Rama Phosphates Limited (RAMAPHO) AI Stock Analysis

• Market Cap: ₹5.37B
• Dividend Yield: 0.46%
• Average Volume (3M): 27.40K
• Price to Earnings (P/E): 10.2
• Beta (1Y): 1.16
• Revenue Growth: 22.68%
• EPS Growth: N/A
• Country: IN
• Employees: 510
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Agricultural Inputs
• EPS (TTM): 3.96
• Shares Outstanding: 35,302,460
• 10 Day Avg. Volume: 67,288
• 30 Day Avg. Volume: 27,403
• PEG Ratio: -0.16
• Price to Book (P/B): 0.84
• Price to Sales (P/S): 0.61
• P/FCF Ratio: 9.65
• 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: 65 Neutral
• Price Target: ₹164.00 ▼(-4.15% Downside)

Rama Phosphates Limited has a solid financial performance with notable revenue growth and profitability improvements. Technical analysis supports a positive trend, although valuation metrics suggest the stock is fairly valued with a low dividend yield. The absence of earnings call data and corporate events does not impact the score.

Positive Factors

Revenue growth trend

Consistent double-digit revenue growth signals expanding product adoption and distribution reach in the core fertiliser market. Over the next 2–6 months, this structural top-line momentum supports scale economies, reinvestment in capacity, and stronger negotiating power with suppliers and dealers.

Free cash flow recovery

A shift to positive free cash flow indicates improved liquidity and internal funding capacity. This durable improvement reduces reliance on external financing for capex and working capital, enabling debt paydown, dividend policy flexibility, and more stable funding for seasonal agri cycles.

Strengthened equity base

A stronger equity position enhances shock absorption and financial flexibility. For a capital‑intensive chemicals/fertilisers business, a healthy equity ratio supports investment in plant utilization, margin-improving upgrades, and steadier access to credit on favorable terms over the medium term.

Negative Factors

Rising leverage

An increasing debt-to-equity ratio raises interest and refinancing risk, constraining financial flexibility in a seasonal agricultural business. Higher leverage can limit capital allocation for maintenance and growth, making the firm more vulnerable to raw-material price swings and cyclical demand shocks.

Margin volatility

Material margin swings reduce earnings predictability and impair long-term planning. Given profitability is sensitive to phosphate rock, phosphoric acid costs and product mix, volatile margins can hinder consistent reinvestment, pricing power, and the ability to sustain operating improvements.

Cash conversion discrepancies

Weakness or inconsistency in cash conversion suggests earnings quality and working-capital management issues. Over months, such discrepancies can strain liquidity during off-season periods, force reliance on short-term credit, and limit capacity to fund inventory or capital expenditure without raising cost of capital.

Rama Phosphates Limited Business Overview & Revenue Model

Company Description

Rama Phosphates Limited engages in the manufacture and sale of fertilizers, chemicals, soya, and micronutrients in India. It operates through SSP Fertilizer, Chemicals, Power, Soya, and Micro Nutrients divisions. The company offers powder and granular single super phosphate fertilizers; various grades of nitrogen phosphorus potash mixed fertilizers; fortified fertilizers, such as boronated and zincated single super phosphate fertilizers; micronutrients, including magnesium sulphate, Sulphur dust, zinc sulphate, monohydrate, and zinc sulphate hepta-hydrate; and water soluble fertilizers. It also provides chemicals comprising sulphuric acid, oleum, and chlorosulphonic acid; and soya, lecithin, and de oiled cakes, as well as phospho gypsum and linear alkyl benzene sulphonic acid. Rama Phosphates Limited offers its products under the Girnar, Suryaphool, and Sampurn brand names. The company was incorporated in 1984 and is headquartered in Mumbai, India. As of 31 March 2022, Rama Phosphates Limited operates as a subsidiary of Silver Eagle Inc.

How the Company Makes Money

Rama Phosphates Limited generates revenue primarily through the sale of its fertilizers, particularly single super phosphate (SSP). The company's revenue model is built on direct sales to agricultural distributors and retailers, who then supply these products to end-users, including farmers. Key revenue streams include the volume of fertilizers sold, pricing strategies, and market demand fluctuations. Additionally, RAMAPHO may benefit from strategic partnerships with agricultural organizations and government initiatives aimed at promoting fertilizer use, which can enhance its market reach and sales. The company also focuses on optimizing production efficiency and cost management to maintain profitability in a competitive market.

Rama Phosphates Limited Financial Statement Overview

Summary

Rama Phosphates Limited shows promising growth potential, particularly with revenue and profitability improvements. However, the company faces challenges in maintaining consistent margins and managing increasing leverage. Continued focus on cash flow management and operational efficiency will be key to sustaining its financial health.

Income Statement

Rama Phosphates Limited has demonstrated significant revenue growth, particularly from 2024 to 2025, with a sharp increase in gross profit margins. However, the volatility in EBIT and net profit margins over the years indicates operational challenges. The transition from negative to positive net income is a notable improvement, but maintaining consistent profitability remains a challenge.

Balance Sheet

The company's equity position has strengthened over the years, showing a healthy equity ratio. However, the debt-to-equity ratio has increased, indicating growing leverage, which could pose a risk if not managed carefully. The stable growth in stockholders' equity is a positive indicator of financial health.

Cash Flow

Free cash flow has improved significantly, turning positive in 2025 after a period of negative cash flows, which is a positive sign for liquidity. However, the operating cash flow to net income ratio indicates potential discrepancies in cash management. Efficient cash flow management will be crucial for sustaining growth.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	8.17B	5.15B	4.33B	5.71B	4.90B	4.63B
Gross Profit	2.77B	2.23B	-720.70M	-975.08M	-1.13B	1.80B
EBITDA	816.94M	434.25M	-207.22M	722.57M	1.14B	624.07M
Net Income	422.26M	136.75M	-310.67M	409.34M	700.37M	421.09M
Balance Sheet
Total Assets	6.44B	6.34B	6.26B	5.34B	4.43B	3.11B
Cash, Cash Equivalents and Short-Term Investments	112.64M	36.69M	73.65M	62.42M	17.57M	8.72M
Total Debt	1.03B	1.26B	1.49B	1.18B	588.47M	54.98M
Total Liabilities	2.41B	2.63B	2.73B	2.25B	1.73B	1.07B
Stockholders Equity	4.03B	3.71B	3.53B	3.09B	2.70B	2.04B
Cash Flow
Free Cash Flow	0.00	324.44M	-131.67M	-464.73M	-429.47M	254.41M
Operating Cash Flow	0.00	399.05M	-51.04M	-362.60M	-85.82M	444.56M
Investing Cash Flow	0.00	-41.33M	-115.35M	-81.45M	-316.63M	-212.70M
Financing Cash Flow	0.00	-358.86M	164.22M	447.50M	402.07M	-233.45M

Rama Phosphates Limited Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 171.10
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:RAMAPHO, the sentiment is Negative. The current price of 171.1 is above the 20-day moving average (MA) of 164.82, above the 50-day MA of 164.55, and above the 200-day MA of 148.19, indicating a neutral trend. The MACD of -4.29 indicates Positive momentum. The RSI at 42.40 is Neutral, neither overbought nor oversold. The STOCH value of 38.50 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for IN:RAMAPHO.

Rama Phosphates Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
RAMAPHO	65 Neutral	₹5.37B	10.23	―	0.46%	22.68%	―
KHAICHEM	62 Neutral	₹6.29B	8.74	―	―	67.43%	―
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
AGROPHOS	61 Neutral	₹741.63M	6.59	―	2.51%	69.30%	―
VIKASECO	52 Neutral	₹2.71B	27.87	―	―	7.61%	-50.76%
NAGAFERT	48 Neutral	₹2.94B	-11.91	―	―	-100.00%	-101.18%
KANORICHEM	45 Neutral	₹3.07B	-4.71	―	―	-1.30%	-27.85%

Rama Phosphates Limited Corporate Events

Rama Phosphates’ ICRA Outlook Upgraded to Stable as Ratings Reaffirmed

Rama Phosphates Limited announced that credit rating agency ICRA has reaffirmed the company’s existing ratings on its bank facilities totaling Rs 136 crore, with an improvement in the outlook on its long-term facilities from “Negative” to “Stable.” Long-term fund-based limits and term loans of Rs 80 crore and Rs 8 crore, respectively, remain rated ICRA A- with a Stable outlook, while short-term non-fund-based limits of Rs 48 crore continue at ICRA A2+. The revision in outlook signals a more positive view of the company’s credit profile and may support its standing with lenders and stakeholders as it manages its working capital and growth requirements.

Rama Phosphates Closes Trading Window Ahead of December Quarter Results

Rama Phosphates Limited has announced the closure of its trading window for designated persons from January 1, 2026 until 48 hours after the declaration of its unaudited financial results for the quarter and nine months ended December 31, 2025. The move, made in line with SEBI’s Prohibition of Insider Trading Regulations and the company’s internal code of conduct, is a routine compliance step aimed at preventing insider trading around the results announcement and reinforcing governance standards for insiders and market participants.