Rama Telecom IPO Review

Rama Telecom is technology driven engineering company with expertise in optical fiber providing end to end customized networking solutions in the telecom forefront. The company focuses on developing a seamless networking infrastructure with advanced technology and sustainable methods to enhance long-term and precise connectivity across the country.

The company is promoted by MR. RAMA KANT LAKHOTIA, who have worked for over 25 Years in the telecom industry and have the past expertise and network to build brand in the S & T forefront, MS. SIMRAN LAKHOTIA has overall experience of more than 5 years in Administration, Finance and Negotiation, she has secured grip over all functions and departments, MRS. NEENA LAKHOTIA and MS. NIKITA LAKHOTIA.

The Revenues from operations for the Fiscals ended on Mar 31, 2025, 2024 and 2023 were ₹ 4,247.32 Lakh, ₹ 3,747.87 Lakh and ₹ 3,322.46 Lakh. The EBITDA for the Fiscals ended on Mar 31, 2025, 2024 and 2023 were ₹ 810.13 Lakh, ₹ 432.11 Lakh and ₹ 189.61 Lakh. The Profit after Tax for the Fiscals ended on Mar 31, 2025, 2024 and 2023 were were ₹  552.93 Lakh, ₹ 261.16 Lakh and ₹ 108.34 Lakh respectively. This indicates a steady growth in financial performance.

The Company Key Performance Indicates the pre-issue EPS of ₹ 5.85 and post-issue EPS of ₹ 4.19 for FY24. The pre-issue P/E ratio is 11.62x, while the post-issue P/E ratio is 16.23x against the Industry P/E Ratio is 35x. The company's ROCE for FY24 is 37.06%, ROE for FY24 is 10.63% and RoNW is 33.58%. These metrics suggest that the IPO is fairly priced.

The Grey Market Premium (GMP) of Rama Telecom showing listing gains of 8.82 %.Given the company's financial performance and the valuation of the IPO, we recommend Investors to Avoid to the Rama Telecom Limited IPO for Listing gain.

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About the Author
CA Abhay Kumar (Also known as  CA Abhay Varn) is a qualified Chartered Accountant by profession and cleared CA at age 21. He is a SEBI Registered Research Analyst with Registration Number - INH300008465. He Possesses 8+ years of experience in the Stock Market Field and has also worked in Big CA firms.