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

• Market Cap: ₹13.73B
• Dividend Yield: N/A
• Average Volume (3M): 41.68K
• Price to Earnings (P/E): 9.7
• Beta (1Y): 1.41
• Revenue Growth: 30.79%
• EPS Growth: N/A
• Country: IN
• Employees: 1,443
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Apparel - Manufacturers
• EPS (TTM): 0.94
• Shares Outstanding: 261,113,160
• 10 Day Avg. Volume: 32,696
• 30 Day Avg. Volume: 41,681
• 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: 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: 50 Neutral
• Price Target: ₹53.00 ▲(3.25% Upside)

The overall stock score of 50 reflects Indo Rama Synthetics' mixed financial performance and bearish technical indicators. While the company shows recovery in revenue and cash flow, high leverage and low profitability are significant concerns. The technical analysis indicates bearish momentum, and the valuation suggests moderate pricing without a dividend yield to attract income investors.

Positive Factors

Revenue Growth

The significant revenue growth indicates strong market demand and effective sales strategies, enhancing the company's market position and potential for future expansion.

Cash Flow Improvement

Improved cash flow reflects effective cash management and operational efficiency, providing the company with more resources for reinvestment and debt reduction.

Gross Profit Margin

An improved gross profit margin suggests better cost management and pricing strategies, which can lead to enhanced profitability and competitive advantage.

Negative Factors

High Leverage

High leverage poses financial risk, potentially limiting the company's ability to invest in growth opportunities and increasing vulnerability to economic downturns.

Low Net Profit Margin

A low net profit margin indicates limited profitability, which may hinder the company's ability to generate sufficient returns for shareholders and invest in future growth.

Volatile Cash Flow History

A history of volatile cash flows suggests potential instability in financial operations, which can affect the company's ability to sustain positive cash generation and financial health.

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 signs of recovery in revenue and cash flow. However, profitability remains a concern with low net profit margins and high leverage. Improvements in operational efficiency and cost control are needed 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	3.02B	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: Negative
• Last Price: 51.33
• 50DMA: Negative
• 100DMA: Negative
• 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 Negative. The current price of 51.33 is below the 20-day moving average (MA) of 58.66, below the 50-day MA of 59.56, and above the 200-day MA of 48.24, indicating a neutral trend. The MACD of -3.06 indicates Positive momentum. The RSI at 34.67 is Neutral, neither overbought nor oversold. The STOCH value of 32.87 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
JAYAGROGN	60 Neutral	₹11.22B	12.58	―	1.16%	0.69%	-7.54%
ESTER	56 Neutral	₹10.83B	45.56	―	0.55%	16.82%	―
TNPL	55 Neutral	₹10.58B	-52.70	―	2.08%	4.65%	-127.24%
INDORAMA	50 Neutral	₹13.73B	9.67	―	―	30.79%	―
OAL	50 Neutral	₹11.45B	47.99	―	0.16%	12.25%	-74.52%
FAIRCHEMOR	47 Neutral	₹8.41B	138.91	―	1.15%	-22.10%	-85.56%

Indo Rama Synthetics (India) Limited Corporate Events

Indo Rama Synthetics Sees Surge in Trading Volume

Indo Rama Synthetics (India) Limited has experienced a significant increase in trading volume, prompting the Exchange to seek further information to ensure investor interests are protected. The company has responded to the Exchange’s inquiry, highlighting its commitment to transparency and maintaining market confidence.