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Rajapalayam Mills Ltd

NSE: RAJPALAYAM BSE: 532503

808.50

(0.89%)

Thu, 05 Mar 2026, 05:39 am

Rajapalayam Mills Analysis

dividend

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Pros

  • Dividends per share have increased over the past 10 years.
  • Dividends paid are thoroughly covered by earnings (32.7x coverage).
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Cons

  • Dividends per share have been volatile in the past 10 years (annual drop of over 20%).
  • Rajapalayam Mills's pays a lower dividend yield than the bottom 25% of dividend payers in India (0.76%).
  • Rajapalayam Mills's dividend is below the markets top 25% of dividend payers in India (3.08%).

health

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Pros

  • Rajapalayam Mills is profitable, therefore cash runway is not a concern.
  • Rajapalayam Mills is profitable, therefore cash runway is not a concern.
  • The level of debt compared to net worth has been reduced over the past 5 years (143.6% vs 30.9% today).
  • Rajapalayam Mills's level of debt (30.9%) compared to net worth is satisfactory (less than 40%).
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Cons

  • Rajapalayam Mills's short term (1 year) commitments are greater than its holdings of cash and other short term assets.
  • Debt is not well covered by operating cash flow (10.6%, less than 20% of total debt).
  • Debt is not covered by short term assets, assets are 0.4x debt.
  • Rajapalayam Mills's long term commitments exceed its cash and other short term assets.
  • Interest payments on debt are not well covered by earnings (EBIT is 0.5x annual interest expense, ideally 3x coverage).
  • High level of physical assets or inventory.

management

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Pros

  • The tenure for the Rajapalayam Mills board of directors is about average.
  • Ramasubrahmaneya's compensation has been consistent with company performance over the past year, both up more than 20%.
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Cons

  • Ramasubrahmaneya's remuneration is higher than average for companies of similar size in India.

misc

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Pros

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    Cons

    • Rajapalayam Mills is not covered by any analysts.

    past

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    Pros

    • Rajapalayam Mills has delivered over 20% year on year earnings growth in the past 5 years.
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    Cons

    • Rajapalayam Mills's 1-year earnings growth is negative, it can't be compared to the 5-year average.
    • Rajapalayam Mills used its assets less efficiently than the IN Luxury industry average last year based on Return on Assets.
    • Rajapalayam Mills's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).
    • Rajapalayam Mills has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
    • Rajapalayam Mills's 1-year earnings growth is negative, it can't be compared to the IN Luxury industry average.

    value

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    Pros

    • Rajapalayam Mills is good value based on assets compared to the IN Luxury industry average.
    • Rajapalayam Mills is good value based on earnings compared to the IN Luxury industry average.
    • Rajapalayam Mills is good value based on earnings compared to the India market.
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    Cons

    • Rajapalayam Mills's share price is above the future cash flow value, it's not available at a moderate discount (< 20%).
    • Rajapalayam Mills's share price is above the future cash flow value, it's not available at a substantial discount (< 40%).
    • 532503 underperformed the Luxury industry which returned -22.1% over the past year.
    • 532503 underperformed the Market in India which returned -14.5% over the past year.
    • BSE:532503 is up 4.6% underperforming the Luxury industry which returned 9.8% over the past month.
    • BSE:532503 is up 4.6% underperforming the market in India which returned 8% over the past month.

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