Indo Rama Synthetics (India) Limited (INDORAMA) AI Stock Analysis

• Market Cap: ₹15.63B
• Dividend Yield: N/A
• Average Volume (3M): 22.49K
• Price to Earnings (P/E): 21.3
• Beta (1Y): 1.49
• Revenue Growth: 14.14%
• EPS Growth: N/A
• Country: IN
• Employees: 1,443
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Apparel - Manufacturers
• EPS (TTM): 2.02
• Shares Outstanding: 261,113,160
• 10 Day Avg. Volume: 22,811
• 30 Day Avg. Volume: 22,487
• PEG Ratio: -6.90
• Price to Book (P/B): 2.64
• Price to Sales (P/S): 0.23
• P/FCF Ratio: 2.76
• 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: ₹51.00
• Price Target Upside: -14.80% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 0

• Rating: 54 Neutral
• Price Target: ₹51.00 ▼(-14.80% Downside)

The overall stock score of 54 reflects a mixed outlook. The strongest positive factor is the technical analysis, which indicates bullish momentum. However, concerns about financial leverage, low profitability, and extremely high valuation weigh heavily on the score.

Indo Rama Synthetics (India) Limited Business Overview & Revenue Model

Company Description

Indo Rama Synthetics (India) Limited manufactures and supplies polyester in India. The company offers various polyester products, including polyester staple fiber, polyester filament yarn, draw texturized yarn, fully drawn yarn, and polyester chips. Its products are used in various applications, such as apparel and sportswear, home furnishings and textiles, hygiene and non-woven, and automotive. The company also operates in the Middle East and North Africa, Turkey, Brazil, Argentina, Mexico, Columbia, Germany, Belgium, Portugal, Spain, Poland, Italy, Bangladesh, and Nepal. Indo Rama Synthetics (India) Limited was incorporated in 1986 and is based in Gurugram, India.

How the Company Makes Money

Indo Rama Synthetics generates revenue primarily through the sale of its synthetic textile products, including polyester staple fibers and filament yarns. The company's revenue model is based on bulk production and distribution, allowing it to supply both domestic and international markets. Key revenue streams include direct sales to textile manufacturers and wholesalers, who use these materials in their own production processes. Additionally, INDORAMA benefits from strategic partnerships with major players in the textile industry, enhancing its market reach and operational efficiency. Factors contributing to its earnings include the increasing demand for synthetic textiles, cost-effective production capabilities, and a strong focus on sustainable manufacturing practices.

Indo Rama Synthetics (India) Limited Financial Statement Overview

Summary

Indo Rama Synthetics shows mixed financial performance. Revenue and cash flow have improved, but profitability remains weak with low net profit margins and high leverage. The company needs to focus on reducing debt and improving operational efficiency for sustainable growth.

Income Statement

Indo Rama Synthetics shows mixed performance in its income statement. The company experienced a significant recovery in revenue from 2024 to 2025, with a revenue growth rate of 15.23%. Gross profit margin improved to 21.2% in 2025, indicating better cost management. However, the net profit margin remains weak at 0.03% in 2025, primarily due to past losses and fluctuating EBIT margins. The EBITDA margin of 4.2% shows limited operating efficiency, highlighting the need for further profitability improvement.

Balance Sheet

The balance sheet indicates high leverage with a debt-to-equity ratio of 3.09 in 2025, which poses financial risk. The equity ratio is low at 12.5%, suggesting potential vulnerability in financial stability. Return on Equity (ROE) improved to 0.38% due to a small net income, but still remains low. The company must focus on reducing debt levels and improving equity to enhance financial stability.

Cash Flow

Cash flow analysis reveals a substantial improvement with positive free cash flow of 3.52 billion in 2025. The operating cash flow to net income ratio is strong, reflecting effective cash generation from operations. However, the free cash flow growth rate is not calculable due to negative values in previous years, indicating a volatile cash flow history. Continued focus on maintaining positive cash flows is essential for financial health.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	46.20B	42.59B	36.96B	39.33B	40.38B	20.43B
Gross Profit	10.00B	9.03B	3.95B	493.60M	5.08B	5.84B
EBITDA	2.42B	1.79B	-327.10M	662.00M	3.13B	1.03B
Net Income	734.30M	14.00M	-2.03B	-245.60M	2.69B	1.13B
Balance Sheet
Total Assets	0.00	29.36B	29.07B	27.13B	21.05B	17.11B
Cash, Cash Equivalents and Short-Term Investments	422.50M	300.40M	293.70M	614.00M	123.20M	93.80M
Total Debt	0.00	11.36B	13.39B	8.90B	3.58B	3.95B
Total Liabilities	-3.68B	25.67B	25.39B	21.40B	15.06B	13.78B
Stockholders Equity	3.68B	3.68B	3.68B	5.73B	5.99B	3.33B
Cash Flow
Free Cash Flow	0.00	3.52B	-3.57B	-4.46B	1.20B	1.56B
Operating Cash Flow	0.00	3.91B	-967.30M	-809.90M	2.00B	1.82B
Investing Cash Flow	0.00	-363.40M	-2.58B	-3.48B	-754.40M	-175.00M
Financing Cash Flow	0.00	-3.54B	3.22B	4.79B	-1.23B	-1.74B

Indo Rama Synthetics (India) Limited Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 59.86
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:INDORAMA, the sentiment is Positive. The current price of 59.86 is above the 20-day moving average (MA) of 57.69, above the 50-day MA of 54.68, and above the 200-day MA of 45.48, indicating a bullish trend. The MACD of 1.37 indicates Positive momentum. The RSI at 59.63 is Neutral, neither overbought nor oversold. The STOCH value of 40.76 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for IN:INDORAMA.

Indo Rama Synthetics (India) Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
JAYAGROGN	70 Neutral	₹10.95B	12.29	―	1.06%	7.47%	-3.69%
ESTER	64 Neutral	₹11.08B	46.61	―	0.52%	22.18%	―
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
FAIRCHEMOR	54 Neutral	₹10.04B	107.98	―	0.98%	-19.46%	-80.73%
INDORAMA	54 Neutral	₹15.63B	21.31	―	―	14.14%	―
TNPL	52 Neutral	₹10.56B	310.83	―	1.96%	-0.66%	-125.23%
OAL	50 Neutral	₹11.36B	47.64	―	0.15%	9.52%	-8.72%