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RAJAPALAYAM MILLS LTD.-$ (RAJPALAYAM) Fair Value & Analysis

Consumer Discretionary · IN · Market cap ₹7.7B

RM RAJAPALAYAM MILLS LTD.-$ RAJPALAYAM · BSE
Price₹826.00
Fair Value₹1,694
Upside+105.1%
Quality50/100
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Strengths

Trades 51% below our fair value of ₹1,694
Low debt · generates free cash flow

Risks

!Expensive Growth (revenue 5y +18.2 %/yr)
!Thin margins · 8.9% net margin
!Mixed vs. peers (7/13)
!Narrow moat 29/100
Expensive Growth (revenue 5y +18.2 %/yr)
Thin margins · 8.9% net margin
Low debt · generates free cash flow
Mixed vs. peers (7/13)
Narrow moat 29/100
Evidence: High Range ₹1,581 – ₹1,694 Share as image

Fair value as of: Aug 13, 2026

From 26 valuation models · updated 13 days ago

A solid business, trading 51% below our fair value.

What runs behind every stock

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

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What matters now

  • The price is below even our cautious bear case (₹1,581). The market is more pessimistic than our downside scenario.
  • Solid quality (50/100) at a price below fair value, the discount is the argument here, not the business quality.
  • The models converge in a tight band (₹1,581 to ₹1,694), unusually little disagreement for a valuation.
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Price vs Fair Value (5 years)

₹1,335 ₹551.22 Fair Value ₹1,694 Mar 2021 Aug 2026

White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Aug 13, 2026.

How to read this chart

60‑month range ₹551.22 – ₹1,335 · fair‑value band ₹1,581 – ₹1,694 · the ₹826.00 price screens below the ₹1,694 fair value. Dashed = 300-day average. As of Aug 13, 2026.

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Analysis

RAJAPALAYAM MILLS LTD.-$ (RAJPALAYAM) currently trades at ₹826.00, while our model-based Fair Value estimate is ₹1,694, implying the stock looks roughly 105.1% undervalued today. The Quality Score stands at 50/100 (solid quality), in the Consumer Discretionary sector. Bull case: trading below our estimate, it may offer upside if the fundamentals hold. Bear case: a low price can be a value trap when quality is weak or the data is thin (evidence: high), always confirm before acting.

Over the trailing twelve months, RAJAPALAYAM MILLS LTD.-$ generated revenue of ₹9.0B at a net margin of 8.9%. Revenue grew 5.8% year over year. It earns a return on equity of 2.4%. Net debt stands at ₹11.4B. Fundamentals as of Aug 13, 2026

Our scenario range runs from ₹1,581 (bear case) to ₹1,694 (bull case); at ₹826.00, 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 19% below its 52-week high and 24% above its 52-week low, currently above its 200-day average. For context, the median of 10 Consumer Discretionary peers we cover trades at -34% fair-value upside, at 105%, RAJPALAYAM screens cheaper than that median.

Fair Value models

Each model estimates fair value its own way; the Fair Value above is the evidence-weighted 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.

Model 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. Evidence
Highest evidence
Growth DCF ₹109.13 ₹496.44 80
Residual Income ₹1,957 ₹1,933 ₹1,760 76
Rev-Margin DCF ₹209.88 ₹595.20 74
All 26 models by family
DCF Models
FCF DCF ₹129.01 ₹558.31 38
Owner Earnings ₹1,452 ₹2,820 ₹5,024 31
5Y Revenue Exit ₹217.14 ₹639.94 39
5Y EBITDA Exit ₹320.14 ₹1,056 ₹1,972 41
5Y P/E Exit ₹835.67 ₹2,090 ₹3,508 38
10Y Revenue Exit ₹157.21 ₹585.51 36
10Y EBITDA Exit ₹151.89 ₹748.69 ₹1,646 37
10Y P/E Exit ₹482.31 ₹1,477 ₹2,870 35
Earnings-Based
Graham-Dodd ₹843.43 ₹3,539 ₹4,828 54
Lynch FV ₹897.75 ₹1,283 ₹1,667 50
PEG = 1.0 ₹897.75 ₹1,283 ₹1,667 46
EPV ₹7.77 59
Dividend Discount
Gordon GGM ₹4.39 ₹8.75 ₹13.25 70
DDM Multi-Stage ₹4.39 ₹7.56 ₹9.24 61
Multiples
P/E Multiple ₹2,047 ₹2,729 ₹3,411 63
P/S Multiple ₹919.54 ₹1,226 ₹1,533 58
P/B Multiple ₹1,581 ₹2,109 ₹2,636 55
EV/EBIT ₹153.45 ₹378.58 ₹603.72 53
EV/EBITDA ₹664.23 ₹1,060 ₹1,455 54
EV/Revenue ₹128.43 ₹323.55 43
Asset-Based
NCAV (Graham) ₹1,317 ₹1,764 ₹2,633 50
Growth DCF
Growth DCF ₹109.13 ₹496.44 80
Rev-Margin DCF ₹209.88 ₹595.20 74
Economic Profit
Residual Income ₹1,957 ₹1,933 ₹1,760 76
ROIC Compounder ₹7.77 72
Growth Earnings
Growth-Adj P/E ₹1,568 ₹2,241 ₹2,913 68

Widest divergence: Growth Earnings (₹2,241) versus Dividend Discount (₹7.56). Highest evidence: Growth DCF (80).

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Key figures & financial health

P/E ratio 6.7
P/S ratio 0.85 TTM
Net margin 8.9% TTM
Return on equity 2.4% TTM
Return on assets 0.5% TTM
Operating margin 3.4% TTM
More key figures
Profitability
EPS (TTM) ₹124.21
Growth
Revenue (TTM) ₹9.0B TTM
Revenue growth (YoY) +5.8% 3y avg +3.2%
EPS growth (YoY) +74.8%
Balance sheet & cash flow
Free cash flow ₹301M FY2026
Net debt ₹11.4B FY2026 · ≈ 37.9 yrs of FCF

Figures from reported company fundamentals · as of Aug 13, 2026. TTM = trailing twelve months.

Quality Score breakdown

Overall quality 50/100

Of which business quality 47 · Market factors (momentum, volatility) 50

Profitability 29
Margins and returns on capital today
Quality Growth 61
Are margins and returns improving?
Cashflow 21
Earnings quality: real cash, not paper profit
Fin. Strength 36
Balance sheet, leverage, solvency risk
Investment 88
Disciplined investing over empire-building
Low Volatility 88
Calm price path (market factor)
Momentum 37
Price trend over the last 3–12 months (market factor)
52W Momentum 31
Distance to the 52-week high (market factor)
Net Issuance 82
Buybacks instead of dilution

Non-valuation factor families (profitability, growth, cashflow, financial strength, momentum …), each academically grounded. Valuation itself sits in the Fair Value and is deliberately excluded here to avoid double-counting.

All values are scores from 0 to 100 (100 = best against fixed, research-based bands), not percentages. The three market factors (momentum, 52-week proximity, low volatility) are displayed but carry zero weight in the headline number: market sentiment is not a business property.

Revenue & earnings trend

FY2022 – FY2026 · reported fiscal years

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.

Growth Quality 62/100
The company is growing, but growth may require heavy reinvestment or weak cash conversion.
Latest Revenue (FY 2026)
₹9.4B
Latest YoY
+4.8%
Avg. revenue growth/yr (3Y) 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.
+3.2%
Avg. revenue growth/yr (5Y) 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.
+18.2%
Avg. revenue growth/yr (7Y) 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.
+12.7%
Value creation/yr (5Y) Earnings growth per share (CAGR 5 years, EBIT basis) plus dividend yield: value created per share and year.
+1.2% (1.2 + 0.0)
Revenue +8.5%/yr
FY22 ₹6.8B
FY23 ₹8.6B
FY24 ₹8.6B
FY25 ₹9.0B
FY26 ₹9.4B
Net income −9.0%/yr
FY22 ₹1.7B
FY23 ₹819M
FY24 ₹444M
FY25 ₹170M
FY26 ₹1.1B

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Cite: Fair Value Calculator (2026). "RAJAPALAYAM MILLS LTD.-$ Fair Value". https://www.fairvalue-calculator.com/stock/RAJPALAYAM

Peer Group

Textiles · 24 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.

Quality Score 50 · Above median
Fair Value upside +105% · Top 25%
Return on equity (TTM) 2% · Below median
Return on assets 0% · Below median
Net margin (TTM) 9% · Top 25%
Operating margin (TTM) 3% · Above median
Revenue growth 6% · Above median
Debt / equity 0.20× · Higher than median

Valuation Multiples vs Textiles median · lower = cheaper

P/E (TTM) 6.7× · Cheaper than 75% of peers
P/B 0.32× · Cheaper than 75% of peers
P/S (TTM) 0.85× · Pricier than median
P/FCF 0.3× · Pricier than median
EV/EBITDA 10.2× · Pricier than median

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.

VALUEFUTUREPASTHEALTHDIVIDEND
This stock
VALUEFUTUREPASTHEALTHDIVIDEND
Sector peers
VALUE100 · sector 0
FUTURE29 · sector 5
PAST9 · sector 23
HEALTH90 · sector 98
DIVIDEND1 · sector 0

Values & ESG

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

None of the checked exposures detected

Similar stocks

10 more Textiles stocks, each showing price versus our Fair Value estimate (as of Aug 13, 2026).

Stock Price Fair Value vs Fair Value
LAKSHMIMIL LAKSHMIMIL ₹8,086 ₹1,351 -83%
OMNITEX OMNITEX ₹737.70 ₹108.11 -85%
RNBDENIMS RNBDENIMS ₹8.66 ₹15.60 +80%
CANDOUR CANDOUR ₹68.52 ₹20.30 -70%
LAHOTIOV LAHOTIOV ₹45.15 ₹52.51 +16%
PREMCO PREMCO ₹381.00 ₹307.99 -19%
AICHAMP AICHAMP ₹28.45 ₹9.86 -65%
DEEPAKSP DEEPAKSP ₹129.60 ₹86.07 -34%
KGPETRO KGPETRO ₹165.25 ₹144.94 -12%
EVERLON EVERLON ₹100.00 ₹22.83 -77%

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Frequently asked questions

Is RAJAPALAYAM MILLS LTD.-$ (RAJPALAYAM) overvalued or undervalued?
As of Aug 13, 2026, our model estimates a fair value of ₹1,694 versus a price of ₹826.00, about +105% (undervalued).
What is the fair value of RAJPALAYAM?
Our model-based fair value for RAJAPALAYAM MILLS LTD.-$ is ₹1,694 (as of Aug 13, 2026), built from audited fundamentals. The current price: ₹826.00.
What is the quality score of RAJPALAYAM?
RAJAPALAYAM MILLS LTD.-$ has a Quality Score of 50/100. 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 revenue of RAJAPALAYAM MILLS LTD.-$ (RAJPALAYAM)?
RAJAPALAYAM MILLS LTD.-$ reported trailing-twelve-month revenue of about ₹9.0B (latest available figure, as of Aug 13, 2026).
What is the net profit margin of RAJPALAYAM?
The net profit margin of RAJAPALAYAM MILLS LTD.-$ is about 8.9%, meaning it keeps roughly 8.9% of revenue as net income. Based on the latest reported figures.

How we calculate Fair Value

Each company is valued through a stack of independent intrinsic-value models (DCF variants, residual-income, multiples and more), blended into one family-balanced consensus and weighted by how much trustworthy data backs it. A separate quality layer scores the fundamentals. Every input is real reported data, nothing guessed.

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