RAJAPALAYAM MILLS LTD.-$ (RAJPALAYAM) fair value: what the stock is really worth
As of Oct 19, 2026: fair value (intrinsic value) of RAJAPALAYAM MILLS LTD.-$ stock ₹1,586, price ₹741, upside +114.0%, quality 53 out of 100. Rating: strongly undervalued. Calculated from audited financials with 26 valuation models and 37 quality factors, updated daily.
69 individual criteria per stock, every one traceableSee the method →
Price vs Fair Value
White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Oct 2, 2026.
How to read this chart
60‑month range ₹551.22 – ₹1,335 · fair‑value band ₹1,315 – ₹1,806 · the ₹741.30 price screens below the ₹1,586 fair value. Green steps = our fair value per fiscal year (point-in-time, no hindsight). Dashed = 300-day average. As of Oct 2, 2026.
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RAJAPALAYAM MILLS LTD.-$ (RAJPALAYAM) currently trades at ₹741.30, while our model-based Fair Value estimate is ₹1,586, implying the stock looks roughly 53.3% undervalued today.
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Valuation
Bull case: the Growth Earnings group reads highest at a median of ₹2,241 per share, and 16 of the 22 models we run sit above the ₹741.30 price.
Bear case: the Growth DCF group reads lowest at ₹484.41, and 6 of the 22 models stay below the price. Data coverage for this calculation is high.
Scenario range: ₹1,315 (bear) to ₹1,806 (bull), the price of ₹741.30 sits below it. Bear and bull are the same models on cautious and optimistic assumptions, a range, not a price target.
Quality & growth
The Quality Score stands at 53/100 (solid quality), in the Consumer Discretionary sector.
Expensive Growth: The company is growing, but growth may require heavy reinvestment or weak cash conversion.
RAJAPALAYAM MILLS LTD.-$ reported revenue of ₹9.4B in FY2026 versus ₹6.8B in FY2022, a compound +8.5%/yr. Reported net income was ₹1.1B in FY2026, compounding −9.0%/yr from FY2022.
Key figures
Market cap ₹6.8B (≈ $72.1M) Micro · P/E ratio 5.5 · P/S ratio 0.67 · EPS (TTM) ₹134.51 · Dividend yield 0.1% · Net margin 12.2% · Return on equity 2.4% · Return on assets (EBIT) 1.4%.
Competitive moat
Our AI-assisted moat analysis scores the competitive advantage at 36 out of 100 (low confidence).
What moves the price
The share trades about 17% below its 52-week high and 4% above its 52-week low, currently below its 200-day average.
For context, the median of 10 Consumer Discretionary peers we cover trades at −42% fair-value upside, at 114%, RAJPALAYAM screens cheaper than that median.
Fair Value models
Bear₹1,315Fair Value ₹1,586Bull₹1,806
Price ₹741.30 · Upside +114.0%
Model ⓘEach model values the company its own way (discounted cash flow, earnings, assets, dividends). The fair value above starts from their evidence-weighted blend, not from a single model. In cyclical trough or peak years, after dilution or a stock split it is adjusted afterwards, so it can sit above or below the models. Based on fiscal year 2026 figures (about 7 months old). Earnings retained since then (₹74.81 per share) are deliberately not added.Bear ⓘBear = the cautious scenario: the same model computed with conservative anchors (lower growth, margins and valuation multiples). Together with Bull it frames a plausible valuation range, not a price target.BaseBull ⓘBull = the optimistic scenario: the same model computed with favourable anchors (higher growth, margins and valuation multiples). Together with Bear it frames a plausible valuation range, not a price target. If a model's bull case is above four times its base value, the table shows that limit with a > sign (like the overall Bull above): beyond it no assumption holds.Coverage ⓘCoverage = how well-backed THIS model's estimate is for this stock (0–100): how complete and reliable its input data are, and how well the model fits the company. The final Fair Value is an evidence-weighted blend, so better-evidenced models count more. Green ≥70, amber 50–69, grey below 50.
Growth Quality ⓘGrowth is valuable only when reinvestment earns attractive returns (Aswath Damodaran): sustainable growth depends on return on capital, reinvestment and efficiency. Basis: total company revenue over the periods shown on the cards (3Y/5Y/all years), not per share, so a merger can show up as a growth jump; per-share earnings growth is in the value-creation card.62/100
The company is growing, but growth may require heavy reinvestment or weak cash conversion.
Revenue growth 1 year
+4.8%
Revenue growth 3 years ⓘMeasures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump. Per-share growth (which does include buybacks) is in the value-creation card.
+3.2%
Revenue growth 5 years ⓘMeasures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump. Per-share growth (which does include buybacks) is in the value-creation card.
+18.2%
Start year 2021 (pandemic)
Revenue growth 7 years ⓘMeasures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump. Per-share growth (which does include buybacks) is in the value-creation card.
+12.7%
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What shareholders gained per year (last 5 years), in INR ⓘWhat the business itself delivers per year: earnings growth per share plus the dividend yield. This is what you get IF the market keeps valuing the stock the same way: it contains no assumption about the market changing its mind. Computed per share, so buybacks count and a merger does not pass as growth. For a company that pays no dividend it is pure earnings growth per share. Period: earnings growth per share as CAGR over the last 5 reported fiscal years (annual statements), plus the current dividend yield. The start value is the median of the three years around the start, so a single crisis year (a pandemic or a write-down) does not distort the rate. Basis: EBIT basis. Measured in INR: this currency has depreciated against the euro and dollar over the long run, so part of the nominal rate is currency erosion that never reaches a EUR/USD investor.
≈ +1.3%
Earnings growth per share plus dividend.
Earnings per share, growth per year+1.2%
Dividend (yield on the price)0.1%
Profit margin 2021 to 2026 ⓘOperating margin then vs now, from reported annual statements. A falling margin after a boom year is the classic peak-earnings signal: the growth rate then leans on an inflated base.−1% → 5%
⚠ Rate on operating basis: 2026 sits 158% above its own trend.
Growth Forecast
A lot of optimism in the price
The price assumes more growth than the company has delivered so far.
What the price assumes ⓘThis turns our valuation around: instead of asking what the share is worth, it asks what growth the current price requires. It uses the cash the company keeps after all spending (free cash flow), the same discount rate as our models, five years of growth, then slowing evenly to 2 % a year by year ten. Compared with the analysts' sales forecasts extended to the same five years (at least three analysts, for context only, it does not enter the Fair Value): within 3 percentage points counts as "in line" (amber), below that little optimism (green), above that a lot of optimism (red).
+42.4%
Yearly growth needed for the next five years to justify today's price.
What forecasts expect
n/a
No analyst forecast available.
After inflation (India: IMF forecast 4.1% a year to 2030, 4.7% from 2016 to 2025) that is about +36.7% a year for the price.
Compare RAJAPALAYAM MILLS LTD.-$ with another stock
Price, fair value, quality and upside side by side.
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Peer Groupⓘ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.Textiles · 34 stocks
Beats the industry median on 10/14 measures
Overall it ranks above its industry peers.
Valuation
Quality Score53 · Above median
Fair Value upside+114.0% · Top 25%
Profitability
Return on equity (12 months)2.4% · Below median
Return on assets3.1% · Above median
Net margin (12 months)12.2% · Top 25%
Operating margin (12 months)7.2% · Above median
Growth and dividend
Revenue growth (quarter YoY)38.6% · Top 25%
Dividend yield (12 months)0.1% · Below median
Balance sheet
Debt / equity0.20× · Above median
Valuation Multiplesvs Textiles median · lower = cheaper
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Is RAJAPALAYAM MILLS LTD.-$ (RAJPALAYAM) overvalued or undervalued?
As of Oct 2, 2026, our model estimates a fair value of ₹1,586 versus a price of ₹741.30, about +114% upside (undervalued).
What is the fair value of RAJPALAYAM?
Our model-based fair value for RAJAPALAYAM MILLS LTD.-$ is ₹1,586 (as of Oct 2, 2026), built from audited fundamentals. The current price: ₹741.30.
What is the quality score of RAJPALAYAM?
RAJAPALAYAM MILLS LTD.-$ has a Quality Score of 53/100. It measures business quality (profitability, growth, cash flow, balance-sheet strength, investment discipline, share issuance). Market factors such as price momentum and volatility do not enter the number; they are shown separately in the detail view.
What is the price target for RAJAPALAYAM MILLS LTD.-$ (RAJPALAYAM)?
Our model-based price target is the fair value of ₹1,586 (as of Oct 2, 2026) from 22 valuation models. Cautious scenario ₹1,315, optimistic scenario ₹1,806. It is a calculation from audited fundamentals, not an analyst target.
What is the RAJAPALAYAM MILLS LTD.-$ stock forecast for 2026?
Our models put fair value at ₹1,586, about +114% upside versus a price of ₹741.30 (undervalued). Cautious scenario ₹1,315, optimistic scenario ₹1,806. The calculation is refreshed regularly with new filings.
What is the revenue of RAJAPALAYAM MILLS LTD.-$ (RAJPALAYAM)?
RAJAPALAYAM MILLS LTD.-$ reported trailing-twelve-month revenue of about ₹10.2B (latest available figure, as of Oct 2, 2026).
Does RAJAPALAYAM MILLS LTD.-$ pay a dividend?
RAJAPALAYAM MILLS LTD.-$ currently shows a dividend yield of 0.07% relative to its recent price (as of Oct 2, 2026).
What growth is priced into RAJAPALAYAM MILLS LTD.-$ (RAJPALAYAM)?
For today's price to be fair in a discounted-cash-flow model, RAJAPALAYAM MILLS LTD.-$ would have to grow free cash flow by +42.4 % per year for five years (discount rate 13.9 %, then slowing evenly to 2 % perpetual growth by year ten). Over the last 5 years revenue grew +18.3 % per year. As of Oct 2, 2026.
What discount rate (WACC) does the fair value of RAJPALAYAM use?
Our models discount RAJAPALAYAM MILLS LTD.-$ at 13.9 %: a base by market capitalisation (micro), damped by beta 0.14, country premium for India. The same rate applies in all 26 models.
What is a reverse DCF?
A reverse DCF turns the usual calculation around. Instead of deriving a value from assumptions, it takes today's price as given and asks: what free-cash-flow growth would a company have to deliver for exactly this price to be fair? The result is not a forecast but the expectation already priced in. For RAJAPALAYAM MILLS LTD.-$ that is +42.4 % per year a year over ten years, using the same discount rate (13.9 %) and the same formula as our fair value.
How much growth has RAJAPALAYAM MILLS LTD.-$ (RAJPALAYAM) delivered so far?
Over the past 5 years revenue at RAJAPALAYAM MILLS LTD.-$ grew +18.3 % a year. The price currently implies +42.4 % per year free-cash-flow growth a year. Comparing the two shows how much confidence is in the price: if it demands more than has been delivered, the business has to accelerate for the maths to work.
What is the free cash flow yield of RAJAPALAYAM MILLS LTD.-$ (RAJPALAYAM)?
The free-cash-flow yield on the price is 4.40 %: that much free cash flow RAJAPALAYAM MILLS LTD.-$ produces per unit of market value. When it exceeds the discount rate of our models (13.9 %), the business already earns more than its cost of capital demands, and the price needs little additional growth.
What is the intrinsic value of RAJAPALAYAM MILLS LTD.-$ (RAJPALAYAM)?
Intrinsic value and fair value mean the same thing: what the business is worth on its numbers, independent of the share price. For RAJAPALAYAM MILLS LTD.-$ it is ₹1,586 per share (as of Oct 2, 2026), against a price of ₹741.30. It is the blended result of 22 valuation models (cash flow, earnings, asset, dividend).
Is RAJAPALAYAM MILLS LTD.-$ stock overvalued or undervalued in 2026?
As of Oct 2, 2026, RAJPALAYAM trades below its calculated fair value: price ₹741.30, fair value ₹1,586, a gap of about +114% (undervalued). The calculation is refreshed with each new quarterly report, so the verdict can change during the year.
Is fair value the same as the market price of RAJPALAYAM?
No. The price is what the market pays today (₹741.30); the fair value is what the company's own numbers justify (₹1,586). For RAJAPALAYAM MILLS LTD.-$ the two are ₹844.96 per share apart. That gap is exactly why we show both numbers side by side.
How much is RAJAPALAYAM MILLS LTD.-$ worth?
The market values RAJAPALAYAM MILLS LTD.-$ at about ₹6.8B (market capitalisation, as of Oct 2, 2026). Per share that is ₹741.30; our models calculate a fair value of ₹1,586 per share.
What do the bullish and bearish scenarios say about RAJPALAYAM?
Our models span a range for RAJAPALAYAM MILLS LTD.-$: cautious scenario ₹1,315, base ₹1,586, optimistic ₹1,806 per share (as of Oct 2, 2026, price ₹741.30). The range comes from different growth and margin assumptions, not from analyst opinions.
What is the P/E ratio of RAJPALAYAM?
RAJAPALAYAM MILLS LTD.-$ trades at a price-to-earnings ratio of 5.5 (as of Oct 2, 2026). A P/E on its own says little: it compares the price with ONE year of profit, while our fair value of ₹1,586 is built from several models across several years. Other multiples: P/B 0.3, P/S 0.7, EV/EBITDA 7.8.
How solid is the balance sheet of RAJAPALAYAM MILLS LTD.-$ (RAJPALAYAM)?
Balance-sheet figures for RAJAPALAYAM MILLS LTD.-$ (as of Oct 2, 2026): return on equity 2.4%, debt of 0.20 per unit of equity. They feed the Quality Score of 53/100, which measures business quality independently of the share price.
How far is RAJPALAYAM from its 52-week high?
RAJAPALAYAM MILLS LTD.-$ trades at ₹741.30, about 17% below its 52-week high of ₹888.95 and 4% above the low of ₹710.60 (as of Oct 19, 2026). Distance from the high says nothing about value: that is what the fair value of ₹1,586 is for.
Which stocks are comparable to RAJAPALAYAM MILLS LTD.-$?
From the same area (Consumer Discretionary) we also value LAKSHMIMIL, VTMLTD, OMNITEX, RAGHUSYN, among others. Each of them has its own fair-value calculation on this site using the same models, so the comparison is like for like.
Is RAJAPALAYAM MILLS LTD.-$ stock attractive at the current price?
The data as of Oct 2, 2026: price ₹741.30, calculated fair value ₹1,586 (+114%), Quality Score 53/100, from 22 models. Whether that fits your horizon and risk tolerance is your call. We provide the calculation, not investment advice.
How is the fair value of RAJPALAYAM calculated?
We run RAJAPALAYAM MILLS LTD.-$ through 22 models from four families: discounted cash flow, earnings models, asset and balance-sheet models, and dividend models. Every model gets the same audited fundamentals; the result is the weighted average of ₹1,586, with the spread shown as a cautious and an optimistic scenario.
Is it still worth investing in stocks now?
The global stock market currently sits 13.8 % above its aggregate fair value. RAJAPALAYAM MILLS LTD.-$ currently trades 53 % below its own fair value, and the market average says nothing about that. An expensive market is no reason to stay out and no reason to buy everything at once: keep a broad savings plan running, buy single stocks only with money you can do without, and hold part of your money liquid while the market is high. The full picture including sectors is on is it worth investing now.
What is the share price of RAJAPALAYAM MILLS LTD.-$ (RAJPALAYAM)?
The closing price on Oct 19, 2026 was ₹741.30. Our model-based fair value is ₹1,586, about +114% upside (undervalued). We carry closing prices from our data provider, not a live tick.
What should I pay attention to with RAJAPALAYAM MILLS LTD.-$ right now?
The price is below even our cautious bear case (₹1,315). The market is more pessimistic than our downside scenario. Solid quality (53/100) at a price below fair value, the discount is the argument here, not the business quality.
Key figures of RAJAPALAYAM MILLS LTD.-$
How large is the market capitalisation of RAJAPALAYAM MILLS LTD.-$ (RAJPALAYAM)?
The market capitalisation of RAJAPALAYAM MILLS LTD.-$ is ₹6.8B (≈ $72.1M). The stock-market value of the whole company: share price times number of shares. It is what the market asks for the entire business today.
What is the P/S ratio of RAJAPALAYAM MILLS LTD.-$ (RAJPALAYAM)?
The price-to-sales ratio of RAJAPALAYAM MILLS LTD.-$ is 0.67 (last twelve months). Price to sales: market value relative to yearly revenue. Useful when profit is thin or distorted.
What are the earnings per share of RAJAPALAYAM MILLS LTD.-$ (RAJPALAYAM)?
Earnings per share at RAJAPALAYAM MILLS LTD.-$ are ₹134.51 (price ÷ EPS = P/E 5.5). Earnings per share over the last twelve months: total profit spread across every single share.
What is the dividend yield of RAJAPALAYAM MILLS LTD.-$ (RAJPALAYAM)?
The dividend yield of RAJAPALAYAM MILLS LTD.-$ is 0.1% (payout 0.4%). Yearly dividend relative to the share price. 3% pays 3 per 100 invested. Below: how much of profit is used for it.
What is the net margin of RAJAPALAYAM MILLS LTD.-$ (RAJPALAYAM)?
The net margin of RAJAPALAYAM MILLS LTD.-$ is 12.2% (last twelve months). How much of every unit of revenue ends up as profit. 10% means 10 cents of profit per dollar of sales.
What is the return on equity of RAJAPALAYAM MILLS LTD.-$ (RAJPALAYAM)?
The return on equity (ROE) of RAJAPALAYAM MILLS LTD.-$ is 2.4% (last twelve months). Profit relative to shareholders' equity, how efficiently the company works with its owners' money.
What is the EBIT return on assets of RAJAPALAYAM MILLS LTD.-$ (RAJPALAYAM)?
On an EBIT basis the return on assets of RAJAPALAYAM MILLS LTD.-$ is 1.4% (avg 5y). Operating profit (EBIT) relative to everything the company owns, as a multi-year average. It describes the business model rather than one good or bad year.
What is the operating margin of RAJAPALAYAM MILLS LTD.-$ (RAJPALAYAM)?
The operating margin of RAJAPALAYAM MILLS LTD.-$ is 7.2% (last twelve months). Profit from the core business (before interest and taxes) relative to revenue.
How fast is revenue growing at RAJAPALAYAM MILLS LTD.-$ (RAJPALAYAM)?
Revenue at RAJAPALAYAM MILLS LTD.-$ is growing +38.6% versus a year earlier (3y avg +3.2%). How much revenue grew versus a year earlier (YoY). The 3-year average next to it puts the single year in context.
How fast are earnings growing at RAJAPALAYAM MILLS LTD.-$ (RAJPALAYAM)?
Earnings per share at RAJAPALAYAM MILLS LTD.-$ are growing +112% versus a year earlier. How much earnings per share grew versus a year earlier.
How much net debt does RAJAPALAYAM MILLS LTD.-$ (RAJPALAYAM) carry?
The net debt of RAJAPALAYAM MILLS LTD.-$ is ₹11.4B (fiscal year 2026, ≈ 37.9 yrs of FCF). Debt minus cash on hand. The note shows how many years of free cash flow could in theory pay it off.
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Broad data
Oct 2, 2026