Check Before You Invest : Rama Phosphates Ltd

Q: Which industry/sub-sector does Rama Phosphates Ltd belong to?

Rama Phosphates Ltd belongs to the Chemicals & Fertilizers sector, operating specifically within the Fertilizers segment.

Q: Is Rama Phosphates Ltd a good quality company?

Rama Phosphates Ltd is a average quality company, based on a somewhat consistent multi-year financial track record. This assessment is based on company’s performance on Revenue growth, ROCE, Equity and Assets, key margin ratios, cash conversion cycle, and debt to cash flow from operations and how it compares with its long term averages.

Q: Is Rama Phosphates Ltd undervalued or overvalued?

Rama Phosphates Ltd appears Somewhat overvalued, as its key valuation ratios are higher than their past averages. Based on the industry it operates in, the relevant valuation ratios include one of the following, P/E, P/BV, P/Sales, EV/EBITDA or a combination of two or more. Valuation Ratios. Price to Earnings, Current: 9.29, Historic Median: 8.63. Price to Book, Current: 1.45, Historic Median: 1.45. Price to Sales, Current: 0.56, Historic Median: 0.56. EV to EBITDA, Current: 5.91, Historic Median: 5.65

Q: Is Rama Phosphates Ltd a good buy now?

Rama Phosphates Ltd is a good buy now, based on strong price trend analysis suggesting prices may rise. However, you need to check its quality and valuation before making a decision

Q: Revenue growth of Rama Phosphates Ltd?

Rama Phosphates Ltd revenue growth is 23.3% for FY-2025, which is above its 5-year CAGR of 10.65%, indicating faster growth.

Q: Gross Profit margin of Rama Phosphates Ltd?

Rama Phosphates Ltd Gross profit margin which is the profit after deduction of direct costs, is 4.5% for FY-2025, which is below its 5-year median of 7.4%, indicating decreasing margins.

Q: Operating Profit Margin of Rama Phosphates Ltd?

Rama Phosphates Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 5.88% for FY-2025, which is below its 5-year median of 8.52% indicating decreasing margins.

Q: Net Profit Margin of Rama Phosphates Ltd?

Rama Phosphates Ltd Net Profit Margin is 1.84% for FY-2025, is below its 5-year median of 4.68%, indicating decreasing margins. Profitability Metrics. Gross Profit Margin (%), Current: 4.5, Historic Median: 7.4. Operating Profit Margin (%), Current: 5.88, Historic Median: 8.52. Net Profit Margin (%), Current: 1.84, Historic Median: 4.68

Q: Return on Asset of Rama Phosphates Ltd?

Rama Phosphates Ltd Return on Asset is 2.17%, which is below its 5-year historical median of 8.38%, indicating deteriorated asset utilization efficiency.

Q: Return on capital employed (ROCE) of Rama Phosphates Ltd?

Rama Phosphates Ltd Return on capital employed is 9.39% for FY-2025, which is below its 5-year historical median of 17.05%. The current ROCE is below its estimated weighted average cost of capital (WACC) of 14%, indicating value preservation.

Check Before You Invest : Rama Phosphates Ltd

Snapshot

Q.1 Which industry/sub-sector does Rama Phosphates Ltd belong to?

Rama Phosphates Ltd belongs to the Chemicals & Fertilizers sector, operating specifically within the Fertilizers segment.

Q.2 Is Rama Phosphates Ltd a good quality company?

Rama Phosphates Ltd is a average quality company, based on a somewhat consistent multi-year financial track record.

This assessment is based on company’s performance on Revenue growth, ROCE, Equity and Assets, key margin ratios, cash conversion cycle, and debt to cash flow from operations and how it compares with its long term averages.

Q.3 Is Rama Phosphates Ltd undervalued or overvalued?

Rama Phosphates Ltd appears Somewhat overvalued, as its key valuation ratios are higher than their past averages.

Based on the industry it operates in, the relevant valuation ratios include one of the following, P/E, P/BV, P/Sales, EV/EBITDA or a combination of two or more.

Valuation Ratios	Current	5-year Historic Median
Price to Earnings	9.29	8.63
Price to Book	1.45	1.45
Price to Sales	0.56	0.56
EV to EBITDA	5.91	5.65

Q.4 Is Rama Phosphates Ltd a good buy now?

Rama Phosphates Ltd is a good buy now, based on strong price trend analysis suggesting prices may rise. However, you need to check its quality and valuation before making a decision

Performance Analysis

We have analysed the performance of the company on the following:

How has it performed on generating Profits?
By checking its Revenue growth, Gross, Operating and Net Margins compared to its last 5-year median.
How efficiently has it utilized Capital?
By checking its ROCE, ROA, ROE and its Cash Conversion Cycle.
How is it managing its Debt?
By checking its Debt to Equity and Cash Flow from Operations.

A: What are the trends in revenue and profit margins?

Q.1 Revenue growth of Rama Phosphates Ltd?

Rama Phosphates Ltd revenue growth is 23.3% for FY-2025, which is above its 5-year CAGR of 10.65%, indicating faster growth.

Q.2 Gross Profit margin of Rama Phosphates Ltd?

Rama Phosphates Ltd Gross profit margin which is the profit after deduction of direct costs, is 4.5% for FY-2025, which is below its 5-year median of 7.4%, indicating decreasing margins.

Q.3 Operating Profit Margin of Rama Phosphates Ltd?

Rama Phosphates Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 5.88% for FY-2025, which is below its 5-year median of 8.52% indicating decreasing margins.

Q.4 Net Profit Margin of Rama Phosphates Ltd?

Rama Phosphates Ltd Net Profit Margin is 1.84% for FY-2025, is below its 5-year median of 4.68%, indicating decreasing margins.

	Current Level	5-year Historic Median
Gross Profit Margin (%)	4.5	7.4
Operating Profit Margin (%)	5.88	8.52
Net Profit Margin (%)	1.84	4.68

B: Does the business utilize capital efficiently?

Q.5 Return on Asset of Rama Phosphates Ltd?

Rama Phosphates Ltd Return on Asset is 2.17%, which is below its 5-year historical median of 8.38%, indicating deteriorated asset utilization efficiency.

Q.6 Return on capital employed (ROCE) of Rama Phosphates Ltd?

Rama Phosphates Ltd Return on capital employed is 9.39% for FY-2025, which is below its 5-year historical median of 17.05%. The current ROCE is below its estimated weighted average cost of capital (WACC) of 14%, indicating value preservation.

Q.7 Return on Equity (ROE) of Rama Phosphates Ltd?

Rama Phosphates Ltd Return on equity is 4.84% for FY-2025, which is below its 5-year historical median of 14.15%, indicating the business is making worse use of its shareholders capital.

Q.8 Cash conversion cycle of Rama Phosphates Ltd?

Rama Phosphates Ltd Cash conversion cycle is 83 days, above its 5-year historical median of 60 days, indicating deteriorated working capital management. However, you need to compare this with its peers in the industry.

	Current Level	5-year Historic Median
Asset Turnover (x)	1.18	1.79
ROE (%)	4.84	14.15
ROCE (%)	9.39	17.05
Cash Conversion Cycle	83 days	60 days

C: How much debt does the business have and is it at a sustainable level?

Q.9 Debt to Equity ratio of Rama Phosphates Ltd?

Rama Phosphates Ltd Debt-to-Equity ratio is 0.42, which is lower the industry average of 0.41, indicating lower debt levels in the industry.

Q.10 Debt to cash flow from operations of Rama Phosphates Ltd?

Rama Phosphates Ltd Debt to cash flow from operations is 3.07, which is at a moderate level.

Ownership & governance

D: Promoter shareholding and pledge status of Rama Phosphates Ltd?

Q.1 Promoter shareholding and pledge status of Rama Phosphates Ltd?

Promoters hold 75.00% of the Rama Phosphates Ltd, with 13.33% of their stake pledged, indicating high pledge risk.

Peer comparison (industry-wise, mcap)

E: How does Rama Phosphates Ltd performance compare with that of its Peers?

Q.1 Revenue growth of Rama Phosphates Ltd vs industry peers?

Rama Phosphates Ltd revenue CAGR is 10.65%, compared to the industry median CAGR of 8.22%, indicating faster growth and gaining its market share.

Profit Metrics

	Current Level	5-year Industry Median
Revenue Growth (%)	23.3	8.2
Gross Profit Growth (%)	0	13.5
Operating Profit Growth (%)	0	7
Net Profit Growth (%)	0	14.9

Operating Efficiency

	Current Level	5-year Industry Median
Asset Turnover (x)	1.18	1.19
ROE (%)	4.84	7.02
ROCE (%)	9.39	9.34
Cash Conversion Cycle (days)	83.35	68

Valuation & price assessment

Q.1 Stock return of Rama Phosphates Ltd over the last decade?

Over the last 9 year(s), the stock has delivered a CAGR of 16.3% based on the current price.

	9Y	5Y	3Y	1Y
Share Price CAGR	16.3%	15.4%	10.5%	36%

Q.2 Valuation ratios of Rama Phosphates Ltd vs historical?

The current P/E ratio of 9.29 is higher than its historical median of 8.63, indicating that the stock is trading above its historical average valuation.

Q.3 How do the current valuation ratios compare with 5-year historical median and industry numbers?

Valuation Ratios	Current	5-year Historic Median	5-year Industry Median
Price to Earnings	9.29	8.63	13.55
Price to Book	1.45	1.45	1.43
Price to Sales	0.56	0.56	0.63
EV to EBITDA	5.91	5.65	7.82

Check more companies

1. Chambal Fert & Chem

2. Paradeep Phosphates

3. RCF

4. GSFC

5. MP Bharat Agro Prod

6. Krishana Phoschem

7. National Fertilizers

8. SPIC

9. Madras Fertilizers

10. Zuari Agro Chemicals

Check trending companies

1. Sapphire Foods India Ltd.

2. Emami Ltd.

3. LT Foods Ltd.

4. Bikaji Foods International Ltd.

5. Apar Industries Ltd.

Check Before You Invest : Rama Phosphates Ltd

Snapshot

Performance Analysis

Ownership & governance

Peer comparison (industry-wise, mcap)

Profit Metrics

Operating Efficiency

Valuation & price assessment

Check more companies

Check trending companies

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