NSEI:RAMANEWS

Stock Analysis Report

Shree Rama Newsprint

Executive Summary

Shree Rama Newsprint Limited manufactures and sells newsprint, and writing and printing papers in India.

Snowflake

Fundamentals

Fair value with imperfect balance sheet.


Similar Companies

Share Price & News

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


Latest Share Price and Events


Market Performance


7 Day Return

6.3%

RAMANEWS

5.7%

IN Forestry

2.4%

IN Market


1 Year Return

-38.5%

RAMANEWS

-22.9%

IN Forestry

8.0%

IN Market

Return vs Industry: RAMANEWS underperformed the Indian Forestry industry which returned -27.3% over the past year.

Return vs Market: RAMANEWS underperformed the Indian Market which returned 7.1% over the past year.


Shareholder returns

RAMANEWSIndustryMarket
7 Day6.3%5.7%2.4%
30 Day-7.2%-20.8%2.5%
90 Day4.0%-12.4%3.6%
1 Year-38.5%-38.5%-9.6%-22.9%10.3%8.0%
3 Year-42.1%-42.1%-12.2%-28.6%22.3%16.0%
5 Year122.5%122.5%78.8%39.3%42.8%29.3%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

9.23x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: RAMANEWS (₹16.8) is trading above our estimate of fair value (₹10.27)

Significantly Below Fair Value: RAMANEWS is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: RAMANEWS is good value based on its PE Ratio (9.2x) compared to the Forestry industry average (9.2x).

PE vs Market: RAMANEWS is good value based on its PE Ratio (9.2x) compared to the Indian market (13x).


Price to Earnings Growth Ratio

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


Price to Book Ratio

PB vs Industry: RAMANEWS is good value based on its PB Ratio (0.6x) compared to the IN Forestry industry average (0.8x).


Next Steps

Future Growth

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

11.6%

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 Shree Rama Newsprint 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 Shree Rama Newsprint performed over the past 5 years?

36.1%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: RAMANEWS has become profitable over the past 5 years, growing earnings by 36.1% per year.

Accelerating Growth: RAMANEWS has become profitable in the last year, making the earnings growth rate difficult to compare to its 5-year average.

Earnings vs Industry: RAMANEWS has become profitable in the last year, making it difficult to compare its past year earnings growth to the Forestry industry (43%).


Return on Equity

High ROE: RAMANEWS's Return on Equity (6%) is considered low.


Return on Assets

ROA vs Industry: RAMANEWS's Return on Assets is below or equal to the Forestry industry average last year.


Return on Capital Employed

ROCE Improving: RAMANEWS's Return on Capital Employed has declined over the past 3 years.


Next Steps

Financial Health

How is Shree Rama Newsprint's financial position?


Financial Position Analysis

Short Term Liabilities: RAMANEWS's short term assets (₹1.6B) do not cover its short term liabilities (₹3.0B)

Long Term Liabilities: RAMANEWS's short term assets (1.6B) exceeds its long term liabilities (1.2B)


Debt to Equity History and Analysis

Debt Level: RAMANEWS's debt to equity ratio (73.7%) is considered high

Reducing Debt: RAMANEWS's debt to equity ratio has reduced from 736.3% to 73.7% over the past 5 years.

Debt Coverage: RAMANEWS's debt is not well covered by operating cash flow (14.4%).

Interest Coverage: RAMANEWS's interest payments on its debt are not well covered by EBIT (2.2x coverage).


Balance Sheet

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

Debt Coverage by Assets: RAMANEWS's debt is not covered by short term assets (assets are 0.5x debt).


Next Steps

Dividend

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


Dividend Yield vs Market

companyn/amarketbottom25%0.6%markettop25%2.4%industryaverage1.6%forecastin3Yearsn/a

Current dividend yield vs market & industry


Stability and Growth of Payments

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

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

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

Growing Dividend: Insufficient data to determine if RAMANEWS'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 RAMANEWS's dividend in 3 years as they are not forecast to pay a notable one for the Indian market.


Next Steps

Management

What is the CEO of Shree Rama Newsprint's salary, the management and board of directors tenure and is there insider trading?

4.1yrs

Average board tenure


CEO

Siddharth Chowdhary (35yo)

0yrs

Tenure

₹7,009,000

Compensation

Mr. Siddharth Ganpatraj Chowdhary has been Whole Time Director of Shree Rama Newsprint Limited since June 23, 2016. Mr. Chowdhary served as a Non-Independent Non-Executive Director at Shree Rama Newsprint  ...


CEO Compensation Analysis

Compensation vs. Market: Siddharth's total compensation ($USD98.87K) is about average for companies of similar size in the Indian market ($USD33.77K).

Compensation vs Earnings: Siddharth's compensation has been consistent with company performance over the past year.


Board Age and Tenure

4.1yrs

Average Tenure

55yo

Average Age

Experienced Board: RAMANEWS's board of directors are considered experienced (4.1 years average tenure).


Insider Trading

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


Ownership Breakdown


Management Team

  • Dinesh Agrawal (66yo)

    Joint President of Works

    • Tenure: 0yrs
  • Ashok Bhatia

    Joint President of Works

    • Tenure: 11.5yrs
  • Binay Surana (66yo)

    Senior Vice President of Commercial

    • Tenure: 0yrs
  • Shashi Jain (60yo)

    General Manager of Sales & Marketing

    • Tenure: 0yrs
  • Shyam Adak (67yo)

    Assistant Vice President of Technical

    • Tenure: 0yrs
  • C. Venugopal (75yo)

    General Manager of Corporate Development

    • Tenure: 0yrs
  • Siddharth Chowdhary (35yo)

    Whole Time Director

    • Tenure: 0yrs
    • Compensation: ₹7.01m
  • Utkarsh Shah (59yo)

    Independent Non-Executive Director

    • Tenure: 4.1yrs
    • Compensation: ₹30.00k
  • Praveen Mundra

    President of Finance

    • Tenure: 2.8yrs
    • Compensation: ₹6.31m

Board Members

  • Kanhaiya Chandak (73yo)

    Independent Non-Executive Director

    • Tenure: 3.7yrs
    • Compensation: ₹60.00k
  • Ganpatraj Chowdhary (56yo)

    Chairman of the Board

    • Tenure: 0yrs
    • Compensation: ₹30.00k
  • Siddharth Chowdhary (35yo)

    Whole Time Director

    • Tenure: 0yrs
    • Compensation: ₹7.01m
  • Keerthinarayanan Hemmige (54yo)

    Independent Non-Executive Director

    • Tenure: 4.3yrs
    • Compensation: ₹45.00k
  • Utkarsh Shah (59yo)

    Independent Non-Executive Director

    • Tenure: 4.1yrs
    • Compensation: ₹30.00k
  • Meenu Singhvi (38yo)

    Additional Non-Executive Independent Director

    • Tenure: 0.9yrs
    • Compensation: ₹15.00k

Company Information

Shree Rama Newsprint Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Shree Rama Newsprint Limited
  • Ticker: RAMANEWS
  • Exchange: NSEI
  • Founded: 1991
  • Industry: Paper Products
  • Sector: Materials
  • Market Cap: ₹2.500b
  • Shares outstanding: 147.52m
  • Website: https://www.ramanewsprint.com

Number of Employees


Location

  • Shree Rama Newsprint Limited
  • 10, Abhishree Corporate Park
  • Near Swagat Bunglows BRTS BusStand
  • Ahmedabad
  • Gujarat
  • 380058
  • India

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
500356BSE (Mumbai Stock Exchange)YesEquity SharesININROct 1995
RAMANEWSNSEI (National Stock Exchange of India)YesEquity SharesININROct 1995

Biography

Shree Rama Newsprint Limited manufactures and sells newsprint, and writing and printing papers in India. It also exports its products. The company was formerly known as Rama Newsprint and Papers Limited an ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/22 12:45
End of Day Share Price2019/10/22 00:00
Earnings2019/06/30
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.