Ramaraju Surgical Cotton Mills Limited Unlisted Shares

Investment Overview

Ramaraju Surgical Cotton Mills Limited is an unlisted company operating in the Health Care sector (Medical Textiles). Ramaraju Surgical Cotton Mills Limited, part of the Ramco Group, manufactures absorbent cotton and medical textiles used in hospitals, clinics and consumer healthcare. The company’s portfolio includes surgical cotton, cotton wool and allied hygiene products produced to pharmacopoeial standards. Rama…

Strengths

• Industry Leadership: Well-founded as a leading producer of surgical products and textiles in Southern India, with a powerful patron 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.

Key Risks

• Monetary Stress: High debt-to-equity ratio (4.38 in FY23) indicates notable pecuniary uncertainty and hinders growth possibility.
• Weak Liquidity: Below ideal current ratio (0.94 in FY23), pointing to challenges in meeting short-term obligations.
• Declining Gains Margins: Reduction in gross margin from 42.85% in FY22 to 39.73% in FY24 due to rising material costs.

Valuation View

The current unlisted market price is ₹272.25 per share with a market capitalisation of approximately ₹160 crore. The company is currently unlisted and investors should factor in illiquidity risk and longer holding horizons. Investors are advised to review the full financial data and consult an advisor before investing.