Rama Paper Mills Falls 20.00%: Downgrade and Deepening Losses Weigh Heavily

Feb 21 2026 04:03 PM IST
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Rama Paper Mills Ltd experienced a steep decline of 20.00% over the week ending 20 February 2026, closing at Rs.12.00 from Rs.15.00 the previous Friday. This sharp fall contrasted sharply with the Sensex’s modest gain of 0.39% during the same period, highlighting the stock’s significant underperformance amid worsening fundamentals and a downgrade to a Strong Sell rating.

Key Events This Week

16 Feb: Stock opens at Rs.14.30, down 4.67% as market rallies

17 Feb: Q3 FY26 results reveal deepening losses; stock drops 4.97%

18 Feb: Downgrade to Strong Sell by MarketsMOJO; shares fall 4.93%

19 Feb: Continued decline despite Sensex dip; stock down 2.55%

20 Feb: Week closes at Rs.12.00, down 4.69% on positive Sensex day

Week Open
Rs.14.30
Week Close
Rs.12.00
-20.00%
Week Low
Rs.12.00
Sensex Change
+0.39%

16 February 2026: Stock Opens Lower Amid Market Strength

Rama Paper Mills began the week at Rs.14.30, marking a 4.67% decline from the previous close of Rs.15.00 despite the Sensex rising 0.70% to 36,787.89. This early weakness foreshadowed the challenging week ahead, as the stock’s volume remained modest at 613 shares. The divergence from the broader market suggested company-specific concerns were weighing on investor sentiment.

17 February 2026: Q3 FY26 Results Deepen Investor Concerns

The release of Q3 FY26 results on 17 February confirmed the company’s deteriorating financial health. Rama Paper Mills reported deepening losses with operations virtually stalled, which triggered a 4.97% drop in the stock price to Rs.13.59 on low volume of 230 shares. Meanwhile, the Sensex continued its upward trajectory, gaining 0.32% to 36,904.38. The widening gap between the stock’s performance and the benchmark index underscored growing investor apprehension.

18 February 2026: Downgrade to Strong Sell Amplifies Downtrend

MarketsMOJO downgraded Rama Paper Mills Ltd to a Strong Sell rating on 18 February, citing deteriorating technical indicators and persistent fundamental weaknesses. The company’s Mojo Score plummeted to 17.0, reflecting heightened risk. This downgrade coincided with a 4.93% decline in the stock price to Rs.12.92 on increased volume of 502 shares. The Sensex rose 0.43% to 37,062.35, further highlighting the stock’s underperformance.

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19 February 2026: Stock Declines Despite Market Correction

On 19 February, Rama Paper Mills continued its downward trend, closing at Rs.12.59, down 2.55% on a volume spike to 1,203 shares. This decline occurred even as the Sensex fell sharply by 1.45% to 36,523.88, indicating that the stock’s weakness was not solely market-driven but linked to company-specific challenges. The persistent selling pressure reflected ongoing investor concerns about the company’s financial viability.

20 February 2026: Week Ends with Further Losses Amid Market Gains

The week concluded on 20 February with Rama Paper Mills closing at Rs.12.00, down 4.69% on volume of 601 shares. This final drop brought the weekly loss to a substantial 20.00%. In contrast, the Sensex rebounded 0.41% to 36,674.32, underscoring the stock’s continued underperformance. The persistent decline despite positive market conditions highlights the severity of the company’s fundamental and technical issues.

Date Stock Price Day Change Sensex Day Change
2026-02-16 Rs.14.30 -4.67% 36,787.89 +0.70%
2026-02-17 Rs.13.59 -4.97% 36,904.38 +0.32%
2026-02-18 Rs.12.92 -4.93% 37,062.35 +0.43%
2026-02-19 Rs.12.59 -2.55% 36,523.88 -1.45%
2026-02-20 Rs.12.00 -4.69% 36,674.32 +0.41%

Key Takeaways

Fundamental Weaknesses: The company’s Q3 FY26 results revealed deepening losses and stalled operations, reinforcing concerns about its financial health. The downgrade to a Strong Sell rating by MarketsMOJO, driven by a low Mojo Score of 17.0, reflects deteriorating fundamentals including negative book value and high leverage with a debt-to-equity ratio of 5.69 times.

Technical Deterioration: Technical indicators shifted from mildly bullish to mildly bearish, with daily moving averages turning negative and mixed signals from MACD, RSI, and Bollinger Bands. This weakening momentum contributed to the sustained price decline despite intermittent market rallies.

Market Underperformance: Rama Paper Mills’ stock fell 20.00% over the week while the Sensex gained 0.39%, highlighting significant underperformance. The stock’s long-term returns remain poor, with a three-year cumulative loss of 47.73% compared to the Sensex’s 36.80% gain.

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Conclusion

Rama Paper Mills Ltd’s week was marked by a pronounced decline driven by worsening financial results and a significant downgrade in its rating. The company’s persistent fundamental challenges, including negative book value and high leverage, combined with deteriorating technical momentum, have culminated in a 20.00% weekly loss. This performance starkly contrasts with the broader market’s modest gains, underscoring the stock’s elevated risk profile. Without meaningful operational improvements or deleveraging, the outlook remains challenging for Rama Paper Mills, as reflected in its Strong Sell rating and ongoing underperformance relative to the Sensex.

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