23.06.2019

AAKASHAYA PATRA EXCLUSIVE STOCK FOR INVESTMENT: 
Rama Phosphates(CMP69)
 Target -  125-145, SL - 55 Time Frame 12 to 24 Months

Established in 1984, Rama Phosphates Limited manufactures and sells fertilizers in India. It operates through Fertilizers & Chemicals,and Oil segments. The company offers phosphatic fertilizers, including powder and granular single super phosphate fertilizers;various grades of NPK mixed fertilizers; fortified
fertilizers, such as powder and granular boronated and zincated single super phosphate fertilizers, as well as soil conditioners; micronutrients, such as magnesium sulphate; and water soluble and organic fertilizers. It also provides chemicals comprising sulphuric acid, oleum,and linear alkyl benzene sulphonic acid; and edible oils, including soya, lecithin, and de oiled cakes. Rama Phosphates Limited offers its products under the Girnar and Suryaphool brand names.The Company's equity is just Rs.17.67crore while company has reserve of around Rs.133.59crore.Its share book value stood at Rs.85.51. Promoters hold 75%, Ace investor Subramanian P holds 2.05%, S Shyam holds 2.22%, Disha Infin Consultants hold 3.86%, Elate Investment & holdings private limited hold 1.30%, Nitrex Logistics private limited hold 1.30% while investing public hold 14.27% stake in the company.

For Q4FY19, RPL posted 191.16% higher PAT of Rs.3.79 crore on 42.91% higher sales of Rs.167 crore and an EPS of Rs.2.21. During FY19, its PAT zoomed 259.61% to Rs.19.39crore from Rs.5.39crore in FY18 on 61.75% higher sales of Rs.606.66crore fetching an EPS of Rs.10.91.Its bottom-line has grown at 33.93% CAGR over the last three years.At CMP, RPL trades at P/E ratio of just 6.3x and is available at 37% discount to its 52-week high of Rs.109.5.

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