Digjam Ltd. (DIGJAMLMTD) AI Stock Analysis

Digjam Ltd.

(NSE:DIGJAMLMTD)

Select Model

Rating:41Neutral

Price Target:INR 51.00▼(-3.56% Downside)

Action:upgraded

Date:10/07/26

The overall score is low, primarily due to extreme balance sheet leverage and persistent unprofitability, which pose significant solvency risks. Bearish technical trends and negative cash flows further weaken the outlook, despite recent operational improvements.

Positive Factors

FY2026 Revenue ReboundThe FY2026 revenue rebound indicates that demand for Digjam’s textile products recovered from a weak base. If sustained, renewed top-line activity can improve operating absorption, support production continuity, and provide a foundation for restoring profitability over the next several quarters.

Negative Factors

Persistent Net LossesPersistent net losses show that recent revenue recovery has not yet translated into dependable shareholder earnings. Continued losses can erode financial resilience, restrict internally funded investment, and make it harder for Digjam to stabilize operations without relying on additional financing.

Digjam Ltd. (DIGJAMLMTD) vs. iShares MSCI India ETF (INDA)

Market Cap: INR 1.10B
Dividend Yield: ―
Average Volume (3M): 5,177
Price to Earnings (P/E): 55.5
Beta (1Y): 1.12
Revenue Growth: 9.93%
EPS Growth: -55.26%
Country: India
Employees: 17
Sector: General
Sector Strength: 55
Industry: Manufacturing - Textiles

Digjam Ltd. Business Overview & Revenue Model

Company Description

Digjam Limited engages in the manufacture and marketing of fabrics for suiting and casual wear primarily in India. The company offers its fabrics under the DIGJAM brand. Digjam Limited was formerly known as Digjam Textiles Limited and changed its nam...

How the Company Makes Money

Digjam Ltd. primarily makes money by manufacturing and selling textile products, with revenue typically generated from the sale of fabrics and other textile goods to customers (e.g., distributors, retailers, or institutional buyers). Specific disclos...

Digjam Ltd. Financial Statement Overview

Summary

Operational improvements are evident with 83% revenue growth and a positive operating profit, but the score is heavily constrained by a severely leveraged balance sheet (13.6x debt-to-equity), sustained net losses, and negative cash flows, indicating high financial risk.

Income Statement

38Negative

Balance Sheet

12Very Negative

Cash Flow

15Very Negative

Financial statement breakdown
Breakdown	TTM	Mar 2026	Mar 2025	Mar 2024	Mar 2023	Mar 2022
Income Statement
Total Revenue	325.71M	332.79M	181.98M	25.31M	332.11M	312.17M
Gross Profit	93.02M	84.27M	54.03M	7.55M	452.00K	21.99M
EBITDA	43.04M	34.17M	33.33M	-80.77M	-70.72M	54.03M
Net Income	19.65M	-9.98M	-106.05M	-120.63M	-122.08M	11.77M
Balance Sheet
Total Assets	838.84M	750.22M	808.43M	834.15M	1.43B	1.46B
Cash, Cash Equivalents and Short-Term Investments	6.99M	10.39M	19.30M	58.05M	1.55M	3.35M
Total Debt	601.32M	601.32M	591.46M	508.40M	733.22M	839.36M
Total Liabilities	772.77M	706.05M	754.47M	675.71M	1.15B	1.06B
Stockholders Equity	66.07M	44.17M	53.96M	158.43M	280.69M	399.52M
Cash Flow
Free Cash Flow	0	-56.78M	-197.99M	-47.60M	98.81M	-62.08M
Operating Cash Flow	0	-56.48M	-195.70M	-46.30M	107.73M	-58.25M
Investing Cash Flow	0	37.71M	73.92M	363.20M	-2.12M	42.93M
Financing Cash Flow	0	9.86M	83.02M	-260.40M	-145.76M	15.19M

Digjam Ltd. Technical Analysis

Technical Analysis SentimentNeutral

Last Price52.88

Price Trends

50DMA53.96Negative

100DMA49.86Positive

200DMA48.01Positive

Market Momentum

MACD0.58Negative

RSI46.85Neutral

STOCH51.64Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:DIGJAMLMTD, the sentiment is Neutral. The current price of 52.88 is above the 20-day moving average (MA) of 52.69, below the 50-day MA of 53.96, and above the 200-day MA of 48.01, indicating a neutral trend. The MACD of 0.58 indicates Negative momentum. The RSI at 46.85 is Neutral, neither overbought nor oversold. The STOCH value of 51.64 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for IN:DIGJAMLMTD.

Digjam Ltd. Peers Comparison

Overall Rating

UnderperformOutperform

Sector (55)

Financial Indicators

IN:DIGJAMLMTD against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
IN:NAHARSPING	62Neutral	INR 9.40B	12.48	―	0.38%	2.49%	249.40%
Sector *	55Neutral	$6.65B	3.83	-15.92%	6.20%	10.91%	7.18%
IN:SURYALAXMI	48Neutral	INR 933.31M	23.52	―	―	-1.58%	-14.14%
IN:LAXMICOT	47Neutral	INR 200.11M	-6.86	―	―	-30.67%	-23145.95%
IN:SUTLEJTEX	46Neutral	INR 5.57B	-9.99	―	―	1.71%	36.44%
IN:LOYALTEX	43Neutral	INR 992.91M	-1.74	―	―	-38.89%	-4.55%
IN:DIGJAMLMTD	41Neutral	INR 1.06B	55.55	―	―	9.93%	-55.26%

* General Sector Average

Performance Comparison

IN:DIGJAMLMTD and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
IN:DIGJAMLMTD	Digjam Ltd.	52.88	5.04	10.54%
IN:LAXMICOT	Laxmi Cotspin Ltd.	11.67	-9.90	-45.90%
IN:LOYALTEX	Loyal Textile Mills Limited	206.15	-54.85	-21.02%
IN:NAHARSPING	Nahar Spinning Mills Ltd	260.65	54.06	26.17%
IN:SURYALAXMI	Suryalakshmi Cotton Mills Ltd.	49.63	-13.20	-21.01%
IN:SUTLEJTEX	Sutlej Textiles & Industries Ltd.	34.00	-1.30	-3.68%

Digjam Ltd. Corporate Events

Digjam Sets September 28, 2026 for 11th AGM via Video Conferencing

Sep 3, 2026

Digjam Limited has scheduled its 11th Annual General Meeting for September 28, 2026, at 11:00 A.M. India time, to be conducted via video conferencing and deemed to be held at its designated address in Tamil Nadu. The AGM will review the company&#8217...

Digjam Shareholders Clear Scheme of Arrangement with Reid & Taylor

Aug 16, 2026

Equity shareholders of Digjam Limited have approved a Scheme of Arrangement with Reid & Taylor International Private Limited, convened under directions from the National Company Law Tribunal, Chennai Bench. The meeting, held via video conferencin...

Digjam Shareholders Weigh NCLT-Directed Scheme of Arrangement with Reid & Taylor

Aug 16, 2026

Digjam Limited convened a court-directed meeting of its equity shareholders on August 16, 2026 via video conferencing, following an order from the National Company Law Tribunal’s Chennai Bench. The session was conducted under the Companies Act...

Digjam clears June quarter results as auditors flag liquidity and plant closure risks

Aug 6, 2026

Digjam Limited’s board has approved the unaudited financial results for the quarter ended June 30, 2026, along with the statutory auditor’s limited review report, in a meeting held via video conference on August 6, 2026. The company confi...

Glossary

BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.

Date of analysis: Oct 07, 2026

Digjam Ltd. AI Stock Analysis