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Ramaraju Surgical Cotton Mills Limited Unlisted Shares
285
Company Overview
Ramaraju Surgical Cotton Mills Limited Unlisted Shares
(i) The Ramaraju Surgical Cotton Mills, Ltd is part of the Ramco Group of companies. The group has an annual revenue of around USD 1.0 billion, manufacturing cotton and specialized yarns, cement, roofing, and building products. The group also offers enterprise software solutions on the cloud.
(ii) The Ramaraju Surgical Cotton Mills was founded in 1939 in Rajapalayam, Tamil Nadu, to take advantage of the availability of the cotton grown by local farmers. The company, along with Rajapalayam Mills Ltd. that was established in 1935, was instrumental in transforming the region from an agrarian to an industrial society.
(iii) They are the largest producer of absorbent cotton, gauze, bandages, and other wound-care products in Southern India. The monthly production capacity is over 125 tons of medical-grade bleached cotton and over 1.5 million square meters of bandages and gauze products.
(iv) Over the years they have diversified into spinning and weaving, producing some of the world’s finest cotton yarn and manufacturing premium fabrics for shirting, bed linens, and Jacquard cloth. They produce nearly 400 tons of superfine count ring-spun yarn and about 400 tons of open-end yarn per month. Today it offers over 200 unique products with the help of a 2,200 strong workforce. It is listed on the
Metropolitan Stock Exchange of India. Factories:
a) Surgical Division 1. Rajapalaiyam 2. Perumalpatti
b) Spinning Division Sudarsanam Spinning Mills 1. Rajapalaiyam 2. Silvassa 3. Subramaniapuram 4. Thirumalagiri Village, AP.
c) Fabric Division Sudarsanam Fabrics Perumalpatti
Revenue contribution in FY19-20 from various segments
| Segment | Revenue(cr) | % |
| Textile | 136 | 41% |
| Surgical | 37 | 11% |
| Fabric | 153 | 46% |
| Wind-mills | 8 | 2% |
UnlistedZone Financials Analysis for FY19-20:
1. Ramaraju has performed exceptionally well in the year FY19-20. The revenue has gone up from 255 Cr to 316 Cr and has shown growth of 23%. 2. The EBITDA margins have also improved by 500 basis points which is excellent. 3. Ramaraju has shown a profit of 19 Cr in FY19-20 as compared to a loss last year. 4. Having performed well in P&L wise but the balance sheet is getting weak. The current ratio has gone further down from 0.73 to 0.70 this year. The current ratio below 1 is already a sign of danger. This means the company's liquidity position is not strong. 5. The company has a D/E of 1.31. Anything above 1 is in dangerous territory. Total borrowing stands at 267 Cr at the end of FY19-20 against a net-worth of 236 Cr. 6. Trade receivable days have also gone up 43 days to 78 days, shown the pain of Ramaraju to collect dues from debtors in time. 7. The Cash flow from the operation has also gone down from 21 Cr to 11 Cr and the company is not generating any free cash flow from the business. P&L rosy picture is not reflecting in Balance Sheet and Cash-Flow statements. That is why it is important to read all the statements in sync to get the hang of the company's performance.
UnlistedZone Review of Financials of RamaRaju Surgical Unlisted Share in FY21-22
1. Revenue has increased from 315 Crores in FY21 to 377 Crores in FY22. A jump of 20% in the Revenue.
2. Despite 20% growth in top-line, the bottom-line has deteriorated and clocked just 15 Crores PAT in FY22 as compared to 42 Crores in FY21.
3. Gross margins have fell from 59% in FY21 to 43% in FY22. This is the direct impact of inflation. The cost of materials have increased tremendously in FY22.
4. Plus depreciation has increased from 17 Crores to 40 Crores. This is also one reason why PAT has come down so heavily. In FY22, they have invested ~50 Crores in purchasing of Fixed Assets. This is the reason why their depreciation has gone up.
5. In Fy22, they have generated 38 Crores of Cash from operations.
6. D/E is slightly more than 1. But it is quite manageable.
7. Current ratio is slightly less than 1. This should be above 1.5x for better management of business in short-term
8. ROE in Fy22 is just 5%. Last year, it was close to 15%.
9. Ramaraju Unlisted Share is trading at 650 per share as on 30.05.2022. It means the current P/E is 15x, which is fully priced in.
UnlistedZone Review of Financials of RamaRaju Surgical Unlisted Share in FY22-23
1. Revenue decreased by 1.73%, 376.04 crore in FY22 and 369.54 crore in this year
2. Operating Profit Margin fell from 17.53% to 9.24%
3. The company reported a net loss of Rs. 2,2,05 Crore for the year.
4. The finance cost for the year 2023 is Rs. 30.87 crore, which is significantly higher than the previous year's finance cost of Rs. 19.25 crore. This increase in finance cost has contributed to the overall loss.
5. The company has a high depreciation cost of Rs. 3,7.15 crore for the year
6. The company's total expenses for the year 2023 are Rs. 402.64 crore, which was higher than the total income of Rs. 372.12 crore for the same period.
7. The Debt to Equity ratio as of 31st March 2023 is 4.38.
8. The Current Ratio as of 31st March 2023 is 0.94.
1. Revenue has increased from 315 Crores in FY21 to 377 Crores in FY22. A jump of 20% in the Revenue.
2. Despite 20% growth in top-line, the bottom-line has deteriorated and clocked just 15 Crores PAT in FY22 as compared to 42 Crores in FY21.
3. Gross margins have fell from 59% in FY21 to 43% in FY22. This is the direct impact of inflation. The cost of materials have increased tremendously in FY22.
4. Plus depreciation has increased from 17 Crores to 40 Crores. This is also one reason why PAT has come down so heavily. In FY22, they have invested ~50 Crores in purchasing of Fixed Assets. This is the reason why their depreciation has gone up.
5. In Fy22, they have generated 38 Crores of Cash from operations.
6. D/E is slightly more than 1. But it is quite manageable.
7. Current ratio is slightly less than 1. This should be above 1.5x for better management of business in short-term
8. ROE in Fy22 is just 5%. Last year, it was close to 15%.
9. Ramaraju Unlisted Share is trading at 650 per share as on 30.05.2022. It means the current P/E is 15x, which is fully priced in.
UnlistedZone Review of Financials of RamaRaju Surgical Unlisted Share in FY22-23
1. Revenue decreased by 1.73%, 376.04 crore in FY22 and 369.54 crore in this year
2. Operating Profit Margin fell from 17.53% to 9.24%
3. The company reported a net loss of Rs. 2,2,05 Crore for the year.
4. The finance cost for the year 2023 is Rs. 30.87 crore, which is significantly higher than the previous year's finance cost of Rs. 19.25 crore. This increase in finance cost has contributed to the overall loss.
5. The company has a high depreciation cost of Rs. 3,7.15 crore for the year
6. The company's total expenses for the year 2023 are Rs. 402.64 crore, which was higher than the total income of Rs. 372.12 crore for the same period.
7. The Debt to Equity ratio as of 31st March 2023 is 4.38.
8. The Current Ratio as of 31st March 2023 is 0.94.
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| Symbol | Ramaraju Surgical Cotton Mills Limited Unlisted Shares |
|---|---|
| Face Value (₹): | 0 |
| ISIN: | INE328E01027 |
| Demat Status: | NSDL & CDSL |
| Lot Size: | 50 Shares |