Value is all about what a company is worth versus what price it is
available for. If you went into a grocery store and all the bananas were on sale
at half price, they could be considered
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
It is not possible to calculate the future cash flow value for
Rama Petrochemicals. This is due to cash flow or dividend data being
unavailable. The share price is
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for
it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing
when they are out of season, or how much your home is worth.
The amount the stock market is willing to pay for
is considered below, and whether this is a fair price.
Price based on past earnings
Rama Petrochemicals's earnings available for a low price, and how does
this compare to other companies in the same industry?
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 Simply Wall St do have past financial data. You can see them here.
Show me the analysis anyway
The future performance of a company is measured in the same way as past
performance, by looking at estimated
and how much profit it is expected to make.
Future estimates come from
professional analysts. Just like forecasting the weather, they don’t always get
Expected Chemicals industry annual growth in earnings.
Earnings growth vs Low Risk Savings
expected to grow at an
Unable to compare Rama Petrochemicals's earnings growth to the low risk savings rate as no estimate data is available.
Growth vs Market Checks
Unable to compare Rama Petrochemicals's earnings growth to the India market average as no estimate data is available.
Unable to compare Rama Petrochemicals's revenue growth to the India market average as no estimate data is available.
Unable to determine if Rama Petrochemicals is high growth as no earnings estimate data is available.
Unable to determine if Rama Petrochemicals is high growth as no revenue estimate data is available.
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can
be gauged below. We look back 3 years and see if they were any good at
predicting what actually occurred. We also show the highest and lowest estimates
looking forward to see if there is a wide range.
Rama Petrochemicals's performance over the past 5 years by checking for:
Has earnings increased in past 5 years? (1 check)
Has the earnings growth in the last year exceeded that of the
industry? (1 check)
Is the recent earnings growth over the last year higher than the average annual growth over the
past 5 years? (1 check)
Is the Return on Equity (ROE) higher than 20%? (1 check)
Is the Return on Assets (ROA) above industry average? (1 check)
Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent
earnings report. Some checks require at least 3 or 5 years worth of data.
has a total score of
1/6, see the detailed checks below.
Note: We use GAAP Net Income excluding extraordinary items in all our calculations.
A company's financial position is much like your own financial position,
it includes everything you own
The boxes below represent the relative size of what makes up
Rama Petrochemicals's finances.
The net worth of a company is the difference between its assets and liabilities.
Rama Petrochemicals's short term (1 year) commitments are greater than its holdings of cash and other short term assets.
Rama Petrochemicals's long term commitments exceed its cash and other short term assets.
This treemap shows a more detailed breakdown of
Rama Petrochemicals's finances. If any of them are yellow this
indicates they may be out of proportion and red means they relate to one of the
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
High level of physical assets or inventory.
Rama Petrochemicals has negative shareholder equity (liabilities exceed assets) therefore debt is not covered by short term assets.
Nearly all companies have debt. Debt in itself isn’t
however if the debt is too high, or the company can’t afford to pay the interest
on its debts this may have impacts in the future.
The graphic below shows equity (available funds) and debt, we ideally want to
see the red area (debt) decreasing.
If there is any debt we look at the companies capability to repay it, and
whether the level has increased over the past 5 years.
Management is one of the most important areas of a company. We look at
unreasonable CEO compensation, how long the team and board of directors have
been around for and insider trading.
TENURE AS CEO
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 Executive Chairman of Rainbow Denim Ltd. and served as its Managing Director from April 8, 1999 to May 31, 2017. Mr. Ramsinghani serves as the Chairman of Rama Petrochemicals Limited and has been its Director since 2005 and serves as its Managing Director since November 05, 2018 and serves as its Chief Financial Officer since March 28, 2019. He served as Vice Chairman & Joint Managing Director of Rama Phosphates Limited since June 1, 2017 until May 26, 2018. He serves as an Executive Director at Rainbow Denim Ltd. He has been a Non-Executive Director of Rama Phosphates Limited since October 2008. He has done his MBA from USA.
Haresh's compensation has been consistent with company performance over the past year, both up more than 20%.
Haresh's remuneration is lower than average for companies of similar size in India.
Management Team Tenure
Average tenure of the
management team in years:
The average tenure for the Rama Petrochemicals management team is less than 2 years, this suggests a new team.
Non Executive Director
Compliance Officer & Company Secretary
Board of Directors Tenure
Average tenure of the
board of directors in years:
The tenure for the Rama Petrochemicals board of directors is about average.
Rama Petrochemicals Limited trades in commodities. The company, also through its subsidiary, Rama Capital and Fiscal Services Pvt Ltd, provides financial services. It also focuses on manufacturing methanol. Rama Petrochemicals Limited was incorporated in 1985 and is based in Raigad, India.
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