Shree Rama Newsprint Limited

Consumer Defensive — Beverages - Non-Alcoholic · NSE

₹29.95+₹0.08 (+0.27%)

DalalBaazaar Score

16 / 100

🔴 Poor

Verdict

HIGH RISK

Risk

Very High

Driven by negative shareholders' equity — the company owes more than it owns, short-term liabilities exceed short-term assets, negative free cash flow.

In simple words: The company owes more than it owns — years of losses have wiped out its net worth, with modest growth. Solvency — whether it can keep funding itself at all — is the main factor to watch.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 6:58 pm

Understanding the Business

Company site ↗

The 60-second version of Shree Rama Newsprint Limited — what it does, how it earns, and who it competes with, before any of the numbers below.

What does this company do?

Shree Rama Newsprint Limited produces and sells packaged water bottles in India. It also operates packaged drinking water bottling plant. In addition, it engages in the selling of scrap materials.

IndustryBeverages - Non-Alcoholic

SectorConsumer Defensive

Employees42

Annual revenue₹32 Cr

How does it make money?

Turns over ₹32 Cr a year. Of every ₹100 of sales, about ₹-213 reaches shareholders as profit, with ₹22 left at the operating level before interest, tax and depreciation. Each of its 42 employees supports ₹76.6 lakh of revenue a year, the signature of a people-led business.

Revenue / employee₹76.6 lakh

Who are its competitors?

The closest listed comparisons in its industry are TATA CONSUMER PRODUCT LTD, NESTLE INDIA LIMITED, BRITANNIA INDUSTRIES LTD. These are the companies its valuation and returns are measured against elsewhere in this report.

Compared side by side in Peers ↓

What is its competitive advantage?Little sign of one

Returns on capital of 1.1% are at or below what the capital likely costs. That is the financial pattern of a business competing largely on price, where advantage has to come from execution rather than position.

Peer median ROE51.0%

What has been driving growth?

Growth has come mainly from selling more, rather than from keeping more of each sale. Over 3 years revenue moved -30% while net margin moved -17% relative to itself. What this cannot tell you is which products, customers or geographies did the work — that lives in the segment disclosures of the annual report.

Revenue effect-30%

Margin effect-17%

DalalBaazaar Score

16/ 100

Poor

Weighted across six categories. Every point is explained below.

✗ Shareholders' equity is negative — accumulated losses exceed the capital in the business

Quality vs. Valuation

Company Quality

15/ 100

Weak

How good the business is, ignoring the share price entirely.

Valuation

30/ 100

Expensive

What you are being asked to pay, ignoring how good the business is.

Weak on business quality and not cheap enough to compensate.

vs. its own history

Not enough price and earnings history

vs. sector peers

Not enough peers with a usable P/E

vs. generic bands

N/A

Multiples unreliable — equity base is negative

EV/EBITDA

115.8x

PEG

—

What's Good / What's Bad

🟢 What's Going Well1

Margins are improving
EBITDA margin is up from 13.3% to 22.2% over 3 years.

🔴 What Needs Attention0

Nothing stands out as clearly deteriorating on the years of data available.

Red Flags

7 items require attention · 4 high · 3 watch

🔴Negative shareholders' equityFinancial
Liabilities exceed assets — accumulated losses have wiped out the company's net worth.
🔴Thin interest coverageFinancial
Operating profit covers interest only 0.1x — little room if earnings dip.
🔴Profit up while operating cash flow fallsFinancial
Reported profit rose but cash generated by operations declined — worth checking whether earnings are being supported by non-cash items or working capital.
🔴The company is lossmakingFinancial
Net profit of -₹69 Cr in the latest reported year.
🟡Interest coverage is deterioratingFinancial
Cover has fallen from 0.2x to 0.1x.
🟡Free cash flow is negativeFinancial
Free cash flow was -₹1 Cr in the latest year.
🟡Short-term liquidity is tightFinancial
Current ratio of 0.64 — near-term obligations exceed near-term assets.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Margin expansion has further to run
EBITDA margin has risen from 13.3% to 22.2%. If that holds, profit compounds faster than sales and today's multiple looks cheaper in hindsight than it does now.

🔴 Bear CaseWhat could go wrong?

Solvency comes before everything else
Liabilities exceed assets. Until net worth is rebuilt, the equity is a claim on a business that owes more than it owns, and further losses or a funding squeeze can leave shareholders with nothing.
The debt load needs earnings to hold up
Debt is 52.8x EBITDA. At that level a downturn in earnings turns a manageable balance sheet into a refinancing problem, and lenders get paid before shareholders.
Earnings are hard to forecast
Profit has swung sharply from year to year, so any single year — good or bad — is a weak guide to the next. Cyclical earnings deserve lower multiples for that reason.
Size brings its own risk
Micro Cap businesses are thinly traded, so exits are harder in a falling market and single events move the price more than they would for a larger company.
Several serious flags at once
4 high-severity checks triggered. Individually each has an explanation; together they raise the chance that something structural is wrong rather than a one-off.

🟡 Key Things to WatchMeasurable tripwires, set against where this company stands today

1EBITDA margin holds above 20%✓ 22.2%
Two points below today's level — enough room for noise, tight enough to catch real compression.
2Debt / EBITDA falls below 3x✗ 52.8x
Already stretched, so this is a reduction target rather than a level to hold. Around 3x is where lenders typically start attaching conditions.
3Free cash flow remains positive✗ -₹1 Cr
Profit that never becomes cash eventually stops being profit.
4Interest cover stays above 3x✗ 0.1x
How much operating profit can fall before interest stops being comfortably covered.

Investment Checklist

4 / 10 checks passed

✗ Shareholders' equity is positive (assets exceed liabilities)
✗ Strong return on capital employed (ROCE ≥ 15%)
✗ Healthy net margin (≥ 10%)
✗ Generates positive free cash flow
✗ Adequate short-term liquidity (Current Ratio ≥ 1.0)
✓ Revenue growing year-over-year
✓ Profit growing year-over-year
✓ Not trading at an extreme valuation (P/E < 40x)
✓ Not buying right at the 52-week high
✗ Short-term technical trend isn't bearish

Price history

Quick Metrics

1 good · 5 neutral · 5 weak

Market Cap

₹451 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

Not meaningful

Loss-making

Earnings are negative, so a P/E multiple can't be read here

P/B Ratio

Not available

No data

Source didn't return this field

EPS (TTM)

₹-2.39

Loss-making

Negative earnings per share — the business is losing money

ROE

Not meaningful

Negative equity

Return on equity can't be read when equity itself is negative

ROCE

1.1%

Distorted

Distorted by the negative net worth — read this alongside the solvency flag, not on its own

Debt/Equity

Not meaningful

Negative equity

Shareholders' equity is negative, so this ratio can't be read

Revenue Growth (YoY)

6.0%

Modest

Modest growth

Profit Growth (YoY)

35.5%

Healthy

Profits growing at a healthy clip

Dividend Yield

None

No dividend yield reported — usually means no payout, but verify if one was recently initiated

Free Cash Flow

-₹1 Cr

Cash burning

Spending more cash than the operations bring in

More Metrics

Operating Margin

-1.9%

Weak

Thin margins leave little room for error

Net Margin

-206.7%

Weak

Very little revenue reaches the bottom line

Current Ratio

0.64

Tight

Tight short-term liquidity

Beta (vs Nifty)

0.28

Defensive

Steadier than the market

52W Range Position

19%

Mid-range

Technical Snapshot

SMA 20 / SMA 50

30.4 / 31.5

Bearish alignment (short < long)

Price vs SMA 200

Below

Long-term downtrend

RSI (14)

41.6

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹46 Cr	₹47 Cr	₹44 Cr	₹32 Cr	-11.2%
EBITDA	₹6 Cr	₹8 Cr	₹12 Cr	₹7 Cr	+5.4%
EBITDA Margin	13.3%	16.9%	26.7%	22.2%	—
PAT (Net Profit)	-₹118 Cr	-₹48 Cr	-₹106 Cr	-₹69 Cr	—
EPS	₹-8.01	₹-3.28	₹-7.21	₹-4.64	—
ROE	-84.1%	-52.5%	—	—	—
ROCE	0.4%	0.8%	2.2%	1.1%	—
Total Debt	₹361 Cr	₹364 Cr	₹361 Cr	₹376 Cr	+1.4%
Free Cash Flow	₹30 Cr	₹13 Cr	₹9 Cr	-₹1 Cr	—

🔴 Revenue has shrunk at 11.2% a year over 3 years.

🟢 EBITDA has grown at 5.4% a year over 3 years.

🟢 EBITDA Margin has risen from 13.3% to 22.2% over 3 years (+8.9 pts).

🟡 ROCE has held roughly flat at 1.1% over 3 years.

🟡 Total Debt has been broadly flat over 3 years (1.4% a year).

🔴 Free Cash Flow has turned negative, from ₹30 Cr to -₹1 Cr.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹465 Cr

Total Liabilities

₹547 Cr

Cash & Equivalents

₹1 Cr

Operating Cash Flow

-₹1 Cr

Capex

—

Shareholding (proxy)

Institutional Holding

1.5%

Insider Holding

77.5%

Peer Comparison

Company	P/E	ROE
TATA CONSUMER PRODUCT LTD	59.3x	7.5%
NESTLE INDIA LIMITED	59.8x	79.9%
BRITANNIA INDUSTRIES LTD	44.1x	51.0%

Recent News

2 mixed4 general

Shree Rama Newsprint (NSE:RAMANEWS): What Does Its Q2 FY27 Share Capital Audit Show?

Kalkine India, 16 OctResults

🟡Mixed / dependsA results event. The figures on this page update once the new statements reach the data feed, which usually lags the announcement.

Shree Rama Newsprint Share: Bull Case vs Bear Case for 2026

Univest, 24 Sept

Shree Rama Newsprint Ltd. Key Financial Ratios – Valuation, Profitability & More

Value Research, 02 Sept

Shree Rama Newsprint Limited Responds to Exchange Clarification on Stock Price Movement

scanx.trade, 28 Feb

Shree Rama Newsprint Ltd. Share Price News and Analysis

Univest, 17 Aug

Sri Ramakrishna Mills (Coimbatore) reports standalone net profit of Rs 2.06 crore in the June 2026 quarter

Business Standard, 13 AugResults

🟡Mixed / dependsA results event. The figures on this page update once the new statements reach the data feed, which usually lags the announcement.

Watch Items

Cross-check against the company's latest quarterly filing / investor presentation before acting.
1 metric couldn't be retrieved for this stock — this is more common for smaller or thinly-covered listings.

DalalBaazaar Thesis

WeakBusiness Quality · Financial Health · Growth · Profitability · Valuation · Risk

Points for each in the Score ↑

Avoid until solvency is resolved

Shree Rama Newsprint Limited owes more than it owns. Whatever the operating numbers show, the equity is a residual claim on a business with negative net worth, and that question has to be settled before any of the rest is worth weighing. 4 high-severity red flags sit above this conclusion and should be read first.

3 of 4 tripwires tripped — Debt / EBITDA falls below 3x; Free cash flow remains positive; Interest cover stays above 3x · see Key things to watch ↑