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

• Market Cap: ₹5.95B
• Dividend Yield: N/A
• Average Volume (3M): 30.39K
• Price to Earnings (P/E): 41.0
• Beta (1Y): 0.73
• 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: 56 Neutral
• Price Target: ₹48.00 ▼(-18.64% Downside)
• Action: Downgraded Date: 03/14/26
• Date: Action: Downgraded 03/14/26

The score is driven mainly by improved financial performance (strong margin expansion, revenue growth, and low leverage), but it is held back by negative free cash flow, a weak technical setup (price below key moving averages with negative MACD), and a relatively high P/E with no dividend support.

Positive Factors

Margin Expansion

Substantial improvement in gross (37.3%) and net (24.7%) margins reflects durable operational efficiencies and better cost control. Higher EBIT/EBITDA margins increase resilience to input-cost shocks, support reinvestment capacity, and strengthen long-term profitability and return generation.

Revenue Growth

A 17.4% year-over-year revenue increase indicates persistent demand capture and scale gain. Sustained top-line growth helps absorb fixed costs, enables operating leverage, and supports margin durability, providing a structural tailwind for earnings stability over the medium term.

Low Leverage & High ROE

Low net leverage and a high equity ratio combined with a 33.5% ROE signal capital-efficient operations and financial flexibility. This balance sheet strength reduces refinancing risk, supports capital allocation choices, and underpins the company’s ability to fund growth or absorb shocks without excessive external debt.

Negative Factors

Negative Free Cash Flow

Persistently negative free cash flow (-187M) shows reported profits are not converting into surplus cash. That constrains the firm’s ability to self-fund capex, deleverage, or return capital, increasing dependence on external financing or working-capital management to support durable investments.

Limited Cash Conversion

Operating cash flow covers only 39% of net income, indicating weak cash conversion relative to reported earnings. Lower cash realization limits internal funding flexibility, heightens sensitivity to working-capital swings, and can impair sustainable investment or debt reduction over the medium term.

Historical Volatility in Capital & Earnings

The company’s track record of net losses (2022) and prior high leverage (D/E up to 2.95) indicates cyclical earnings and capital-structure variability. Such historical volatility raises execution and financing risks that could re-emerge, challenging the sustainability of margins and returns.

Shree Rama Multi-Tech Limited Business Overview & Revenue Model

Company Description

Shree Rama Multi-Tech Limited manufactures and sells packaging products primarily in India. Its packaging products include multilayer tubes for packing dentifrices, cosmetics, pharmaceuticals, food, and other products; monolayer tubes; tube laminates; and plastic laminates, such as flexible packaging, miniature packs, and carry home packs. Shree Rama Multi-Tech Limited was founded in 1987 and is based in Kalol, India.

How the Company Makes Money

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Shree Rama Multi-Tech Limited Financial Statement Overview

Summary

Strong profitability and efficiency gains (gross margin up to 37.3%, net margin up to 24.7%) and solid revenue growth (17.4%) support the score. Balance sheet leverage is low (debt-to-equity 0.25) with improved ROE (33.5%), but persistently negative free cash flow (-187M) is a meaningful risk that limits the score.

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	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	2.29B	2.06B	1.77B	1.95B	1.49B	1.35B
Gross Profit	849.43M	775.95M	341.42M	669.95M	425.32M	135.13M
EBITDA	422.65M	313.08M	163.76M	145.65M	23.85M	118.56M
Net Income	563.80M	513.46M	99.65M	50.44M	-49.22M	34.33M
Balance Sheet
Total Assets	2.13B	2.14B	1.38B	1.33B	1.24B	1.16B
Cash, Cash Equivalents and Short-Term Investments	157.41M	100.08M	27.90M	10.08M	1.27M	316.00K
Total Debt	218.18M	388.44M	120.47M	822.68M	792.78M	696.39M
Total Liabilities	457.44M	609.99M	357.19M	1.04B	1.01B	875.23M
Stockholders Equity	1.67B	1.53B	1.03B	297.41M	246.21M	282.63M
Cash Flow
Free Cash Flow	229.68M	-187.26M	89.61M	-9.03M	-112.37M	-3.61M
Operating Cash Flow	269.07M	198.32M	208.43M	26.69M	-108.13M	7.79M
Investing Cash Flow	-9.98M	-467.32M	-112.11M	-35.58M	19.25M	-11.39M
Financing Cash Flow	-177.70M	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: Negative
• MACD: Positive
• RSI: Positive
• STOCH: Positive

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 above the 20-day moving average (MA) of 50.30, above the 50-day MA of 55.96, and above the 200-day MA of 52.99, indicating a bearish trend. The MACD of -3.24 indicates Positive momentum. The RSI at 29.21 is Positive, neither overbought nor oversold. The STOCH value of 18.80 is Positive, 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
RPPINFRA	62 Neutral	₹3.36B	186.32	―	0.47%	-7.32%	-26.92%
TRANSWORLD	60 Neutral	₹2.93B	-4.30	―	0.76%	10.69%	-203.58%
SHREERAMA	56 Neutral	₹5.95B	40.97	―	―	23.44%	277.43%
Sector *	55 Neutral	$13.29B	17.42	10.03%	0.93%	7.13%	-12.93%
MBLINFRA	54 Neutral	₹3.34B	-12.79	―	―	12.96%	-132.20%
SICALLOG	39 Underperform	₹13.78B	3.00	―	―	76.34%	94.50%