Rajapalayam Mills Limited (532503) Fair Value & Analysis

Consumer Discretionary · IN · Market cap ₹4.3B (≈ $45.7M)

What is Rajapalayam Mills Limited really worth?

What runs behind every stock

26 valuation models 8 families, DCF to NCAV 37 quality factors margins, balance sheet, cashflow, debt 6 AI factors moat, what no ratio measures 2,000+ data points verified, per stock, median

69 individual criteria per stock, every one traceable See the method →

What matters now

• The price is below even our cautious bear case (₹2,787). The market is more pessimistic than our downside scenario.
• Solid quality (58/100) at a price below fair value, the discount is the argument here, not the business quality.
• The models converge in a tight band (₹2,787 to ₹2,990), unusually little disagreement for a valuation.

Price vs Fair Value (5 years)

White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Aug 29, 2026.

How to read this chart

60‑month range ₹551.21 – ₹1,335 · fair‑value band ₹2,787 – ₹2,990 · the ₹794.95 price screens below the ₹2,990 fair value. Green steps = our fair value per fiscal year (point-in-time, no hindsight). Dashed = 300-day average. As of Aug 29, 2026.

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Analysis

Rajapalayam Mills Limited (532503) currently trades at ₹794.95, while our model-based Fair Value estimate is ₹2,990, implying the stock looks roughly 73.4% undervalued today. The Quality Score stands at 58/100 (solid quality), in the Consumer Discretionary sector. Bull case: the Growth Earnings group reads highest at a median of ₹3,496 per share, and 15 of the 24 models we run sit above the ₹794.95 price. Bear case: the DCF Models group reads lowest at ₹1,137, and 9 of the 24 models stay below the price. Evidence for this calculation is medium.

Net debt stands at ₹11.4B. The stock trades on a trailing P/E of 4.7 (as of Jul 4, 2026). Fundamentals as of Aug 29, 2026

Our scenario range runs from ₹2,787 (bear case) to ₹2,990 (bull case); at ₹794.95, the current price sits below that range. Bear and bull are the same models run on conservative and optimistic assumptions (margins, growth, valuation multiples), so a plausible valuation range, not a price target. The share trades about 22% below its 52-week high and 19% above its 52-week low. For context, the median of 10 Consumer Discretionary peers we cover trades at 25% fair-value upside, at 276%, 532503 screens cheaper than that median.

Fair Value models

This estimate rests on fiscal year 2026 figures, and about 5 months have passed since. In that time the company retained roughly ₹53.77 per share, which is 2.3 % of the fair value. The fair value deliberately does not add this in: the models value reported figures, not a projection.

Each model estimates fair value its own way; the Fair Value above is the evidence-weighted, family-balanced blend. Evidence (0–100) measures how completely this model’s inputs are available: well-fed models carry more weight in the blend. The spread across models is intentional, each one stresses a different value driver; dividend models, for instance, come out structurally low when payout is small. Every input is real reported data, nothing guessed.

Widest divergence: Growth Earnings (₹3,496) versus Dividend Discount (₹12.85). Highest evidence: FCF DCF (77).

Key figures & financial health

Quality Score breakdown

Revenue & earnings trend

FY2022 – FY2026 · reported fiscal years

Rajapalayam Mills Limited reported revenue of ₹9.4B in FY2026 versus ₹6.9B in FY2022, a compound +8.1%/yr. Reported net income was ₹1.1B in FY2026, compounding −9.0%/yr from FY2022.

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Peer Group

Textiles · 39 stocks

How this stock ranks against its industry: the green marker is this stock, the band is the typical 25–75% peer range, and the tick is the median.

Valuation Multiples vs Textiles median · lower = cheaper

Strength profile in five axes (Snowflake)

Five quick dimensions, each 0 to 100: VALUE (fair-value potential), FUTURE (revenue growth), PAST (return on equity), HEALTH (low debt), DIVIDEND (yield). Green = this stock, grey = typical sector peer.

Values & ESG

Does this company touch areas you may want to avoid? The classification is inferred from sector and industry.

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