CHART PATTERN: BULLISH DESCENDING TRIANGLE
9 DAYS MOVING AVERAGE: RED LINE
21 DAYS MOVING AVERAGE: BLUE LINE
SUPER TREND: BUYING SIGNAL
Hello everyone and welcome back to one more dominant stock where we will analyze Rama Phosphates share price in the best possible way through Business, Fundamental and Technical analysis.
So, today’s stock is Rama Phosphates share.
BUSINESS ANALYSIS OF RAMA PHOSPHATES SHARE PRICE
Rama Phosphates Limited (RPL) is the leading Phosphatic Fertilizer manufacturers, ie. Single Super Phosphate (SSP) fertilizer manufacturing in India.
Bombay Stock Exchange (BSE) contains Rama Phosphates Limited.
Manufacturing divisions of Rama Phosphates is as follows:
a) Fertilizer – Mixed, Phosphatic, Water Soluble, Fortified and Micronutrients.
c) Soya Edible Oil.
Rama Phosphates have developed their manufacturing units in Pune, Indore and Udaipur as the phosphatic fertilizer consumption is greater in the Western India region.
Oil division is engaged in the extraction of Soy Oil with value-added product Lecithin.
Now, coming to the financials of the Rama Phosphates share.
FINANCIAL ANALYSIS OF RAMA PHOSPHATES SHARE PRICE
The Market Capitalization of Rama Phosphates share is ₹ 615 Cr.
The Rama Phosphates share has a price to earnings ratio of 14.06 which is slightly greater than industry price to earnings ratio of 11.0.
The return on capital employed of the Rama Phosphates share is 29.1% which is great which indicates that the capital invested in this company is giving fruitful results.
The return on equity of Rama Phosphates share is 22.7% showcasing the company’s strong return on investment of the investors.
The debt to equity ratio of Rama Phosphates share is 0.03 which is almost negligible.
In the last 5 years, the Rama Phosphates share has delivered an excellent profit growth of 39.29% CAGR.
Rama Phosphates share has its result on 13th August 2021 for Q2 of 2021 which is expected to be a great one.
The sales of Rama Phosphates share have reached to it’s all time high of Rs 290 Cr.
From the last 4 quarters (Jun 2020, Sep 2020, Dec 2020 & Mar 2021) the operating profit of Rama Phosphates share have increased from Rs 10 Cr to Rs 19 Cr.
The earning per share of the company is Rs 7.22.
The sales of the Rama Phosphates share were Rs 448 Cr in March 2020 which increased to Rs 580 Cr in March 2021.
There has been a tremendous growth in the operating profit YOY which was Rs 24 Cr in March 2020 and now is Rs 62 Cr in March 2021.
From the past 10 years, share capital is constant at Rs 18 Cr.
In the year 2021, the reserves have increased to Rs 187 Cr from Rs 148 Cr in the year 2020 which shows the massive interest of investors into Rama Phosphates share.
Rama Phosphates share also has a net cash flow of Rs 3 Cr.
The promoters have a holding of 75%.
Public has a holding of 24.97%.
Only 0.03% is with DIIs.
This is a brief overview of the financials of the Rama Phosphates share which shows the dominance in their respective market.
Now, let’s deep dive into the technicalities of Rama Phosphates share.
CHART PATTERN ANALYSIS
If we take a closer look on the chart in a daily time frame, there is a formation of bullish descending triangle pattern.
For Rama Phosphates share there is 1 target as stated in the above image.
Rama Phosphates share price is trading in a channel of the triangle and once the breakout is achieved a massive rally for achieving the target could be seen.
The Rama Phosphates share price on 11th August 2021 is Rs 347 which would definitely change in the upcoming future.
For Rama Phosphates share price analysis, we are taking 9 days and 21 days moving average.
The 9 days and 21 days moving average are trading quite near to each other so once the 9 days moving average bounces from the psychological support of the 21 days moving average, we’ll be able to see a massive uptrend.
The red line indicates the 9 days moving average while blue shows the 21 days moving average.
When we take a closer look at the 15 minutes chart, the Super trend is suggesting a buying signal.
Lesser the timeframe more the number of signals and faster buy or sell recommendations are attained through super trend indicators.
This is the right time to enter Rama Phosphates share to attain maximum profits.
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