R&B Denims Ltd (RNBDENIMS) — share price & stock analysis

Market cap

₹611 Cr

P/E

19.6×

ROE

12.3%

Book value / share

₹21.6

Revenue (FY25)

₹367 Cr

Profit after tax (FY25)

₹27 Cr

Weinstein stage

Stage 2 (128 weeks)

Data as of

27 March 2026

2 of the 6 things we track are currently moving the right way — most of the dashboard is red.

Where the levels actually stand: ROCE 16% — decent; debt moderate (0.51× equity); margins near the top of their band. Momentum says which way things are moving; these say where they are.

Read this number for what it is: it measures the DIRECTION of change, not the quality of the business. A mediocre business getting better scores high here; a great one having a soft quarter scores low. Profit, sales and margins count double.

Stage 2: the trend is up, and has been for 128 weeks

Price trends have a life cycle: they base (1), advance (2), top out (3) and decline (4). This chart is in Stage 2: advancing — 128 weeks so far, confirmed.stage

The price sits above its rising 200-day average (₹122 today) — trends like this persist more often than they reverse, which is why the system rides them instead of guessing the top.dma_200

Trailing NIFTY 500 for 2 weeks — relative strength is the market’s live opinion, and right now it is against it.rs_mansfield

What would end it: two Friday closes in a row below the 200-day line. That is the house exit rule — mechanical, no debates.dma_200

Profits are at an all-time high

Over 11 years, sales went from ₹107 Cr to ₹367 Cr (about 12% a year), and profit from ₹0.0 Cr to ₹27.0 Cr.revenuenet_profit

Margins widened 4.8 points along the way — growth with improving economics.operating_profit

Sales grew 19% last quarter

Dec 25 sales were ₹113 Cr, up 19% on the same quarter last year.revenue

Margins are compressing — 12% → 10% in a year

Of every ₹100 of sales, the company keeps ₹9.7 as operating profit (a year ago it kept ₹11.8).opm_pct

Zoom out and this is the page's quiet hero: annual operating margin bottomed at 7.8% in FY20 and has been rebuilt to 12.3% — that recovery, not sales alone, is what powers the profit growth elsewhere on this page.operating_profit

The gross margin barely moved (21% → 25%), so the change came from running costs — overheads are growing faster than sales.gpm_pctopm_pct

Profit declined 18% — mostly from income from outside the core business

Dec 25 profit after tax was ₹8.3 Cr, down 18% year on year.net_profit

A caution: a meaningful slice of this jump came from income outside the core business — that is lower-quality profit and may not repeat.other_income

The profits are real — they turn into cash

Over the last 5 profitable years, the business reported ₹96.0 Cr of profit and collected ₹138 Cr of operating cash — about 144% conversion.operating_cash_flownet_profit

When cash tracks profit this closely, the earnings need no asterisk.

The cash cycle is stretching — more money stuck in the pipeline

One rupee now takes about 141 days to go out the door as materials and come back as collected cash — up from 121 days the year before.cash_conversion_cycle

The biggest mover: inventory sitting longer in the warehouse (76 → 99 days).inventory_days

The asset base keeps compounding — this company builds

The productive asset base has gone from ₹46.0 Cr (FY14) to ₹83.0 Cr, with another ₹5.0 Cr of capacity under construction right now.fixed_assetscwip

The build is self-funded: the last 3 years' investing outflow (₹66.0 Cr) fits inside the operating cash the business generated (₹106 Cr).investing_cash_flowoperating_cash_flow

Debt is present but comfortable

For every ₹100 shareholders have put in (and left in), the company has borrowed ₹51 — total borrowings have grown from ₹36.0 Cr to ₹94.0 Cr over the window.borrowings

Every ₹100 kept in the business earns ₹16 — decent, not special

Return on capital employed is 16.0% (a year ago: 19.0%). This is the single best test of business quality: what the company earns on the money it keeps.roce_pct

Promoter holding dropped in one step — an event, not a slow exit

Promoters hold 57.4% (down 16.4 points over 8 quarters). Foreign funds own 0.6%, domestic funds null%.promoters_pctfiis_pctdiis_pct

The promoter move came in a single step (Jun 24) — promoters rarely buy on-market, so a jump like this is almost always an allotment, infusion or restructuring: a capital event, not a slow accumulation of conviction. Worth knowing which, before reading it as a signal.promoters_pct

One to watch, not one to study deeper yet

The numbers say be careful, and the price is roughly fair to the delivery so far.

Best thing in the data: sales rising (₹95.3 Cr → ₹113 Cr).revenue

Biggest worry: free cash flow falling (₹4.0 Cr → ₹−6.0 Cr).operating_cash_flow

One dissent worth hearing: our quality & safety lens reads positive — “Quality & Safety: 16.0/30 (non-financial). Earnings stability: 8/8 quarters profitable → 5/5. Return durability: Avg ROCE 19.4% over 5Y → 4/6. Margin quality: O”. When a lens disagrees with the committee, it is usually pointing at the thing that breaks first.

Machine-written research from Screener data — every number traces to its source column. Sector Alpha is not a SEBI-registered investment adviser; nothing here is a recommendation to buy or sell. Not investment advice.

Straight answers from the data