Why is RSWM Ltd ?
1
Low ability to service debt as the company has a high Debt to EBITDA ratio of 7.05 times
- Low ability to service debt as the company has a high Debt to EBITDA ratio of 7.05 times
- The company has been able to generate a Return on Equity (avg) of 9.22% signifying low profitability per unit of shareholders funds
2
Despite the size of the company, domestic mutual funds hold only 0.01% of the company
- Domestic mutual funds have capability to do in-depth on-the-ground research on companies- their small stake may signify either they are not comfortable at the price or the business
3
Consistent Underperformance against the benchmark over the last 3 years
- Along with generating -20.01% returns in the last 1 year, the stock has also underperformed BSE500 in each of the last 3 annual periods
How much should you hold?
- Overall Portfolio exposure to RSWM Ltd should be less than 10%
- Overall Portfolio exposure to Garments & Apparels should be less than 30%
(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Garments & Apparels)
When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock
Is RSWM Ltd for you?
High Risk, Low Return
Absolute
Risk Adjusted
Volatility
RSWM Ltd
13.95%
-0.48
41.66%
Sensex
-5.16%
0.43
11.83%
Quality key factors
Factor
Value
Sales Growth (5y)
14.38%
EBIT Growth (5y)
22.68%
EBIT to Interest (avg)
1.42
Debt to EBITDA (avg)
7.69
Net Debt to Equity (avg)
1.23
Sales to Capital Employed (avg)
1.61
Tax Ratio
Tax Ratio is Negative%
Dividend Payout Ratio
0
Pledged Shares
0
Institutional Holding
1.83%
ROCE (avg)
5.62%
ROE (avg)
7.47%
Valuation Key Factors 
Factor
Value
P/E Ratio
16
Industry P/E
24
Price to Book Value
0.67
EV to EBIT
19.97
EV to EBITDA
9.15
EV to Capital Employed
0.85
EV to Sales
0.57
PEG Ratio
0.06
Dividend Yield
NA
ROCE (Latest)
4.27%
ROE (Latest)
4.26%
Loading Valuation Snapshot...
Technical key factors
Indicator
Weekly
Monthly
MACD
Bullish
Mildly Bullish
RSI
No Signal
No Signal
Bollinger Bands
Mildly Bullish
Bullish
Moving Averages
Bullish (Daily)
KST
Bullish
Mildly Bullish
Dow Theory
Mildly Bullish
Mildly Bullish
OBV
Bullish
Bullish
Technical Movement
14What is working for the Company
PAT(Latest six months)
Higher at Rs 15.36 cr
ROCE(HY)
Highest at 5.31%
-3What is not working for the Company
NET SALES(Q)
Lowest at Rs 1,090.81 cr
NON-OPERATING INCOME(Q)
is 93.63 % of Profit Before Tax (PBT
Loading Valuation Snapshot...
Here's what is working for RSWM Ltd
Profit After Tax (PAT) - Latest six months
At Rs 15.36 cr has Grown at 157.37%
Year on Year (YoY)MOJO Watch
PAT trend is very positive
PAT (Rs Cr)
Profit After Tax (PAT) - Latest six months
Higher at Rs 15.36 cr
than preceding 12 month period ended Dec 2025 of Rs -16.92 crMOJO Watch
In the half year the company has already crossed PAT of the previous twelve months
PAT (Rs Cr)
Here's what is not working for RSWM Ltd
Net Sales - Quarterly
Lowest at Rs 1,090.81 cr
in the last five quartersMOJO Watch
Near term sales trend is negative
Net Sales (Rs Cr)
Net Sales - Quarterly
At Rs 1,090.81 cr has Fallen at -8.6% (vs previous 4Q average)
over average Net Sales of the previous four quarters of Rs 1,193.30 CrMOJO Watch
Near term sales trend is negative
Net Sales (Rs Cr)
Non Operating Income - Quarterly
is 93.63 % of Profit Before Tax (PBT)
MOJO Watch
The company's income from non business activities is high; which is not a sustainable business model
Non Operating Income to PBT
Non Operating Income - Quarterly
Highest at Rs 13.67 cr
in the last five quartersMOJO Watch
Increased income from non business activities may not be sustainable
Non Operating Income