Shree Rama Newsprint Ltd. (RAMANEWS) AI Stock Analysis

• Market Cap: ₹4.90B
• Dividend Yield: N/A
• Average Volume (3M): 8.59K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.37
• 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: 49 Neutral
• Price Target: ₹36.00 ▲(13.21% Upside)
• Action: Reiterated Date: 03/13/26
• Date: Action: Reiterated 03/13/26

The score is held back primarily by weak financial quality—large net losses, negative equity, and limited deleveraging capacity despite improved margins—partly offset by strong technical momentum with the stock trading above key moving averages and a positive MACD. Valuation remains unattractive/unclear due to negative earnings and no stated dividend yield.

Positive Factors

Improved gross & EBITDA margins

A sharp improvement in gross (to ~39%) and EBITDA (~26%) margins indicates stronger core manufacturing economics and better input-cost or mix management. Sustained operating profitability provides a durable base for recovery, supporting cash generation and potential restructuring over months.

Positive operating cash flow

Positive operating cash flow, even if smaller, shows the business generates real cash from operations. Consistent OCF provides a foundation for servicing working capital and some debt, enabling management to prioritize deleveraging or reinvestment without relying solely on external financing.

Sizable asset base

A large asset base (~5.1B) underpins the business and can support creditor negotiations, refinancing or asset-backed solutions. Combined with improved operating margins, these assets give management structural options to restore solvency and fund operational continuity over the medium term.

Negative Factors

Negative shareholders' equity

Negative equity is a durable sign of accumulated losses and constrains financial flexibility. It impairs borrowing capacity, limits recovery options, and raises insolvency risk if losses persist, forcing reliance on external capital or asset restructurings to restore balance-sheet health.

High absolute debt burden

A ~3.6B debt load relative to thin cash generation creates structural pressure. High absolute debt increases interest and refinancing risk, reducing strategic flexibility and making sustained investment or turnaround initiatives harder without significant cash flow improvement or creditor relief.

Weak bottom-line & volatile revenue

Persistently large net losses and declining, volatile revenue undermine long-term viability. The gap between operating profitability and net income suggests heavy non-operating/exceptional costs, meaning operational gains may not translate to sustainable net earnings without addressing non-operating drains.

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

RAMANEWS primarily makes money by manufacturing and selling finished paper products—most notably newsprint—to customers such as newspaper publishers, printers, and paper distributors. Revenue is generated from (1) domestic sales of newsprint and other paper grades, typically priced per tonne and influenced by market pulp/recovered paper costs, energy costs, and demand from print-media; and (2) export sales when the company sells paper products to customers outside India (if and when applicable), adding revenue tied to international pricing and foreign-exchange realization. Earnings are driven by volumes produced and sold, product mix (newsprint vs. other grades), realized selling prices, and the company’s ability to manage input costs (e.g., recovered paper/pulp, chemicals, fuel/power) and plant utilization. Specific details on customer concentration, named partnerships, and the exact breakdown of revenue by product/geography are null.

Shree Rama Newsprint Ltd. Financial Statement Overview

Summary

Overall fundamentals are weak: the company remains deeply unprofitable with a very large net loss (net margin -241% in FY2025) and negative shareholders’ equity in FY2025, indicating balance-sheet stress. Gross and EBITDA margins improved in FY2025, but operating cash flow weakened and free cash flow was effectively flat/zero, limiting ability to deleverage.

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	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	397.61M	441.32M	470.37M	467.01M	318.61M	2.62B
Gross Profit	178.30M	173.92M	96.36M	64.54M	40.33M	786.44M
EBITDA	108.70M	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	5.03B	5.15B	6.00B	6.25B	8.04B	8.71B
Cash, Cash Equivalents and Short-Term Investments	3.29M	1.62M	1.48M	614.00K	846.00K	3.98M
Total Debt	3.76B	3.61B	3.64B	3.61B	4.80B	4.47B
Total Liabilities	5.38B	5.29B	5.08B	4.84B	5.46B	5.42B
Stockholders Equity	-345.83M	-140.98M	921.80M	1.40B	2.59B	3.28B
Cash Flow
Free Cash Flow	-92.11M	0.00	128.78M	299.57M	10.91M	-183.36M
Operating Cash Flow	-92.11M	75.17M	131.93M	299.57M	107.46M	-112.08M
Investing Cash Flow	143.61M	37.82M	62.91M	20.38M	-96.06M	-66.30M
Financing Cash Flow	-49.86M	-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
RUCHIRA	74 Outperform	₹3.08B	44.75	―	4.14%	2.56%	36.81%
STARPAPER	74 Outperform	₹2.05B	7.89	―	2.15%	-5.21%	-32.96%
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
RAMANEWS	49 Neutral	₹4.90B	-11.89	―	―	―	―
ASTRON	47 Neutral	₹182.75M	-1.40	―	―	-98.56%	-96.41%
GOACARBON	43 Neutral	₹2.79B	-4.16	―	5.02%	-19.25%	-220.20%
MALUPAPER	40 Underperform	₹529.86M	-2.96	―	―	18.31%	-251.78%

Shree Rama Newsprint Ltd. Corporate Events

Shree Rama Newsprint Announces Completion of Independent Director’s Final Term

Shree Rama Newsprint Ltd. has announced that independent director Kanhaiyalal Chandak has completed his second and final term on the board and ceased to be a director as of the close of business on 8 February 2026. The board and management have formally recorded their appreciation for Chandak’s guidance and contributions during his tenure, with the change representing a routine governance transition under SEBI’s listing regulations rather than an event tied to operational or strategic shifts at the company.