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INVESTMENT INSIGHTS

Check Before You Invest : Rama Telecom Ltd

BSE: 0 NSE: RTL ISIN: INE14W901010
  |   Sector:  Telecom   |   Industry:  Telecommunication - Service Provider

Snapshot

Q.1 Which industry/sub-sector does Rama Telecom Ltd belong to?
Rama Telecom Ltd belongs to the Telecom sector, operating specifically within the Telecommunication - Service Provider segment.
Q.2 Is Rama Telecom Ltd a good quality company?
Rama Telecom Ltd is a average quality company, based on a somewhat consistent 10 year financial track record.
Q.3 Is Rama Telecom Ltd undervalued or overvalued?
Rama Telecom Ltd appears Overvalued, as its key valuation ratios are above with their past averages.
Q.4 Is Rama Telecom Ltd a good buy now?
Rama Telecom 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

Q.1 Revenue growth of Rama Telecom Ltd?
Rama Telecom Ltd revenue growth is 12.3% for FY-2025 , which is above its 5 year CAGR of 0% , indicating faster growth.
Q.2 Gross Profit margin of Rama Telecom Ltd?
Rama Telecom Ltd Gross profit margin which is the profit after deduction of direct costs, is 18.2% for FY-2025 , which is above its 5 year median of 11.3% , indicating increasing margins.
Q.3 Operating Profit Margin of Rama Telecom Ltd?
Rama Telecom Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 17.69% for FY-2025 , which is above its 5 year median of 11.52% indicating increasing margins.
Q.4 Net Profit Margin of Rama Telecom Ltd?
Rama Telecom Ltd Net Profit Margin is 13.24% for FY-2025 , is above with its 5 year median of 8.26%, indicating increasing margins.
Current Level Historic Median
Gross Profit Margin 18.2 11.3
Operating Profit Margin 17.69 11.52
Net Profit Margin 13.24 8.26
Q.5 Return on Asset of Rama Telecom Ltd?
Rama Telecom Ltd Return on Asset is 23.05%, which is above its 5 year historical median of 15.26%, indicating improved asset utilization efficiency.
Q.6 Return on Equity (ROE) of Rama Telecom Ltd?
Rama Telecom Ltd Return on equity is 42.53% for FY-2025 , which is above its historical median of 29.89%, indicating the business is making better use of its shareholders capital.
Q.7 Return on capital employed (ROCE) of Rama Telecom Ltd?
Rama Telecom Ltd Return on capital employed is 44.64% for FY-2025 , which is above its estimated weighted average cost of capital(WACC) 14%, indicating value creation.
Q.8 Cash conversion cycle of Rama Telecom Ltd?
Rama Telecom Ltd Cash conversion cycle is 65 days, above its historical median of 50 days, indicating deteriorated working capital management. However, you need to compare this with its peers in the industry.
Current Level Historic Median
Asset Turnover 1.74 2.26
ROE 42.53 29.89
ROCE 44.64 33.1
Cash Conversion Cycle 65 days 50 days
Q.9 Debt to Equity ratio of Rama Telecom Ltd?
Rama Telecom Ltd Debt-to-Equity ratio is 0.30 , which is above with the industry average of -0.73 , indicating higher debt levels in the industry.
Q.10 Debt to cash flow from operations of Rama Telecom Ltd?
Rama Telecom Ltd Debt to cash flow from operations is 41.13 , which is at a unhealthy level.

Ownership & governance

Q.1 Promoter shareholding and pledge status of Rama Telecom Ltd?
Promoters hold 71.28% of the Rama Telecom Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

Q.1 Revenue growth of Rama Telecom Ltd vs industry peers?
Rama Telecom Ltd revenue CAGR is 0.00% , compared to the industry median CAGR of 1.67% , indicating stable growth and maintaining its market share.
Profit Metrics
Current Level Industry Median
Revenue 41.8 332
Gross Profit 7.6 0.7
Operating Profit 7 7.2
Net Profit 6 0.3
Operating Efficiency
Current Level Industry Median
Asset Turnover 1.74 0.86
ROE 42.53 -
ROCE 44.64 2.27
Cash Conversion Cycle (days) 64.66 -5

Valuation & price assessment

Q.1 Stock return of Rama Telecom Ltd over the last decade?
Over the last - year(s), the stock has delivered a CAGR of N/A% based on the current price.
Q.2 What return has the stock given over the last decade?
9Y 5Y 3Y 1Y
Share Price - - - -
Q.3 Valuation ratios of Rama Telecom Ltd vs historical?
The current P/E is higher that its historical median.
Q.4 How do the current valuation ratios measure up against the historic numbers and the current industry numbers?
Valuation Ratios Current Historic Median Industry Median
Price to Earnings 20.05 16.67 41.09
Price to Book 5.5 4.57 0.69
Price to Sales 2.66 11.82 2.07
EV to EBITDA 14.13 0.00 12.28

Check more companies

1. Railtel Corp. India
2. Tata Teleservice(Mah
3. MTNL
4. Hathway Cable & Data
5. Reliance Comm
6. GTL
7. Rama Telecom
8. Steelman Telecom
9. Accord Synergy
10. City Online Services
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