Sh. Rama Multi. (SHREERAMA)

FairStock Score: 53/100 — MIXED

Score breakdown: P/E: 2/3 · ROCE: 1/2 · Growth: 1/2 · Dividend: 0/1

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

Sh. Rama Multi, with a market cap of ₹722 Cr, looks like a return-on-equity champion at first glance: 50.46% ROE with a debt/equity of only 0.13 is impressive, and a promoter holding of 61.57% keeps management aligned with minority shareholders. The Piotroski score of 7/9 and a P/E of 12.74 are the kind of numbers that attract a value investor. Add a 13.14% sales growth and the stock seems interesting. But Graham would insist on looking deeper. The book value is just ₹8.40, so I am paying ₹46.01, or 5.48 times book, for the right to own this packaging business. That leaves me no margin of safety in tangible assets; I am entirely dependent on the company's ability to grow earnings. Here the recent evidence is less comforting: profit growth is only 5.13% while sales are growing 13.14%, and the latest quarter net profit of ₹6 Cr suggests margin pressure. The advertised 50.46% ROE is built on a thin equity base; the more honest return on all capital is 15.34% ROCE. That is decent, but not a wide-moat figure. There is no dividend, so shareholders receive nothing while waiting for growth. The FairStock score of 43/100 is mixed, and the share price has already fallen from ₹71.99 to ₹46.01. A PEG of 1.39 makes the valuation reasonable, but not a bargain. For a cyclical packaging company, I want proof that this quarterly earnings weakness is temporary and that profit growth will catch up with sales. Until then, I will keep Sh. Rama Multi on my watchlist and wait for a better margin of safety.

The full AI analysis, bull and bear case and key monitorables are in FairStock Pro.

Data from BSE/NSE filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer