Rajratan Global Wire Limited (RAJRATAN) AI Stock Analysis

• Market Cap: ₹18.79B
• Dividend Yield: 0.42%
• Average Volume (3M): 9.34K
• Price to Earnings (P/E): 28.6
• Beta (1Y): 1.26
• Revenue Growth: 7.76%
• EPS Growth: -21.05%
• Country: IN
• Employees: 647
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Steel
• EPS (TTM): 4.10
• Shares Outstanding: 50,771,000
• 10 Day Avg. Volume: 6,031
• 30 Day Avg. Volume: 9,341
• PEG Ratio: -1.40
• Price to Book (P/B): 2.67
• Price to Sales (P/S): 1.60
• P/FCF Ratio: -630.64
• 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): 18.15
• Revenue Forecast (FY): ₹11.36B

• Rating: 66 Neutral
• Price Target: ₹400.00 ▼(-13.85% Downside)
• Action: Reiterated Date: 11/25/25
• Date: Action: Reiterated 11/25/25

Rajratan Global Wire Limited's overall stock score is primarily influenced by its stable financial performance and mixed technical indicators. The company's strong balance sheet and revenue growth are offset by declining profitability and cash flow challenges. Technical analysis shows potential for upward momentum, but valuation metrics indicate the stock may be overvalued. The absence of earnings call insights and corporate events limits additional context.

Positive Factors

Strong balance sheet

Low leverage and a 58.3% equity ratio provide durable financial flexibility to fund capital spending, absorb steel-cycle volatility and maintain supplier/customer confidence. A conservative capital structure reduces refinancing risk and supports multi-quarter investment or downturn resilience.

Sustained revenue growth

High reported revenue growth reflects persistent demand from tyre and industrial customers and a stable B2B revenue base. Sustained top-line expansion improves capacity utilization and drives operating leverage, supporting medium-term stability in cash generation and market position.

Healthy gross and operating margins

A materially improved gross margin and solid EBIT/EBITDA indicate effective cost control or pricing power in core wire products. These margin levels provide room for reinvestment and help the business withstand raw-material swings, supporting sustained profitability over several quarters.

Negative Factors

Declining net profit margin

A falling net margin indicates that higher operating expenses, financing costs or other items are eroding bottom-line returns. Persistently lower net profitability reduces retained earnings available for growth, limits resilience to shocks, and may signal pressure on pricing or rising overheads.

Weakened cash generation / negative FCF

A large drop in operating cash flow and negative free cash flow from elevated capex constrain liquidity and raise funding risk. Weaker cash conversion limits the firm's ability to self-fund capex or pay down debt, increasing dependence on external financing and reducing margin for strategic flexibility.

Falling return on equity

A meaningful decline in ROE signals reduced capital efficiency and weaker returns to shareholders. If sustained, lower ROE can indicate competitive pressures or suboptimal asset deployment, making it harder to justify reinvestment and potentially pressuring long-term shareholder value.

Rajratan Global Wire Limited Business Overview & Revenue Model

Company Description

Rajratan Global Wire Limited manufactures and sells tire bead wires in India and Thailand. The company also offers high carbon steel wires that are used in mechanical springs, high performance springs, beddings and seating, wire ropes and cables, conveyor belts, automotive cables, steel fibers, and cut wire shots for shot blasting and pinning applications. Its tire bead wires are used in various kinds of automobile tires, tires of earth moving equipment, and aircraft. Rajratan Global Wire Limited was incorporated in 1988 and is headquartered in Indore, India.

How the Company Makes Money

RAJRATAN primarily makes money by manufacturing and selling steel wire products, with revenue recognized from the sale of finished wire (notably bead wire used to reinforce tyre beads) to business customers (B2B), especially tyre manufacturers. Its key revenue stream is product sales, where pricing and volumes are driven by customer demand in the tyre and automotive supply chain and by the company’s ability to produce wire meeting required specifications and quality standards. A significant factor influencing earnings is the spread between raw-material/input costs (e.g., steel wire rod and other manufacturing inputs) and realized selling prices, along with capacity utilization, operational efficiency, and product mix. Information on specific long-term contracts, customer concentration, or named strategic partnerships is null.

Rajratan Global Wire Limited Financial Statement Overview

Summary

Rajratan Global Wire Limited demonstrates overall financial stability with steady revenue growth and a strong balance sheet. However, declining net profit margins and cash flow pressures suggest potential challenges in managing operational costs and capital expenditure. The company maintains a healthy equity position, but should focus on improving profitability and cash flow management to enhance financial performance.

Income Statement

Rajratan Global Wire Limited exhibits stable revenue growth with a 5% increase in total revenue from 2024 to 2025. The gross profit margin improved significantly to 37% in 2025, indicating efficient cost management. However, the net profit margin decreased to 6.3% in 2025, down from 8.1% in 2024, suggesting increased expenses or cost pressures. EBIT and EBITDA margins are healthy, at 11.1% and 13.8% respectively, showing operational efficiency.

Balance Sheet

The company's balance sheet is strong with a debt-to-equity ratio of 0.42 in 2025, indicating prudent financial leverage. The equity ratio improved to 58.3% in 2025, reflecting a solid capital structure. Return on equity decreased to 10.5% in 2025 from 14.6% in 2024, which could indicate challenges in generating returns on equity investments.

Cash Flow

Operating cash flow declined by 46% from 2024 to 2025, which may impact liquidity. The company reported negative free cash flow in 2025, despite positive operating cash flow, due to high capital expenditures. The operating cash flow to net income ratio of 0.97 in 2025 suggests adequate cash generation relative to net income, but the free cash flow to net income ratio is negative due to capital investments.

Breakdown	TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	10.10B	9.35B	8.90B	8.95B	8.93B	5.47B
Gross Profit	3.80B	3.46B	1.50B	1.87B	3.37B	1.94B
EBITDA	1.34B	1.29B	1.31B	1.63B	1.81B	915.00M
Net Income	585.90M	588.00M	718.30M	1.00B	1.24B	531.30M
Balance Sheet
Total Assets	11.07B	9.60B	8.26B	7.39B	6.17B	4.39B
Cash, Cash Equivalents and Short-Term Investments	362.50M	266.00M	150.90M	146.50M	8.20M	27.10M
Total Debt	3.73B	2.37B	1.91B	1.71B	1.37B	1.42B
Total Liabilities	5.04B	4.01B	3.34B	3.00B	2.76B	2.13B
Stockholders Equity	6.03B	5.59B	4.93B	4.39B	3.41B	2.27B
Cash Flow
Free Cash Flow	-939.10M	-23.70M	-148.40M	-43.50M	318.30M	88.90M
Operating Cash Flow	-498.50M	570.60M	1.07B	1.62B	1.19B	364.40M
Investing Cash Flow	-478.90M	-567.40M	-969.50M	-1.69B	-930.90M	-242.50M
Financing Cash Flow	1.10B	80.80M	-96.90M	98.40M	-279.50M	-96.30M

Rajratan Global Wire Limited Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 464.30
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:RAJRATAN, the sentiment is Negative. The current price of 464.3 is above the 20-day moving average (MA) of 400.11, above the 50-day MA of 441.55, and above the 200-day MA of 406.82, indicating a bearish trend. The MACD of -19.75 indicates Positive momentum. The RSI at 35.22 is Neutral, neither overbought nor oversold. The STOCH value of 43.32 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for IN:RAJRATAN.

Rajratan Global Wire Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
MAYURUNIQ	80 Outperform	₹21.76B	10.60	―	1.01%	11.55%	13.57%
RAJRATAN	66 Neutral	₹18.79B	28.57	―	0.42%	7.76%	-21.05%
TALBROAUTO	65 Neutral	₹14.52B	15.60	―	0.32%	0.74%	-17.90%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
MAHSCOOTER	61 Neutral	₹142.93B	987.71	―	1.57%	―	―
RANEHOLDIN	60 Neutral	₹15.16B	-9.62	―	2.97%	54.99%	-66.73%
RML	57 Neutral	₹19.97B	18.11	―	1.07%	54.17%	1117.99%

Rajratan Global Wire Limited Corporate Events

Rajratan Global Wire Clears Q3 FY26 Unaudited Results, Posts Higher Revenue and Profit

Rajratan Global Wire Limited’s board has approved and taken on record the unaudited standalone and consolidated financial results for the quarter and nine months ended 31 December 2025, along with the limited review report from its statutory auditor. The results show solid year-on-year growth in both revenue and profitability at standalone and consolidated levels, with consolidated revenue from operations rising to ₹30,153 lakh for the quarter and net profit from continuing operations increasing to ₹2,069 lakh, underscoring continued operational momentum and strengthening earnings across its India and Thailand operations.