RAMA PAPER MILLS LTD
Q1 FY 19 Results review
HISTORICAL PERSPECTIVE
To manufacture Newsprints
Duplex Board and producing Writing and printing paper by recycling waste paper
Established Rama Paper
Mills Limited in 1985 at Kiratpur, Distt. Bijnor in Uttar Pradesh.
In 1988, Company acquired
installed capacity of 3,300 TPA through its duplex manufacturing unit.
Diversified into writing
& printing paper and newsprint by installing a capacity of 8250 TPA
Gradually escalated its
overall installed capacity of 3 units upto 44000 TPA.
in 2007-08, the Company had
undertaken massive expansion plan of installing Imported Paper Manufacturing
Machine to manufacture value added products with installed capacity of 16320
TPA.
Thus enhancing the overall
output to an enormous 61000 TPA.
The site of the unit is
easily accessible by roadways as well as railways.
Easier to procure of raw
material and inputs but also brings finished products’ markets in proximity.
The
company has an independent 33 KVA electricity feeder from UPPCL (Uttar Pradesh
Power Corporation Ltd. This feeder is used to export/import power from the
grid, depending on the need.
Sh. Pramod Agarwal (Managing Director)
Sh. Arun Goel (Executive Director)
The Q1 FY 19 results
of the company are hereunder :
RAMA PAPER MILLS
|
Jun '18
|
Mar '18
|
Jun '17
|
YOY
|
QOQ
|
||
Net Sales
|
41.02
|
40.76
|
25.73
|
59.42
|
0.64
|
||
Raw Materials
|
19.21
|
36.63
|
13.01
|
47.66
|
-47.56
|
||
Increase/Decrease in Stocks
|
-0.66
|
-1.26
|
0.74
|
-189.19
|
-47.62
|
||
Employees Cost
|
1.8
|
2.95
|
1.13
|
59.29
|
-38.98
|
||
Depreciation
|
0.8
|
--
|
0.78
|
2.56
|
|||
Other Expenses
|
14.17
|
8.4
|
13.09
|
8.25
|
68.69
|
||
P/L Before Other Inc. , Int.,
Excpt. Items & Tax
|
5.7
|
-5.97
|
-3.03
|
-288.12
|
-195.48
|
||
Other Income
|
19.84
|
0.01
|
0
|
198300
|
|||
P/L Before Int., Excpt. Items &
Tax
|
25.54
|
-5.96
|
-3.03
|
-942.9
|
-528.52
|
||
Interest
|
0.02
|
-12.23
|
1.84
|
-98.91
|
-100.16
|
||
Net Profit/(Loss)
|
25.53
|
6.27
|
-4.87
|
-624.23
|
307.18
|
||
Equity Share Capital
|
7.58
|
7.58
|
7.58
|
0
|
0
|
||
Basic EPS
|
26.41
|
6.48
|
-5.04
|
-624.01
|
307.56
|
||
Diluted EPS
|
26.41
|
6.48
|
-5.04
|
-624.01
|
307.56
|
||
MP
|
28
|
||||||
PE
|
0.27
|
||||||
VOLUME
|
7025
|
||||||
FV
|
10
|
||||||
52 Wk Low/High 8.15 28.80
|
Net Sales have gone
up by 59.42% YoY and by 0.64% QoQ.
Net profits have gone
up by 624% YoY and 307% QoQ.
EPS is 26.41 on a
Face Value of Rs.10.
The market price is
around 28 and on that, the PE Ratio is very LOW.
But, this is the
first quarter in which the company has hoisted such impressive results and
there is no way of predicting if this sort of excellent results will be
repeated or not in future quarters.
In the previous
quarter, the sales were similar to this quarter but net profits was considerably lower. One
reason is the much higher other income in the current quarter which, at
Rs.19.84 cr, is unlikely to recur in future quarters.
The last 2
quarters, the company has clocked better sales than earlier but the better
profits have come due to other reasons like these:-
Last quarter was aided by a negative interest expense of over Rs.12
crores.
This quarter is aided by huge other income.
If these are removed, the
results are still better than earlier quarters but not very impressive.
I understand that, on
the basis of this result, Rama Paper mills is “Buyers only” in the market, for quite some
time.
Investors must understand the results clearly and in detail before taking
their investment decisions.
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