1. At a Glance
Anand Rayons Ltd is one of those companies that looks fantastic on a WhatsApp forward but slightly confusing when you open the financial statements with chai in hand. Current market cap sits around ₹549 crore, the stock is trading near ₹256, and the company has delivered a wild 69.7% QoQ sales jump and a headline-grabbing 456% QoQ profit growth in the latest quarter. Sounds like Diwali came early, right?
But then you zoom out. Operating margins are still hovering at a skinny 2.53%, ROE is a modest 6.13%, and ROCE is under 10%. This is a business doing ₹401 crore in annual sales but making barely ₹9.4 crore in PAT (TTM). That’s like running a highway dhaba with five counters and ending the year with momo-stall profits.
The stock has been volatile: –39% in 3 months, +51% over 1 year, and +69% over 3 years. Translation? This is not a “set and forget” stock. This is a “check results every quarter and panic a little” stock.
So what exactly is Anand Rayons doing, and why is the market still willing to pay 58× earnings for a low-margin trading-heavy business? Let’s open the books.
2. Introduction – Welcome to the Multi-Avatar Company
Anand Rayons Ltd was incorporated in 2018, which in stock-market years makes it a Gen-Z company. Young, ambitious, slightly confused about its identity, and experimenting with multiple career options simultaneously.
Originally positioned as a yarn and fabric manufacturer, the company didn’t stop there. It decided to add petrochemical trading (yellow oil, white oil, base oil, palm oil), flirt with chemical exports, and casually walk into packaging materials like aluminium foil. If diversification were an Olympic sport, Anand Rayons would at least qualify for district level.
Here’s the real plot twist: 98% of FY24 revenue came from traded goods. Not manufacturing. Not value-added textiles. Plain old trading.
This makes Anand Rayons less of a “textile manufacturer” and more of a high-volume, low-margin trading
machine that occasionally reminds the market it owns some looms too.
The recent quarters show sharp improvement in profits, and yes, that deserves applause. But the real question is:
👉 Is this a structural turnaround or just one good quarter riding commodity price cycles?
Hold that thought.
3. Business Model – WTF Do They Even Do?
Let’s simplify Anand Rayons’ business model for a lazy but intelligent investor.
Textiles Side
- Embroidery yarn
- Dyed yarn
- Fabrics for T-shirts, garments, apparel
This is the “original plan.” A classic textile play. Unfortunately, this is not where most of the revenue is coming from anymore.
Petrochemical Trading
- Yellow oil
- White oil
- Base oil
- Palm oil
Used largely in adhesive industries. This is fast-moving, working-capital heavy, price-sensitive trading.
Packaging & Imports
- Aluminium foil
- Packaging products
Add-on trading business. Thin margins, high turnover.
The Reality Check
Despite all the manufacturing talk, Anand Rayons behaves financially like a trading company:
- Low operating margins
- High working capital
- Revenue volatility
- Profit sensitivity to scale and pricing
Ask yourself this:
💭 Are you valuing a “textile manufacturer” or a “commodity trader wearing a textile kurta”?
That answer changes everything.
4. Financials Overview – Numbers That Deserve a Slow Clap
Quarterly Comparison Table (Figures in ₹ Crore)
(Result Type Locked: Quarterly Results)
| Metric | Latest Qtr (Dec FY26) | YoY Qtr | Prev Qtr | YoY % | QoQ % |
|---|---|---|---|---|---|
| Revenue | 126.66 | 74.64 | 112.25 | 69.7% | 12.8% |
| EBITDA | 4.82 | 1.75 | 1.35 | 175.4% | 257% |
| PAT | 4.50 | 0.81 | 1.50 | 455.6% | 200% |
| EPS (₹) | 2.11 | 0.54 | 0.70 | 291% | 201% |
Yes, these numbers
