Gujarat Raffia Industries Limited (GUJRAFFIA) AI Stock Analysis

• Market Cap: ₹220.77M
• Dividend Yield: N/A
• Average Volume (3M): 6.59K
• Price to Earnings (P/E): 31.4
• Beta (1Y): 1.19
• Revenue Growth: 70.86%
• EPS Growth: 7.57%
• Country: IN
• Employees: 102
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Chemicals
• EPS (TTM): 0.35
• 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: ₹46.00 ▼(-8.46% Downside)

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

Strengthened balance sheet

Materially reduced leverage and a healthy equity ratio improve financial resilience over the medium term. A stronger capital structure lowers default risk, increases capacity to fund capex or buffer cyclical shocks, and supports strategic flexibility for 2–6 months and beyond.

Improving cash generation

Rising free cash flow and strong operating cash conversion indicate the business is converting profits into liquidity more reliably. Durable cash generation supports reinvestment, working capital needs, and deleveraging, enhancing long-term operational stability and financial flexibility.

Stabilizing margins

Recent margin improvement suggests management has restored pricing or operational efficiency. If sustained, higher margins can offset lower volumes, support cash flow, and improve return metrics, making earnings quality less dependent on cyclical sales swings over coming quarters.

Negative Factors

Declining revenue trend

A multi-year revenue decline signals structural demand or market-share pressures that could persist. Even with margin gains, shrinking topline constrains scalability, limits operating leverage benefits, and raises execution risk for sustaining earnings growth over the medium term.

Commodity input exposure

Business economics are tightly linked to polypropylene and other raw-material prices; inability to fully pass higher input costs hurts margins. Prolonged input volatility or lagged pricing pass-through can compress profitability and cash generation for several quarters.

Modest return on equity

A modest ROE implies the company is not yet delivering strong returns relative to its equity base. Without stronger revenue growth or sustained margin expansion, shareholder returns may remain underwhelming and limit reinvestment efficiency over the next 2–6 months.

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	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 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: Positive
• 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 45.73, below the 50-day MA of 52.36, and above the 200-day MA of 45.41, indicating a bearish trend. The MACD of -3.11 indicates Positive momentum. The RSI at 27.23 is Positive, neither overbought nor oversold. The STOCH value of 18.91 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	₹8.19B	11.63	―	0.38%	13.01%	32.44%
INDOBORAX	63 Neutral	₹7.89B	17.17	―	0.38%	12.35%	6.79%
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
GUJRAFFIA	59 Neutral	₹220.77M	31.40	―	―	70.86%	7.57%
LORDSCHLO	53 Neutral	₹3.66B	15.66	―	―	39.31%	―
KANORICHEM	45 Neutral	₹3.07B	-4.71	―	―	-1.30%	-27.85%
DIAMINESQ	43 Neutral	₹2.47B	-49.93	―	0.38%	―	―

Gujarat Raffia Industries Limited Corporate Events

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.

Gujarat Raffia Industries Affirms Compliance with Insider Trading Regulations

Gujarat Raffia Industries Limited has submitted its compliance certificate for the quarter ending September 30, 2025, as per the Securities and Exchange Board of India’s regulations on insider trading. The company confirms the maintenance of a Structured Digital Database (SDD) that securely captures and stores Unpublished Price Sensitive Information (UPSI) with robust access controls and audit trails, ensuring compliance with regulatory standards. This announcement underscores the company’s commitment to transparency and regulatory adherence, potentially strengthening its reputation among stakeholders.