Shree Rama Multi-Tech Ltd (SRMTL) was incorporated in 1987 and is a significant player in India's packaging industry, specializing in the manufacturing of Packaging Materials. The company is part of the Nirma group, which holds a substantial 61.57% stake, providing strong backing from one of India's prominent industrial conglomerates.
SRMTL offers Primary Packaging Solutions, manufacturing a range of products including laminated tubes, flexible laminates, and speciality packaging. Its product portfolio encompasses:
- Multilayer Tubes: For packaging dentifrices, cosmetics, pharmaceuticals, food, and other products.
- Monolayer Tubes: A simpler tube packaging solution.
- Tube Laminates: Components used in tube manufacturing.
- Plastic Laminates: Including flexible packaging, miniature packs, and carry-home packs.
The company serves diverse end-user industries, establishing itself as a comprehensive packaging solutions provider.
The company's core products are laminated tubes and laminates, primarily used for packing products in paste or gel form. As an integrated packaging solutions provider to the fast-moving consumer goods (FMCG) industry, SRMTL focuses on Plastic Laminated Tubes, labels/stickers, and speciality packaging plastic products.
SRMTL holds the position of the second-largest company in India in Plastic Laminated Tubes, demonstrating its strong market presence in this specialized segment.
To enhance its manufacturing capabilities and maintain competitive advantages, the company has established technical cooperation agreements with international leaders:
- AISA, Switzerland: For tube-making technology.
- Taiyo Kikai, Japan: For printing technology.
- Fujimori Kogyo, Japan: For laminate web technology.
- Barrier Films Corporation: For multilayer film technology.
Shree Rama Multi-Tech Limited manufactures and sells packaging products across India, Europe, Asia, Africa, North America, and South West America. Its products are utilized in packaging for oral care, pharmaceuticals, cosmetics, food, personal care, and general FMCG, showcasing the company's global reach and diversified application portfolio.
Market Capitalization:
- Reported as ₹519 Cr on Screener.
- The current market capitalization of Shree Rama Multi-Tech Ltd (SHREERAMA) is ₹432.45 Crore according to Business Today as of May 2, 2025.
- FY25 Audited Performance:
- Revenue: ₹208 Crore
- Profit: ₹51.4 Crore (5134.57 Lakhs)
- Q2 FY25 Performance:
- Revenue increased by 19.95% year-on-year to ₹53.04 Crore.
- Net Profit increased by 106.64% year-on-year to ₹5.29 Crore.
- Net Profit Margin improved by 72.28% year-on-year to 9.97%.
- Stock P/E:
- 10.1 (according to Screener data).
- 24.02 (as per Business Today).
- Book Value: ₹11.5
- Price to Book Value: The stock is trading at approximately 3.39 times its book value.
- ROCE: 15.1%
- ROE: 40.1% (Indicating strong operational efficiency and return on equity).
- Face Value: ₹5.00
- Dividend Yield: 0.00% (The company is reporting repeated profits but is not currently paying out dividends).
- 52-Week High: ₹55.65
- 52-Week Low: ₹23.00 (Indicating significant price volatility over the year).
- Last 12 Months: Shree Rama Multi-Tech Ltd share price moved up by 34.36% on BSE.
- Last 3 Months: Shree Rama Multi-Tech Ltd share price moved down by 15.87% on BSE, showing recent short-term weakness.
- Sales Growth: The company has delivered a moderate sales growth of 9.70% over the past five years. However, recent quarterly performance shows improvement with strong profit growth rates.
- Contingent Liabilities: Contingent liabilities of ₹247 Crore represent a significant risk factor that investors should monitor.
- International Expansion: The company's expansion plans include a subsidiary, Shree Rama MultiPack Guangzhou, set up in China. This company was expected to become operational in the second half of 2021, though its current operational status requires verification.
- Promoter Holding: Promoter holding in Shree Rama Multi-Tech Ltd has remained stable at 61.57% as of March 2025, consistent from June 2024. This strong promoter holding provides governance stability and aligns management interests with shareholders.
Shree Rama Multi-Tech Ltd operates in the essential packaging sector, possessing an established market presence and strong financial backing from the Nirma group. While facing challenges such as historical growth rates and contingent liabilities, the company's recent quarterly performance improvements, strong market position in laminated tubes, and international technology partnerships position it favorably within India's growing packaging industry.
