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R&B Denims Ltd (RNBDENIMS) Fair Value & Analysis

Consumer Discretionary · IN · Market cap ₹3.0B

RB R&B Denims Ltd RNBDENIMS · BSE
Price₹8.94
Fair Value₹15.60
Upside+74.5%
Quality37/100
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Strengths

Trades 43% below our fair value of ₹15.60
Ranks above peers (8/12)

Risks

!Expensive Growth (revenue 5y +22.2 %/yr)
!Thin margins · 5.3% net margin
!Low debt · negative free cash flow
!Narrow moat 31/100
Expensive Growth (revenue 5y +22.2 %/yr)
Thin margins · 5.3% net margin
Low debt · negative free cash flow
Ranks above peers (8/12)
Narrow moat 31/100
Evidence: Medium Range ₹11.70 – ₹19.49 Share as image

Fair value as of: Aug 18, 2026

From 15 valuation models · updated 9 days ago

Below-average quality, trading 43% below our fair value.

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

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What matters now

  • The large discount to fair value meets weak quality (37/100). That raises the risk this is a value trap rather than a bargain.
  • The price is below even our cautious bear case (₹11.70). The market is more pessimistic than our downside scenario.
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Price vs Fair Value (5 years)

₹66.48 ₹2.37 Fair Value ₹15.60 Mar 2021 Aug 2026

White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Aug 18, 2026.

How to read this chart

60‑month range ₹2.37 – ₹66.48 · fair‑value band ₹11.70 – ₹19.49 · the ₹8.94 price screens below the ₹15.60 fair value. Green steps = our fair value per fiscal year (point-in-time, no hindsight). Dashed = 300-day average. As of Aug 18, 2026.

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Analysis

R&B Denims Ltd (RNBDENIMS) currently trades at ₹8.94, while our model-based Fair Value estimate is ₹15.60, implying the stock looks roughly 74.5% undervalued today. The Quality Score stands at 37/100 (below-average 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: medium), always confirm before acting.

Over the trailing twelve months, R&B Denims Ltd generated revenue of ₹4.7B at a net margin of 5.3%. Revenue grew 37.9% year over year. It earns a return on equity of 11.0%. Net debt stands at ₹701M. Fundamentals as of Aug 18, 2026

Our scenario range runs from ₹11.70 (bear case) to ₹19.49 (bull case); at ₹8.94, 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. For context, the median of 10 Consumer Discretionary peers we cover trades at -34% fair-value upside, at 75%, RNBDENIMS 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
ROIC Compounder ₹6.32 ₹7.40 ₹9.74 72
Growth-Adj P/E ₹16.78 ₹23.97 ₹31.17 68
P/E Multiple ₹13.76 ₹18.35 ₹22.93 63
All 15 models by family
DCF Models
Owner Earnings ₹8.05 ₹18.13 ₹38.20 31
Earnings-Based
Graham-Dodd ₹6.24 ₹42.23 ₹59.19 54
Lynch FV ₹12.39 ₹17.70 ₹23.00 50
PEG = 1.0 ₹12.39 ₹17.70 ₹23.00 46
EPV ₹6.32 ₹7.40 ₹8.33 59
Multiples
P/E Multiple ₹13.76 ₹18.35 ₹22.93 63
P/S Multiple ₹11.70 ₹15.60 ₹19.49 58
P/B Multiple ₹11.70 ₹15.60 ₹19.49 55
EV/EBIT ₹10.78 ₹14.55 ₹18.32 53
EV/EBITDA ₹14.02 ₹18.87 ₹23.73 54
EV/Revenue ₹7.09 ₹10.36 ₹13.63 43
Asset-Based
NCAV (Graham) ₹3.71 ₹4.97 ₹7.41 50
Economic Profit
Residual Income ₹6.83 ₹8.08 ₹16.47 61
ROIC Compounder ₹6.32 ₹7.40 ₹9.74 72
Growth Earnings
Growth-Adj P/E ₹16.78 ₹23.97 ₹31.17 68

Widest divergence: Growth Earnings (₹23.97) versus Asset-Based (₹4.97). Highest evidence: ROIC Compounder (72).

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Key figures & financial health

P/E ratio 9.7
P/S ratio 0.63 TTM
Net margin 5.3% TTM
Return on equity 11.0% TTM
Return on assets 4.2% TTM
Operating margin -0.1% TTM
More key figures
Profitability
EPS (TTM) ₹0.9200
Growth
Revenue (TTM) ₹4.7B TTM
Revenue growth (YoY) +37.9% 3y avg +21.7%
EPS growth (YoY) -37.6%
Balance sheet & cash flow
Free cash flow −₹176M FY2026
Net debt ₹701M FY2026

Figures from reported company fundamentals · as of Aug 18, 2026. TTM = trailing twelve months.

Quality Score breakdown

Overall quality 37/100

Of which business quality 40 · Market factors (momentum, volatility) 16

Profitability 57
Margins and returns on capital today
Quality Growth 49
Are margins and returns improving?
Cashflow 6
Earnings quality: real cash, not paper profit
Fin. Strength 58
Balance sheet, leverage, solvency risk
Investment 26
Disciplined investing over empire-building
Low Volatility 52
Calm price path (market factor)
Momentum 2
Price trend over the last 3–12 months (market factor)
52W Momentum 0
Distance to the 52-week high (market factor)
Net Issuance 40
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

R&B Denims Ltd reported revenue of ₹4.6B in FY2026 versus ₹2.8B in FY2022, a compound +12.6%/yr. Reported net income was ₹248M in FY2026, compounding +4.1%/yr from FY2022.

Growth Quality 58/100
The company is growing, but growth may require heavy reinvestment or weak cash conversion.
Latest Revenue (FY 2026)
₹4.6B
Latest YoY
+25.7%
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.
+21.7%
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.
+22.2%
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.
+9.3%
Value creation/yr (5Y) Earnings growth per share (CAGR 5 years) plus dividend yield: value created per share and year.
−1.8% (-1.8 + 0.0)
Revenue +12.6%/yr
FY22 ₹2.8B
FY23 ₹2.5B
FY24 ₹3.4B
FY25 ₹3.6B
FY26 ₹4.6B
Net income +4.1%/yr
FY22 ₹211M
FY23 ₹149M
FY24 ₹187M
FY25 ₹275M
FY26 ₹248M

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Cite: Fair Value Calculator (2026). "R&B Denims Ltd Fair Value". https://www.fairvalue-calculator.com/stock/RNBDENIMS

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 37 · Bottom 25%
Fair Value upside +75% · Top 25%
Return on equity (TTM) 11% · Top 25%
Return on assets 4% · Above median
Net margin (TTM) 5% · Above median
Operating margin (TTM) -0% · Below median
Revenue growth 38% · Above median
Debt / equity 0.08× · Higher than median

Valuation Multiples vs Textiles median · lower = cheaper

P/E (TTM) 9.7× · Cheaper than median
P/B 1.48× · Pricier than median
P/S (TTM) 0.63× · Cheaper than median
EV/EBITDA 7.7× · Cheaper 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
FUTURE100 · sector 5
PAST44 · sector 23
HEALTH96 · sector 98
DIVIDEND0 · 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 18, 2026).

Stock Price Fair Value vs Fair Value
RAJPALAYAM RAJPALAYAM ₹823.35 ₹1,694 +106%
LAKSHMIMIL LAKSHMIMIL ₹8,086 ₹1,351 -83%
OMNITEX OMNITEX ₹737.70 ₹108.11 -85%
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 R&B Denims Ltd (RNBDENIMS) overvalued or undervalued?
As of Aug 18, 2026, our model estimates a fair value of ₹15.60 versus a price of ₹8.94, about +75% (undervalued).
What is the fair value of RNBDENIMS?
Our model-based fair value for R&B Denims Ltd is ₹15.60 (as of Aug 18, 2026), built from audited fundamentals. The current price: ₹8.94.
What is the quality score of RNBDENIMS?
R&B Denims Ltd has a Quality Score of 37/100. 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 R&B Denims Ltd (RNBDENIMS)?
R&B Denims Ltd reported trailing-twelve-month revenue of about ₹4.7B (latest available figure, as of Aug 18, 2026).
What is the net profit margin of RNBDENIMS?
The net profit margin of R&B Denims Ltd is about 5.3%, meaning it keeps roughly 5.3% 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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