Gujarat Raffia Industries Limited (GUJRAFFIA) AI Stock Analysis

Gujarat Raffia Industries Limited

(NSE:GUJRAFFIA)

Select Model

Rating:72Outperform

Price Target:INR 50.00▲(10.30% Upside)

Action:upgraded

Date:10/17/26

The overall score of 72 reflects a company with a strong financial foundation and bullish market momentum, offset by thin profitability and a full valuation. The primary strengths are a pristine balance sheet with minimal debt and robust cash flow generation, which provide stability. Strong technical momentum, with the price well above all major moving averages, further supports the score. The main risks are the significant compression in gross margins and a P/E ratio that appears elevated relative to current earnings quality, warranting caution on the sustainability of the recent price surge.

Positive Factors

DeleveragingThe sharp reduction in debt materially lowers balance-sheet risk and should reduce financing pressure on the business. A healthier capital structure gives Gujarat Raffia greater flexibility to fund operations, withstand weaker demand, and pursue growth without relying as heavily on borrowing.

Negative Factors

Thin ProfitabilityVery low net profitability leaves limited protection against changes in selling prices, polypropylene costs, or operating expenses. Even with strong revenue growth, a narrow earnings base can make results vulnerable to modest margin pressure and restrict the cash available for reinvestment and shareholder returns.

Gujarat Raffia Industries Limited (GUJRAFFIA) vs. iShares MSCI India ETF (INDA)

Market Cap: INR 273.09M
Dividend Yield: ―
Average Volume (3M): 2,541
Price to Earnings (P/E): 20.6
Beta (1Y): 1.32
Revenue Growth: 178.31%
EPS Growth: 102.43%
Country: India
Employees: 90
Sector: General
Sector Strength: 55
Industry: Manufacturing - Miscellaneous

Gujarat Raffia Industries Limited Business Overview & Revenue Model

Company Description

Gujarat Raffia Industries Ltd. (GRIL) is a manufacturer of PE tarpaulin, plastic sheeting, geomembrane, tents, shelters, pond and canal lining, fumigation covers, and HDPE/PP woven bags and sacks. The company was founded in 1984 and operates manufact...

How the Company Makes Money

The company primarily makes money by manufacturing and selling polypropylene (PP) woven packaging products (e.g., raffia/PP woven sacks/bags and allied packaging materials) to customers who require bulk packaging for storage and transportation. Key r...

Gujarat Raffia Industries Limited Financial Statement Overview

Summary

Financial performance is mixed but leans positive. The balance sheet is a major strength (Score 88) with very low debt and growing equity. Cash flow is robust (Score 78), with high conversion and 72% FCF growth. However, the income statement (Score 48) shows thin and compressing margins despite strong revenue growth, which tempers the overall financial health score.

Income Statement

48Neutral

Balance Sheet

88Very Positive

Cash Flow

78Positive

Financial statement breakdown
Breakdown	TTM	Mar 2026	Mar 2025	Mar 2024	Mar 2023	Mar 2022
Income Statement
Total Revenue	863.87M	885.60M	300.41M	309.12M	392.41M	379.82M
Gross Profit	66.58M	63.46M	50.78M	20.47M	28.00M	32.06M
EBITDA	27.73M	30.27M	23.31M	24.71M	36.20M	25.93M
Net Income	11.80M	10.47M	5.22M	5.18M	10.27M	11.18M
Balance Sheet
Total Assets	0	277.18M	253.74M	260.42M	357.22M	327.98M
Cash, Cash Equivalents and Short-Term Investments	118.73M	118.73M	78.55M	31.86M	74.32M	9.89M
Total Debt	0	18.61M	25.00M	35.18M	125.45M	82.17M
Total Liabilities	-222.25M	54.92M	41.95M	54.06M	156.05M	137.08M
Stockholders Equity	222.25M	222.25M	211.79M	206.35M	201.17M	190.90M
Cash Flow
Free Cash Flow	26.53M	45.62M	56.53M	49.59M	17.21M	-86.60M
Operating Cash Flow	26.66M	46.54M	73.80M	50.25M	63.43M	-61.71M
Investing Cash Flow	-40.14M	-20.46M	-53.27M	-19.41M	-42.56M	-24.33M
Financing Cash Flow	-4.36M	-7.73M	-9.84M	-94.79M	43.57M	49.41M

Gujarat Raffia Industries Limited Technical Analysis

Technical Analysis SentimentPositive

Last Price45.33

Price Trends

50DMA43.41Positive

100DMA41.89Positive

200DMA41.26Positive

Market Momentum

MACD0.72Positive

RSI48.61Neutral

STOCH13.53Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:GUJRAFFIA, the sentiment is Positive. The current price of 45.33 is below the 20-day moving average (MA) of 47.67, above the 50-day MA of 43.41, and above the 200-day MA of 41.26, indicating a neutral trend. The MACD of 0.72 indicates Positive momentum. The RSI at 48.61 is Neutral, neither overbought nor oversold. The STOCH value of 13.53 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for IN:GUJRAFFIA.

Gujarat Raffia Industries Limited Peers Comparison

Overall Rating

UnderperformOutperform

Sector (55)

Financial Indicators

IN:GUJRAFFIA against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
IN:GULPOLY	77Outperform	INR 8.89B	6.00	―	1.05%	9.30%	425.35%
IN:BEPL	73Outperform	INR 26.44B	11.89	―	3.77%	14.71%	33.12%
IN:GUJRAFFIA	72Outperform	INR 244.99M	20.63	―	―	178.31%	102.43%
IN:SPLPETRO	60Neutral	INR 127.22B	23.93	―	1.55%	20.51%	72.73%
Sector *	55Neutral	$6.65B	3.83	-15.92%	6.20%	10.91%	7.18%
IN:STYRENIX	54Neutral	INR 30.75B	12.34	―	2.63%	9.70%	25.33%
IN:CHEMPLASTS	48Neutral	INR 30.00B	-4.81	―	―	-1.22%	-97.08%

* General Sector Average

Performance Comparison

IN:GUJRAFFIA and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
IN:GUJRAFFIA	Gujarat Raffia Industries Limited	45.33	-17.82	-28.22%
IN:BEPL	Bhansali Engineering Polymers Ltd.	106.25	12.25	13.04%
IN:CHEMPLASTS	Chemplast Sanmar Limited	189.75	-217.55	-53.41%
IN:GULPOLY	Gulshan Polyols Limited	142.50	-12.49	-8.06%
IN:SPLPETRO	Supreme Petrochem Limited	676.55	-34.09	-4.80%
IN:STYRENIX	Styrenix Performance Materials Ltd	1748.85	-602.75	-25.63%

Gujarat Raffia Industries Limited Corporate Events

Gujarat Raffia Sets 40th AGM, Moves to Appoint New Statutory Auditor

Sep 7, 2026

Gujarat Raffia Industries Limited’s board has approved its Board Report, including the Management Discussion and Analysis, for the financial year 2025-26 and scheduled its 40th Annual General Meeting for 29 September 2026 at the company’s...

Gujarat Raffia’s Statutory Auditor Resigns, Board to Seek Replacement

Aug 14, 2026

Gujarat Raffia Industries Limited operates in the industrial textiles and packaging segment, producing raffia-based tarpaulins and similar polymer products from its base in Gujarat with a head office in Ahmedabad. The company is publicly listed on ma...

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 17, 2026

Gujarat Raffia Industries Limited AI Stock Analysis