Rama Raju Surgical Cotton Mills Unlisted Shares
About Rama Raju Surgical Cotton Mills Unlisted Shares
Rama Raju Surgical Cotton Mills Limited, founded in 1939 in Rajapalayam, Tamil Nadu, is a key player in India’s textile and surgical product manufacturing industry. As part of the esteemed Ramco Group, the company has become a leading producer of absorbent cotton, gauze, bandages, and a variety of other wound-care products. Over the years, it has expanded its operations to include spinning, weaving, and premium fabric production, such as superfine count yarn and Jacquard cloth. The Ramco Group, with a substantial annual revenue of approximately USD 1 billion, has diversified into various sectors like cement production, roofing products, and cloud-based software solutions.
Rama Raju Surgical Cotton Mills has played a pivotal role in transitioning Rajapalayam from an agrarian economy to an industrial hub, offering over 200 unique products with a workforce of more than 2,200 employees.
Business Divisions
Rama Raju Surgical Cotton Mills operates across multiple segments, each contributing significantly to the company’s overall revenue:
- Surgical Products: The company is a major producer of medical-grade absorbent cotton, gauze, bandages, and other essential wound-care items. The surgical division boasts a monthly production capacity exceeding 125 tons of medical cotton and 1.5 million square meters of bandages and gauze.
- Textiles: The textile division produces superfine count ring-spun yarn (~400 tons per month) and open-end yarn (~400 tons per month), catering to the needs of the textile industry.
- Fabrics: The fabric division manufactures premium shirting and Jacquard cloth, serving both the domestic and international markets.
The company’s surgical division operates out of Rajapalayam and Perumalpatti, while the spinning and fabric divisions are located at multiple sites, including Sudarsanam Spinning Mills in various regions.
Financial Highlights
Rama Raju Surgical Cotton Mills has experienced fluctuations in its financial performance over the years, reflecting both growth and challenges:
- Revenue Performance: The company reported a revenue of ₹365 Crores in FY24, a decline from ₹407 Crores in FY23. The revenue growth has slowed in recent years, with the company struggling to maintain a positive upward trend.
- Declining Gross Margins: Gross margins dropped to 39.73% in FY24 from 42.85% in FY22, mainly due to rising input costs and inflation, which have impacted overall profitability.
- EBITDA Decline: The EBITDA for FY24 fell to ₹17 Crores, down from ₹32 Crores in FY23. The Operating Profit Margin (OPM) also decreased to 4.66% in FY24, highlighting the company’s struggle to maintain operational profitability.
- Financial Risk: The company’s debt-to-equity ratio (D/E) remains high, at 4.38 in FY23, which increases financial risk. Finance costs also increased to ₹37 Crores in FY24, further squeezing profit margins.
- Net Loss: In FY24, the company reported a net loss of ₹43 Crores, continuing the trend from FY23, where it recorded a net loss of ₹35 Crores. This indicates that Rama Raju Surgical Cotton Mills is facing significant profitability challenges despite its historical market presence.
Pros
- Market Leadership: Established as a leading producer of surgical products and textiles in Southern India, with a strong customer base.
- Diversified Product Portfolio: Offers a wide range of products, catering to industries from healthcare to fashion, enhancing market presence.
- Reputable Backing: Part of the Ramco Group, providing brand recognition, financial stability, and access to a broader market network.
Cons
- Financial Stress: High debt-to-equity ratio (4.38 in FY23) indicates significant financial risk and hinders growth potential.
- Weak Liquidity: Below ideal current ratio (0.94 in FY23), pointing to challenges in meeting short-term obligations.
- Declining Profit Margins: Reduction in gross margin from 42.85% in FY22 to 39.73% in FY24 due to rising material costs.
Key Details
| Share Name | Rama Raju Surgical Cotton Mills Unlisted |
|---|---|
| Particulars | 220.00 |
| Shares Price | Per Equity Share |
| Lot Size | 150 Shares |
| 52 Week High | ₹360 |
| 52 Week Low | ₹295 |
| Depository | NSDL & CDSL |
| PAN Number | AAACT4308D |
| ISIN Number | INE328E01027 |
| CIN | L17111TN1939PLC002302 |
| RTA | N/A |
| Fundamentals | Value |
|---|---|
| Market Cap (in cr.) | 127.93 |
| P/E Ratio | -4.38 |
| P/B Ratio | 0.54 |
| Debt to Equity | 1.69 |
| ROE (%) | -16% |
| Book Value | 405.38 |
| EPS | -50.24 |
| Face Value | 10 |
| Total Shares | 5,815,127 |
Financials
| P&L Statement | 2025 | 2024 | 2023 |
|---|---|---|---|
| Revenue | 401 | 365 | 407 |
| Cost of Material Consumed | 268 | 220 | 256 |
| Gross Margins (%) | 33.17 | 39.73 | 37.1 |
| Change in Inventory | -16 | -2 | -3 |
| Employee Benefit Expenses | 63 | 56 | 49 |
| Other Expenses | 83 | 74 | 73 |
| EBITDA | 3 | 17 | 32 |
| OPM (%) | 0.75 | 4.66 | 7.86 |
| Other Income | 26 | 6 | 3 |
| Finance Cost | 39 | 37 | 32 |
| D&A | 29 | 35 | 42 |
| EBIT | -26 | -18 | -10 |
| EBIT Margins (%) | -6.48 | -4.93 | -2.46 |
| PBT | -19 | -50 | -39 |
| PBT Margins (%) | -4.74 | -13.7 | -9.58 |
| Tax | 10 | -7 | -4 |
| PAT | -29 | -43 | -35 |
| NPM (%) | -7.23 | -11.78 | -8.6 |
| EPS | -49.91 | -74.01 | -87.72 |
| Financial Ratios | FY25 | FY24 | FY23 |
|---|---|---|---|
| Operating Margin | -5% | -3% | -2% |
| Net Profit Margin | -7% | -10% | -7% |
| Return on Equity | -12% | -14% | -11% |
| Debt-Equity | 1.84 | 1.69 | 1.58 |
| Current Ratio | 0.93 | 0.93 | 2.24 |
| Dividend Payout | 0% | 0% | -1% |
| Company | THE RAMARAJU SURGICAL COTTON MILLS LTD | SAMBANDAM SPINNING MILLS LTD | NAHAR SPINNING MILLS LTD |
|---|---|---|---|
| Market Cap (₹ Crores) | 127 | 61 | 1049 |
| Profitability Margin (%) | -7% | -3% | 0% |
| ROCE (%) | -5% | 0% | 4% |
| ROE (%) | -12% | -9% | 1% |
| D/E Ratio | 1.84 | 1.39 | 0.74 |
| P/E Ratio | -4.34 | 68.1 | |
| P/B Ratio | 0.54 | 0.71 | 0.7 |
| Book Value per Share (₹) | 405.38 | 202 | 413 |
| Assets | 2025 | 2024 | 2023 |
|---|---|---|---|
| Fixed Assets | 252 | 278 | 297 |
| CWIP | 0.5 | 2.3 | 9 |
| Investments | 179 | 199 | 188 |
| Trade Receivables | 86 | 46 | 38 |
| Inventory | 132 | 116 | 130 |
| Other Assets | 75.5 | 111.7 | 65 |
| Total Assets | 725 | 753 | 727 |
| Liabilities | 2025 | 2024 | 2023 |
|---|---|---|---|
| Share Capital | 5.81 | 5.81 | 3.99 |
| FV | 10 | 10 | 10 |
| Reserves | 230 | 260 | 264 |
| Borrowings | 434 | 450 | 423 |
| Trade Payables | 32 | 13 | 15 |
| Other Liabilities | 23.19 | 24.19 | 21.01 |
| Total Liabilities | 725 | 753 | 727 |
Promoters or Management
Frequently Asked Questions
Textiles contribute 83% of the revenue, 15% is contributed by Surgical dressings and rest is contributed by waste sales.
In accordance with the amalgamation plan, the business distributed 51,340 equity shares at ~ 10/-each to Shri Harini Textiles Limited shareholders on July 4, 2023, meaning that for every 1000 shares owned, 34 shares of the company were distributed.
On the basis of rights, the company issued 18,17,227 fully paid-up equity shares of ~ 10/-each at a price of 204/- (including 194/-share premium) to its current equity shareholders, totaling 37.07 crores. On the record date, which was Tuesday, March 5, 2024, there were 5 right equity shares for every 11 fully paid-up equity shares held by the current equity shareholders. On March 15, 2024, the issue was opened, and on March 22, 2024, it was closed. There was a 136.38% oversubscription to the Rights Issue.
The Company has obtained listing approval on 2nd April, 2024 and Trading approval on 5th April, 2024 from Metropolitan Stock Exchange of India Limited, Mumbai (MSEI).
