RSWM Ltd (RSWM) AI Stock Analysis

• Market Cap: ₹6.62B
• Dividend Yield: N/A
• Average Volume (3M): 2.29K
• Price to Earnings (P/E): 82.1
• Beta (1Y): 1.48
• Revenue Growth: 5.54%
• EPS Growth: N/A
• Country: IN
• Employees: 18,622
• Sector: Consumer Defensive
• Sector Strength: 42
• Industry: Apparel - Manufacturers
• EPS (TTM): 1.58
• Shares Outstanding: 47,101,685
• 10 Day Avg. Volume: 1,370
• 30 Day Avg. Volume: 2,285
• PEG Ratio: -0.18
• Price to Book (P/B): 0.50
• Price to Sales (P/S): 0.14
• P/FCF Ratio: 2.18
• 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: 64 Neutral
• Price Target: ₹150.00 ▲(2.18% Upside)

RSWM Ltd's overall stock score is driven by strong technical momentum and improving cash flows, despite high valuation concerns and profitability challenges. The lack of earnings call data and corporate events means these factors did not influence the score.

Positive Factors

Improved cash generation

RSWM's operating cash flows have recovered and the company delivered positive free cash flow this year, indicating improved cash-generation versus reported earnings. Durable cash conversion supports reinvestment in capacity, working-capital resilience, and servicing obligations over the medium term.

Top-line growth

The company recorded positive revenue growth with a significant year-over-year increase, reflecting sustained demand for its yarn and fabric offerings. Durable top-line expansion supports better capacity utilization, scale efficiencies and the potential for margin recovery if operating expenses are managed.

Integrated product & market reach

RSWM's integrated yarn and fabric manufacturing for both domestic and export markets creates diversified revenue streams across the textile value chain. A broad product mix and cross-market exposure reduce single-market dependence, improving resilience to demand shifts and enabling cross-selling opportunities.

Negative Factors

Recent net loss / negative ROE

A recent net loss has produced negative return on equity, undermining shareholder returns and reducing retained earnings available to fund growth. Continued profitability shortfalls can erode capital cushions, limit strategic investments, and constrain the company’s ability to rebuild equity over the medium term.

High financial leverage

The balance sheet shows a relatively high debt-to-equity ratio, raising leverage and interest-service burdens. Elevated leverage reduces financial flexibility, increases refinancing and covenant risk, and can force prioritization of debt repayment over capex or strategic initiatives during industry cycles.

Volatile free cash flow history

Historical volatility in free cash flow growth, despite a recent recovery, signals inconsistent surplus generation. Erratic free cash flow complicates long-term planning, weakens the ability to fund capex or deleveraging predictably, and raises the risk that cash shortfalls could hamper sustained operational improvements.

RSWM Ltd Business Overview & Revenue Model

Company Description

RSWM Limited operates as a textile manufacturer in India, Europe, the Middle East, Africa, South East and Far East Asia, and the Americas. It operates in two segments, Yarn and Fabric. The company offers greige yarn for weaving, knitting, sewing, and industrial applications under the ULTIMA brand name; and melange yarn that is used for undergarments, shirts, business suits, socks, and sportswear, as well as bed linen, towels, and other home fabric products. It also provides dyed yarns used for curtains, carpets, bed covers, upholstery, and other items; denim fabrics; and various functional yarns under the RSWM EDGE brand name. The company was formerly known as Rajasthan Spinning & Weaving Mills Ltd. RSWM Limited was incorporated in 1960 and is based in Noida, India.

How the Company Makes Money

RSWM generates revenue through the sale of its diverse range of textile products, including yarns, fabrics, and specialty textiles. The company leverages economies of scale and advanced manufacturing technologies to optimize production efficiency and reduce costs. Key revenue streams include direct sales to domestic and international apparel and textile manufacturers, as well as collaborations with fashion brands and retailers. RSWM also benefits from strategic partnerships with suppliers and distributors, enhancing its market reach and enabling it to tap into emerging market trends. Additionally, the company may explore value-added services such as custom fabric development and design consulting, further contributing to its earnings.

RSWM Ltd Financial Statement Overview

Summary

RSWM Ltd shows growth potential with increasing revenues and improved cash flows. However, profitability challenges due to recent net losses and high leverage pose financial risks. Strategic cost management and debt reduction could enhance financial health.

Income Statement

RSWM Ltd has experienced positive revenue growth, with a significant increase from the previous year, indicating strong market demand for its products. However, the net profit margin is concerning, as the company recorded a net loss in the most recent year. The gross profit margin remains robust, suggesting efficient production, but the negative EBIT margin indicates challenges in managing operating expenses.

Balance Sheet

The balance sheet shows a sound equity position, although the debt-to-equity ratio is relatively high, indicating leverage risks. The equity ratio suggests decent capitalization, yet the return on equity is negative due to the net loss, impacting shareholder returns. The company needs to manage its liabilities better to improve financial stability.

Cash Flow

RSWM Ltd's cash flow situation has improved, with a strong recovery in operating cash flows and positive free cash flow this year. The operating cash flow to net income ratio is favorable, indicating effective cash generation relative to earnings. However, the historical volatility in free cash flow growth is a point of concern.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	47.88B	48.26B	40.25B	37.33B	37.94B	23.26B
Gross Profit	20.44B	17.29B	12.74B	13.49B	15.81B	9.36B
EBITDA	4.31B	2.41B	2.37B	3.49B	4.69B	2.10B
Net Income	-169.20M	-400.20M	-210.56M	1.23B	2.46B	208.30M
Balance Sheet
Total Assets	0.00	36.11B	36.94B	28.90B	25.74B	20.69B
Cash, Cash Equivalents and Short-Term Investments	109.30M	669.70M	69.58M	32.13M	68.96M	53.35M
Total Debt	0.00	17.16B	18.90B	11.57B	11.03B	9.26B
Total Liabilities	-12.97B	23.14B	23.96B	15.73B	15.38B	12.77B
Stockholders Equity	12.97B	12.97B	12.97B	13.17B	10.35B	7.92B
Cash Flow
Free Cash Flow	0.00	2.98B	-3.07B	-2.45B	-1.46B	2.88B
Operating Cash Flow	0.00	4.26B	-757.80M	889.17M	2.10B	3.20B
Investing Cash Flow	0.00	-1.13B	-3.62B	-2.39B	-3.18B	66.46M
Financing Cash Flow	0.00	-3.07B	4.39B	1.47B	1.11B	-3.26B

RSWM Ltd Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 146.80
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:RSWM, the sentiment is Neutral. The current price of 146.8 is above the 20-day moving average (MA) of 137.06, below the 50-day MA of 146.81, and below the 200-day MA of 156.13, indicating a neutral trend. The MACD of -3.37 indicates Negative momentum. The RSI at 51.98 is Neutral, neither overbought nor oversold. The STOCH value of 89.30 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for IN:RSWM.

RSWM Ltd Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
LAMBODHARA	69 Neutral	₹1.15B	14.26	―	0.42%	13.13%	-2.13%
RSWM	64 Neutral	₹6.62B	82.11	―	―	5.54%	―
AMBIKCO	63 Neutral	₹7.36B	11.88	―	2.91%	-15.70%	-4.19%
Sector *	62 Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%
BASML	47 Neutral	₹1.96B	13.96	―	―	-8.50%	―
SUPERSPIN	46 Neutral	₹436.15M	-2.77	―	―	-9.14%	-16.81%

RSWM Ltd Corporate Events

RSWM Ltd Announces Superannuation of Chief Human Resources Officer

RSWM Ltd has announced the superannuation of its Chief Human Resources Officer, Manoj Sharma, effective from the close of business on 27 January 2026, in compliance with disclosure requirements under SEBI’s Listing Regulations. The retirement marks a change in the company’s senior management structure and underscores its adherence to regulatory transparency, with the disclosure also being made available on the company’s website for the information of investors and other stakeholders.