Check Before You Invest : Rama Telecom Ltd

Q: 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: Is Rama Telecom Ltd a good quality company?

Rama Telecom 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 Telecom Ltd undervalued or overvalued?

Rama Telecom Ltd appears Fair, as its key valuation ratios are in line with 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: 20.51, Historic Median: 15.76. Price to Book, Current: 2.73, Historic Median: 4.29. Price to Sales, Current: 2.72, Historic Median: 2.09. EV to EBITDA, Current: 14.44, Historic Median: 11.19

Q: Is Rama Telecom Ltd a good buy now?

Rama Telecom Ltd is a neutral opportunity now, based on stable price trend analysis suggesting prices may move sideways. However, you need to check its quality and valuation before making a decision

Q: Revenue growth of Rama Telecom Ltd?

Rama Telecom Ltd revenue growth is 12.3% for FY-2025, which is above its 3-year CAGR of 8.7%, indicating faster growth.

Q: 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 3-year median of 10.1%, indicating increasing margins.

Q: 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 3-year median of 10.84% indicating increasing margins.

Q: Net Profit Margin of Rama Telecom Ltd?

Rama Telecom Ltd Net Profit Margin is 13.24% for FY-2025, is above its 3-year median of 7.02%, indicating increasing margins. Profitability Metrics. Gross Profit Margin (%), Current: 18.2, Historic Median: 10.1. Operating Profit Margin (%), Current: 17.69, Historic Median: 10.84. Net Profit Margin (%), Current: 13.24, Historic Median: 7.02

Q: Return on Asset of Rama Telecom Ltd?

Rama Telecom Ltd Return on Asset is 23.05%, which is above its 3-year historical median of 14.84%, indicating improved asset utilization efficiency.

Q: 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 3-year historical median of 33.18%. The current ROCE is above its estimated weighted average cost of capital (WACC) of 14%, indicating value creation.

Check Before You Invest : Rama Telecom Ltd

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 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 Telecom Ltd undervalued or overvalued?

Rama Telecom Ltd appears Fair, as its key valuation ratios are in line with 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	3-year Historic Median
Price to Earnings	20.51	15.76
Price to Book	2.73	4.29
Price to Sales	2.72	2.09
EV to EBITDA	14.44	11.19

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

Rama Telecom Ltd is a neutral opportunity now, based on stable price trend analysis suggesting prices may move sideways. 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 Telecom Ltd?

Rama Telecom Ltd revenue growth is 12.3% for FY-2025, which is above its 3-year CAGR of 8.7%, 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 3-year median of 10.1%, 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 3-year median of 10.84% 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 its 3-year median of 7.02%, indicating increasing margins.

	Current Level	3-year Historic Median
Gross Profit Margin (%)	18.2	10.1
Operating Profit Margin (%)	17.69	10.84
Net Profit Margin (%)	13.24	7.02

B: Does the business utilize capital efficiently?

Q.5 Return on Asset of Rama Telecom Ltd?

Rama Telecom Ltd Return on Asset is 23.05%, which is above its 3-year historical median of 14.84%, indicating improved asset utilization efficiency.

Q.6 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 3-year historical median of 33.18%. The current ROCE is above its estimated weighted average cost of capital (WACC) of 14%, indicating value creation.

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

Rama Telecom Ltd Return on equity is 42.53% for FY-2025, which is above its 3-year historical median of 31.73%, indicating the business is making better use of its shareholders capital.

Q.8 Cash conversion cycle of Rama Telecom Ltd?

Rama Telecom Ltd Cash conversion cycle is 65 days, above its 3-year historical median of 48 days, indicating deteriorated working capital management. However, you need to compare this with its peers in the industry.

	Current Level	3-year Historic Median
Asset Turnover (x)	1.74	2.11
ROE (%)	42.53	31.73
ROCE (%)	44.64	33.18
Cash Conversion Cycle	65 days	48 days

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

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

Rama Telecom Ltd Debt-to-Equity ratio is 0.30, which is above the industry average of 0.00, 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

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

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)

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

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

Rama Telecom Ltd revenue CAGR is 8.70%, compared to the industry median CAGR of 4.61%, indicating faster growth and gaining its market share.

Profit Metrics

	Current Level	3-year Industry Median
Revenue Growth (%)	12.3	4.6
Gross Profit Growth (%)	100	21.8
Operating Profit Growth (%)	75	20.7
Net Profit Growth (%)	100	31.5

Operating Efficiency

	Current Level	3-year Industry Median
Asset Turnover (x)	1.74	0.91
ROE (%)	42.53	0.85
ROCE (%)	44.64	10.82
Cash Conversion Cycle (days)	64.66	29

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.

	9Y	5Y	3Y	1Y
Share Price CAGR	-	-	-	-

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

The current P/E ratio of 20.51 is higher than its historical median of 15.76, indicating that the stock is trading above its historical average valuation.

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

Valuation Ratios	Current	3-year Historic Median	3-year Industry Median
Price to Earnings	20.51	15.76	18.45
Price to Book	2.73	4.29	0.67
Price to Sales	2.72	2.09	2.15
EV to EBITDA	14.44	11.19	12.44

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Check Before You Invest : Rama Telecom 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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