Rama Telecom

How has been the historical performance of Rama Telecom?

Rama Telecom's historical performance from March 2024 to March 2025 showed significant growth, with net sales rising to 41.76 Cr and operating profit increasing to 8.11 Cr, improving profit margins and total assets to 28.60 Cr. However, cash flow from operating activities remained at zero, resulting in a net cash outflow of 1.00 Cr.

Answer:<BR>The historical performance of Rama Telecom shows a positive trend in key financial metrics from March 2024 to March 2025.<BR><BR>Breakdown:<BR>Rama Telecom's net sales increased from 37.19 Cr in March 2024 to 41.76 Cr in March 2025, reflecting a growth in total operating income that also rose to 41.76 Cr from 37.19 Cr. The company's total expenditure, excluding depreciation, slightly increased to 34.37 Cr from 33.16 Cr, while the raw material cost surged to 21.90 Cr from 15.00 Cr. Operating profit (PBDIT) saw a significant rise, reaching 8.11 Cr compared to 4.32 Cr in the previous year, leading to an operating profit margin improvement from 10.84% to 17.7%. Profit before tax also increased to 7.46 Cr from 3.58 Cr, resulting in a profit after tax of 5.53 Cr, up from 2.61 Cr, which improved the PAT margin from 7.02% to 13.24%. On the balance sheet, total assets grew to 28.60 Cr from 19.38 Cr, with shareholder's funds increasing to 16.46 Cr from 9.54 Cr. The book value per share rose to 17.33 from 10.10. However, cash flow from operating activities remained at zero, with a net cash outflow of 1.00 Cr in March 2025, down from a net inflow of 2.00 Cr in March 2024. Overall, Rama Telecom demonstrated strong revenue growth and profitability improvements, alongside a solid increase in assets and equity capital.

Is Rama Telecom overvalued or undervalued?

As of November 17, 2025, Rama Telecom is considered undervalued with a PE ratio of 14.19 and an EV to EBIT of 9.54, making it an attractive investment compared to peers like Bharti Airtel and Vodafone Idea, despite recent stock performance lagging behind the Sensex.

As of 17 November 2025, Rama Telecom's valuation grade has moved from very expensive to very attractive, indicating a significant shift in its market perception. The company is currently assessed as undervalued, with a PE ratio of 14.19, an EV to EBIT of 9.54, and an impressive ROCE of 22.65%. These metrics suggest that the company is trading at a favorable valuation compared to its peers.<BR><BR>In comparison, Bharti Airtel, which is considered expensive, has a PE ratio of 38.26 and an EV to EBITDA of 12.74, while Vodafone Idea, categorized as risky, shows a PE ratio of 18.66. This peer comparison highlights Rama Telecom's relative attractiveness in the telecom sector. Despite recent stock performance lagging behind the Sensex, with a 1-week return of -0.92% compared to the Sensex's 1.72%, the underlying valuation metrics suggest that Rama Telecom presents a compelling investment opportunity at its current price of 59.45.

Which are the latest news on Rama Telecom?

Why is Rama Telecom Ltd falling/rising?

As of 13-Feb, the stock price of Rama Telecom Ltd is 65.00, unchanged from the previous day, with a slight decline of 0.23% over the past week. Decreased investor participation and mixed performance relative to moving averages suggest a lack of upward momentum in the stock price.

As of 13-Feb, the stock price of Rama Telecom Ltd is currently at 65.00, with no change from the previous day. The stock has shown a slight decline of 0.23% over the past week, while it has increased by 0.08% over the past month. Year-to-date, the stock has decreased by 1.52%, which is a better performance compared to the Sensex, which has fallen by 2.52% during the same period.<BR><BR>Despite the current price stability, there are indicators of a decline in investor participation, as evidenced by a delivery volume of 2,000 shares on February 12, which represents a 28.57% drop compared to the 5-day average delivery volume. This decrease in participation could suggest waning interest among investors, which may contribute to the stock's stagnation in price.<BR><BR>Additionally, while the stock is currently outperforming its sector by 0.75% today, it is trading below the 5-day, 20-day, and 50-day moving averages, which may indicate a short-term weakness in momentum. However, it remains above the 100-day and 200-day moving averages, suggesting some level of long-term stability.<BR><BR>Overall, the combination of falling investor participation and mixed performance relative to moving averages may explain the lack of upward movement in the stock price of Rama Telecom Ltd.