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Check Before You Invest : Rama Paper Mills Ltd

BSE: 500357 NSE: ISIN: INE425E01013
  |   Sector:  Paper & Stationary   |   Industry:  Paper & Paper Products

Snapshot

Q.1 Which industry/sub-sector does Rama Paper Mills Ltd belong to?
Rama Paper Mills Ltd belongs to the Paper & Stationary sector, operating specifically within the Paper & Paper Products segment.
Q.2 Is Rama Paper Mills Ltd a good quality company?
Rama Paper Mills Ltd is a quality company, based on a 10 year financial track record.
Q.3 Is Rama Paper Mills Ltd undervalued or overvalued?
Rama Paper Mills Ltd appears Overvalued, as its key valuation ratios are above with their past averages.
Q.4 Is Rama Paper Mills Ltd a good buy now?
Rama Paper Mills Ltd is not a good buy now, based on weak price trend analysis suggesting prices may fall. However, you need to check its quality and valuation before making a decision

Performance Analysis

Q.1 Revenue growth of Rama Paper Mills Ltd?
Rama Paper Mills Ltd revenue growth is -88.3% for FY-2025 , which is below its 5 year CAGR of -44.2% , indicating slower growth.
Q.2 Gross Profit margin of Rama Paper Mills Ltd?
Rama Paper Mills Ltd Gross profit margin which is the profit after deduction of direct costs, is -175.7% for FY-2025 , which is below its 5 year median of -2.4% , indicating decreasing margins.
Q.3 Operating Profit Margin of Rama Paper Mills Ltd?
Rama Paper Mills Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is -161.21% for FY-2025 , which is below its 5 year median of -5.96% indicating decreasing margins.
Q.4 Net Profit Margin of Rama Paper Mills Ltd?
Rama Paper Mills Ltd Net Profit Margin is -247.22% for FY-2025 , is below with its 5 year median of -7.17%, indicating decreasing margins.
Current Level Historic Median
Gross Profit Margin -175.7 -2.4
Operating Profit Margin -161.21 -5.96
Net Profit Margin -247.22 -7.17
Q.5 Return on Asset of Rama Paper Mills Ltd?
Rama Paper Mills Ltd Return on Asset is -23.61%, which is below its 5 year historical median of -6.81%, indicating deteriorated asset utilization efficiency.
Q.6 Return on Equity (ROE) of Rama Paper Mills Ltd?
Rama Paper Mills Ltd Return on equity is 0% for FY-2025 , which is in line with its historical median of 0%, indicating the business is making similar use of its shareholders capital.
Q.7 Return on capital employed (ROCE) of Rama Paper Mills Ltd?
Rama Paper Mills Ltd Return on capital employed is -89.49% for FY-2025 , which is below its estimated weighted average cost of capital(WACC) 14%, indicating value preservation.
Q.8 Cash conversion cycle of Rama Paper Mills Ltd?
Rama Paper Mills Ltd Cash conversion cycle is -222 days, below its historical median of -46 days, indicating improved working capital management. However, you need to compare this with its peers in the industry.
Current Level Historic Median
Asset Turnover 0.1 0.87
ROE - -
ROCE -89.49 -14
Cash Conversion Cycle -222 days -46 days
Q.9 Debt to Equity ratio of Rama Paper Mills Ltd?
Rama Paper Mills Ltd Debt-to-Equity ratio is -1.14 , which is lower with the industry average of 0.47 , indicating lower debt levels in the industry.
Q.10 Debt to cash flow from operations of Rama Paper Mills Ltd?
Rama Paper Mills Ltd Debt to cash flow from operations is 7.64 , which is at a unhealthy level.

Ownership & governance

Q.1 Promoter shareholding and pledge status of Rama Paper Mills Ltd?
Promoters hold 37.62% of the Rama Paper Mills Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

Q.1 Revenue growth of Rama Paper Mills Ltd vs industry peers?
Rama Paper Mills Ltd revenue CAGR is -44.20% , compared to the industry median CAGR of 5.29% , indicating stable growth and maintaining its market share.
Profit Metrics
Current Level Industry Median
Revenue 6.7 233.9
Gross Profit -11.7 5.1
Operating Profit -10.7 7
Net Profit -16.4 2.8
Operating Efficiency
Current Level Industry Median
Asset Turnover 0.1 0.91
ROE - 3.9
ROCE -89.49 7.42
Cash Conversion Cycle (days) -222.02 47

Valuation & price assessment

Q.1 Stock return of Rama Paper Mills Ltd over the last decade?
Over the last 9 year(s), the stock has delivered a CAGR of -1.1% based on the current price.
Q.2 What return has the stock given over the last decade?
9Y 5Y 3Y 1Y
Share Price -1.1% -1.6% -14.8% -8.4%
Q.3 Valuation ratios of Rama Paper Mills Ltd vs historical?
The current P/E is similar 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 - 0.00 18.72
Price to Book -0.28 0.00 0.88
Price to Sales 2.03 0.08 0.69
EV to EBITDA -5.87 7.40 6.41

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