Digjam Ltd. (DIGJAMLMTD) AI Stock Analysis

• Market Cap: ₹764.40M
• Dividend Yield: N/A
• Average Volume (3M): 321.00
• Price to Earnings (P/E): 49.0
• Beta (1Y): 0.81
• Revenue Growth: 84.53%
• EPS Growth: N/A
• Country: IN
• Employees: 280
• Sector: Consumer Defensive
• Sector Strength: 42
• Industry: Manufacturing - Textiles
• EPS (TTM): 0.26
• Shares Outstanding: 20,000,000
• 10 Day Avg. Volume: 716
• 30 Day Avg. Volume: 321
• PEG Ratio: 0.57
• Price to Book (P/B): 13.60
• Price to Sales (P/S): 4.03
• P/FCF Ratio: -3.71
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 41 Neutral
• Price Target: ₹37.00 ▼(-32.11% Downside)
• Action: Upgraded Date: 11/11/25
• Date: Action: Upgraded 11/11/25

Digjam Ltd.'s overall stock score is primarily impacted by its poor financial performance and bearish technical indicators. The company's high leverage and negative cash flows are significant risks. While the valuation is not overly high, the lack of a dividend yield reduces its appeal. The absence of earnings call and corporate events data limits additional insights.

Positive Factors

Improving operational margins

A modest recovery in EBIT and EBITDA margins indicates management has begun to improve operational efficiency. If sustained, this reduces break-even risk, supports cash generation, and signals that cost measures or mix improvements can structurally rebuild profitability over several quarters.

Relatively steady asset base

A steady asset base provides a structural cushion for operations and potential liquidity actions (collateral, asset sales, or securitization). It preserves recovery value for creditors and gives management options to restructure financing or monetize assets if cash generation remains weak.

Lower systematic risk (beta)

A beta below 1 indicates the business historically exhibits lower sensitivity to overall market swings. This structural lower volatility can make capital raising and long-term planning easier, and reduces the downside exposure investors face during broader market stress periods.

Negative Factors

High leverage and declining equity

Significant reliance on debt and a sharp decline in equity materially constrain financial flexibility. Elevated leverage raises refinancing, covenant, and interest risks, limiting investment capacity and increasing probability of distress absent sustained cash flow improvements.

Negative operating and free cash flows

Persistent negative operating and free cash flows undermine the company's ability to fund working capital, capex, and debt service internally. Over months this forces reliance on external financing or asset disposals, raising execution and solvency risk if markets tighten.

Negative margins and net loss

Sustained negative gross and net margins show the core business is unprofitable, reflecting structural pricing, cost, or demand issues. Without meaningful margin recovery, retained losses will further erode equity and impair long-term viability.

Digjam Ltd. Business Overview & Revenue Model

Company Description

Digjam Limited designs, manufactures, and trades in woolen worsted textiles and fabrics under the DIGJAM brand in India. The company was formerly known as Digjam Textiles Limited and changed its name to Digjam Limited in March 2016. Digjam Limited was incorporated in 2015 and is based in Jamnagar, India.

How the Company Makes Money

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Digjam Ltd. Financial Statement Overview

Summary

Digjam Ltd. faces significant financial challenges, marked by declining revenues, high leverage, and negative profitability margins. Despite minor operational improvements, substantial work is needed to stabilize the company's financial health, focusing on improving cash flow generation and reducing debt reliance.

Income Statement

Digjam Ltd. has faced significant challenges in maintaining positive margins. The company experienced a substantial decrease in revenue over the past two years, with a net loss position in the latest reports. Gross Profit Margin and Net Profit Margin are negative, indicating operational inefficiencies. However, there was a slight improvement in EBIT and EBITDA margins from the previous period, suggesting a minor recovery in operational performance.

Balance Sheet

The balance sheet shows a high leverage position with a Debt-to-Equity ratio indicating significant reliance on debt financing. Stockholders' equity has sharply declined over recent years, pointing to potential financial instability. Despite the negative equity trajectory, the company has managed to maintain a relatively steady asset base.

Cash Flow

Cash flow statements reveal negative operating and free cash flows, emphasizing liquidity issues and insufficient cash generation from core operations. The company's cash flow to net income ratios are concerning, with negative trends in free cash flow growth, indicating a need for cash management improvements.

Breakdown	TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	296.29M	181.98M	25.31M	332.11M	312.17M	60.79M
Gross Profit	87.11M	54.03M	7.55M	452.00K	21.99M	-128.81M
EBITDA	47.45M	33.33M	-80.77M	-70.72M	54.03M	116.00M
Net Income	43.93M	-106.05M	-120.63M	-122.08M	11.77M	89.39M
Balance Sheet
Total Assets	811.61M	808.43M	834.15M	1.43B	1.46B	1.33B
Cash, Cash Equivalents and Short-Term Investments	7.09M	19.30M	58.05M	1.55M	3.35M	1.63M
Total Debt	583.54M	591.46M	508.40M	733.22M	839.36M	749.41M
Total Liabilities	765.44M	754.47M	675.71M	1.15B	1.06B	943.94M
Stockholders Equity	46.17M	53.96M	158.43M	280.69M	399.52M	384.57M
Cash Flow
Free Cash Flow	-31.90M	-197.99M	-47.60M	98.81M	-62.08M	22.88M
Operating Cash Flow	-31.76M	-195.70M	-46.30M	107.73M	-58.25M	25.52M
Investing Cash Flow	37.87M	73.92M	363.20M	-2.12M	42.93M	-226.64M
Financing Cash Flow	-18.31M	83.02M	-260.40M	-145.76M	15.19M	127.79M

Digjam Ltd. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 54.50
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:DIGJAMLMTD, the sentiment is Negative. The current price of 54.5 is above the 20-day moving average (MA) of 42.61, above the 50-day MA of 46.99, and above the 200-day MA of 48.89, indicating a bearish trend. The MACD of -2.45 indicates Positive momentum. The RSI at 30.42 is Neutral, neither overbought nor oversold. The STOCH value of 10.75 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for IN:DIGJAMLMTD.

Digjam Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
WEWIN	67 Neutral	₹435.30M	9.94	―	―	7.09%	24.77%
Sector *	62 Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%
JAIPURKURT	60 Neutral	₹546.38M	54.59	―	―	37.68%	-67.76%
ROML	44 Neutral	₹1.33B	15.57	―	―	16.20%	267.95%
DIGJAMLMTD	41 Neutral	₹764.40M	49.00	―	―	84.53%	―
MOHITIND	41 Neutral	₹324.35M	-35.11	―	―	28.50%	9.14%