Shree Rama Multi-Tech Limited (SHREERAMA) AI Stock Analysis

• Market Cap: ₹7.64B
• Dividend Yield: N/A
• Average Volume (3M): 30.39K
• Price to Earnings (P/E): 13.5
• Beta (1Y): 0.66
• Revenue Growth: 23.44%
• EPS Growth: 277.43%
• Country: IN
• Employees: 343
• Sector: Services
• Sector Strength: N/A
• Industry: Packaging & Containers
• EPS (TTM): 0.40
• Shares Outstanding: 133,468,000
• 10 Day Avg. Volume: 66,182
• 30 Day Avg. Volume: 30,388
• PEG Ratio: 0.02
• Price to Book (P/B): 2.85
• Price to Sales (P/S): 2.12
• P/FCF Ratio: -23.34
• 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: 72 Outperform
• Price Target: ₹64.00 ▲(8.47% Upside)

Overall score reflects strong technical momentum and materially improved profitability, tempered by ongoing cash-flow pressure from negative free cash flow, while valuation appears reasonable based on the provided P/E.

Positive Factors

Margin expansion

Material margin improvement reflects sustained cost control and stronger pricing/operational leverage. Higher gross and net margins enhance the company's ability to generate enduring profits, fund reinvestment, and withstand input cost cycles over the next several quarters.

Consistent revenue growth

Double-digit top-line growth demonstrates expanding market demand or share gains in its packaging/paper segment. Durable revenue growth supports scale advantages, better fixed-cost absorption, and a higher base for sustainable earnings over a multi-quarter horizon.

Low leverage and high ROE

A strong equity base with low debt reduces financial risk and interest burden, while a 33.5% ROE indicates efficient capital use. This capital structure supports funding organic growth or opportunistic investments without materially increasing structural leverage.

Negative Factors

Negative free cash flow

Sustained negative free cash flow erodes liquidity and forces reliance on external financing or asset sales to fund capex and operations. Even with strong reported profits, persistent FCF shortfalls undermine durable financial flexibility and risk long-term reinvestment capacity.

Weak cash conversion

Only ~39% conversion of net income into operating cash suggests earnings are not fully backed by cash, raising concerns about earnings quality. Over several quarters this constraint can limit debt reduction, capex funding, or dividend sustainability despite accounting profitability.

Historical financial volatility

A history of losses and previously high leverage point to cyclical or management execution risks. Recent improvements may be real, but past volatility indicates a nontrivial chance of recurrence, which weakens confidence in consistent long-term cash generation and profitability.

Shree Rama Multi-Tech Limited Business Overview & Revenue Model

Company Description

Shree Rama Multi-Tech Limited (SHREERAMA) is a diversified company based in India, primarily engaged in the manufacturing and trading of various industrial products. The company operates in sectors such as packaging, textiles, and engineering, offering a wide range of products including flexible packaging materials, woven sacks, and specialized textile products. SHREERAMA is committed to quality and innovation, catering to both domestic and international markets with a focus on sustainability and customer satisfaction.

How the Company Makes Money

Shree Rama Multi-Tech Limited generates revenue through multiple streams, including the sale of its manufactured products such as flexible packaging and woven sacks, which are used in various industries including food, agriculture, and consumer goods. The company also earns income from trading activities related to textiles and engineering products. In addition to direct sales, SHREERAMA may benefit from strategic partnerships with suppliers and distributors that enhance its market reach and operational efficiency. The company's revenue model is supported by a diverse client base, which helps mitigate risks associated with fluctuations in demand across different sectors.

Shree Rama Multi-Tech Limited Financial Statement Overview

Summary

Income statement strength (higher gross/net margins and 17.4% revenue growth) and a healthier balance sheet (low leverage, improved ROE) are partially offset by weak cash generation, with negative free cash flow in 2025.

Income Statement

Shree Rama Multi-Tech Limited has shown a significant improvement in its income statement over the years. The gross profit margin has improved from 21.2% in 2024 to 37.3% in 2025, indicating better cost management. The net profit margin surged from 5.6% to 24.7%, reflecting strong profitability enhancement. EBIT and EBITDA margins have also increased, showcasing operational efficiency. Revenue growth rate was 17.4% from 2024 to 2025, indicating robust top-line growth. However, the company faced challenges in earlier periods, with net losses in 2022.

Balance Sheet

The company's balance sheet shows a strong equity position, with the equity ratio improving to 71.5% in 2025 from 74.2% in 2024. The debt-to-equity ratio stands at 0.25, indicating low leverage and financial risk. Return on equity improved significantly to 33.5% in 2025, driven by increased net income. However, the company had higher leverage in previous years, with a debt-to-equity ratio as high as 2.95 in 2021.

Cash Flow

Cash flow analysis shows some concerns. While the operating cash flow to net income ratio is favorable at 0.39, the free cash flow remains negative at -187 million in 2025, highlighting cash management issues. The free cash flow growth rate has deteriorated compared to the previous year, indicating potential challenges in covering capital expenditures.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	2.20B	2.06B	1.77B	1.95B	1.49B	1.35B
Gross Profit	812.30M	775.95M	341.42M	669.95M	425.32M	135.13M
EBITDA	376.23M	313.08M	163.76M	145.65M	23.85M	118.56M
Net Income	544.95M	513.46M	99.65M	50.44M	-49.22M	34.33M
Balance Sheet
Total Assets	0.00	2.14B	1.38B	1.33B	1.24B	1.16B
Cash, Cash Equivalents and Short-Term Investments	100.08M	100.08M	27.90M	10.08M	1.27M	316.00K
Total Debt	0.00	388.44M	120.47M	822.68M	792.78M	696.39M
Total Liabilities	-1.53B	609.99M	357.19M	1.04B	1.01B	875.23M
Stockholders Equity	1.53B	1.53B	1.03B	297.41M	246.21M	282.63M
Cash Flow
Free Cash Flow	0.00	-187.26M	89.61M	-9.03M	-112.37M	-3.61M
Operating Cash Flow	0.00	198.32M	208.43M	26.69M	-108.13M	7.79M
Investing Cash Flow	0.00	-467.32M	-112.11M	-35.58M	19.25M	-11.39M
Financing Cash Flow	0.00	251.52M	-80.43M	15.53M	89.83M	2.36M

Shree Rama Multi-Tech Limited Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 59.00
• 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:SHREERAMA, the sentiment is Negative. The current price of 59 is below the 20-day moving average (MA) of 60.64, above the 50-day MA of 57.96, and above the 200-day MA of 50.16, indicating a neutral trend. The MACD of -0.40 indicates Positive momentum. The RSI at 43.36 is Neutral, neither overbought nor oversold. The STOCH value of 44.67 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for IN:SHREERAMA.

Shree Rama Multi-Tech Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
SHREERAMA	72 Outperform	₹7.64B	13.54	―	―	23.44%	277.43%
RPPINFRA	60 Neutral	₹4.21B	6.85	―	0.47%	-7.32%	-26.92%
TRANSWORLD	60 Neutral	₹3.96B	-62.15	―	0.76%	10.69%	-203.58%
Sector *	55 Neutral	$13.29B	17.42	10.03%	0.93%	7.13%	-12.93%
MBLINFRA	49 Neutral	₹3.98B	-3.80	―	―	12.96%	-132.20%
SICALLOG	39 Underperform	₹5.91B	-396.45	―	―	76.34%	94.50%