BSE:500358

Stock Analysis Report

Rama Petrochemicals

Executive Summary

Rama Petrochemicals Limited trades in commodities.


Snowflake Analysis

Slightly overvalued with questionable track record.

Share Price & News

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


Latest Share Price and Events

Stable Share Price: 500358 has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

0%

500358

8.3%

IN Chemicals

8.9%

IN Market


1 Year Return

-23.3%

500358

-14.9%

IN Chemicals

-30.6%

IN Market

Return vs Industry: 500358 underperformed the Indian Chemicals industry which returned 22.3% over the past year.

Return vs Market: 500358 underperformed the Indian Market which returned 6.4% over the past year.


Shareholder returns

500358IndustryMarket
7 Day0%8.3%8.9%
30 Day0%-22.5%-24.8%
90 Day-5.0%-19.1%-29.4%
1 Year-23.3%-23.3%-11.3%-14.9%-29.2%-30.6%
3 Year35.8%35.8%11.0%4.1%-17.0%-21.5%
5 Year-14.2%-14.2%66.3%51.9%-5.4%-10.4%

Price Volatility Vs. Market

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


Simply Wall St News

No news available

Valuation

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

8.06x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: Insufficient data to calculate 500358's fair value to establish if it is undervalued.

Significantly Below Fair Value: Insufficient data to calculate 500358's fair value to establish if it is undervalued.


Price To Earnings Ratio

PE vs Industry: 500358 is good value based on its PE Ratio (8.1x) compared to the Chemicals industry average (11x).

PE vs Market: 500358 is good value based on its PE Ratio (8.1x) compared to the Indian market (13x).


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate 500358's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: 500358 has negative assets, so we can't compare its PB Ratio to the IN Chemicals industry average.


Next Steps

Future Growth

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

15.9%

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 Petrochemicals 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 Petrochemicals performed over the past 5 years?

47.5%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 500358 has a large one-off gain of ₹33.5M impacting its December 31 2019 financial results.

Growing Profit Margin: 500358's current net profit margins are higher than last year .


Past Earnings Growth Analysis

Earnings Trend: 500358 has become profitable over the past 5 years, growing earnings by 47.5% per year.

Accelerating Growth: 500358's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: 500358 had negative earnings growth (-4.7%) over the past year, making it difficult to compare to the Chemicals industry average (10%).


Return on Equity

High ROE: 500358's liabilities exceed its assets, so it is difficult to calculate its Return on Equity.


Next Steps

Financial Health

How is Rama Petrochemicals's financial position?


Financial Position Analysis

Short Term Liabilities: 500358 has negative shareholder equity, which is a more serious situation than short term assets not covering short term liabilities.

Long Term Liabilities: 500358 has negative shareholder equity, which is a more serious situation than short term assets not covering long term liabilities.


Debt to Equity History and Analysis

Debt Level: 500358 has negative shareholder equity, which is a more serious situation than a high debt level.

Reducing Debt: 500358's has negative shareholder equity, so we do not need to check if its debt has reduced over time.

Debt Coverage: 500358's operating cash flow is negative, therefore debt is not well covered.

Interest Coverage: Insufficient data to determine if 500358's interest payments on its debt are well covered by EBIT.


Balance Sheet

Inventory Level: 500358 has a high level of physical assets or inventory.

Debt Coverage by Assets: 500358 has negative shareholder equity (liabilities exceed assets) therefore debt is not covered by short term assets.


Next Steps

Dividend

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


Dividend Yield vs Market

Notable Dividend: Unable to evaluate 500358's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate 500358's dividend yield against the top 25% of dividend payers, as the company has not reported any payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if 500358's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if 500358'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 500358'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?

4.9yrs

Average board tenure


CEO

Haresh Ramsinghani (57yo)

1.25s

Tenure

₹1,464,000

Compensation

Mr. Haresh Daulat Ramsinghani has been Chairman of Rama Phosphates Limited since May 26, 2018 and its Managing Director since November 5, 2018. Mr. Ramsinghani serves as Non Executive Chairman of Rainbow D ...


CEO Compensation Analysis

Compensation vs Market: Haresh's total compensation ($USD20.38K) is below average for companies of similar size in the Indian market ($USD49.94K).

Compensation vs Earnings: Haresh's compensation has increased by more than 20% whilst company earnings have fallen more than 20% in the past year.


Board Members

NamePositionTenureCompensationOwnership
Haresh Ramsinghani
Chairman1.25yrs₹1.46m0.39% 267.7k
Deonath Singh
Executive Director9.42yrs₹4.00k0.11% 71.7k
Satinderjit Arora
Independent Director0.42yr₹20.00kno data
Brij Khanna
Additional Non-Executive Independent Director0.92yr₹2.00kno data
Ramrao Kulkarni
Non-Executive Independent Director6.75yrs₹28.00k0.000020% 13.7
Nilanjana Ramsinghani
Non-Executive Director4.92yrs₹6.00kno data

4.9yrs

Average Tenure

58.5yo

Average Age

Experienced Board: 500358's board of directors are considered experienced (4.9 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 Petrochemicals Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Rama Petrochemicals Limited
  • Ticker: 500358
  • Exchange: BSE
  • Founded: 1985
  • Industry: Commodity Chemicals
  • Sector: Materials
  • Market Cap: ₹68.260m
  • Shares outstanding: 10.47m
  • Website: https://www.ramapetrochemicals.com

Number of Employees


Location

  • Rama Petrochemicals Limited
  • 51/52, Free Press House
  • Nariman Point
  • Mumbai
  • Maharashtra
  • 400021
  • India

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
500358BSE (Mumbai Stock Exchange)YesEquity SharesININRDec 2005

Biography

Rama Petrochemicals Limited trades in commodities. It also manufactures methanol. Rama Petrochemicals Limited was incorporated in 1985 and is based in Mumbai, India. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/26 12:47
End of Day Share Price2019/11/29 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.