Gujarat Raffia Industries Limited (GUJRAFFIA) AI Stock Analysis

• Market Cap: ₹204.13M
• Dividend Yield: N/A
• Average Volume (3M): 6.59K
• Price to Earnings (P/E): 27.9
• Beta (1Y): 1.15
• Revenue Growth: 70.86%
• EPS Growth: 7.57%
• Country: IN
• Employees: 102
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Chemicals
• EPS (TTM): 0.19
• Shares Outstanding: 5,404,500
• 10 Day Avg. Volume: 11,580
• 30 Day Avg. Volume: 6,589
• PEG Ratio: -10.15
• Price to Book (P/B): 1.00
• Price to Sales (P/S): 0.71
• P/FCF Ratio: 3.75
• 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: 59 Neutral
• Price Target: ₹39.00 ▼(-22.39% Downside)
• Action: Reiterated Date: 01/20/26
• Date: Action: Reiterated 01/20/26

The score is supported primarily by solid financial stability (stronger balance sheet and improving cash generation), but it is held back by very weak technical momentum (price below key moving averages with negative MACD) and a relatively high P/E without a provided dividend yield to cushion valuation risk.

Positive Factors

Balance-sheet strength

Materially improved leverage and a healthy equity ratio provide durable financial flexibility. Lower leverage reduces interest burden and solvency risk, enabling the firm to fund working capital, capex or opportunistic investments and better withstand cyclical downturns over the medium term.

Improving cash generation

A trajectory of rising free cash flow and high operating-cash-to-net-income conversion indicates higher quality earnings and self-funding capacity. Sustained cash generation supports debt reduction, reinvestment, and resilience to raw-material price swings, strengthening long-term solvency.

Margin stabilization

Improved gross and net margins despite revenue pressure signals better cost management, pricing discipline or mix improvement. If sustained, higher margins can offset volume declines, protect profitability through input-cost cycles and improve return on invested capital over months.

Negative Factors

Declining revenue

A multi-year revenue decline points to structural demand weaknesses, lost customers, or competitive pressure. Persistent top-line shrinkage erodes scale, raises per-unit fixed costs, and can reverse margin gains if utilization falls, constraining medium-term earnings resilience.

Margin and earnings volatility

Volatile margins and fluctuating EBIT/EBITDA reduce predictability of cash flows and make capital allocation harder. In an industry exposed to polypropylene and input-price swings, inconsistent margin recovery increases risk that short-term improvements may not persist without structural pricing or cost advantages.

Limited disclosure on customer/contract mix

Absence of detail on customer concentration, contract cadence or export mix limits visibility into revenue durability. This opacity raises the chance of abrupt order loss or price pressure from a few large buyers and hampers assessment of recurring demand and sustainable order books.

Gujarat Raffia Industries Limited Business Overview & Revenue Model

Company Description

Gujarat Raffia Industries Limited manufactures and sells polyethylene tarpaulins, high density polyethylene (HDPE)/polypropylene (PP) woven sacks, and fabrics in India. It also offers PE tarpaulins, plastic and ground sheeting, geomembranes, tents, shelters, pond and canal linings, fumigation covers, HDPE and PP woven bags, azolla beds, grow bags, weed mats, vermibed and ropes, etc. The company also exports its products worldwide. Gujarat Raffia Industries Limited was incorporated in 1984 and is based in Gandhinagar, India.

How the Company Makes Money

Gujarat Raffia Industries Limited generates revenue primarily through the sale of its manufactured products, which include woven sacks and flexible packaging materials. The company adopts a B2B revenue model, targeting various industries that require durable and cost-effective packaging solutions. Key revenue streams include direct sales to distributors and manufacturers, long-term contracts with large corporations, and export sales to international markets. Additionally, GUJRAFFIA may benefit from partnerships with other businesses in the supply chain, enhancing its market reach and driving sales growth. The company's focus on innovation and sustainability also positions it favorably in a competitive market, potentially attracting more clients and increasing its earnings.

Gujarat Raffia Industries Limited Financial Statement Overview

Summary

Fundamentals are stable overall: a stronger balance sheet with materially improved leverage and a healthy equity ratio supports resilience, and cash flow shows improving free cash flow with strong cash conversion. The main offset is income-statement pressure from declining revenue over the past two years despite improved margins.

Income Statement

The company shows a mixed performance in its income statement. The Gross Profit Margin and Net Profit Margin have been fluctuating, with the latest annual report showing improved margins over the previous year. However, there is a noticeable decline in revenue over the past two years, indicating challenges in sales growth. EBIT and EBITDA margins have seen volatility but are showing signs of stabilization in the most recent year.

Balance Sheet

The balance sheet reflects a strong equity position with a Debt-to-Equity Ratio that has improved significantly over the years, suggesting reduced leverage. The Equity Ratio is healthy, indicating that a substantial portion of the company's assets are financed by shareholders' equity. Return on Equity is modest, highlighting room for improvement in generating returns on shareholders' investments.

Cash Flow

Cash flow analysis reveals a positive trajectory in free cash flow growth, indicating improved cash generation capabilities. The Operating Cash Flow to Net Income Ratio is strong, suggesting effective conversion of net income into cash. However, the Free Cash Flow to Net Income Ratio indicates variability, reflecting some inconsistencies in cash flow generation.

Breakdown	TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	310.40M	300.41M	309.12M	392.41M	379.82M	387.93M
Gross Profit	82.52M	50.78M	20.47M	28.00M	32.06M	28.67M
EBITDA	24.25M	23.31M	24.71M	36.20M	25.93M	28.81M
Net Income	5.83M	5.22M	5.18M	10.27M	11.18M	11.90M
Balance Sheet
Total Assets	0.00	253.74M	260.42M	357.22M	327.98M	244.63M
Cash, Cash Equivalents and Short-Term Investments	78.55M	78.55M	31.86M	74.32M	9.89M	46.52M
Total Debt	0.00	25.00M	35.18M	125.45M	82.17M	32.25M
Total Liabilities	-211.79M	41.95M	54.06M	156.05M	137.08M	64.91M
Stockholders Equity	211.79M	211.79M	206.35M	201.17M	190.90M	179.72M
Cash Flow
Free Cash Flow	0.00	56.53M	49.59M	17.21M	-86.60M	-9.53M
Operating Cash Flow	0.00	73.80M	50.25M	63.43M	-61.71M	-9.06M
Investing Cash Flow	0.00	-53.27M	-19.41M	-42.56M	-24.33M	1.26M
Financing Cash Flow	0.00	-9.84M	-94.79M	43.57M	49.41M	18.89M

Gujarat Raffia Industries Limited Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 50.25
• 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:GUJRAFFIA, the sentiment is Negative. The current price of 50.25 is above the 20-day moving average (MA) of 40.48, above the 50-day MA of 45.02, and above the 200-day MA of 45.55, indicating a bearish trend. The MACD of -1.61 indicates Positive momentum. The RSI at 32.19 is Neutral, neither overbought nor oversold. The STOCH value of 11.19 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for IN:GUJRAFFIA.

Gujarat Raffia Industries Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
INDOAMIN	63 Neutral	₹7.69B	10.88	―	0.38%	13.01%	32.44%
INDOBORAX	63 Neutral	₹7.96B	17.32	―	0.38%	12.35%	6.79%
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
GUJRAFFIA	59 Neutral	₹204.13M	27.89	―	―	70.86%	7.57%
LORDSCHLO	54 Neutral	₹3.08B	11.54	―	―	39.31%	―
KANORICHEM	45 Neutral	₹2.97B	-6.62	―	―	-1.30%	-27.85%
DIAMINESQ	43 Neutral	₹2.26B	-24.87	―	0.38%	―	―

Gujarat Raffia Industries Limited Corporate Events

Gujarat Raffia Cites SEBI Exemption From Quarterly Corporate Governance Report

Gujarat Raffia Industries Limited has notified the stock exchanges that it is not required to submit a quarterly Corporate Governance report under Regulation 27(2) of SEBI’s Listing Obligations and Disclosure Requirements for the quarter ended 31 December 2025. The company explained that, as its paid-up equity share capital and net worth remain below the thresholds specified in Regulation 15(2)(a), the detailed corporate governance compliance provisions, including the quarterly reporting requirement, do not currently apply; it also affirmed that it will begin such compliance if and when these regulations become applicable in the future, clarifying the current regulatory burden and disclosure expectations for its stakeholders.

Gujarat Raffia Industries Files Quarterly SDD Compliance Certificate Under SEBI PIT Norms

Gujarat Raffia Industries Limited has submitted its Structured Digital Database (SDD) compliance certificate for the quarter ended 31 December 2025 to the BSE, NSE and CSE in accordance with Regulations 3(5) and 3(6) of SEBI’s Prohibition of Insider Trading Regulations, 2015. The filing underscores the company’s adherence to insider trading controls and regulatory disclosure norms, signalling continued focus on corporate governance and compliance for its capital-market stakeholders.

Gujarat Raffia Closes Trading Window Ahead of Q3 FY2025 Results

Gujarat Raffia Industries Limited has announced the closure of its trading window for company shares starting 1 January 2026 until 48 hours after the Board approves and declares the unaudited standalone financial results for the quarter ended 31 December 2025, in line with SEBI (Prohibition of Insider Trading) Regulations and the company’s internal code of conduct. During this period, the PANs of designated persons will be frozen at the security level by the depository to prevent trades, and all designated persons and their immediate relatives are prohibited from dealing in the company’s securities, underscoring the firm’s compliance focus and efforts to strengthen governance and mitigate insider trading risks for investors and regulators.