RSWM Ltd (RSWM) AI Stock Analysis

RSWM Ltd

(NSE:RSWM)

Select Model

Rating:56Neutral

Price Target:INR 184.00▲(2.82% Upside)

Action:reiterated

Date:09/06/26

The score is held back mainly by below-average financial performance: recent profitability recovery is offset by declining FY2026 revenue, meaningful leverage, and volatile/free-cash-flow swings. Technicals provide the main support as the stock is in a clear uptrend with positive momentum, while valuation is moderate (P/E ~16.4) but lacks dividend support due to missing yield data.

Positive Factors

Integrated textile value chainOperating across yarn and fabric production gives RSWM multiple positions in the textile supply chain and access to apparel, home-textile, and industrial customers. This breadth can support product mix flexibility and reduce reliance on a single textile category over the medium term.

Negative Factors

Declining and uneven revenueThe reversal from strong FY2025 growth to a FY2026 revenue decline points to an inconsistent top-line trajectory. Uneven demand or product performance can make capacity planning and operating leverage less reliable, limiting confidence in sustained growth over the next several quarters.

RSWM Ltd (RSWM) vs. iShares MSCI India ETF (INDA)

Market Cap: INR 8.43B
Dividend Yield: ―
Average Volume (3M): 5,173
Price to Earnings (P/E): 13.3
Beta (1Y): 1.60
Revenue Growth: -5.08%
EPS Growth: ―
Country: India
Employees: 18,118
Sector: General
Sector Strength: 55
Industry: Manufacturing - Textiles

RSWM Ltd Business Overview & Revenue Model

Company Description

RSWM Limited is an Indian-headquartered textile powerhouse with a significant international footprint, conducting its manufacturing operations across India, Europe, the Middle East, Africa, Southeast and Far East Asia, and the Americas. The company's...

How the Company Makes Money

RSWM makes money primarily by manufacturing and selling textile intermediates and finished textile materials. Its key revenue streams are (1) yarn sales—selling cotton and blended/spun yarns to fabric mills and garment manufacturers; and (2) fabric/t...

RSWM Ltd Financial Statement Overview

Summary

Financials show a fragile recovery: FY2026 returned to modest profitability after losses in FY2024–FY2025, but revenue declined in FY2026 (-4.6%) and margins/earnings quality have been inconsistent versus earlier years. Leverage remains meaningful (debt still high relative to equity), and cash flows have swung materially year-to-year with FY2026 free cash flow down sharply versus FY2025.

Income Statement

46Neutral

Balance Sheet

52Neutral

Cash Flow

41Neutral

Financial statement breakdown
Breakdown	TTM	Mar 2026	Mar 2025	Mar 2024	Mar 2023	Mar 2022
Income Statement
Total Revenue	45.54B	45.54B	48.26B	40.25B	37.89B	37.94B
Gross Profit	8.68B	5.75B	17.29B	1.79B	3.58B	6.09B
EBITDA	3.21B	3.25B	2.41B	2.37B	3.49B	4.69B
Net Income	520.20M	520.10M	-400.20M	-210.56M	1.23B	2.46B
Balance Sheet
Total Assets	36.17B	36.17B	36.11B	36.94B	28.90B	25.74B
Cash, Cash Equivalents and Short-Term Investments	107.40M	107.40M	104.68M	69.58M	32.13M	68.96M
Total Debt	16.88B	16.88B	17.16B	18.90B	11.57B	11.03B
Total Liabilities	22.56B	22.56B	23.14B	23.96B	15.73B	15.38B
Stockholders Equity	13.61B	13.61B	12.97B	12.97B	13.17B	10.35B
Cash Flow
Free Cash Flow	2.56B	1.33B	2.98B	-3.07B	-2.45B	-1.46B
Operating Cash Flow	3.01B	3.17B	4.26B	-757.80M	889.17M	2.10B
Investing Cash Flow	-376.70M	-2.27B	-1.13B	-3.62B	-2.39B	-3.18B
Financing Cash Flow	-2.68B	-945.60M	-3.07B	4.39B	1.47B	1.11B

RSWM Ltd Technical Analysis

Technical Analysis SentimentNegative

Last Price178.95

Price Trends

50DMA203.68Negative

100DMA204.39Negative

200DMA177.95Positive

Market Momentum

MACD-8.00Positive

RSI36.26Neutral

STOCH34.12Neutral

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 178.95 is below the 20-day moving average (MA) of 192.01, below the 50-day MA of 203.68, and above the 200-day MA of 177.95, indicating a neutral trend. The MACD of -8.00 indicates Positive momentum. The RSI at 36.26 is Neutral, neither overbought nor oversold. The STOCH value of 34.12 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for IN:RSWM.

RSWM Ltd Peers Comparison

Overall Rating

UnderperformOutperform

Sector (55)

Financial Indicators

IN:RSWM against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
IN:CHEVIOT	81Outperform	INR 6.24B	9.20	―	2.35%	28.81%	13.91%
IN:RUBYMILLS	62Neutral	INR 15.86B	36.67	―	0.53%	43.42%	-5.19%
IN:UNITEDPOLY	58Neutral	INR 12.34B	45.60	―	―	11.39%	37.69%
IN:RSWM	56Neutral	INR 8.43B	13.31	―	―	-5.08%	―
Sector *	55Neutral	$6.65B	3.83	-15.92%	6.20%	10.91%	7.18%
IN:PRECOT	52Neutral	INR 7.23B	14.13	―	0.66%	-1.31%	47.06%
IN:SARLAPOLY	47Neutral	INR 7.40B	202.54	―	2.16%	-1.58%	-94.39%

* General Sector Average

Performance Comparison

IN:RSWM and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
IN:RSWM	RSWM Ltd	178.95	25.60	16.69%
IN:CHEVIOT	Cheviot Co. Ltd.	1068.05	-47.85	-4.29%
IN:PRECOT	Precot Ltd.	602.20	110.47	22.47%
IN:RUBYMILLS	Ruby Mills Limited	474.35	244.11	106.02%
IN:SARLAPOLY	Sarla Performance Fibers Limited	93.04	2.45	2.71%
IN:UNITEDPOLY	United Polyfab Gujarat Ltd	53.77	11.97	28.64%

RSWM Ltd Corporate Events

RSWM Ltd Receives External ESG Rating of 59 Based on Public Data

Sep 3, 2026

RSWM Ltd has received an environmental, social and governance rating of 59 from ESG Risk Assessments & Insights Limited, a SEBI-registered ESG rating provider, based on publicly available information. The company noted that it has not verified th...

RSWM Publishes AGM, E-Voting and Book Closure Notices for Shareholders

Aug 2, 2026

RSWM Ltd has notified the stock exchanges that it has published newspaper advertisements announcing its 65th Annual General Meeting, details of remote e-voting, and book closure, following dispatch of the annual report and AGM notice via electronic m...

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: Sep 06, 2026

RSWM Ltd AI Stock Analysis