RSWM Ltd (RSWM) AI Stock Analysis

• Market Cap: ₹6.35B
• Dividend Yield: N/A
• Average Volume (3M): 2.29K
• Price to Earnings (P/E): 73.6
• Beta (1Y): 1.45
• Revenue Growth: 5.54%
• EPS Growth: N/A
• Country: IN
• Employees: 18,622
• Sector: Consumer Defensive
• Sector Strength: 42
• Industry: Apparel - Manufacturers
• EPS (TTM): 0.51
• 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: 66 Neutral
• Price Target: ₹149.00 ▲(1.50% Upside)
• Action: Reiterated Date: 02/14/26
• Date: Action: Reiterated 02/14/26

The score is driven primarily by solid financial statement momentum (revenue growth and improved cash generation) but held back by ongoing profitability issues and leverage risk. Technicals are supportive with a clear uptrend, while valuation is a meaningful drag due to the elevated P/E and lack of dividend data.

Positive Factors

Improved cash generation

A recovery in operating cash flow and positive free cash flow support durable funding for working capital, capex and debt service without repeated external raises. Sustainable cash generation reduces refinancing risk, enables reinvestment in capacity or product mix, and improves operational resilience over several quarters.

Efficient production (robust gross margin)

A robust gross margin reflects structural production efficiency and cost control at the factory level. This enduring operational strength helps absorb raw-material swings, sustain unit economics across cycles, and underpins the ability to move up the value chain into higher‑margin yarns or specialty fabrics.

Scale and diversified market exposure

Operating across yarn and fabric lines with domestic and export channels gives RSWM scale and customer diversification. Structural exposure to multiple end markets and product types supports volume stability, negotiating leverage with suppliers, and flexibility to reallocate capacity when demand shifts across regions or product categories.

Negative Factors

Profitability weakness

Persistently negative EBIT and recent net losses indicate structural profitability pressure beyond one-off items. Weak operating margins erode retained earnings, limit ability to self‑fund growth, and force management to either raise capital or implement lasting cost and pricing changes to restore sustainable returns.

Elevated leverage risk

A relatively high debt‑to‑equity ratio constrains financial flexibility and raises interest expense sensitivity. Elevated leverage amplifies downside risk from margin compression or demand shocks, limits capacity for opportunistic investments, and increases the importance of consistent cash generation to meet obligations.

Volatile cash conversion and weak ROE

Volatile free cash flow growth combined with negative return on equity signals inconsistent capital returns and planning difficulty. Irregular cash conversion complicates debt servicing and reinvestment timing, and negative ROE reflects shareholder value erosion until profitability and steady cash conversion are reestablished.

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 primarily makes money by manufacturing and selling textile products. Its core revenue stream is generated from sales of yarn and fabric to downstream customers such as garment manufacturers, fabric processors, wholesalers, and other industrial textile buyers. Revenue is typically realized on a per-order basis through contracts or purchase orders, with pricing influenced by product mix (e.g., yarn counts/blends and fabric types), order volumes, and prevailing raw-material and textile market conditions. The company’s earnings are driven by (1) sales volumes across yarn and fabric lines, (2) value addition and product mix (higher-margin specialized or higher-quality products generally contribute more), and (3) the spread between input costs (notably fibers and other processing inputs) and realized selling prices, along with manufacturing efficiency and capacity utilization. Information on specific major customers, named strategic partnerships, or detailed segment-wise revenue breakdown is null.

RSWM Ltd Financial Statement Overview

Summary

Revenue growth and improved operating/free cash flow support the score, but recent net losses and negative EBIT margin point to profitability and cost-control challenges. Leverage is a notable risk with a relatively high debt-to-equity ratio and negative ROE.

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	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	47.73B	48.26B	40.25B	37.33B	37.94B	23.26B
Gross Profit	17.62B	17.29B	12.74B	13.49B	15.81B	9.36B
EBITDA	4.65B	2.41B	2.37B	3.49B	4.69B	2.10B
Net Income	80.60M	-400.20M	-210.56M	1.23B	2.46B	208.30M
Balance Sheet
Total Assets	34.26B	36.11B	36.94B	28.90B	25.74B	20.69B
Cash, Cash Equivalents and Short-Term Investments	63.40M	669.70M	69.58M	32.13M	68.96M	53.35M
Total Debt	15.20B	17.16B	18.90B	11.57B	11.03B	9.26B
Total Liabilities	21.14B	23.14B	23.96B	15.73B	15.38B	12.77B
Stockholders Equity	13.13B	12.97B	12.97B	13.17B	10.35B	7.92B
Cash Flow
Free Cash Flow	2.56B	2.98B	-3.07B	-2.45B	-1.46B	2.88B
Operating Cash Flow	3.01B	4.26B	-757.80M	889.17M	2.10B	3.20B
Investing Cash Flow	-376.70M	-1.13B	-3.62B	-2.39B	-3.18B	66.46M
Financing Cash Flow	-2.68B	-3.07B	4.39B	1.47B	1.11B	-3.26B

RSWM Ltd Technical Analysis

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

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:RSWM, the sentiment is Negative. The current price of 146.8 is below the 20-day moving average (MA) of 148.61, above the 50-day MA of 145.91, and below the 200-day MA of 155.58, indicating a bearish trend. The MACD of -2.74 indicates Positive momentum. The RSI at 35.18 is Neutral, neither overbought nor oversold. The STOCH value of 17.76 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for IN:RSWM.

RSWM Ltd Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
RSWM	66 Neutral	₹6.35B	73.65	―	―	5.54%	―
AMBIKCO	63 Neutral	₹7.32B	11.65	―	2.91%	-15.70%	-4.19%
Sector *	62 Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%
LAMBODHARA	62 Neutral	₹925.16M	13.04	―	0.42%	13.13%	-2.13%
SUPERSPIN	45 Neutral	₹234.30M	9.82	―	―	-9.14%	-16.81%
BASML	44 Neutral	₹1.52B	22.90	―	―	-8.50%	―

RSWM Ltd Corporate Events

RSWM Confirms Dispatch of Postal Ballot, Opens Shareholder E-Voting Process

RSWM Ltd has notified stock exchanges that it has completed dispatch of a Postal Ballot and e-voting notice to its shareholders, with confirmation advertisements published in national and regional newspapers in English and Hindi. The move signals the formal start of a shareholder approval process via remote e-voting, underscoring the company’s compliance with SEBI disclosure norms and its reliance on postal ballot mechanisms to secure member consent on corporate matters.

The notice and related details have been made available on the company’s website, enhancing transparency and accessibility for investors ahead of the voting window. By documenting the dispatch and publication of the Postal Ballot communication, RSWM is ensuring procedural rigor that may be important for validating upcoming resolutions and maintaining investor confidence in its governance framework.

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.