Shree Rama Newsprint Ltd. (RAMANEWS) AI Stock Analysis

• Market Cap: ₹4.47B
• Dividend Yield: N/A
• Average Volume (3M): 8.59K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.49
• Revenue Growth: N/A
• EPS Growth: N/A
• Country: IN
• Employees: 51
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Paper, Lumber & Forest Products
• EPS (TTM): -0.69
• Shares Outstanding: 147,522,030
• 10 Day Avg. Volume: 16,670
• 30 Day Avg. Volume: 8,592
• PEG Ratio: -0.04
• Price to Book (P/B): -34.93
• Price to Sales (P/S): 11.16
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 44 Neutral
• Price Target: ₹30.00 ▼(-5.66% Downside)

The score is primarily constrained by weak financial performance—large net losses, negative equity, and high leverage with only modest operating cash flow—despite some improvement in gross/EBITDA margins. Technical indicators are broadly neutral with only mild positive MACD, and valuation remains unattractive/unclear given a negative P/E and no dividend yield.

Positive Factors

Improved gross and EBITDA margins

Material improvement in gross and EBITDA margins implies the core paper manufacturing operations have become more efficient or benefited from better product mix. Sustained higher operating margins strengthen cash generation capacity and resilience to input-cost swings over months, improving prospects for structural recovery.

Positive operating cash flow

Positive operating cash flow shows the business converts some earnings into cash, enabling continued operations without immediate external funding. While modest relative to obligations, persistent positive OCF reduces reliance on short-term finance and supports working capital and necessary maintenance capex over the medium term.

Sizable asset base supporting operations

A substantial asset base underpins manufacturing capacity and may provide collateral for financing or restructuring. Combined with existing operating profitability metrics, these tangible assets support ongoing production, potential refinancing options, and recovery initiatives that can sustain the business structurally over several months.

Negative Factors

Negative shareholders' equity

Equity turning negative reflects accumulated losses and is a fundamental solvency concern. Negative net worth limits access to traditional capital, can trigger lender covenants or rating pressure, and undermines confidence for long-term investment, constraining the company's ability to execute durable strategic initiatives.

High debt relative to cash generation

Heavy leverage with minimal cash cover creates a structural financing strain: high fixed servicing demands and limited internal capacity to deleverage. This reduces strategic flexibility, heightens refinancing and covenant risk, and increases vulnerability to earnings volatility or higher interest rates over the coming months.

Weak and volatile revenue trends

Declining and volatile revenues weaken scale economics and make fixed-cost absorption harder in a capital-intensive mill. Even with margin improvement, persistent top-line weakness prolongs recovery of profitability and cash flow, increasing the timeline and uncertainty for sustainable deleveraging and reinvestment.

Shree Rama Newsprint Ltd. Business Overview & Revenue Model

Company Description

Shree Rama Newsprint Limited manufactures and sells newsprint, and writing and printing papers in India. The company also offers photocopier and kraft paper; and packaged drinking water. It also exports its products. The company was formerly known as Rama Newsprint and Papers Limited and changed its name to Shree Rama Newsprint Limited in June 2013. Shree Rama Newsprint Limited was incorporated in 1991 and is based in Ahmedabad, India.

How the Company Makes Money

Shree Rama Newsprint Ltd. Financial Statement Overview

Summary

Overall financial quality is weak: the company remains deeply unprofitable with very large net losses (FY2025 net margin -241%) and balance-sheet stress as equity turned negative while debt remains high (~3.6B). Operating cash flow stayed positive (~75M) but weakened versus FY2024 and covers only a small portion of debt, limiting deleveraging capacity despite improved gross/EBITDA margins.

Income Statement

Revenue has been volatile and, most recently, declined (-3.7% in FY2025). While gross profitability improved meaningfully in FY2025 (gross margin ~39% vs ~20% in FY2024), the company remains deeply unprofitable with very large net losses (net margin -241% in FY2025). Operating profitability (EBITDA margin ~26% in FY2025) suggests some core earnings capacity, but the gap between operating profit and net income points to heavy non-operating/exceptional costs and weak bottom-line quality.

Balance Sheet

Leverage is a major concern. Total debt remains high (~3.6B), and shareholders’ equity turned negative in FY2025 (from +0.9B in FY2024), which is a strong sign of balance-sheet stress and accumulated losses. With negative equity, the debt-to-equity figure becomes economically unfavorable, and financial flexibility is limited despite a sizable asset base (~5.1B).

Cash Flow

Cash generation is positive but not strong enough relative to obligations. Operating cash flow stayed positive in FY2025 (~75M) but fell from FY2024 (~132M), and free cash flow was effectively flat/zero in FY2025 after being positive in FY2024. Operating cash flow covers only a small portion of total debt (about 4% in FY2025), indicating limited ability to deleverage through internal cash generation, even though cash flow is less negative than reported net income.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	419.31M	441.32M	470.37M	467.01M	318.61M	2.62B
Gross Profit	204.00M	173.92M	96.36M	64.54M	40.33M	786.44M
EBITDA	109.34M	116.83M	78.58M	60.88M	269.70M	-137.42M
Net Income	-1.06B	-1.06B	-483.62M	-1.18B	-697.21M	-769.72M
Balance Sheet
Total Assets	0.00	5.15B	6.00B	6.25B	8.04B	8.71B
Cash, Cash Equivalents and Short-Term Investments	1.62M	1.62M	1.48M	614.00K	846.00K	3.98M
Total Debt	0.00	3.61B	3.64B	3.61B	4.80B	4.47B
Total Liabilities	140.98M	5.29B	5.08B	4.84B	5.46B	5.42B
Stockholders Equity	-140.98M	-140.98M	921.80M	1.40B	2.59B	3.28B
Cash Flow
Free Cash Flow	0.00	0.00	128.78M	299.57M	10.91M	-183.36M
Operating Cash Flow	0.00	75.17M	131.93M	299.57M	107.46M	-112.08M
Investing Cash Flow	0.00	37.82M	62.91M	20.38M	-96.06M	-66.30M
Financing Cash Flow	0.00	-113.97M	-193.97M	-320.18M	-14.54M	176.34M

Shree Rama Newsprint Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
STARPAPER	74 Outperform	₹2.24B	5.80	―	2.15%	-5.21%	-32.96%
RUCHIRA	68 Neutral	₹3.46B	5.12	―	4.14%	2.56%	36.81%
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
MALUPAPER	45 Neutral	₹549.31M	-3.01	―	―	18.31%	-251.78%
RAMANEWS	44 Neutral	₹4.47B	-4.20	―	―	―	―
ASTRON	44 Neutral	₹221.80M	-0.45	―	―	-98.56%	-96.41%
GOACARBON	43 Neutral	₹3.44B	-5.80	―	5.02%	-19.25%	-220.20%