Rupa & Co. Ltd. (RUPA) AI Stock Analysis

Rupa & Co. Ltd.

(NSE:RUPA)

Select Model

Rating:56Neutral

Price Target:INR 123.00▲(2.71% Upside)

Action:reiterated

Date:08/28/26

The score is held back primarily by weakening operating performance—especially the FY2026 gross margin deterioration and declining/volatile cash generation—despite a relatively solid balance sheet. Technicals further pressure the score due to a clear downtrend and negative momentum, while valuation is a partial offset with a moderate P/E and a ~2% dividend yield.

Positive Factors

Conservative Balance SheetLow and improving leverage gives Rupa financial resilience and preserves flexibility to fund operations, marketing, or growth without excessive borrowing. Steadily rising equity also provides a stronger cushion against weaker profitability and supports stability over the next several quarters.

Negative Factors

Gross Margin CompressionThe sharp FY2026 gross-margin decline is a material threat to earnings quality because it reduces the profit retained from each sale. Unless margins recover, revenue growth will translate less effectively into operating profit, limiting reinvestment capacity and weakening earnings durability.

Rupa & Co. Ltd. (RUPA) vs. iShares MSCI India ETF (INDA)

Market Cap: INR 9.47B
Dividend Yield: 2.50%
Average Volume (3M): 7,734
Price to Earnings (P/E): 12.6
Beta (1Y): 1.35
Revenue Growth: 5.33%
EPS Growth: -4.01%
Country: India
Employees: 842
Sector: General
Sector Strength: 55
Industry: Apparel - Manufacturers

Rupa & Co. Ltd. Business Overview & Revenue Model

Company Description

Rupa & Company Limited, together with its subsidiaries, manufactures, markets, sells, and distributes hosiery products in knitted undergarments, casual wears, and thermal wears for men, women, and kids in India and internationally. The company offers...

How the Company Makes Money

Rupa & Company Limited primarily makes money by selling branded innerwear and related apparel products in the domestic market. Its core revenue stream is the sale of finished goods (e.g., vests, briefs, boxers, panties, bras, thermals, and athleisure...

Rupa & Co. Ltd. Financial Statement Overview

Summary

Financials are mixed: the balance sheet is relatively conservative with low, improving leverage and growing equity, but profitability has weakened meaningfully versus FY2021–FY2022. The sharp FY2026 gross margin compression and the weakening/volatile operating cash-flow trend are notable risks to earnings quality despite still-positive profits.

Income Statement

58Neutral

Balance Sheet

72Positive

Cash Flow

49Neutral

Financial statement breakdown
Breakdown	TTM	Mar 2026	Mar 2025	Mar 2024	Mar 2023	Mar 2022
Income Statement
Total Revenue	12.76B	12.59B	12.39B	12.11B	11.37B	14.68B
Gross Profit	3.07B	2.83B	6.56B	5.91B	5.30B	8.34B
EBITDA	1.28B	1.33B	1.48B	1.31B	1.06B	2.78B
Net Income	752.26M	724.88M	832.92M	697.77M	537.32M	1.92B
Balance Sheet
Total Assets	0	16.14B	15.12B	14.46B	13.88B	15.77B
Cash, Cash Equivalents and Short-Term Investments	2.55B	2.55B	1.96B	2.21B	1.13B	1.23B
Total Debt	0	2.58B	2.38B	2.39B	2.61B	3.70B
Total Liabilities	-10.66B	5.48B	4.94B	4.88B	4.76B	6.95B
Stockholders Equity	10.66B	10.66B	10.18B	9.58B	9.12B	8.82B
Cash Flow
Free Cash Flow	190.00M	380.09M	508.30M	1.46B	1.54B	-1.53B
Operating Cash Flow	230.56M	460.93M	586.16M	1.56B	1.85B	-1.16B
Investing Cash Flow	-171.50M	-583.52M	-102.47M	-794.49M	-240.92M	-336.19M
Financing Cash Flow	-197.13M	-43.08M	-425.88M	-679.61M	-1.58B	1.51B

Rupa & Co. Ltd. Technical Analysis

Technical Analysis SentimentNegative

Last Price119.75

Price Trends

50DMA134.57Negative

100DMA146.64Negative

200DMA143.68Negative

Market Momentum

MACD-4.21Positive

RSI37.53Neutral

STOCH29.36Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:RUPA, the sentiment is Negative. The current price of 119.75 is below the 20-day moving average (MA) of 126.10, below the 50-day MA of 134.57, and below the 200-day MA of 143.68, indicating a bearish trend. The MACD of -4.21 indicates Positive momentum. The RSI at 37.53 is Neutral, neither overbought nor oversold. The STOCH value of 29.36 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for IN:RUPA.

Rupa & Co. Ltd. Peers Comparison

Overall Rating

UnderperformOutperform

Sector (55)

Financial Indicators

IN:RUPA against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
IN:DOLLAR	69Neutral	INR 13.55B	12.08	―	1.26%	6.24%	15.54%
IN:PAGEIND	67Neutral	INR 383.25B	50.91	―	1.75%	7.57%	-1.16%
IN:CANTABIL	61Neutral	INR 21.15B	21.73	―	0.59%	16.08%	24.68%
IN:SPAL	61Neutral	INR 20.44B	19.42	―	0.37%	1.48%	7.56%
IN:RUPA	56Neutral	INR 9.52B	12.60	―	2.50%	5.33%	-4.01%
Sector *	55Neutral	$6.65B	3.83	-15.92%	6.20%	10.91%	7.18%
IN:LUXIND	39Underperform	INR 33.85B	32.98	―	0.18%	10.61%	-33.91%

* General Sector Average

Performance Comparison

IN:RUPA and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
IN:RUPA	Rupa & Co. Ltd.	119.75	-69.27	-36.65%
IN:CANTABIL	Cantabil Retail India Limited	252.90	-3.68	-1.43%
IN:DOLLAR	Dollar Industries Ltd.	238.90	-111.08	-31.74%
IN:LUXIND	Lux Industries Ltd.	1125.65	-141.26	-11.15%
IN:PAGEIND	Page Industries Limited	34360.30	-5723.96	-14.28%
IN:SPAL	S.P. Apparels Ltd.	813.00	104.71	14.78%

Rupa & Co. Ltd. Corporate Events

Rupa & Company Publishes FY 2025-26 Annual Report Online and Sets Date for 41st AGM

Aug 25, 2026

Rupa & Company Limited has announced that its Annual Report for the financial year 2025-26, along with the notice of its 41st Annual General Meeting, is now accessible online for shareholders. The company is specifically notifying investors whose...

Rupa & Company Publishes Q1 FY27 Earnings Call Transcript

Aug 18, 2026

Rupa & Company Limited has released the transcript of its Q1 FY27 earnings conference call, held on August 11, 2026, discussing unaudited standalone and consolidated financial results for the quarter ended June 30, 2026. The call featured comment...

Rupa Board Clears Quarterly Results, Names New Compliance Chief and Exits Subsidiary

Aug 10, 2026

Rupa & Company Ltd. said its board has approved the unaudited standalone and consolidated financial results for the quarter ended June 30, 2026, and completed a review by its statutory auditors. The company also refreshed its list of key manageri...

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 28, 2026

Rupa & Co. Ltd. AI Stock Analysis