Rama Vision Limited

Consumer Defensive — Household & Personal Products · BSE

₹170.50−₹4.80 (−2.74%)

DalalBaazaar Score

65 / 100

🟢 Good

Verdict

REASONABLE

Risk

Moderate

Driven by negative free cash flow, micro-cap size, which brings thin liquidity.

In simple words: Strong business and financial position, with both sales and profits growing well. Cash generation is currently the main factor to watch.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 6:02 pm

Mixed / neutral. No major red flags jump out, but nothing here screams "obviously cheap" either. This is a name that needs a peer comparison and a view on near-term earnings triggers before sizing a position.

Understanding the Business

Company site ↗

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

What does this company do?

Rama Vision Limited engages in the import, distribution, and marketing of various consumer products in India. It operates in two segments, Trading and Manufacturing.

IndustryHousehold & Personal Products

SectorConsumer Defensive

Employees229

Annual revenue₹159 Cr

How does it make money?

Turns over ₹159 Cr a year. Of every ₹100 of sales, about ₹4 reaches shareholders as profit, with ₹8 left at the operating level before interest, tax and depreciation. Each of its 229 employees supports ₹69.3 lakh of revenue a year, the signature of a people-led business.

EBITDA margin7.8%

Net margin3.7%

Revenue / employee₹69.3 lakh

Who are its competitors?

The closest listed comparisons in its industry are HINDUSTAN UNILEVER LTD., DABUR INDIA LTD, ITC LTD, BRITANNIA INDUSTRIES LTD. These are the companies its valuation and returns are measured against elsewhere in this report.

HINDUSTAN UNILEVER LTD.P/E 42.5x · ROE 21.5%

DABUR INDIA LTDP/E 34.7x · ROE 17.2%

ITC LTDP/E 16.6x · ROE 27.4%

BRITANNIA INDUSTRIES LTDP/E 44.1x · ROE 51.0%

What is its competitive advantage?Some evidence

ROCE of 20.3% is above what capital typically costs, which suggests some pricing power, though not yet the sustained, wide gap that marks a durable advantage.

ROCE20.3%

ROE16.3%

Peer median ROE27.4%

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 +94% while net margin moved +20% 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+94%

Margin effect+20%

DalalBaazaar Score

65/ 100

Good

Weighted across six categories. Every point is explained below.

✓ Beta of 0.20 — historically steadier than the index
✗ Micro Cap: thinner liquidity and sharper drawdowns are normal
✗ Negative free cash flow means dependence on external funding

Quality vs. Valuation

Company Quality

70/ 100

Good

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

Valuation

52/ 100

Fair

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

A reasonable business at a reasonable price — neither the quality nor the valuation stands out in either direction.

Historical Valuation

Current P/E

36.4x

3Y Median

33.7x

40 monthly readings · mean 35.2x · range 22.7x–65.2x

Sector Median

38.6x

median of 4 sector peers

🟡Currently trading close to its 3y median of 33.7x — the market is paying about what it usually pays for this company.

🟡Against its sector it is priced broadly in line with the peer median of 38.6x.

vs. its own history

Fair

33.7x median over 40 months · +8%

vs. sector peers

Fair

38.6x median of 4 peers · -6%

vs. generic bands

Expensive

Above 35x

P/E (Trailing)

36.4x

P/B

4.88x

EV/EBITDA

16.1x

PEG

1.12

Dividend Yield

None

What's Good / What's Bad

🟢 What's Going Well5

Margins are improving
EBITDA margin is up from 5.7% to 7.8% over 3 years.
Return on equity is rising
ROE has improved from 11.3% to 16.3%.
Return on capital is rising
ROCE has improved from 15.8% to 20.3%.
High return on capital employed
ROCE of 20.3% is the mark of a business that converts capital into profit efficiently.
Consistently profitable
Profitable in every one of the last 4 reported years.

🔴 What Needs Attention3

Debt is rising
Total debt is up 118% over 3 years — worth checking what it funded.
Free cash flow is negative
The business is not currently covering its capital spending from operations.
Receivables growing faster than sales
Receivables are up 162% against revenue growth of 94% — customers are taking longer to pay.

Red Flags

3 items require attention · 3 high

🔴Debt has risen sharplyFinancial
Total debt is up 118% over 3 years, from ₹10 Cr to ₹21 Cr.
🔴Free cash flow negative for 4 yearsFinancial
The business has not covered its capital spending from operations for several years running, which has to be funded externally.
🔴Receivables growing faster than salesFinancial
Receivables up 162% against revenue up 94% — sales are being booked faster than they are collected.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Capital compounds at a high rate
ROCE of 20.3% means each rupee reinvested earns well above what capital costs. If the company can keep deploying at this rate, growth creates value rather than just consuming cash.
Margin expansion has further to run
EBITDA margin has risen from 5.7% to 7.8%. If that holds, profit compounds faster than sales and today's multiple looks cheaper in hindsight than it does now.
Earnings have proved durable
Profitable in every one of the last 4 reported years. Consistency lowers the risk that any single bad year is structural rather than cyclical.

🔴 Bear CaseWhat could go wrong?

Sales are being booked faster than collected
Receivables are up 162% against revenue up 94%. If customers keep taking longer to pay, reported profit will not turn into cash — and write-offs follow if some never do.
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
3 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

1Revenue growth stays above 19% a year✓ 24.7% CAGR
Latest reported year was 51.3%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
2EBITDA margin holds above 6%✓ 7.8%
Two points below today's level — enough room for noise, tight enough to catch real compression.
3Free cash flow remains positive✗ -₹1 Cr
Profit that never becomes cash eventually stops being profit.
4Debt / EBITDA stays below 2x✓ 1.7x
The ratio lenders write covenants against; it survives a small or negative equity base, unlike Debt/Equity.
5ROCE stays above 17%✓ 20.3%
Falling returns on capital are usually competition arriving, and show up here before they reach the margin.

Investment Checklist

9 / 11 checks passed

✓ Strong return on equity (ROE ≥ 15%)
✓ Strong return on capital employed (ROCE ≥ 15%)
✗ Healthy net margin (≥ 10%)
✗ Generates positive free cash flow
✓ Manageable leverage (Debt/Equity < 1.0)
✓ 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

6 good · 4 neutral · 1 weak

Market Cap

₹178 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

36.4x

Fair

Fairly valued against the generic band

P/B Ratio

4.88x

Fair

Moderate premium to the company's book value

EPS (TTM)

₹4.68

Profitable

Profitable on a per-share basis

ROE

16.3%

Strong

Strong capital efficiency

ROCE

20.3%

Strong

Earns comfortably above its likely cost of capital

Debt/Equity

0.58x

Low

Conservative leverage

Revenue Growth (YoY)

51.3%

Healthy

Healthy top-line growth

Profit Growth (YoY)

100.0%

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

CMP

₹170.5

Operating Margin

6.2%

Average

Average margins

Net Margin

4.0%

Average

Average bottom-line conversion

Current Ratio

1.68

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

0.20

Defensive

Steadier than the market

52W Range Position

78%

Mid-range

Technical Snapshot

SMA 20 / SMA 50

176.1 / 167.5

Bullish alignment (short > long)

Price vs SMA 200

Above

Long-term uptrend

RSI (14)

42.4

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹82 Cr	₹90 Cr	₹114 Cr	₹159 Cr	+24.7%
EBITDA	₹5 Cr	₹7 Cr	₹8 Cr	₹12 Cr	+38.7%
EBITDA Margin	5.7%	7.3%	6.7%	7.8%	—
PAT (Net Profit)	₹3 Cr	₹3 Cr	₹3 Cr	₹6 Cr	+32.6%
EPS	₹2.53	₹3.31	₹2.72	₹5.68	+30.9%
ROE	11.3%	12.3%	9.3%	16.3%	—
ROCE	15.8%	14.7%	13.9%	20.3%	—
Total Debt	₹10 Cr	₹19 Cr	₹20 Cr	₹21 Cr	+29.7%
Free Cash Flow	-₹5 Cr	-₹13 Cr	-₹4 Cr	-₹1 Cr	—

🟢 Revenue has grown at 24.7% a year over 3 years.

🟢 EBITDA has grown at 38.7% a year over 3 years.

🟢 EBITDA Margin has risen from 5.7% to 7.8% over 3 years (+2.1 pts).

🟢 PAT (Net Profit) has grown at 32.6% a year over 3 years.

🟢 EPS has grown at 30.9% a year over 3 years.

🟢 ROE has risen from 11.3% to 16.3% over 3 years (+4.9 pts).

🟢 ROCE has risen from 15.8% to 20.3% over 3 years (+4.6 pts).

🔴 Total Debt has grown at 29.7% a year over 3 years.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹76 Cr

Total Liabilities

₹40 Cr

Total Debt

₹21 Cr

Cash & Equivalents

₹0 Cr

Operating Cash Flow

₹1 Cr

Capex

-₹2 Cr

Shareholding (proxy)

Institutional Holding

0.0%

Insider Holding

60.4%

Peer Comparison

Company	P/E	ROE
HINDUSTAN UNILEVER LTD.	42.5x	21.5%
DABUR INDIA LTD	34.7x	17.2%
ITC LTD	16.6x	27.4%
BRITANNIA INDUSTRIES LTD	44.1x	51.0%

Recent News

1 positive1 mixed4 general

Rama Vision Ltd. Share Price rises 8.89% | Analysis

Univest, 25 SeptPrice move

🟡Mixed / dependsA price move, which is not by itself a change in the business. Worth finding the cause before reading it as either good or bad.

Rama Vision net profit surges 100% YoY to ₹2.09 crore in Q1FY27

scanx.trade, 12 AugResults

🟢Potentially positiveReported improvement. Check whether it came from volume, price or a one-off item before treating it as a trend.

Compare VINTRON INFORM with RAMA VISION

Equitymaster, 08 Oct

Rama Vision Ltd is Rated Buy by MarketsMOJO

MarketsMojo, 06 Oct

Only Sellers BSE: Check Out the Lower Circuit Stocks in BSE Today

Livemint, 16 Oct

Rama Vision Limited Responds to BSE Inquiry on Share Price Movement

scanx.trade, 16 Apr

Watch Items

Cross-check against the company's latest quarterly filing / investor presentation before acting.

DalalBaazaar Thesis

🟡Business QualityAdequate12.4/20

🟡Financial HealthAdequate12/20

🟢GrowthStrong18.5/20

🟢ProfitabilityStrong9.8/15

🟡ValuationFair8.1/15

🔴RiskHigh4.4/10

Good business at a fair price

A sound business at a reasonable valuation. Suitable for a long-term holding, with the valuation and the direction of margins worth watching rather than the business itself. 3 high-severity red flags sit above this conclusion and should be read first.

This thesis breaks if

✓Revenue growth stays above 19% a year24.7% CAGR
✓EBITDA margin holds above 6%7.8%
✗Free cash flow remains positive-₹1 Cr
✓Debt / EBITDA stays below 2x1.7x
✓ROCE stays above 17%20.3%