the last 9 year(s), the stock has delivered a CAGR of 8.7% based on the current price.

10 Year X-Ray : Login to view analysis.

Analysis of Financial Track Record (Data adjusted to bonus, split, extra-ordinary income, rights issue and change in financial year end)

Data adjusted to bonus, split, extra-ordinary income, rights issue and change in financial year end

Data adjusted to bonus, split, extra-ordinary income, rights issue and change in financial year end.

Financial track record gives insight into the company's performance on key parameters over the past ten years. MoneyWorks4me’s proprietary colour codes make it easy for retail investors to gauge the company’s past performance.
Rajapalayam Mills Ltd has not performed well majority of the past ten years indicating its past ten year financial track record is not good

Value Creation

Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22Mar'23Mar'24Mar'25TTM
ROCE % 11.5%11.7%8.2%7.6%3.3%0.7%11.9%7.7%6.2%1.6%-
Value Creation
Index
-0.2-0.2-0.4-0.5-0.8-1.0-0.2-0.5-0.6-0.9-

Growth Parameters

Sales 396410430416361415690862859898942
Sales YoY Gr.-3.5%4.7%-3.2%-13.3%15%66.3%25%-0.4%4.7%-
Adj EPS 30.64938.335.710-31.216.647.2-11.5-56.3-16.4
YoY Gr.-60%-21.8%-6.9%-72.1%-412.9%NA184.4%-124.4%NA-
BVPS (₹) 271.1316.5349.2378.9382.2362.8434.1493.1523.7467452
Adj Net
Profit
23.938.229.927.87.8-23.314.543.5-10.6-51.9-15
Cash Flow from Ops. 45.33276.521.543.333.93.7-45.7148116-
Debt/CF from Ops. 6.38.83.121.313.518.2202.3-24.37.39.6-

CAGR

9 Years 5 Years 3 Years 1 Years
Sales 9.5%20%9.2%4.7%
Adj EPS -207%-241.4%-250.3%NA
BVPS6.2%4.1%2.5%-10.8%
Share Price 9.6% 2% 7.2% -8.3%

Key Financial Parameters

Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22Mar'23Mar'24Mar'25TTM
Return on
Equity %
11.716.711.59.82.6-8.24.510.4-2.3-11.4-3.6
Op. Profit
Mgn %
15.219.914.613.311.110.618.716.310.78.212.9
Net Profit
Mgn %
69.376.72.2-5.62.15.1-1.2-5.8-1.6
Debt to
Equity
1.41.10.91.622.322.42.22.61.2
Working Cap
Days
179185184234294225186229254226103
Cash Conv.
Cycle
128143144154189157133173200181-29

Profit And Loss

(All Figures are in Crores.)
PARTICULARSMar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22Mar'23Mar'24Mar'25
Sales396410430416361415690862859898
Operating Expenses + 336332368361323373561730769825
Manufacturing Costs806061676061101122114144
Material Costs192204240218186232344463511521
Employee Cost 47485159575784100102120
Other Costs 17201617202232454240
Operating Profit 6079625538421291329073
Operating Profit Margin (%) 15.2%19.2%14.4%13.3%10.5%10.2%18.7%15.3%10.5%8.2%
Other Income + 1921425231416211726
Exceptional Items 00000-3267581
Interest 27211822264443557491
Depreciation 22213332344850576775
Profit Before Tax 313825261-38774823-67
Tax 63-4-2-5-12386-5-16
Profit After Tax 253629286-27384228-50
PAT Margin (%) 6.3%8.8%6.8%6.7%1.8%-6.4%5.6%4.9%3.3%-5.6%
Adjusted EPS (₹)32.046.137.535.78.2-35.643.946.030.7-54.5
Dividend Payout Ratio (%)8.90%8.20%10.10%10.60%11.50%-1.40%2.30%2.20%2%-0.90%

Valuation of Rajapalayam Mills - Standalone

YTD 1Y 3Y 5Y 10Y Max
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YTD 1Y 3Y 5Y 10Y Max
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YTD 1Y 3Y 5Y 10Y Max
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YTD 1Y 3Y 5Y 10Y Max
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Analyst's Notes

data not found
No data found!

Balance Sheet

(All Figures are in Crores.)
PARTICULARSMar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22Mar'23Mar'24Mar'25

Equity and Liabilities

Shareholders Fund + 211247272296298271379455483431
Share Capital 7777779999
Reserves 204239265288291264370445474421
Debt +2352341993965835436471,035982995
Long Term Debt1007349196310302312481496531
Short Term Debt134161150200273241336554486464
Minority Interest0000000000
Trade Payables610619151518152429
Others Liabilities 1161078811544124207182209254
Total Liabilities 5695985658269409531,2511,6861,6981,709

Fixed Assets

Net Fixed Assets +300285274312578562659682987936
Gross Block6516566647241,0051,0311,1591,2301,5961,611
Accumulated Depreciation351370390412427468500549609675
CWIP 0368641037262159
Investments 7877789899979773117175
Inventories108147115149147130249364324305
Trade Receivables404350625177103159168183
Cash Equivalents 2324667666
Others Assets 3938401165671981418095
Total Assets 5695985658269409531,2511,6861,6981,709

Cash Flow

(All Figures are in Crores.)
PARTICULARSMar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22Mar'23Mar'24Mar'25
Cash Flow From Operating Activity + 4532772143344-46148116
PBT 313825261-365141-34-67
Adjustment 2940352938789294131149
Changes in Working Capital -12-3818-323-8-136-1825234
Tax Paid -3-8-2-11-1-32-1-0
Cash Flow From Investing Activity + 6-5-10-209-132-25-152-304-46-51
Capex -12-9-24-212-166-41-184-345-93-21
Net Investments -00-0-21-00342116-59
Others 18314243416-2213129
Cash Flow From Financing Activity + -53-26-6819092-10149349-102-65
Net Proceeds from Shares 0000006935114144
Net Proceeds from Borrowing 1-32-31169125-631148-74-97
Interest Paid -27-21-18-22-26-44-43-53-74-91
Dividend Paid -50-3-3-4-1-0-1-1-1
Others -2228-1646-44292220-69-20
Net Cash Flow -11-123-11-0-0-0

Financial Ratio

PARTICULARSMar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22Mar'23Mar'24Mar'25
Ratios
ROE (%)12.2515.6811.279.82.16-9.3511.7710.176.04-10.99
ROCE (%)11.4811.668.247.613.330.711.97.76.231.56
Asset Turnover Ratio0.680.70.740.60.410.450.650.60.520.55
PAT to CFO Conversion(x)1.80.892.660.757.17N/A0.11-1.15.29N/A
Working Capital Days
Receivable Days37.403739.9049.405754.1046.105467.3068.60
Inventory Days95.80113.60111.30115.90149.70117.4096.90126.10141.50122.80
Payable Days10.601411.7021.1034.2023.6017.401313.8018.60

Management X-Ray

Shareholding Pattern

Promoter's Holding & Share Pledging

Pledged *0.000.000.000.000.000.000.000.000.000.00
* Pledged shares as % of Promoter's holding (%)

Top 5 Mutual Funds Holding

Last Visited Stocks

Announcements

Rajapalayam Mills Ltd FAQs

The current trading price of Rajapalayam Mills on 04-Jun-2026 16:59 is ₹844.0.

Market capitalization or market cap is determined by multiplying the current market price of a company's shares with the total number of shares outstanding. As of 03-Jun-2026 the market cap of Rajapalayam Mills stood at ₹778.2 Cr

The latest P/E ratio of Rajapalayam Mills as of 03-Jun-2026 is 0.00.

The latest P/B ratio of Rajapalayam Mills as of 03-Jun-2026 is 1.87.

The 52-week high of Rajapalayam Mills is ₹1,020 and the 52-week low is ₹668.0.

The TTM revenue is Trailing Twelve Months sales. The TTM revenue/sales of Rajapalayam Mills is ₹942 ( Cr.) .

Past 10 year’s financial track record analysis by Moneyworks4me indicates that Rajapalayam Mills Ltd is a below average quality company.

The key valuation ratios of Rajapalayam Mills Ltd's currently when compared to its past seem to suggest it is in the Overvalued zone.

The Price Trend analysis by MoneyWorks4Me indicates it is Weak which suggest that the price of Rajapalayam Mills Ltd is likely to Fall in the short term. However, please check the rating on Quality and Valuation before investing.

About Rajapalayam Mills Ltd

Rajapalayam Mills, a Ramco group company, was established in 1938, founded by PAC Ramasmy Raja with 6800 spindles imported from England. Rajapalayam Mills today produces 11 million kg of yarn per year, employs more than 1000 workers and has a turnover of over Rs1818 million. It is acknowledged as the most efficient spinning mills in the industry.

Rajapalayam Mills has set the industry standard for quality and price in cotton yarn manufactured with a production increase of about 40% purely through modernization. Present capacity : 1,21,856 Spindles (including 56,080 compact spinning spindles, 11568 Eli-Twist spindles and 2400 Slub Yarn Spindles). The company is also having 2000 Rotors in Rajapalaiyam and around 2000 Rotors in Andhra Pradesh.

Textile business is the first business venture of Ramco Group with setting up of Rajapalayam Mills Ltd  in 1938.

A technologically advanced unit right from its inception, the mill’s state-of-the-art equipment ensures optimum spinning efficiency and profitability. The mill traditionally makes quality counts from 6’s to 220’s, added capacity to produce value added yarns like Compact, Elitwist, Slub, Gazzed yarn in singles and doubles. It export 80% of its spinning capacity to the highly quality-conscious markets like Japan and also to other countries like Korea, China, Hong Kong, Malaysia, Indonesia, Thailand, Pakistan, Dubai, Bahrain, Italy and Spain etc.

The mill has had stable harmonious industrial relations for over 40 years. The management has evolved a number of welfare schemes to motivate its workforce and meet the various needs of them such as cheap credit, housing loans, interest-free marriage loans, educational subsides medical aid to the public at reduced rate. It also runs many Educational Instutions to impart quality education at affordable rate to the students in and around Rajapalayam. An educational trust has been established in the name of the founder Shri PAC Ramasamy Raja, which offers many social services to uplife the living standards of people in Rajapalayam.

The instaled capacity of the mill is 96,224 spindles and 1,344 rotors. It produces over nine million Kgs of yarn per annum, employing more than 1000 workers with a turnover of over Rs. 147 crores  Rajapalayam Spintext  and Rajapalayam Textiles are the two divisions of company.

It is one of the most advanced textile mill in the country and is setting the industry standard for quality and price for many years. Rajapalayam Mills is the first in the country to acquire an Open End Spinning machine in early eighties.

Product range of the company includes:

Rajapalayam Mills Ltd is engaged in manufacture and sale of yarns

  • Ring Yarn (Ne) - 30/1 to 120/1
  • Compact Yarn (Ne) - 30/1 to 140/1
  • Elitwist Compact Yarn (Ne) - 40/2 to 200/2
  • TFO Doubled Yarn (Ne) - 40/2 to 160/2
  • Gassed Yarn (Ne) - 40/2 to 220/2
  • Slub & Multicount Yarn (Ne) - 16s to 94s
  • Model / Tencel Yarn (Ne) - 20s to 40s
  • OE Yarn (Ne) - 4s to 20s
  • Organic Cotton Yarn - 30s to 60s

Awards/ Achievements

  • Rajapalayam Mill Ltd is the first company to be awarded in South India for “Usterized” certificate from Switzerland.
  • It also bagged the coveted “Oeko-tex standard 100” certificate which assures that there are no dangerous metals present in its yarns.
  • The mill also has obtained the accredition to use “Supima Cotton” logo for excellence in quality.
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