BSE:500357

Stock Analysis Report

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Executive Summary

Rama Paper Mills Limited engages in manufacturing and selling of newsprint, duplex board, and tissue papers in India.


Snowflake Analysis

Slightly overvalued with worrying balance sheet.

Share Price & News

How has Rama Paper Mills's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: 500357's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

-9.1%

500357

-0.3%

IN Forestry

3.5%

IN Market


1 Year Return

-33.1%

500357

-41.9%

IN Forestry

-5.5%

IN Market

Return vs Industry: 500357 exceeded the Indian Forestry industry which returned -44.7% over the past year.

Return vs Market: 500357 underperformed the Indian Market which returned -8.7% over the past year.


Shareholder returns

500357IndustryMarket
7 Day-9.1%-0.3%3.5%
30 Day-9.7%6.7%6.4%
90 Day-17.4%20.6%22.9%
1 Year-33.1%-33.1%-25.9%-41.9%-3.7%-5.5%
3 Year-34.0%-34.0%-39.9%-54.2%1.6%-3.1%
5 Year9.1%9.1%7.3%-22.0%27.4%17.7%

Price Volatility Vs. Market

How volatile is Rama Paper Mills's share price compared to the market and industry in the last 5 years?


Simply Wall St News

No news available

Valuation

Is Rama Paper Mills undervalued compared to its fair value and its price relative to the market?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: 500357 (₹9) is trading below our estimate of fair value (₹117.83)

Significantly Below Fair Value: 500357 is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: 500357 is unprofitable, so we can't compare its PE Ratio to the Forestry industry average.

PE vs Market: 500357 is unprofitable, so we can't compare its PE Ratio to the Indian market.


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate 500357's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: 500357 is overvalued based on its PB Ratio (1.7x) compared to the IN Forestry industry average (0.7x).


Next Steps

Future Growth

How is Rama Paper Mills forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

18.7%

Forecasted Materials industry annual growth in earnings


In this section we usually present revenue and earnings growth projections based on the consensus estimates of professional analysts to help investors understand the company’s ability to generate profit. But as Rama Paper Mills has not provided enough past data and has no analyst forecast, its future earnings cannot be reliably calculated by extrapolating past data or using analyst predictions.

This is quite a rare situation as 97% of companies covered by SimplyWall St do have past financial data.


Next Steps

Past Performance

How has Rama Paper Mills performed over the past 5 years?

40.6%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 500357 is currently unprofitable.

Growing Profit Margin: 500357 is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: 500357 is unprofitable, but has reduced losses over the past 5 years at a rate of 40.6% per year.

Accelerating Growth: Unable to compare 500357's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: 500357 is unprofitable, making it difficult to compare its past year earnings growth to the Forestry industry (-9%).


Return on Equity

High ROE: 500357 has a negative Return on Equity (-50.2%), as it is currently unprofitable.


Next Steps

Financial Health

How is Rama Paper Mills's financial position?


Financial Position Analysis

Short Term Liabilities: 500357's short term assets (₹602.7M) do not cover its short term liabilities (₹803.7M).

Long Term Liabilities: 500357's short term assets (₹602.7M) exceed its long term liabilities (₹341.5M).


Debt to Equity History and Analysis

Debt Level: 500357's debt to equity ratio (543.9%) is considered high.

Reducing Debt: 500357's debt to equity ratio has increased from 377.8% to 543.9% over the past 5 years.


Balance Sheet


Cash Runway Analysis

For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.

Stable Cash Runway: Insufficient data to determine if 500357 has enough cash runway based on its current free cash flow.

Forecast Cash Runway: Insufficient data to determine if 500357 has enough cash runway if its free cash flow continues to grow or shrink based on historical rates.


Next Steps

Dividend

What is Rama Paper Mills's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

Notable Dividend: Unable to evaluate 500357's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate 500357's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if 500357's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if 500357's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of 500357's dividend in 3 years as they are not forecast to pay a notable one for the Indian market.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

5.2yrs

Average board tenure


CEO

Pramod Agarwal (66yo)

7.75yrs

Tenure

Mr. Pramod Kumar Agarwal, LL.B., serves as the Chairman of Rama Paper Mills Ltd and has been its Managing Director since October 1, 2012. Mr. Agarwal joined Rama Paper Mills Ltd in December 4, 1985 and has ...


Board Members

NamePositionTenureCompensationOwnership
Pramod Agarwal
Chairman & MD7.75yrsno data3.83% 3.4m
Arun Goel
Executive Director28.17yrsno data5.03% 4.5m
Gyanveer Singh
Non-Independent & Non-Executive Director6.17yrsno datano data
Amarjeet Sandhu
Independent Director5.17yrsno datano data
Alok Jain
Non-Executive Independent Director4.67yrsno datano data
Vijay Singh
Independent Non-Executive Director1.42yrsno datano data

5.2yrs

Average Tenure

53yo

Average Age

Experienced Board: 500357's board of directors are considered experienced (5.2 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Rama Paper Mills Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Rama Paper Mills Limited
  • Ticker: 500357
  • Exchange: BSE
  • Founded: 1985
  • Industry: Paper Products
  • Sector: Materials
  • Market Cap: ₹88.916m
  • Shares outstanding: 9.66m
  • Website: https://www.ramapaper.com

Number of Employees


Location

  • Rama Paper Mills Limited
  • 26/6 Ground floor
  • East Patel Nagar
  • New Delhi
  • Delhi
  • 110008
  • India

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
500357BSE (Mumbai Stock Exchange)YesEquity SharesININRAug 1998

Biography

Rama Paper Mills Limited engages in manufacturing and selling of newsprint, duplex board, and tissue papers in India. The company provides writing and printing paper; and poster paper. It also offers cream wove, colored, kraft, absorbent, one time carbon base, and electrical grade insulating papers. The company was founded in 1985 and is based in New Delhi, India. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/07/06 12:44
End of Day Share Price2020/07/06 00:00
Earnings2019/12/31
Annual Earnings2019/03/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.