Remsons Industries Limited (REMSONSIND) AI Stock Analysis

• Market Cap: ₹3.79B
• Dividend Yield: 0.24%
• Average Volume (3M): 17.81K
• Price to Earnings (P/E): 23.3
• Beta (1Y): 1.42
• Revenue Growth: 28.08%
• EPS Growth: 3.19%
• Country: IN
• Employees: 248
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Auto - Parts
• EPS (TTM): 1.17
• Shares Outstanding: 34,878,784
• 10 Day Avg. Volume: 11,125
• 30 Day Avg. Volume: 17,814
• PEG Ratio: -3.73
• Price to Book (P/B): 3.43
• Price to Sales (P/S): 1.14
• P/FCF Ratio: -61.95
• 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: 65 Neutral
• Price Target: ₹116.00 ▼(-8.12% Downside)

Remsons Industries Limited shows strong financial performance with robust revenue growth and operational efficiency. However, technical indicators suggest a neutral trend, and the valuation indicates the stock may be overvalued with a low dividend yield. The absence of earnings call data and corporate events limits additional insights.

Positive Factors

Sustained revenue growth

Consistent double-digit revenue growth demonstrates durable demand across OEM and aftermarket channels, enabling scale advantages. Sustained volume expansion supports long-term supply agreements, improves negotiating leverage with OEMs, and underwrites continued investment in product development and export expansion.

High gross and EBIT margins

Elevated gross and EBIT margins indicate strong cost control and operational efficiency in manufacturing control cables. These margins suggest structural advantages—process efficiency, scale, or product mix—that can sustain profitability through cycles and provide room for reinvestment in quality and R&D without eroding core margins.

Moderate leverage with healthy equity base

A moderate debt-to-equity ratio and a meaningful equity ratio reflect a balanced capital structure that supports growth while limiting overexposure to interest risk. This positioning preserves access to external funding for capex or program ramp-ups and maintains financial flexibility for medium-term strategic moves.

Negative Factors

Negative free cash flow

Material negative free cash flow signals a structural gap between cash generation and investment needs. Persistently negative FCF constrains the company's ability to de-lever, fund capex from operations, return capital, or absorb shocks, increasing reliance on external financing and raising long-term funding costs and execution risk.

Low net profit margin

A low net margin relative to high gross margins indicates significant downstream pressure from SG&A, interest, taxes, or mix shifts. This structural compression limits retained earnings and cash available for investment, making long-term profitability more sensitive to cost inflation or pricing pressure in OEM contracts.

Notable reliance on debt financing

A substantial portion of financing sourced from debt raises exposure to interest rate cycles and refinancing risk. In a downturn or with rising rates, debt servicing could squeeze operating flexibility and capital allocation, constraining strategic investments and elevating risk profile over the medium term.

Remsons Industries Limited Business Overview & Revenue Model

Company Description

Remsons Industries Limited engages in the manufacture and sale of automotive components parts and its products in India. It offers clutch, accelerator/throttle/gasoline, front and rear parking brake, shift and reverse gear, choke, engine stop, speedometer, fare meter, de-compressor, body cables, HVAC cables, door cables, pull-to-stop cables, drive change, and seat cables for use in two, three, and four wheelers; and light, medium, and heavy commercial vehicles, as well as in construction, mining, and farm equipment. The company also provides flexible shafts that are used in speedometers, tachometers, power tools/machineries, power seats, and farm and earth moving equipment; gear shift systems and push pull cables, which are used in passenger cars and rear engine buses, as well as in light, medium, and heavy commercial vehicles. In addition, it offers winch assembly, jack kit, pedal box assembly, and parking box assembly products. The company exports its products to the United Kingdom, France, Mexico, the United States, Germany, Austria, Sweden, Italy, Spain, Turkey, Nepal, Sri Lanka, Bangladesh, Brazil, Kenya, Bhutan, Singapore, and the United Arab Emirates. Remsons Industries Limited was founded in 1959 and is headquartered in Mumbai, India.

How the Company Makes Money

Remsons Industries generates revenue through the sale of its automotive and engineering products, which are supplied to original equipment manufacturers (OEMs) and aftermarket segments. The company has established key partnerships with major automotive brands, ensuring a steady demand for its products. Additionally, Remsons benefits from economies of scale in its manufacturing processes, allowing it to maintain competitive pricing. Revenue is further bolstered by its commitment to innovation and quality, leading to repeat business and customer loyalty.

Remsons Industries Limited Financial Statement Overview

Summary

Remsons Industries Limited exhibits strong revenue growth and operational efficiency, as evidenced by its robust gross profit and EBIT margins. The balance sheet shows moderate leverage and a healthy equity position, though improvement in free cash flow generation is necessary to ensure sustainable growth. Overall, the company is on a positive growth trajectory with potential risks in capital management.

Income Statement

Remsons Industries Limited has shown a strong upward trajectory in revenue, with a notable revenue growth rate of 20.6% from 2024 to 2025. The gross profit margin is at 45.5%, indicating efficient cost management, while the net profit margin of 3.8% suggests room for improvement in controlling operational expenses. The EBIT margin is robust at 24.7%, demonstrating effective operational control.

Balance Sheet

The company's balance sheet reveals a stable financial position, with a debt-to-equity ratio of 0.69, indicating moderate leverage. The return on equity (ROE) stands at 11.4%, reflecting solid profitability relative to equity. The equity ratio of 40.2% shows a healthy proportion of equity financing, though there is still a significant reliance on debt.

Cash Flow

Cash flow analysis indicates challenges in generating free cash flow, with a free cash flow of -69.57 million in 2025. The operating cash flow to net income ratio is 1.54, suggesting effective cash generation from operations relative to net income. However, the negative free cash flow highlights potential issues in managing capital expenditures and investing activities.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	4.00B	3.77B	3.12B	3.13B	2.85B	2.27B
Gross Profit	1.86B	1.72B	1.32B	1.18B	1.02B	715.35M
EBITDA	448.97M	373.55M	339.87M	281.76M	215.91M	152.14M
Net Income	153.06M	143.68M	133.20M	83.70M	53.63M	44.85M
Balance Sheet
Total Assets	0.00	3.12B	2.38B	1.90B	1.75B	1.65B
Cash, Cash Equivalents and Short-Term Investments	146.14M	146.14M	78.46M	121.46M	68.72M	26.18M
Total Debt	0.00	861.51M	681.12M	824.53M	809.84M	754.34M
Total Liabilities	-1.37B	1.75B	1.26B	1.48B	1.40B	1.36B
Stockholders Equity	1.37B	1.26B	1.11B	422.66M	345.30M	297.19M
Cash Flow
Free Cash Flow	0.00	-69.57M	38.87M	138.41M	47.77M	-91.73M
Operating Cash Flow	0.00	221.77M	154.77M	277.00M	143.47M	-10.19M
Investing Cash Flow	0.00	-290.22M	-480.43M	-164.79M	-83.36M	-301.14M
Financing Cash Flow	0.00	98.85M	282.66M	-54.39M	-17.77M	312.81M

Remsons Industries Limited Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 126.25
• 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:REMSONSIND, the sentiment is Negative. The current price of 126.25 is above the 20-day moving average (MA) of 112.81, above the 50-day MA of 117.14, and below the 200-day MA of 126.86, indicating a bearish trend. The MACD of -3.59 indicates Positive momentum. The RSI at 35.39 is Neutral, neither overbought nor oversold. The STOCH value of 44.46 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for IN:REMSONSIND.

Remsons Industries Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
MUNJALSHOW	66 Neutral	₹4.75B	18.32	―	3.69%	―	―
REMSONSIND	65 Neutral	₹3.79B	23.32	―	0.24%	28.08%	3.19%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
PPAP	55 Neutral	₹2.80B	162.23	―	1.17%	2.75%	―
SHIVAMAUTO	47 Neutral	₹2.83B	-4.70	―	―	-11.18%	-22.17%
MUKTAARTS	43 Neutral	₹1.30B	-7.93	―	―	-3.03%	6.44%