Gujarat Raffia Industries Limited (GUJRAFFIA) AI Stock Analysis

• Market Cap: ₹197.26M
• Dividend Yield: N/A
• Average Volume (3M): 6.59K
• Price to Earnings (P/E): 62.4
• Beta (1Y): 1.09
• 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: ₹38.00 ▼(-24.38% 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

Stronger balance sheet

The company reports materially improved leverage and a healthy equity ratio, indicating a stronger capital structure. This reduces refinancing and solvency risk, giving management capacity to fund operations, weather commodity shocks, and invest in efficiency or capacity over the next several months.

Improving cash generation

Free cash flow growth and a strong operating cash flow-to-net-income ratio point to improved cash conversion. Durable cash generation supports capex, working-capital needs and debt repayment, boosting financial flexibility and resilience versus peers in cyclical packaging markets.

Margin stabilization

Although revenues have been challenged, recent reports show improved gross and net margins and stabilizing operating margins. Sustained margin improvement implies better cost control or mix advantages that can protect profitability as volumes recover or raw-material volatility persists.

Negative Factors

Revenue decline

A persistent revenue decline is a structural headwind for growth and profitability. Falling top-line pressures capacity utilization and fixed-cost absorption, making margins harder to sustain and limiting the company’s ability to scale profitability without reversing sales trends or expanding into new markets.

Input-cost sensitivity

The business is structurally exposed to polypropylene and other raw-material price swings. If the company cannot pass increases through to customers due to competitive pricing or demand weakness, margins will compress. This creates recurring margin risk in a commodity-linked industry.

Modest returns

A modest ROE signals the company generates only limited returns on shareholder capital relative to peers. Over time, this can constrain shareholder value creation unless management improves asset efficiency, pricing power, or moves into higher-return product segments.

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

GUJRAFFIA makes money primarily by manufacturing and selling PP/plastic woven packaging products (e.g., woven sacks/bags and woven fabric) to customers who use them for packing and transporting goods. Revenue is recognized through product sales, typically driven by (a) sales volume (number/weight of bags or fabric sold), (b) realized selling prices, and (c) product mix (different specifications, sizes, and custom printing/lamination where applicable). The company’s earnings are influenced by input-cost dynamics—especially polypropylene resin and other packaging inputs—so margins depend on its ability to pass raw-material price changes through to customers and maintain manufacturing efficiency (capacity utilization, yield, power/fuel costs, labor, and overhead absorption). If the company also performs job-work/manufacturing services for third parties, that would add a service-fee revenue stream; however, specific disclosure confirming such revenue streams, major customer concentration, long-term contracts, export contribution, or significant partnerships is null.

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	516.78M	300.41M	309.12M	392.41M	379.82M	387.93M
Gross Profit	77.45M	50.78M	20.47M	28.00M	32.06M	28.67M
EBITDA	26.50M	23.31M	24.71M	36.20M	25.93M	28.81M
Net Income	7.03M	5.22M	5.18M	10.27M	11.18M	11.90M
Balance Sheet
Total Assets	296.83M	253.74M	260.42M	357.22M	327.98M	244.63M
Cash, Cash Equivalents and Short-Term Investments	4.72M	78.55M	31.86M	74.32M	9.89M	46.52M
Total Debt	21.82M	25.00M	35.18M	125.45M	82.17M	32.25M
Total Liabilities	79.77M	41.95M	54.06M	156.05M	137.08M	64.91M
Stockholders Equity	217.06M	211.79M	206.35M	201.17M	190.90M	179.72M
Cash Flow
Free Cash Flow	26.53M	56.53M	49.59M	17.21M	-86.60M	-9.53M
Operating Cash Flow	26.66M	73.80M	50.25M	63.43M	-61.71M	-9.06M
Investing Cash Flow	-40.14M	-53.27M	-19.41M	-42.56M	-24.33M	1.26M
Financing Cash Flow	-4.36M	-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: Negative
• RSI: Neutral
• STOCH: Neutral

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 39.72, above the 50-day MA of 42.45, and above the 200-day MA of 45.51, indicating a bearish trend. The MACD of -1.53 indicates Negative momentum. The RSI at 35.20 is Neutral, neither overbought nor oversold. The STOCH value of 24.77 is Neutral, 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	₹7.02B	19.71	―	0.38%	13.01%	32.44%
INDOBORAX	63 Neutral	₹7.83B	24.50	―	0.38%	12.35%	6.79%
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
GUJRAFFIA	59 Neutral	₹197.26M	62.36	―	―	70.86%	7.57%
LORDSCHLO	54 Neutral	₹2.90B	23.33	―	―	39.31%	―
KANORICHEM	45 Neutral	₹2.62B	23.83	―	―	-1.30%	-27.85%
DIAMINESQ	43 Neutral	₹2.21B	-19.09	―	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.