Raj Rayon Industries Limited (RAJRILTD) AI Stock Analysis

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Raj Rayon Industries Limited

(NSE:RAJRILTD)

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Rating:61Neutral

Price Target:INR 21.00▼(-7.08% Downside)

Action:reiterated

Date:08/18/26

The score is primarily driven by improved financial performance (FY2026 recovery and better cash generation), tempered by leverage and historical volatility. Technicals are mildly positive with the stock trading above key moving averages and neutral-to-positive momentum. Valuation reduces the score due to a high P/E and no dividend yield support.

Positive Factors

Revenue and earnings recoveryStrong revenue and EPS growth indicate that the FY2026 recovery is translating into improved operating performance. If sustained, this expansion can strengthen the company’s ability to absorb fixed costs, support reinvestment, and improve earnings capacity over the next several quarters.

Negative Factors

Elevated leverageDebt remains high relative to equity, which limits financial flexibility and increases sensitivity to weaker demand or margins. A heavier capital structure can also constrain investment choices and leave less internally generated cash available for expansion or unexpected operating pressure.

Raj Rayon Industries Limited (RAJRILTD) vs. iShares MSCI India ETF (INDA)

Market Cap: INR 12.57B
Dividend Yield: ―
Average Volume (3M): 7,675
Price to Earnings (P/E): 25.4
Beta (1Y): 0.53
Revenue Growth: 24.29%
EPS Growth: 39.39%
Country: India
Employees: 412
Sector: General
Sector Strength: 55
Industry: Manufacturing - Textiles

Raj Rayon Industries Limited Business Overview & Revenue Model

Company Description

Established in 1993 and headquartered in Mumbai, India, Raj Rayon Industries Limited is a company focused on the production and sale of polyester chips, as well as a diverse range of polyester and processed yarns. Their extensive product line feature...

How the Company Makes Money

Raj Rayon Industries Limited makes money mainly by selling synthetic textile inputs (such as polyester fibres/yarns and related polyester products) to customers in the textile and industrial supply chain. Revenue is typically generated through (1) pr...

Raj Rayon Industries Limited Financial Statement Overview

Summary

Financials show a meaningful recovery into FY2026 with stronger revenue and improved profitability, plus a return to positive operating cash flow and free cash flow. The score is held back by thin net margins, a history of volatile/irregular results (including loss-making periods), and still-elevated leverage (debt-to-equity over 1x), which increases risk if conditions soften.

Income Statement

68Positive

Balance Sheet

57Neutral

Cash Flow

61Positive

Financial statement breakdown
Breakdown	TTM	Mar 2026	Mar 2025	Mar 2024	Mar 2023	Mar 2022
Income Statement
Total Revenue	12.61B	11.80B	8.49B	7.45B	1.37B	550.00K
Gross Profit	2.32B	2.11B	1.57B	645.21M	-63.84M	-279.89M
EBITDA	845.15M	686.01M	342.84M	300.92M	18.16M	-24.21M
Net Income	497.49M	339.93M	138.06M	40.43M	-123.77M	6.41B
Balance Sheet
Total Assets	6.85B	5.98B	5.00B	4.21B	3.11B	1.02B
Cash, Cash Equivalents and Short-Term Investments	1.12B	480.13M	80.40M	70.30M	12.70M	900.00K
Total Debt	2.09B	2.22B	2.37B	1.76B	1.26B	0
Total Liabilities	4.99B	4.42B	3.78B	3.13B	2.07B	21.14M
Stockholders Equity	1.86B	1.56B	1.22B	1.08B	1.04B	1.00B
Cash Flow
Free Cash Flow	0	547.10M	-685.34M	-135.56M	-1.40B	-107.48M
Operating Cash Flow	0	1.02B	368.23M	787.13M	-751.84M	-49.34M
Investing Cash Flow	0	-830.15M	-831.82M	-1.11B	-650.39M	-58.13M
Financing Cash Flow	0	-150.90M	473.58M	387.35M	1.40B	107.79M

Raj Rayon Industries Limited Technical Analysis

Technical Analysis SentimentPositive

Last Price22.60

Price Trends

50DMA21.20Positive

100DMA21.58Positive

200DMA21.38Positive

Market Momentum

MACD0.24Negative

RSI63.96Neutral

STOCH97.02Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:RAJRILTD, the sentiment is Positive. The current price of 22.60 is above the 20-day moving average (MA) of 21.17, above the 50-day MA of 21.20, and above the 200-day MA of 21.38, indicating a bullish trend. The MACD of 0.24 indicates Negative momentum. The RSI at 63.96 is Neutral, neither overbought nor oversold. The STOCH value of 97.02 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for IN:RAJRILTD.

Raj Rayon Industries Limited Peers Comparison

Overall Rating

UnderperformOutperform

Sector (55)

Financial Indicators

IN:RAJRILTD against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
IN:RSWM	68Neutral	INR 9.25B	11.38	―	―	-1.19%	910.54%
IN:INDORAMA	65Neutral	INR 19.92B	9.42	―	―	-4.69%	48.44%
IN:PRECOT	62Neutral	INR 8.48B	16.54	―	0.57%	10.78%	137.63%
IN:RAJRILTD	61Neutral	INR 12.57B	25.40	―	―	24.29%	39.39%
Sector *	55Neutral	$6.65B	3.83	-15.92%	6.20%	10.91%	7.18%
IN:AYMSYNTEX	47Neutral	INR 15.42B	45.19	―	―	5.52%	2206.11%
IN:NAHARSPING	46Neutral	INR 9.05B	6.02	―	0.40%	5.89%	339.07%

* General Sector Average

Performance Comparison

IN:RAJRILTD and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
IN:RAJRILTD	Raj Rayon Industries Limited	22.60	-2.92	-11.44%
IN:AYMSYNTEX	AYM Syntex Limited	262.30	83.20	46.45%
IN:INDORAMA	Indo Rama Synthetics (India) Limited	76.29	22.18	40.99%
IN:NAHARSPING	Nahar Spinning Mills Ltd	251.00	48.04	23.67%
IN:PRECOT	Precot Ltd.	706.80	264.33	59.74%
IN:RSWM	RSWM Ltd	196.45	34.85	21.57%

Raj Rayon Industries Limited Corporate Events

Raj Rayon Industries Closes Insider Trading Window Ahead of Q2 Results

Sep 22, 2026

Raj Rayon Industries Limited has announced that its trading window for insiders will be closed from 1 October 2026 until 48 hours after the announcement of its unaudited financial results for the second quarter and half year ended 30 September 2026....

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: Aug 18, 2026

Raj Rayon Industries Limited AI Stock Analysis