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MomentumDeep Value

Ruby Mills Ltd: Why Is It Outperforming Nifty 500?

Active
RS +15.8%Weak5w Streak

In Week of May 10, 2026, Ruby Mills Ltd (Textiles - Composite Mills) is outperforming Nifty 500 with +15.8% relative strength. Fundamentals: Weak. On a 5-week streak.

Ruby Mills Ltd Key Facts

Market Cap
₹797 Cr
Revenue Growth YoY
+91%
OPM
7.8%
RS vs Nifty 500
+15.8%

What's Happening

💰Trading 99% above estimated fair value — significant premium

Earnings Acceleration Triggers

1. Value Added Product Mix Shift
FY26MEDIUM
2. Management Or Ownership Change
Dec 2025 - Dec 2030LOW

Key Risks

1. ED attached bank balance of ₹2
MEDIUM
2. Dispute with Income Tax department involving ₹3
MEDIUM

Sector-Specific Signals

Textile Segment Revenue (9M)₹20,292.56 lakhs46.38%
Real Estate Segment Revenue (9M)₹3,228.66 lakhs28.36%
Debtors Turnover Ratio (H1)8.76
Return on Capital Employed5.47%

Key Numbers

Revenue YoY
+91%
Insufficient Data
Operating Margin
7.8%
+333 bps YoY
Current Price
₹238
Dividend Yield
0.73%
Fundamental Score
22/100
Weak
Market Cap
797 Cr
Valuation
Significantly Overvalued

12-Week Performance

Weekly presence in the outperformers list. Green = beating Nifty 500 by 10%+ that week.

12 weeks agoThis week

Why Are Ruby Mills Ltd's Earnings Accelerating?

Based on Q3 FY26 (web) earnings • Updated Apr 18, 2026

Value Added Product Mix Shift

Expected: FY26MEDIUM confidence

What: Textile Revenue: ₹20,292.56 lakhs (9M)

Management Or Ownership Change

Expected: Dec 2025 - Dec 2030LOW confidence

What: Board Appointment: Paras Savla

What Are the Key Risks for Ruby Mills Ltd?

Earnings deceleration risks from management commentary

ED attached bank balance of ₹2

MEDIUM

Trigger: ED attached bank balance of ₹2.6 crore related to a 2012 transaction; company is appealing.

Impact: PAT impact: ₹2.6 Cr (Balance Attachment)

Management view: Seeking legal advice and planning to appeal; states no impact on current operations.

Monitor: litigation

Dispute with Income Tax department involving ₹3

MEDIUM

Trigger: Dispute with Income Tax department involving ₹3.89 crore liability for AY 2007-08.

Impact: PAT impact: ₹3.89 Cr

Management view: Filed appeal against the order; hearing is pending.

Monitor: regulatory

What Did Ruby Mills Ltd Report This Quarter?

Headline numbers from the latest earnings call

Revenue

₹7,999.51 lakhs

YoY +23.03%QoQ -6.6%

Revenue growth was driven by both textile and real estate segments, though it declined sequentially from Q2.

EBITDA

₹9.44 Cr

YoY -17.58%Margin 11.8%

Operating margins faced severe compression due to a significant spike in finance costs and operational pressures.

PAT

₹946.23 lakhs

YoY -35.64%QoQ -13.98%

Net profit was dragged down by a 311% increase in interest expenses and fair value losses on equity instruments.

Other Highlights

• Finance costs increased to ₹467.97 lakhs from ₹113.64 lakhs YoY.

• Other income of ₹499.63 lakhs included ₹218 lakhs profit on property sale.

• Textile segment 9M revenue grew to ₹20,292.56 lakhs from ₹13,862.55 lakhs.

What Sector Metrics Matter for Ruby Mills Ltd?

Sub-sector-specific signals from the latest concall — each with management's stated reason for the change

Textile Segment Revenue (9M)

₹20,292.56 lakhs

YoY 46.38%

Why: Driven by diversification into fashion-forward and eco-conscious textiles.

Real Estate Segment Revenue (9M)

₹3,228.66 lakhs

YoY 28.36%

Why: Continued contribution from real estate development projects.

Debtors Turnover Ratio (H1)

8.76

Why: Indicates slower collection cycles and potential working capital stress.

Return on Capital Employed

5.47%

Why: Reflects limited efficiency in generating profits from the capital base.

Finance Costs

₹467.97 lakhs

YoY 311.80%QoQ 367.97%

Why: Significant increase from ₹113.64 lakhs in Q3FY25.

Non-Operating Income % of PBT

70.61%

Why: High reliance on non-business activities for profitability.

What Is Ruby Mills Ltd's Management Guidance?

Forward-looking targets from management for Long-term

Revenue Outlook

Steady expansion expected

Management Tone: CAUTIOUS

How Fast Is Ruby Mills Ltd Growing?

Revenue, profit and margin growth rates

MetricYoY3Y CAGRTrend
Revenue+91%—Insufficient Data
OPM7.8%+333 bpsInsufficient Data

The above analysis is parsed from publicly available earnings call transcripts. This is educational research only — not investment advice. Last updated Apr 18, 2026.

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Frequently Asked Questions: Ruby Mills Ltd

Based on publicly available financial data. This is educational research, not investment advice.

What were Ruby Mills Ltd's latest quarterly results?

Ruby Mills Ltd's latest quarterly results (Dec 2019) show

  • Revenue Growth YoY: +91.0%
  • Operating Margin: 7.8% (insufficient_data)

Is Ruby Mills Ltd's profit growing or declining?

Ruby Mills Ltd's profit is declining with an insufficient_data trend.

  • Trend: Insufficient_data — consistent growth pattern

What is Ruby Mills Ltd's revenue growth trend?

Ruby Mills Ltd's revenue growth trend is insufficient_data.

  • Revenue Growth YoY: +91.0%
  • Revenue Growth QoQ: +91.0% (sequential)

How is Ruby Mills Ltd's operating margin trending?

Ruby Mills Ltd's operating margin is insufficient_data.

  • Current OPM: 7.8%
  • OPM Change YoY: +3.3% basis points
  • OPM Change QoQ: +3.3% basis points

Is Ruby Mills Ltd's growth accelerating or decelerating?

Ruby Mills Ltd's earnings growth is insufficient_data with insufficient_data on a sequential basis.

Is Ruby Mills Ltd overvalued or undervalued?

Ruby Mills Ltd appears significantly overvalued based on our fair value analysis.

  • Valuation Signal: Significantly Overvalued

Is Ruby Mills Ltd a fundamentally strong company?

Ruby Mills Ltd is rated Weak with a fundamental score of 22/100. This score is calculated from objective financial metrics

  • Revenue Growth YoY: +91.0% (10% weight)
  • Margins stable (10% weight)

Is Ruby Mills Ltd debt free?

Ruby Mills Ltd has a debt-to-equity ratio of N/A.

What is Ruby Mills Ltd's dividend yield?

Ruby Mills Ltd's current dividend yield is 0.73%.

  • Dividend Yield: 0.73%
  • Current Price: ₹238

Who holds Ruby Mills Ltd shares — promoters, FII, DII?

Ruby Mills Ltd's shareholding pattern (Mar 2026)

  • Promoters: 74.9%
  • FII (Foreign): 0.0%
  • Public: 25.1%

Is promoter holding increasing or decreasing in Ruby Mills Ltd?

Ruby Mills Ltd's promoter holding has remained stable recently.

  • Current Promoter Holding: 74.9% (Mar 2026)
  • Previous Quarter: 74.9% (Dec 2025)
  • Change: 0.00% (stable)

How long has Ruby Mills Ltd been outperforming Nifty 500?

Ruby Mills Ltd has been outperforming Nifty 500 for 5 consecutive weeks, indicating building momentum.

Is Ruby Mills Ltd a new momentum entry or an established outperformer?

Ruby Mills Ltd is an established outperformer with 5 weeks of consecutive Nifty 500 outperformance.

What are the growth catalysts for Ruby Mills Ltd?

Ruby Mills Ltd has 2 key growth catalysts identified from recent earnings analysis

  • Value Added Product Mix Shift — Shift to niche and premium markets is helping capture market share despite overall margin pressure.
  • Management Or Ownership Change — New independent director appointment may improve governance but has no immediate PAT impact.

What are the key risks in Ruby Mills Ltd?

Ruby Mills Ltd has 2 key risks worth monitoring

  • [MEDIUM] ED attached bank balance of ₹2 — ED attached bank balance of ₹2.6 crore related to a 2012 transaction; company is appealing.
  • [MEDIUM] Dispute with Income Tax department involving ₹3 — Dispute with Income Tax department involving ₹3.89 crore liability for AY 2007-08.

What is Ruby Mills Ltd's management guidance for growth?

Ruby Mills Ltd's management has provided the following forward guidance for Long-term

  • Revenue outlook: Steady expansion expected
  • Margin outlook: Not Given
  • Capex plan: Not Given for Capacity Augmentation
  • Management tone: cautious

What sector-specific metrics matter most for Ruby Mills Ltd?

Ruby Mills Ltd's most important sub-sector-specific KPIs from the latest concall

  • Textile Segment Revenue (9M): ₹20,292.56 lakhs (YoY 46.38%) — Driven by diversification into fashion-forward and eco-conscious textiles.
  • Real Estate Segment Revenue (9M): ₹3,228.66 lakhs (YoY 28.36%) — Continued contribution from real estate development projects.
  • Debtors Turnover Ratio (H1): 8.76 — Indicates slower collection cycles and potential working capital stress.
  • Return on Capital Employed: 5.47% — Reflects limited efficiency in generating profits from the capital base.
  • Finance Costs: ₹467.97 lakhs (YoY 311.80%) (QoQ 367.97%) — Significant increase from ₹113.64 lakhs in Q3FY25.
  • Non-Operating Income % of PBT: 70.61% — High reliance on non-business activities for profitability.

Is Ruby Mills Ltd worth studying for long term investment?

Based on quantitative research signals, here is why Ruby Mills Ltd may be worth studying

  • Currently showing mixed signals — monitor for clearer trend confirmation

What is the investment thesis for Ruby Mills Ltd?

Ruby Mills Ltd investment thesis summary:

Research Signals (Bull Case)

  • Revenue growing at +91.0% YoY
  • Growth catalyst: Value Added Product Mix Shift

Risk Factors (Bear Case)

  • Appears significantly overvalued
  • Key risk: ED attached bank balance of ₹2

What is the future outlook for Ruby Mills Ltd?

Ruby Mills Ltd's forward outlook based on current data signals

  • Earnings Trend: insufficient_data
  • Revenue Trend: insufficient_data
  • Margin Trend: insufficient_data
  • Valuation: Significantly Overvalued
  • Key Catalyst: Value Added Product Mix Shift
  • Key Risk: ED attached bank balance of ₹2

The above FAQs are generated from publicly available earnings data and conference call transcripts. This is educational research only. Sector Alpha is not SEBI registered and does not provide investment advice.