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R&B Denims Ltd (IN:RNBDENIMS)
:RNBDENIMS
India Market
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R&B Denims Ltd (RNBDENIMS) AI Stock Analysis

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IN:RNBDENIMS

R&B Denims Ltd

(RNBDENIMS)

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Neutral 52 (OpenAI - 5.2)
Rating:52Neutral
Price Target:
₹10.00
▼(-92.12% Downside)
Action:Reiterated
Date:06/01/26
The score is mainly held back by weak cash-flow quality and significant margin compression despite strong revenue growth, alongside bearish technical trends with the stock trading below major moving averages. A low P/E provides some valuation support but is not enough to offset the near-term operational and momentum risks.
Positive Factors
Revenue Momentum
A ~125% YoY revenue surge in FY2026 reflects strong demand or share gains in denim/fabric markets. Durable top-line momentum provides scale benefits, supports fixed-cost absorption, and creates runway for reinvestment and margin recovery if input pressures ease over the next several quarters.
Negative Factors
Cash Conversion Weakness
A wide gap between net income and operating cash flow signals earnings are not translating into cash due to working-capital buildup or accruals. This erodes liquidity, raises short-term funding needs, and increases execution risk until cash conversion improves or financing is secured.
Read all positive and negative factors
Positive Factors
Negative Factors
Revenue Momentum
A ~125% YoY revenue surge in FY2026 reflects strong demand or share gains in denim/fabric markets. Durable top-line momentum provides scale benefits, supports fixed-cost absorption, and creates runway for reinvestment and margin recovery if input pressures ease over the next several quarters.
Read all positive factors

R&B Denims Ltd (RNBDENIMS) vs. iShares MSCI India ETF (INDA)

R&B Denims Ltd Business Overview & Revenue Model

Company Description
R&B Denims Limited, founded in 2010 and based in Surat, India, operates with its subsidiary to manufacture and distribute a diverse range of denim textile products across India. The company fabricates various denim materials, encompassing pure cot...
How the Company Makes Money
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R&B Denims Ltd Financial Statement Overview

Summary
Strong FY2026 revenue growth (~125% YoY) and improving leverage (debt-to-equity ~0.37) are positives, but profitability compressed sharply (gross margin ~14% vs ~22% prior year) and cash conversion deteriorated materially with negative free cash flow (~-197M) despite positive net income.
Income Statement
62
Positive
Balance Sheet
70
Positive
Cash Flow
38
Negative
BreakdownTTMMar 2025Mar 2024Mar 2023Mar 2022Mar 2022
Income Statement
Total Revenue2.07B4.66B3.64B3.44B2.53B2.84B
Gross Profit411.85M669.39M789.02M740.17M478.05M614.48M
EBITDA295.72M576.54M606.45M537.83M386.85M441.91M
Net Income94.96M247.62M222.30M186.87M148.98M211.04M
Balance Sheet
Total Assets3.28B3.56B3.18B2.82B1.54B1.84B
Cash, Cash Equivalents and Short-Term Investments141.87M306.24M4.08M6.03M962.00K2.03M
Total Debt872.11M739.94M942.34M680.58M516.75M861.30M
Total Liabilities1.13B1.04B1.17B1.02B745.40M1.19B
Stockholders Equity1.95B2.00B1.83B1.62B792.81M642.90M
Cash Flow
Free Cash Flow291.24M-196.85M154.72M183.60M376.76M-189.53M
Operating Cash Flow388.52M68.68M232.16M243.99M589.04M162.15M
Investing Cash Flow-221.28M-175.19M-290.07M-216.05M-167.20M-185.69M
Financing Cash Flow-180.95M45.78M134.11M-80.58M-475.62M118.78M

R&B Denims Ltd Technical Analysis

Technical Analysis Sentiment
Negative
Last Price126.90
Price Trends
50DMA
10.88
Negative
100DMA
20.36
Negative
200DMA
32.42
Negative
Market Momentum
MACD
-0.46
Positive
RSI
31.66
Neutral
STOCH
4.70
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:RNBDENIMS, the sentiment is Negative. The current price of 126.9 is above the 20-day moving average (MA) of 10.40, above the 50-day MA of 10.88, and above the 200-day MA of 32.42, indicating a bearish trend. The MACD of -0.46 indicates Positive momentum. The RSI at 31.66 is Neutral, neither overbought nor oversold. The STOCH value of 4.70 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for IN:RNBDENIMS.

R&B Denims Ltd Peers Comparison

Overall Rating
UnderperformOutperform
Sector (55)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
65
Neutral
₹6.22B8.170.41%5.75%66.42%
57
Neutral
₹9.93B19.22-5.63%
55
Neutral
$6.65B3.83-15.92%6.20%10.91%7.18%
52
Neutral
₹2.62B7.5627.03%-15.48%
50
Neutral
₹14.38B216.25-8.32%-48.06%
49
Neutral
₹14.50B-17.75-11.61%-2328.90%
47
Neutral
₹9.68B72.8131.94%-19.61%
* General Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
IN:RNBDENIMS
R&B Denims Ltd
9.60
-20.40
-68.00%
IN:AYMSYNTEX
AYM Syntex Limited
238.75
8.25
3.58%
IN:BIL
Bhartiya International Limited
731.35
-165.20
-18.43%
IN:MIRCELECTR
MIRC Electronics Limited
39.43
20.86
112.33%
IN:NAHARPOLY
Nahar Poly Films Limited
260.25
-94.12
-26.56%
IN:RSWM
RSWM Ltd
219.00
55.05
33.58%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Jun 01, 2026