Raj Oil Mills Limited (ROML) AI Stock Analysis

• Market Cap: ₹1.36B
• Dividend Yield: N/A
• Average Volume (3M): 8.68K
• Price to Earnings (P/E): 12.6
• Beta (1Y): 0.77
• Revenue Growth: 16.20%
• EPS Growth: 267.95%
• Country: IN
• Employees: 162
• Sector: Consumer Defensive
• Sector Strength: 42
• Industry: Packaged Foods
• EPS (TTM): 1.02
• Shares Outstanding: 29,977,367
• 10 Day Avg. Volume: 24,460
• 30 Day Avg. Volume: 8,679
• PEG Ratio: 0.41
• Price to Book (P/B): -26.54
• Price to Sales (P/S): 0.57
• P/FCF Ratio: 521.47
• 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: 57 Neutral
• Price Target: ₹47.00 ▼(-6.04% Downside)

The overall stock score reflects significant financial challenges, with high debt and inconsistent profitability weighing heavily. Positive technical indicators provide some optimism, but the valuation is only moderately attractive. The absence of earnings call data and corporate events limits additional insights.

Positive Factors

Revenue Growth Trend

Reported revenue growth of ~16% indicates the company can expand top-line over time, reflecting demand for its edible oil and FMCG products. Durable revenue expansion supports scale, distribution leverage and reinvestment capacity if the company sustains this trend.

Stable Gross Margin

A relatively stable gross margin (15-16%) suggests consistent cost management or pricing power in core edible oils and personal care lines. Stability at the gross level provides a predictable base for operating profitability if SG&A and input price volatility are controlled.

Operating Cash Flow Generation

Recent positive operating cash flow demonstrates the business can convert sales into cash, supporting working capital needs and potentially financing capex or debt service internally. Sustainable operating cash flow is key to long-term financial resilience.

Negative Factors

Negative Equity & High Leverage

Negative shareholders' equity indicates liabilities exceed assets and the company relies heavily on debt financing. This high leverage reduces financial flexibility, increases refinancing and solvency risk, and constrains capacity to invest or absorb shocks over the medium term.

Inconsistent Revenue and Profitability

Fluctuating top-line and periods of declining revenue undermine predictability of earnings and make margin improvements hard to sustain. For an FMCG player, inconsistent demand or market share loss can erode long-term growth prospects and strategic planning effectiveness.

Volatile Free Cash Flow

Intermittent negative free cash flow signals the firm sometimes fails to generate excess cash after capex, forcing reliance on external funding. Persistent FCF volatility hampers debt reduction, investment planning and long-term shareholder returns, raising structural financing risk.

Raj Oil Mills Limited Business Overview & Revenue Model

Company Description

Raj Oil Mills Ltd. engages in manufacturing and marketing of edible oils. Its oil brands include Cocoraj Coconut, Cocoraj Cool Ayurvedic, Guinea Filtered Groundnut, Guinea Lite Refined Groundnut, Guinea Lite Refined Sunflower, Tilraj Til, Mustaraj Mustard, Guinea Lite Refined Cottonseed, and Guinea Lite Refined Soyabean. The company was founded in 1943 and is headquartered in Mumbai, India.

How the Company Makes Money

Raj Oil Mills Limited generates revenue through the sale of its edible oil products, which are marketed under several brand names. The company operates on a business model that includes both wholesale and retail distribution channels, allowing it to reach a broad customer base, from individual consumers to large-scale food manufacturers. Key revenue streams include direct sales to supermarkets, grocery stores, and foodservice providers. Additionally, ROML may engage in strategic partnerships with suppliers and distributors to enhance its market reach and efficiency. Factors contributing to its earnings include fluctuations in raw material prices, consumer demand for health-oriented and organic products, and the company's ability to innovate and expand its product line to adapt to market trends.

Raj Oil Mills Limited Financial Statement Overview

Summary

Raj Oil Mills Limited faces significant financial challenges, with inconsistent revenue and profitability, high debt levels, and negative equity. While there are some positive trends in cash flow, overall financial stability is a concern.

Income Statement

Raj Oil Mills Limited has experienced fluctuations in revenue over the years with a notable decline in the recent period. The gross profit margin has been relatively stable, around 15-16%, but the company has struggled with consistent net profitability, evidenced by a fluctuating net profit margin and periods of negative EBIT. The revenue growth rate has been inconsistent, with recent declines indicating challenges in maintaining top-line growth.

Balance Sheet

The company has a negative stockholders' equity, reflecting substantial liabilities compared to assets. This is a potential risk, as indicated by a high debt-to-equity ratio, suggesting financial instability. The negative equity ratio highlights the company's reliance on debt financing, which could impact its financial flexibility and ability to invest in growth opportunities.

Cash Flow

Cash flow analysis shows volatility with instances of negative free cash flow, suggesting challenges in generating sufficient cash from operations to cover capital expenditures. However, a positive operating cash flow in recent periods is a positive sign. The inconsistency in free cash flow growth indicates the need for improved cash management strategies to ensure sustainable financial health.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.27B	1.14B	1.25B	1.40B	1.19B	1.03B
Gross Profit	210.74M	188.04M	188.93M	97.01M	73.07M	179.34M
EBITDA	77.76M	56.84M	44.97M	42.22M	42.03M	58.64M
Net Income	49.24M	26.97M	17.08M	24.25M	25.99M	40.71M
Balance Sheet
Total Assets	0.00	414.08M	451.02M	435.12M	355.69M	324.84M
Cash, Cash Equivalents and Short-Term Investments	3.37M	3.37M	3.77M	3.11M	3.15M	3.29M
Total Debt	0.00	313.83M	311.73M	297.15M	282.14M	294.30M
Total Liabilities	24.41M	438.49M	502.82M	504.61M	449.25M	444.66M
Stockholders Equity	-24.41M	-24.41M	-51.80M	-69.49M	-93.55M	-119.82M
Cash Flow
Free Cash Flow	0.00	1.24M	-6.47M	-136.00K	-17.64M	36.08M
Operating Cash Flow	0.00	2.81M	7.50M	23.95M	-11.63M	50.81M
Investing Cash Flow	0.00	-1.23M	-13.66M	-23.91M	-5.90M	-14.37M
Financing Cash Flow	0.00	-1.98M	6.82M	-83.00K	17.39M	-43.53M

Raj Oil Mills Limited Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 50.02
• 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:ROML, the sentiment is Negative. The current price of 50.02 is above the 20-day moving average (MA) of 46.92, above the 50-day MA of 49.00, and below the 200-day MA of 50.10, indicating a bearish trend. The MACD of -1.31 indicates Positive momentum. The RSI at 39.51 is Neutral, neither overbought nor oversold. The STOCH value of 41.19 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for IN:ROML.

Raj Oil Mills Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
MAWANASUG	78 Outperform	₹3.20B	3.07	―	4.69%	6.31%	161.73%
Sector *	62 Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%
ROML	57 Neutral	₹1.36B	12.62	―	―	16.20%	267.95%
GOKUL	54 Neutral	₹3.58B	24.51	―	―	22.45%	26.18%
KOTHARIPRO	54 Neutral	₹3.94B	9.26	―	―	-3.96%	―
KCPSUGIND	52 Neutral	₹2.58B	-6.37	―	0.38%	-13.84%	-149.34%
UGARSUGAR	50 Neutral	₹4.28B	44.13	―	0.60%	20.40%	―