Raj Rayon Industries Limited (RAJRILTD) AI Stock Analysis

• Market Cap: ₹15.43B
• Dividend Yield: N/A
• Average Volume (3M): 5.55K
• Price to Earnings (P/E): 66.1
• Beta (1Y): 0.09
• Revenue Growth: 14.24%
• EPS Growth: 8471.43%
• Country: IN
• Employees: 317
• Sector: Consumer Goods
• Sector Strength: N/A
• Industry: Apparel - Manufacturers
• EPS (TTM): 0.11
• Shares Outstanding: 556,082,500
• 10 Day Avg. Volume: 7,108
• 30 Day Avg. Volume: 5,546
• PEG Ratio: 0.34
• Price to Book (P/B): 9.31
• Price to Sales (P/S): 1.34
• P/FCF Ratio: -16.64
• 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: ₹25.00
• Price Target Upside: -9.91% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 40 Neutral
• Price Target: ₹25.00 ▼(-9.91% Downside)

The overall stock score is primarily influenced by financial performance concerns, including high leverage and negative free cash flow. Technical analysis indicates a neutral trend, while the high P/E ratio suggests overvaluation. These factors collectively result in a cautious outlook for the stock.

Raj Rayon Industries Limited Business Overview & Revenue Model

Company Description

Raj Rayon Industries Limited engages in the manufacturing and trading of polyester chips, and polyester and processed yarns in India. It offers round, trilobal, and octalobal yarns, as well as full dull, semi dull, bright, cationic, doped dyed, fire retardant, and anti-microbial yarns. The company also exports its products to Brazil, Chile, Colombia, Mexico, Poland, Spain, Thailand, Iran, Egypt, Syria, Vietnam, Morocco, Peru, Gautemala, and internationally. The company was formerly known as Raj Rayon Limited and changed its name to Raj Rayon Industries Limited in August 2010. Raj Rayon Industries Limited was incorporated in 1993 and is based in Mumbai, India.

How the Company Makes Money

Raj Rayon Industries Limited generates revenue through the production and sale of polyester yarns. The company's primary revenue streams are from the sale of its core products—partially oriented yarn, polyester textured yarn, and fully drawn yarn. These products are sold to textile manufacturers who utilize them to produce fabrics and garments. Additionally, Raj Rayon Industries may engage in strategic partnerships or agreements with other companies in the textile industry to expand its market reach and enhance its product offerings. Key factors contributing to its earnings include the demand for polyester yarns in the textile sector, the company's ability to maintain competitive pricing, and its operational efficiency in manufacturing processes.

Raj Rayon Industries Limited Financial Statement Overview

Summary

Raj Rayon Industries Limited has shown revenue growth and some improvement in profitability. However, high leverage and negative free cash flow are significant concerns. The company needs to improve profit margins and manage debt levels more effectively to enhance financial health.

Income Statement

The company has shown a significant revenue growth from 2023 to 2025, with a notable increase in gross profit. However, the gross profit margin remains low, and net profit margins have been inconsistent. The EBIT and EBITDA margins indicate limited profitability. The company needs to improve efficiency and cost management to enhance profitability.

Balance Sheet

The balance sheet reveals a high debt-to-equity ratio, indicating significant leverage. Although stockholders' equity has improved, the company remains heavily reliant on debt financing. The equity ratio suggests a moderate level of asset financing through equity, but the overall financial stability is impacted by the high leverage.

Cash Flow

The cash flow statement shows improvement in operating cash flow, but free cash flow remains negative due to high capital expenditures. The company needs to manage its capital investments better to improve free cash flow generation. The operating cash flow to net income ratio is positive, indicating some level of operational efficiency.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	8.61B	8.49B	7.45B	1.37B	550.00K	0.00
Gross Profit	1.39B	1.57B	645.21M	-63.84M	-279.89M	-355.04M
EBITDA	265.27M	342.84M	300.92M	22.16M	6.69B	7.25M
Net Income	-17.77M	138.06M	40.43M	-123.77M	6.41B	-347.78M
Balance Sheet
Total Assets	0.00	5.00B	4.21B	3.11B	1.02B	1.55B
Cash, Cash Equivalents and Short-Term Investments	282.61M	80.40M	70.30M	12.70M	900.00K	586.00K
Total Debt	0.00	2.37B	1.76B	1.26B	0.00	7.09B
Total Liabilities	-1.00B	3.78B	3.13B	2.07B	21.14M	7.61B
Stockholders Equity	1.00B	1.22B	1.08B	1.04B	1.00B	-6.06B
Cash Flow
Free Cash Flow	0.00	-685.34M	-135.56M	-1.40B	-107.48M	191.00K
Operating Cash Flow	0.00	368.23M	787.13M	-751.84M	-49.34M	191.00K
Investing Cash Flow	0.00	-831.82M	-1.11B	-650.39M	-58.13M	0.00
Financing Cash Flow	0.00	473.58M	387.35M	1.40B	107.79M	317.00K

Raj Rayon Industries Limited Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 27.75
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:RAJRILTD, the sentiment is Positive. The current price of 27.75 is above the 20-day moving average (MA) of 26.83, above the 50-day MA of 26.69, and above the 200-day MA of 24.48, indicating a bullish trend. The MACD of 0.43 indicates Negative momentum. The RSI at 58.67 is Neutral, neither overbought nor oversold. The STOCH value of 70.18 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for IN:RAJRILTD.

Raj Rayon Industries Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
RSWM	60 Neutral	₹6.95B	-41.09	-3.09%	―	9.72%	24.23%
AYMSYNTEX	59 Neutral	₹11.39B	177.56	2.01%	―	5.95%	-64.78%
SANGAMIND	55 Neutral	₹21.81B	110.99	3.16%	0.46%	11.71%	-53.73%
HIMATSEIDE	50 Neutral	₹14.92B	20.60	3.74%	0.21%	-6.74%	-45.59%
BASML	44 Neutral	₹2.10B	21.34	1.98%	―	-20.14%	―
RAJRILTD	40 Neutral	₹15.43B	66.07	―	―	14.24%	8471.43%
Sector *	57 Neutral	$3.13B	9.23	-34.32%	3.14%	-25.56%	-353.61%