Raj Oil Mills Limited (ROML) AI Stock Analysis

• Market Cap: ₹1.33B
• Dividend Yield: N/A
• Average Volume (3M): 8.68K
• Price to Earnings (P/E): 15.6
• Beta (1Y): 0.70
• Revenue Growth: 16.20%
• EPS Growth: 267.95%
• Country: IN
• Employees: 162
• Sector: Consumer Defensive
• Sector Strength: 42
• Industry: Packaged Foods
• EPS (TTM): 0.81
• 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: 44 Neutral
• Price Target: ₹44.00 ▼(-12.04% Downside)
• Action: Reiterated Date: 03/06/26
• Date: Action: Reiterated 03/06/26

Overall score is held back primarily by financial performance concerns—especially negative equity/high leverage and inconsistent profitability and cash generation. Technical indicators also lean weaker due to a longer-term downtrend and negative MACD, while valuation is only moderately supportive with a mid-range P/E and no dividend yield data.

Positive Factors

Brand portfolio & product diversification

A diversified consumer-products mix across edible oils and personal care (notably MAHAMARINE) provides durable revenue channels. Branded FMCG products support customer loyalty and broader distribution, reducing sole reliance on commodity oil volumes and smoothing long-term demand swings.

Stable gross profit margin

A consistent gross margin near 15-16% indicates structural ability to retain spread between input costs and selling prices. That margin stability supports operating leverage recovery when volumes rise and offers a buffer against short-term commodity cost volatility for sustained profitability.

Positive operating cash flow instances

Recent positive operating cash flow demonstrates the core business can convert sales into cash, enabling working-capital management and supporting near-term obligations. Continued operating cash generation is a durable foundation for stabilizing the balance sheet and funding modest reinvestment.

Negative Factors

Negative shareholders' equity

Negative shareholders' equity and high leverage are structural constraints: they limit borrowing capacity, increase refinancing risk, and reduce flexibility to fund growth or absorb shocks. Over months this can impair investment, supplier negotiations, and strategic initiatives without recapitalization.

Volatile free cash flow & inconsistent profitability

Inconsistent profitability and episodic negative free cash flow signal weak earnings quality and cash conversion variability. This undermines the firm's ability to self-fund capex and working capital, raising reliance on external financing and making long-term planning and margin improvement harder to sustain.

Inconsistent revenue with recent declines

Recent top-line declines and uneven revenue trends point to market-share pressure or demand weakness in core categories. Persistent revenue instability erodes scale benefits, stresses margins, and complicates return-to-growth initiatives absent clear product or distribution-led structural improvements.

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

Weak overall financial profile: inconsistent revenue with recent declines, unstable profitability including periods of negative EBIT, and volatile free cash flow. The biggest risk is the balance sheet with negative stockholders’ equity and high leverage, which limits financial flexibility.

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	Mar 2024	Mar 2023	Mar 2022	Mar 2021	Mar 2021
Income Statement
Total Revenue	1.37B	1.14B	1.25B	1.40B	1.19B	1.03B
Gross Profit	194.51M	188.04M	188.93M	97.01M	73.07M	179.34M
EBITDA	80.80M	56.84M	44.97M	42.22M	42.03M	58.64M
Net Income	53.77M	26.97M	17.08M	24.25M	25.99M	40.71M
Balance Sheet
Total Assets	427.09M	414.08M	451.02M	435.12M	355.69M	324.84M
Cash, Cash Equivalents and Short-Term Investments	3.36M	3.37M	3.77M	3.11M	3.15M	3.29M
Total Debt	300.19M	313.83M	311.73M	297.15M	282.14M	294.30M
Total Liabilities	422.09M	438.49M	502.82M	504.61M	449.25M	444.66M
Stockholders Equity	5.00M	-24.41M	-51.80M	-69.49M	-93.55M	-119.82M
Cash Flow
Free Cash Flow	15.97M	1.24M	-6.47M	-136.00K	-17.64M	36.08M
Operating Cash Flow	19.40M	2.81M	7.50M	23.95M	-11.63M	50.81M
Investing Cash Flow	-3.25M	-1.23M	-13.66M	-23.91M	-5.90M	-14.37M
Financing Cash Flow	-16.15M	-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: Negative
• 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 43.91, above the 50-day MA of 45.23, and above the 200-day MA of 49.69, indicating a bearish trend. The MACD of -0.14 indicates Negative momentum. The RSI at 46.34 is Neutral, neither overbought nor oversold. The STOCH value of 31.94 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	₹2.98B	22.43	―	4.69%	6.31%	161.73%
Sector *	62 Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%
GOKUL	54 Neutral	₹3.97B	18.03	―	―	22.45%	26.18%
KOTHARIPRO	54 Neutral	₹3.76B	11.19	―	―	-3.96%	―
KCPSUGIND	52 Neutral	₹2.57B	10.94	―	0.38%	-13.84%	-149.34%
UGARSUGAR	50 Neutral	₹4.13B	8.79	―	0.60%	20.40%	―
ROML	44 Neutral	₹1.33B	15.57	―	―	16.20%	267.95%