R&B Denims Ltd (RNBDENIMS) AI Stock Analysis

• Market Cap: ₹14.62B
• Dividend Yield: N/A
• Average Volume (3M): 3.79K
• Price to Earnings (P/E): 36.6
• Beta (1Y): 0.59
• Revenue Growth: 1.95%
• EPS Growth: 27.46%
• Country: IN
• Employees: 356
• Sector: Consumer Goods
• Sector Strength: N/A
• Industry: Manufacturing - Textiles
• EPS (TTM): 0.92
• Shares Outstanding: 89,973,440
• 10 Day Avg. Volume: 1,223
• 30 Day Avg. Volume: 3,788
• PEG Ratio: -6.88
• Price to Book (P/B): 5.08
• Price to Sales (P/S): 2.56
• P/FCF Ratio: 60.10
• 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: 62 Neutral
• Price Target: ₹172.00 ▲(35.54% Upside)
• Action: Reiterated Date: 02/25/26
• Date: Action: Reiterated 02/25/26

The score is driven primarily by solid underlying financial performance (growth, stable margins, improving leverage) offset by weaker cash-flow trends. Technically, the stock is in a strong uptrend but appears overextended (very high RSI/Stoch), which raises near-term risk. Valuation is the main headwind due to a high P/E (60.40).

Positive Factors

Consistent Revenue Growth

Sustained top-line growth indicates persistent end-customer demand and successful distribution. A steady revenue increase supports capacity utilization, pricing leverage and product development investments, strengthening the firm's ability to fund strategic initiatives over the next several quarters.

Stable Gross & Healthy EBITDA Margins

Stable gross margins near 21.7% and solid EBIT/EBITDA margins point to durable cost control and operational efficiency in manufacturing and retail. Margin stability supports consistent cash generation potential and competitive pricing flexibility across different selling seasons.

Improved Leverage & Solid Equity Position

A lower debt-to-equity ratio and a strong equity share indicate enhanced financial resilience and capacity to absorb shocks. Combined with a 12.1% ROE, this balance sheet profile supports disciplined reinvestment, measured leverage for growth, and reduced refinancing risk over the medium term.

Negative Factors

Declining Free Cash Flow

A 15.7% decline in free cash flow reduces internal funds available for capex, inventory buildup, or debt reduction. Over several quarters this can constrain strategic investments, limit flexibility for new store rollouts or product lines, and increase dependence on external financing.

Weak Cash Conversion

Low operating cash conversion (0.24) signals recurring gaps between accounting profits and cash receipts, often due to working capital strain. Persistently weak conversion can impair liquidity, elevate short-term funding needs and hamper the company's ability to sustain dividend payments or rapid reinvestment.

Relatively Low Net Profit Margin

A net margin near 6.1% limits retained earnings available for growth and makes earnings sensitive to cost or demand shocks. Over the medium term, lower profitability reduces capacity to self-fund expansion and increases reliance on margin improvement or higher volume to achieve strategic objectives.

R&B Denims Ltd Business Overview & Revenue Model

Company Description

R & B Denims Limited, together with its subsidiary, manufactures and sells denim textile products in India. It manufactures denim fabrics, including cotton, cotton-poly blends, and cotton-spandex varieties; denim garments comprising jeans, shorts and skirts, jackets, overalls and jumpsuits, and accessories; and cotton and specialty yarns, as well as ring-spun, open-end, slub, and specialized cotton stretch yarns. The company also exports its products. R & B Denims Limited was incorporated in 2010 and is based in Surat, India.

How the Company Makes Money

R&B Denims Ltd generates revenue through multiple streams, primarily by selling its denim products directly to consumers through retail outlets and e-commerce platforms. The company also engages in wholesale distribution to various department stores and boutique retailers, expanding its market reach. Additionally, RNBDENIMS capitalizes on partnerships with fashion brands and designers for collaborative lines, which provide a unique product offering and enhance brand visibility. The focus on sustainable practices may also attract eco-conscious consumers, further boosting sales. Seasonal promotions and marketing campaigns are strategically employed to stimulate demand and drive revenue growth.

R&B Denims Ltd Financial Statement Overview

Summary

Income statement strength (score 75) shows steady revenue growth (+5.7%) and stable gross margin (~21.7%), with healthy EBIT/EBITDA margins; balance sheet is solid (score 70) with improved leverage (debt-to-equity 0.52) and decent ROE (12.1%). The main drag is cash flow (score 60), with free cash flow down 15.7% and weak cash conversion (operating cash flow to net income 0.24).

Income Statement

R&B Denims Ltd has shown consistent revenue growth with a 5.7% increase in the latest year, indicating a positive trajectory. The gross profit margin has remained stable around 21.7%, reflecting efficient cost management. However, the net profit margin is relatively low at 6.1%, suggesting room for improvement in profitability. The EBIT and EBITDA margins are healthy, indicating strong operational performance.

Balance Sheet

The company's debt-to-equity ratio has improved to 0.52, showing a reduction in leverage, which enhances financial stability. The return on equity is solid at 12.1%, demonstrating effective use of shareholder funds. The equity ratio stands at 57.6%, indicating a strong equity position relative to total assets, which is a positive sign of financial health.

Cash Flow

The free cash flow has decreased by 15.7%, which is a concern for liquidity. The operating cash flow to net income ratio is low at 0.24, suggesting potential challenges in converting earnings into cash. However, the free cash flow to net income ratio is relatively strong at 66.6%, indicating that a significant portion of earnings is being converted into free cash flow.

Breakdown	Mar 2024	Mar 2023	Mar 2022	Mar 2022
Income Statement
Total Revenue	3.64B	3.44B	2.53B	2.84B
Gross Profit	789.02M	740.17M	478.05M	614.48M
EBITDA	606.45M	537.83M	386.85M	441.91M
Net Income	222.30M	186.87M	148.98M	211.04M
Balance Sheet
Total Assets	3.18B	2.82B	1.54B	1.84B
Cash, Cash Equivalents and Short-Term Investments	4.08M	6.03M	962.00K	2.03M
Total Debt	942.34M	680.58M	516.75M	861.30M
Total Liabilities	1.17B	1.02B	745.40M	1.19B
Stockholders Equity	1.83B	1.62B	792.81M	642.90M
Cash Flow
Free Cash Flow	154.72M	183.60M	376.76M	-189.53M
Operating Cash Flow	232.16M	243.99M	589.04M	162.15M
Investing Cash Flow	-290.07M	-216.05M	-167.20M	-185.69M
Financing Cash Flow	134.11M	-80.58M	-475.62M	118.78M

R&B Denims Ltd Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 126.90
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:RNBDENIMS, the sentiment is Neutral. The current price of 126.9 is below the 20-day moving average (MA) of 178.45, below the 50-day MA of 151.86, and above the 200-day MA of 117.71, indicating a neutral trend. The MACD of 7.74 indicates Positive momentum. The RSI at 43.13 is Neutral, neither overbought nor oversold. The STOCH value of 0.62 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for IN:RNBDENIMS.

R&B Denims Ltd Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
BIL	68 Neutral	₹9.94B	36.02	―	―	31.04%	6468.72%
RSWM	66 Neutral	₹7.00B	73.65	―	―	5.54%	―
RNBDENIMS	62 Neutral	₹14.62B	36.57	―	―	1.95%	27.46%
AYMSYNTEX	60 Neutral	₹11.81B	178.44	―	―	-2.89%	-94.82%
NAHARPOLY	60 Neutral	₹5.62B	7.41	―	0.41%	8.64%	182.96%
Sector *	57 Neutral	$3.13B	9.23	-34.32%	3.14%	-25.56%	-353.61%
MIRCELECTR	54 Neutral	₹10.31B	-19.72	―	―	-30.79%	59.95%

R&B Denims Ltd Corporate Events

R&B Denims Wins ₹2.16 Billion Denim Orders, Lifts Revenue Visibility

R&B Denims Ltd has secured confirmed sales orders worth about INR 2.16 billion for the supply of roughly 12 million meters of denim fabric to established merchant exporters in India. The domestic contracts, to be executed over six months, represent one of the company’s larger recent order wins and highlight strong demand and customer confidence in its capabilities.

Management expects execution of these orders to significantly improve revenue visibility, boost capacity utilization, and strengthen the company’s order book, supporting its strategic plan to scale operations and enhance operating leverage. The development is framed as reinforcing R&B Denims’ growth trajectory and its focus on disciplined execution and long-term value creation for stakeholders.