Last Updated2026-06-02

Market View

₹171.46(▼2.07%)

Reporting PeriodQ4 FY26

RSWMRSWM Forensic Risk Analysis

Name: RSWM Structural Risk Analysis
Creator: Flagium AI
License: https://creativecommons.org/licenses/by-nc-nd/4.0/

Other Textile Products

Risk ClassWatch

Market CapN/A

Primary DriverCompetitive Position

Flagium AI Risk Score

23 / 100

+1 QoQ

Deteriorating

Sentinel Insight

Financial profile remains stable for now. Weakness is detected in competitive position. This suggests a building risk profile. Risk is increasing at a faster pace.

43.9th %ile (Sector)Accel: +3 Qtrs

Updated2026-06-02

Market View

₹171.46▼2.07%

PeriodQ4 FY26

Score Waterfall
Absolute contribution points of each forensic pillar to the final risk score. Derived from: Sector Baseline + Active Penalties - Mitigation Buffers.

Competitive Position

+15.0 pts

Balance Sheet Stress

+7.7 pts

Final Composite Risk23 / 100

Investment Risk Thesis

Historical Trend

Current risk score has risen from 11 → 23 over 13 quarters.

Expected Direction

🚨 Escalate

Primary Deterioration Drivers

Inventory Stress
Relative Growth Weakness
Working Capital Expansion

What to Watch Next Quarter

Operating profit margins
Operating cash flow
Inventory turnover

Active Risk Objects (8)

CriticalHigh

Relative Growth Weakness

📊 Earnings QualityAnnualActive for 3 Years

More Detail

Impact Weight12/15

MomentumPersistent

Last SignalQ4 FY2026

Revenue growth consistently lags behind sector median (12.8%).

"Early signs of earnings quality decay. Profitability is being driven by non-core items."

Profit Collapse

📊 Earnings QualityQuarterlyActive for 3 Qtrs

More Detail

Impact Weight8/15

MomentumDecaying

Last SignalQ4 FY2025

RSWM: Net Profit collapsed by 95.8% from FY2024 Q4 to FY2025 Q4.

"Earnings quality is stabilizing. The reliance on non-operational items is receding."

Cash Conversion Deficit

📊 Earnings QualityAnnualActive for 2 Years

More Detail

Impact Weight6/15

MomentumDecaying

Last SignalFY2025

RSWM: OCF below Net Profit in 2/3 recent years.

"Cash conversion has normalized in the latest period. Operational cash flow is back in sync."

Inventory Stress

📊 Earnings QualityAnnualActive for 1 Years

More Detail

Impact Weight15/15

MomentumDecaying

Last SignalQ2 FY2024

Inventory growth (15.9%) significantly outpaced revenue growth (5.5%).

"Inventory overhang is clearing. Stock levels are normalizing as sales momentum returns."

Negative FCF Streak

⚖️ Governance SignalsAnnualActive for 1 Years

More Detail

Impact Weight6/15

MomentumDecaying

Last SignalFY2024

RSWM: Negative Free Cash Flow for last 3 consecutive years.

"Free cash flow pressure is easing as capital intensity or working capital stress recedes."

Low Interest Coverage

💧 Liquidity & CoverageQuarterlyActive for 11 Qtrs

More Detail

Impact Weight8/15

MomentumPersistent

Last SignalQ4 FY2026

RSWM: Low Interest Coverage Ratio of 1.55x in FY2026 Q4 (Threshold: 2.5x).

"Earnings buffer for interest payments is narrowing. Monitor for margin pressure."

Working Capital Expansion

💧 Liquidity & CoverageAnnualActive for 1 Years

More Detail

Impact Weight10/15

MomentumDecaying

Last SignalQ4 FY2024

Working capital expansion detected: Receivable days increased by 19.6%.

"Working capital pressure is receding. Cash previously locked in operations is being released."

Capex Efficiency Stress

📊 Earnings QualityAnnualActive for 1 Years

More Detail

Impact Weight8/15

MomentumDecaying

Last SignalQ2 FY2024

Aggressive Capex (16.1%) amidst slow revenue growth (5.5%).

"Earnings quality is stabilizing. The reliance on non-operational items is receding."

Risk Trajectory

Loading Chart

Resilience Matrix

Metric	Value	vs Sector	Signal
Volatility (σ)	5.67	8.38	✅ RESILIENT
Sensitivity (ε_s)	1	1.00	✅ RESILIENT
Escalation Prob.	5%	5%	✅ NEUTRAL
Safety Buffer	+43.0	+42.0	✅ RESILIENT

Forensic Benchmark Context: Other Textile Products (n=42 peers)

Correlation Analysis
Visualizing the relationship between stock price movement and structural risk objects.

Loading Chart

Share Price

Risk Score (0-100)

Market Performance

₹171.46(-2.07%)

1M Divergence+1.92%

1 Week-4.2%

1 Month+4.19%

6 Months+10.28%

1 Year-3.57%

2 Year-3.57%

3 Year-5.78%

Sector Average (1M)+2.27%

Sentinel Forensic Assessment

ALGORITHMIC RISK PROFILE • NON-ADVISORY

The risk profile is Early Signals and currently consolidating. Recent structural triggers in competitive position suggest a building pressure on the underlying framework. Material forensic traces are visible in core structural metrics, indicating a progressive erosion of structural stability. Continued monitoring is necessary as risk levels remain above institutional safety parameters.

RSWM • MARKET STRUCTURE

Stage 1 — Accumulation

The company is in a foundational phase. Risk metrics are stabilizing as the company builds a base for potential future fundamental improvement.

Stage Transition Prob.84%

Trend QualityStabilizing

Phase Progression

Phase Progression Score60%

Readiness LabelModerate (Transition Potential Building)

Probability of Advancing84%

CoinTree Momentum

Composite Z-Score+0.3585σ

Improving momentum strength

Universe Rank#547 of 2716

Top 20.14% in momentum strength

Timeframe Sparklines

1W-4.2%

1M+4.2%

6M+10.3%

Weinstein Indicators

150 DMA₹151.25

200 DMA₹151.5

150 DMA Slope+1.8465%Rising

Relative Strength+16.56%Leading

Relative Turnover (RTR)2.0853

ParticipationHealthy

PEER COMPARISON

Ranked comparison against sector peers

Risk profile is broadly in line with the Sector Mean (24).

Ticker	Risk Score	Sector %ile	Delta	Flags	Accel	Primary Driver
RSWMRSWM	23	44th	+1	8	+3	Competitive PositionWatch
ABCOTSA B Cotspin India Limited	25	51th	-5	10	+0	Balance Sheet StressWatch
AYMSYNTEXAYM Syntex Limited	34	78th	-5	33	+0	Competitive PositionWatch
ALOKINDSAlok Industries Limited	35	83th	+8	23	+1	Competitive PositionWatch