₹1249.0
-0.59% today
· 30d -3.92%
as of 2026-11-09
Price · Daily Candles
“RML's profits surge 467% QoQ; questions loom as ML forecasts Free Cash Flow compression”
RML delivered an exceptional Q4 2026, with net profit soaring by 466.87% YoY to ₹37 crore on a 16.26% YoY revenue increase to ₹1048 crore. Despite a strong annual net profit growth of 185.47% to ₹107 crore, the ML model predicts significant free cash flow compression, with FCF consistently negative across 2-year, 4-year, and 7-year projections.
BULL CASE
+Net profit recorded a substantial 466.87% YoY increase in Q4 2026, reaching ₹37 crore.
+Quarterly revenue grew by 16.26% YoY to ₹1048 crore, indicating robust top-line performance.
+Annual net profit for FY26 surged by 185.47% YoY to ₹107 crore, showcasing strong yearly financial rebound.
+The 3-year revenue CAGR stands at an impressive 17.16%, with net profit CAGR at 52.98%.
BEAR CASE
−ML model predicts significant negative free cash flow, with FCF 1-year recent 2-year at -0.1056 and FCF 1-year rolling 4-year at -0.3336.
−The company's ROCE of 14.0% is below several peers, such as BOSCHLTD (21.47%) and SCHAEFFLER (31.31%).
−DII shareholding declined by 0.05% QoQ to 0.98% in Q4 2026, while public shareholding increased by 0.04% to 28.51%.
−The stock is trading at 11.86% off its 52-week high of ₹1049.0.
⟳ What Changed
₹ Latest Earnings · Q ending 2026-09-30
REVENUE
₹1237 Cr
+34.57% YoY
NET PROFIT
₹327 Cr
+1421.56% YoY
OPM
9.18%
+0.21pp YoY
EPS
₹118.2
PE 23.78
Intrinsic value · DCF ₹490.87 · Margin of safety -60.7% (overvalued) · FCF yield 0.81%
◇ Sector Position
RML's PE of 23.78 and ROCE of 14.0% position it as an underperformer compared to sector leaders like BHARTFORG (PE 98.06, ROCE 24.38%) and SCHAEFFLER (PE 57.01, ROCE 31.31%).
PEERPEROCE %
RML23.7814.0
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ML Forward Growth Predictions 🔒
69
SCORE / 100
Overall
6-axis composite of the sections below.
Performance
STRONG
100
Valuation
REASONABLE
60
Growth
STRONG
80
Profitability
DECENT
58
Technicals
NEUTRAL
67
Risk
MODERATE
50
Key Stats
TTM PE
23.78
P/B
3.4
52W HIGH
₹1440.0
OFF HIGH
-13.26%
DIV YIELD
1.72%
MKT CAP
₹3451 Cr
◉ Active Signals
MACDNeutral4.5751
RSI(14)Neutral48.79
⧉ Strategy Fit 🔒