WEBSITE BSE:500356 NSE: RAMANEWS Inc. Year: 1991 Industry: Paper & Paper Products My Bucket: Add Stock
Last updated: 15:24
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1. Business Overview
Shree Rama Newsprint Ltd. (RAMANEWS) is primarily engaged in the manufacturing and sale of newsprint paper. The company produces paper rolls used by newspaper publishers for printing. Its core business model revolves around sourcing raw materials (such as waste paper or pulp), processing them into newsprint, and distributing the finished product to domestic and potentially international clients in the publishing industry. The company generates revenue directly from the sales of its manufactured newsprint.
2. Key Segments / Revenue Mix
Given its name, Shree Rama Newsprint Ltd. is overwhelmingly focused on the newsprint segment. While the company may produce other grades of paper or related products on a smaller scale, its primary revenue stream is derived from the production and sale of newsprint. Specific revenue contribution percentages for different paper grades are not publicly available without detailed financial reports, but newsprint is the dominant product.
3. Industry & Positioning
The company operates within the Indian Paper & Paper Products sector, specifically the newsprint sub-industry. The industry is characterized by being capital-intensive, cyclical, and sensitive to raw material prices (pulp, waste paper) and energy costs. Demand is largely influenced by the health of the print media industry and advertising expenditure. Shree Rama Newsprint Ltd. is a domestic manufacturer competing with other Indian newsprint producers and imports. Its positioning likely depends on its operational efficiency, cost structure, and regional market penetration within India.
4. Competitive Advantage (Moat)
Newsprint is generally considered a commodity product, making it challenging to establish strong, durable competitive advantages based on brand or unique product features. Potential competitive advantages for Shree Rama Newsprint Ltd. could stem from:
Cost Efficiency: Achieving lower production costs through integrated operations, efficient raw material sourcing, captive power generation, or optimized logistics.
Scale: Larger production volumes could lead to economies of scale in procurement and manufacturing.
Regional Presence: Strong distribution networks and established relationships with publishers in specific geographical areas of India.
However, without specific details, a significant and sustained moat is difficult to ascertain for a commodity paper producer.
5. Growth Drivers
Key factors that could drive growth for Shree Rama Newsprint Ltd. over the next 3-5 years include:
Increased Literacy and Education: Growing literacy rates and educational penetration in India can sustain demand for print media, especially in regional languages.
Economic Growth: A robust Indian economy can lead to higher advertising expenditure by businesses, which often translates to increased print media usage by advertisers.
Diversification: Potential expansion into other niche paper products or value-added segments beyond standard newsprint to broaden revenue streams.
Cost Optimization: Successful initiatives to reduce raw material, energy, and logistics costs can improve profitability and market competitiveness.
6. Risks
Significant risks for Shree Rama Newsprint Ltd. include:
Digitalization of Media: A continued shift from print to digital media (news websites, apps) poses a structural threat to newsprint demand.
Raw Material Price Volatility: Fluctuations in the prices of key raw materials like waste paper, pulp, and chemicals can significantly impact production costs and margins.
Energy Costs: Being an energy-intensive industry, rising fuel and power costs can put pressure on profitability.
Intense Competition: Competition from domestic manufacturers and imported newsprint can lead to pricing pressures.
Economic Downturns: A slowdown in the economy can reduce advertising spending, directly impacting demand for newsprint.
Environmental Regulations: Stricter environmental norms could necessitate capital expenditure for compliance, increasing operational costs.
7. Management & Ownership
Shree Rama Newsprint Ltd. is typically an Indian promoter-driven company, a common structure in India where a founding family or group maintains significant control and strategic direction. Without specific details on the promoter group, key management personnel, and their track records, it is difficult to assess management quality beyond acknowledging their experience in the paper industry. The ownership structure likely involves a significant stake held by the promoter group, with the remainder held by institutional and public shareholders.
8. Outlook
Shree Rama Newsprint Ltd. operates in a mature and challenging industry segment. The bull case for the company rests on the resilience of print media in India, particularly in regional markets where digital penetration might be lower, coupled with potential for strong economic growth translating into advertising spend. The company could also benefit from effective cost management and any strategic diversification into other paper grades. However, the bear case highlights the secular decline in print media readership globally due to digitalization, intense competition, and the inherent volatility of raw material and energy costs. The company's performance will largely depend on its ability to navigate these industry headwinds, maintain cost competitiveness, and potentially adapt its product mix in a dynamic market environment.
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Market Cap ₹437 Cr.
Stock P/E -15.3
P/B -11.5
Current Price ₹29.7
Book Value ₹ -2.6
Face Value 10
52W High ₹45.2
Dividend Yield 0%
52W Low ₹ 25.5
Price goes above X
Price falls below X
PE goes above X
PE falls below X
₹ | |
| #(Fig in Cr.) | Sep 2023 | Dec 2023 | Mar 2024 | Jun 2024 | Sep 2024 | Dec 2024 | Mar 2025 | Jun 2025 | Sep 2025 | Dec 2025 |
|---|---|---|---|---|---|---|---|---|---|---|
| Net Sales | 9 | 13 | 13 | 11 | 9 | 12 | 11 | 9 | 7 | 9 |
| Other Income | 0 | 0 | 0 | 1 | 1 | 1 | 1 | 1 | 2 | 2 |
| Total Income | 9 | 14 | 13 | 12 | 10 | 14 | 13 | 10 | 9 | 11 |
| Total Expenditure | 9 | 10 | 11 | 10 | 8 | 10 | 10 | 8 | 7 | 8 |
| Operating Profit | 1 | 3 | 3 | 3 | 2 | 3 | 3 | 2 | 2 | 2 |
| Interest | 9 | 9 | 9 | 9 | 9 | 9 | 9 | 9 | 9 | 9 |
| Depreciation | 1 | 1 | 1 | 1 | 1 | 1 | 1 | 1 | 1 | 1 |
| Exceptional Income / Expenses | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Profit Before Tax | -10 | -7 | -7 | -7 | -8 | -7 | -7 | -8 | -8 | -8 |
| Provision for Tax | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Profit After Tax | -10 | -7 | -7 | -7 | -8 | -7 | -7 | -8 | -8 | -8 |
| Adjustments | -3 | -3 | -8 | -3 | -2 | -74 | 1 | -2 | -2 | -2 |
| Profit After Adjustments | -13 | -10 | -15 | -10 | -10 | -81 | -5 | -10 | -10 | -10 |
| Adjusted Earnings Per Share | -0.7 | -0.5 | -0.5 | -0.5 | -0.5 | -0.5 | -0.5 | -0.5 | -0.5 | -0.5 |
| #(Fig in Cr.) | Mar 2015 | Mar 2016 | Mar 2017 | Mar 2018 | Mar 2019 | Mar 2020 | Mar 2021 | Mar 2022 | Mar 2023 | Mar 2024 | Mar 2025 | TTM |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Net Sales | 375 | 382 | 390 | 434 | 504 | 337 | 265 | 32 | 47 | 47 | 44 | 36 |
| Other Income | 3 | 62 | 16 | 6 | 2 | 4 | 3 | 0 | 2 | 1 | 5 | 6 |
| Total Income | 378 | 444 | 407 | 440 | 506 | 340 | 268 | 32 | 48 | 48 | 49 | 43 |
| Total Expenditure | 413 | 396 | 375 | 424 | 415 | 328 | 281 | 29 | 42 | 40 | 37 | 33 |
| Operating Profit | -36 | 48 | 32 | 16 | 90 | 12 | -13 | 3 | 6 | 8 | 12 | 9 |
| Interest | 46 | 31 | 24 | 25 | 29 | 32 | 37 | 0 | 0 | 37 | 36 | 36 |
| Depreciation | 12 | 22 | 23 | 23 | 23 | 25 | 27 | 4 | 4 | 4 | 4 | 4 |
| Exceptional Income / Expenses | 52 | 15 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Profit Before Tax | -43 | 9 | -15 | -32 | 38 | -45 | -77 | -2 | 2 | -33 | -29 | -31 |
| Provision for Tax | 0 | 4 | -6 | -2 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Profit After Tax | -43 | 5 | -9 | -30 | 38 | -45 | -77 | -2 | 2 | -33 | -29 | -31 |
| Adjustments | 0 | 0 | 0 | 0 | 0 | 0 | 0 | -68 | -120 | -15 | -78 | -5 |
| Profit After Adjustments | -43 | 5 | -9 | -30 | 38 | -45 | -77 | -70 | -118 | -48 | -106 | -35 |
| Adjusted Earnings Per Share | -7.3 | 0.4 | -0.6 | -2 | 2.6 | -3 | -5.2 | -0.1 | 0.1 | -2.2 | -1.9 | -2 |
| # | 1 Year | 3 Year | 5 Year | 10 Year |
|---|---|---|---|---|
| Sales CAGR | -6% | 11% | -33% | -19% |
| Operating Profit CAGR | 50% | 59% | 0% | 0% |
| PAT CAGR | 0% | 0% | 0% | 0% |
| # | 1 Year | 3 Year | 5 Year | 10 Year |
|---|---|---|---|---|
| Share Price CAGR | -22% | 32% | 13% | 3% |
| ROE Average | -73% | -34% | -24% | -39% |
| ROCE Average | 2% | 1% | -0% | 1% |
| #(Fig in Cr.) | Mar 2015 | Mar 2016 | Mar 2017 | Mar 2018 | Mar 2019 | Mar 2020 | Mar 2021 | Mar 2022 | Mar 2023 | Mar 2024 | Mar 2025 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Shareholder's Funds | -8 | 421 | 442 | 412 | 450 | 405 | 328 | 259 | 140 | 92 | -14 |
| Minority's Interest | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Borrowings | 125 | 164 | 128 | 119 | 110 | 102 | 96 | 90 | 350 | 350 | 350 |
| Other Non-Current Liabilities | -129 | 13 | 7 | 5 | 5 | 6 | 4 | 4 | 0 | 0 | 0 |
| Total Current Liabilities | 311 | 192 | 221 | 257 | 298 | 379 | 442 | 452 | 18 | 58 | 89 |
| Total Liabilities | 299 | 790 | 798 | 793 | 863 | 891 | 871 | 804 | 625 | 600 | 515 |
| Fixed Assets | 204 | 680 | 663 | 646 | 626 | 660 | 706 | 687 | 349 | 345 | 341 |
| Other Non-Current Assets | 4 | 33 | 7 | 25 | 73 | 72 | 3 | 5 | 2 | 2 | 2 |
| Total Current Assets | 92 | 78 | 128 | 121 | 164 | 159 | 162 | 113 | 38 | 30 | 26 |
| Total Assets | 299 | 790 | 798 | 793 | 863 | 891 | 871 | 804 | 625 | 600 | 515 |
| #(Fig in Cr.) | Mar 2015 | Mar 2016 | Mar 2017 | Mar 2018 | Mar 2019 | Mar 2020 | Mar 2021 | Mar 2022 | Mar 2023 | Mar 2024 | Mar 2025 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Opening Cash & Cash Equivalents | 2 | 0 | 2 | 1 | 0 | 0 | 1 | 0 | 0 | 0 | 0 |
| Cash Flow from Operating Activities | 83 | -46 | 11 | -15 | 48 | 36 | -11 | 11 | 30 | 13 | 9 |
| Cash Flow from Investing Activities | -1 | -0 | -3 | -21 | -46 | -65 | -7 | -10 | 2 | 6 | 4 |
| Cash Flow from Financing Activities | -81 | 47 | -9 | 35 | -2 | 29 | 18 | -1 | -32 | -19 | -13 |
| Net Cash Inflow / Outflow | 0 | 1 | -1 | -1 | -0 | 0 | -0 | -0 | -0 | 0 | -0 |
| Closing Cash & Cash Equivalent | 3 | 2 | 1 | 0 | 0 | 1 | 0 | 0 | 0 | 0 | 0 |
| # | Mar 2015 | Mar 2016 | Mar 2017 | Mar 2018 | Mar 2019 | Mar 2020 | Mar 2021 | Mar 2022 | Mar 2023 | Mar 2024 | Mar 2025 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings Per Share (Rs) | -7.31 | 0.41 | -0.6 | -2.03 | 2.59 | -3.03 | -5.22 | -0.1 | 0.13 | -2.23 | -1.94 |
| CEPS(Rs) | -5.18 | 2.29 | 0.93 | -0.47 | 4.17 | -1.33 | -3.39 | 0.19 | 0.41 | -1.95 | -1.66 |
| DPS(Rs) | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Book NAV/Share(Rs) | -1.45 | 35.67 | 29.95 | 27.93 | 30.51 | 27.47 | 22.25 | 17.53 | 9.52 | 6.25 | -0.96 |
| Core EBITDA Margin(%) | -10.22 | -3.7 | 4.01 | 2.29 | 17.55 | 2.59 | -6.1 | 8.94 | 9.53 | 13.93 | 15.9 |
| EBIT Margin(%) | 0.88 | 10.53 | 2.4 | -1.66 | 13.27 | -3.72 | -15.22 | -4.83 | 4.11 | 7.89 | 17.02 |
| Pre Tax Margin(%) | -11.3 | 2.32 | -3.78 | -7.35 | 7.59 | -13.26 | -29.06 | -4.83 | 4.11 | -69.97 | -64.84 |
| PAT Margin (%) | -11.3 | 1.26 | -2.27 | -6.89 | 7.59 | -13.26 | -29.06 | -4.83 | 4.11 | -69.97 | -64.84 |
| Cash Profit Margin (%) | -8.01 | 7.07 | 3.51 | -1.59 | 12.21 | -5.85 | -18.9 | 8.94 | 13.04 | -61.16 | -55.38 |
| ROA(%) | -12.28 | 0.89 | -1.12 | -3.76 | 4.62 | -5.09 | -8.74 | -0.18 | 0.27 | -5.37 | -5.13 |
| ROE(%) | -294.44 | 2.33 | -2.06 | -7.01 | 8.87 | -10.44 | -20.99 | -0.52 | 0.96 | -28.29 | -73.29 |
| ROCE(%) | 1.1 | 8.56 | 1.38 | -1.03 | 8.92 | -1.58 | -5.12 | -0.2 | 0.31 | 0.78 | 1.87 |
| Receivable days | 34.96 | 28.92 | 30.61 | 20.58 | 19.06 | 33.08 | 40.8 | 293.74 | 125.71 | 46.92 | 36.03 |
| Inventory Days | 54.04 | 33.8 | 44.92 | 49.27 | 49.17 | 84.05 | 110.89 | 829.05 | 237.5 | 36.32 | 38.96 |
| Payable days | 157.96 | 179.16 | 164.38 | 114.1 | 104.2 | 125.36 | 171.99 | 1474.18 | 481.07 | 110.36 | 103.98 |
| PER(x) | 0 | 62.85 | 0 | 0 | 8.39 | 0 | 0 | 0 | 87.02 | 0 | 0 |
| Price/Book(x) | -4.06 | 0.72 | 1.1 | 0.88 | 0.71 | 0.41 | 0.75 | 0.97 | 1.19 | 2.35 | -34.75 |
| Dividend Yield(%) | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| EV/Net Sales(x) | 0.81 | 1.46 | 1.87 | 1.54 | 1.29 | 1.66 | 2.62 | 22.94 | 11.31 | 12.34 | 19.27 |
| EV/Core EBITDA(x) | -8.47 | 11.6 | 22.79 | 42.15 | 7.2 | 44.95 | -51.62 | 256.52 | 86.74 | 73.88 | 72.8 |
| Net Sales Growth(%) | -8.19 | 1.79 | 2.25 | 11.13 | 16.17 | -33.2 | -21.3 | -87.97 | 46.58 | 0.72 | -6.18 |
| EBIT Growth(%) | -90.55 | 1112.18 | -76.68 | -176.54 | 1029.73 | -118.71 | -222.3 | 96.18 | 224.67 | 93.37 | 102.23 |
| PAT Growth(%) | -174.21 | 111.34 | -284.67 | -235.96 | 227.79 | -216.77 | -72.44 | 98 | 224.67 | -1813.7 | 13.05 |
| EPS Growth(%) | -174.22 | 105.58 | -247.9 | -235.93 | 227.8 | -216.77 | -72.44 | 98 | 224.71 | -1813.36 | 13.05 |
| Debt/Equity(x) | -32.18 | 0.61 | 0.55 | 0.74 | 0.74 | 0.97 | 1.36 | 1.85 | 2.57 | 3.95 | -25.59 |
| Current Ratio(x) | 0.29 | 0.41 | 0.58 | 0.47 | 0.55 | 0.42 | 0.37 | 0.25 | 2.07 | 0.53 | 0.29 |
| Quick Ratio(x) | 0.17 | 0.24 | 0.29 | 0.27 | 0.27 | 0.23 | 0.17 | 0.12 | 1.82 | 0.44 | 0.24 |
| Interest Cover(x) | 0.07 | 1.28 | 0.39 | -0.29 | 2.33 | -0.39 | -1.1 | 0 | 0 | 0.1 | 0.21 |
| Total Debt/Mcap(x) | 7.93 | 0.84 | 0.5 | 0.84 | 1.03 | 2.35 | 1.82 | 1.91 | 2.16 | 1.68 | 0.74 |
| # | Dec 2023 | Mar 2024 | Jun 2024 | Sep 2024 | Dec 2024 | Mar 2025 | Jun 2025 | Sep 2025 | Dec 2025 | Mar 2026 |
|---|---|---|---|---|---|---|---|---|---|---|
| Promoter | 74.76 | 74.76 | 74.76 | 74.76 | 74.76 | 74.76 | 74.76 | 74.76 | 74.76 | 74.76 |
| FII | 0.01 | 0.02 | 0 | 0.03 | 0 | 0 | 0 | 0.38 | 0.38 | 0.38 |
| DII | 1.62 | 1.62 | 1.62 | 1.62 | 1.62 | 1.62 | 1.62 | 1.62 | 1.62 | 1.62 |
| Public | 23.6 | 23.6 | 23.61 | 23.59 | 23.61 | 23.61 | 23.61 | 23.24 | 23.24 | 23.23 |
| Others | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Total | 100 | 100 | 100 | 100 | 100 | 100 | 100 | 100 | 100 | 100 |
| # | Dec 2023 | Mar 2024 | Jun 2024 | Sep 2024 | Dec 2024 | Mar 2025 | Jun 2025 | Sep 2025 | Dec 2025 | Mar 2026 |
|---|---|---|---|---|---|---|---|---|---|---|
| Promoter | 11.03 | 11.03 | 11.03 | 11.03 | 11.03 | 11.03 | 11.03 | 11.03 | 11.03 | 11.03 |
| FII | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0.06 | 0.06 | 0.06 |
| DII | 0.24 | 0.24 | 0.24 | 0.24 | 0.24 | 0.24 | 0.24 | 0.24 | 0.24 | 0.24 |
| Public | 3.48 | 3.48 | 3.48 | 3.48 | 3.48 | 3.48 | 3.48 | 3.43 | 3.43 | 3.43 |
| Others | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Total | 14.75 | 14.75 | 14.75 | 14.75 | 14.75 | 14.75 | 14.75 | 14.75 | 14.75 | 14.75 |
* The pros and cons are machine generated.
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