ScoreWhy is Rama Phosphates Ltd ?
1
Strong ability to service debt as the company has a low Debt to EBITDA ratio of 1.12 times
2
Poor long term growth as Net Sales has grown by an annual rate of 13.32% and Operating profit at 15.49% over the last 5 years
3
The company has declared Positive results for the last 6 consecutive quarters
- NET SALES(Latest six months) At Rs 483.66 cr has Grown at 24.31%
- ROCE(HY) Highest at 14.96%
- DEBT-EQUITY RATIO(HY) Lowest at 0.26 times
4
With ROCE of 14.7, it has a Attractive valuation with a 1.3 Enterprise value to Capital Employed
- The stock is trading at a discount compared to its peers' average historical valuations
- Over the past year, while the stock has generated a return of 49.12%, its profits have risen by 763.6% ; the PEG ratio of the company is 0
5
Despite the size of the company, domestic mutual funds hold only 0% of the company
- Domestic mutual funds have capability to do in-depth on-the-ground research on companies- their small stake may signify either they are not comfortable at the price or the business
Real-Time Research ReportHow much should you hold?
- Overall Portfolio exposure to Rama Phosphates should be less than 10%
- Overall Portfolio exposure to Fertilizers should be less than 30%
(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Fertilizers)
When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock
Is Rama Phosphates for you?
High Risk, High Return
Absolute
Risk Adjusted
Volatility
Rama Phosphates
49.12%
0.78
63.26%
Sensex
8.65%
0.76
11.31%
Quality
Management Risk
Growth
Capital StructureQuality key factors
Factor
Value
Sales Growth (5y)
13.32%
EBIT Growth (5y)
15.49%
EBIT to Interest (avg)
7.67
Debt to EBITDA (avg)
Negative Net Debt
Net Debt to Equity (avg)
0.23
Sales to Capital Employed (avg)
2.05
Tax Ratio
31.67%
Dividend Payout Ratio
6.46%
Pledged Shares
13.33%
Institutional Holding
0.10%
ROCE (avg)
14.97%
ROE (avg)
12.17%
ValuationValuation Key Factors 
Factor
Value
P/E Ratio
11
Industry P/E
24
Price to Book Value
1.37
EV to EBIT
7.44
EV to EBITDA
6.81
EV to Capital Employed
1.30
EV to Sales
0.74
PEG Ratio
0.01
Dividend Yield
0.48%
ROCE (Latest)
14.72%
ROE (Latest)
13.04%
Loading Valuation Snapshot...
TechnicalsTechnical key factors
Indicator
Weekly
Monthly
MACD
Mildly Bearish
Bullish
RSI
No Signal
No Signal
Bollinger Bands
Bearish
Mildly Bullish
Moving Averages
Mildly Bullish (Daily)
KST
Mildly Bearish
Bullish
Dow Theory
Mildly Bearish
Mildly Bearish
OBV
No Trend
Bullish
Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned 
Financial Trend21What is working for the Company
NET SALES(Latest six months)
At Rs 483.66 cr has Grown at 24.31%
ROCE(HY)
Highest at 14.96%
DEBT-EQUITY RATIO(HY)
Lowest at 0.26 times
PBT LESS OI(Q)
At Rs 18.87 cr has Grown at 25.6% (vs previous 4Q average
PAT(Q)
At Rs 14.03 cr has Grown at 32.9% (vs previous 4Q average
-4What is not working for the Company
DEBTORS TURNOVER RATIO(HY)
Lowest at 3.77 times
INTEREST(Q)
At Rs 3.02 cr has Grown at 36.65%
Loading Valuation Snapshot...
Here's what is working for Rama Phosphates
Net Sales - Latest six months
At Rs 483.66 cr has Grown at 24.31%
Year on Year (YoY)MOJO Watch
Near term sales trend is positive
Net Sales (Rs Cr)
Profit Before Tax less Other Income (PBT) - Quarterly
At Rs 18.87 cr has Grown at 25.6% (vs previous 4Q average)
over average PBT of the previous four quarters of Rs 15.03 CrMOJO Watch
Near term PBT trend is positive
PBT less Other Income (Rs Cr)
Profit After Tax (PAT) - Quarterly
At Rs 14.03 cr has Grown at 32.9% (vs previous 4Q average)
over average PAT of the previous four quarters of Rs 10.56 CrMOJO Watch
Near term PAT trend is positive
PAT (Rs Cr)
Debt-Equity Ratio - Half Yearly
Lowest at 0.26 times
in the last five half yearly periodsMOJO Watch
The company has been reducing its borrowing as compared to equity capital
Debt-Equity Ratio
Here's what is not working for Rama Phosphates
Interest - Quarterly
At Rs 3.02 cr has Grown at 36.65%
Quarter on Quarter (QoQ)MOJO Watch
Rising interest cost signifies increased borrowings
Interest Paid (Rs cr)
Debtors Turnover Ratio- Half Yearly
Lowest at 3.77 times and Fallen
each half year in the last five half yearly periodsMOJO Watch
Company's pace of settling its Debtors has slowed
Debtors Turnover Ratio
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