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Ramaraju Surgical Cotton Mills Unlisted Shares
DRHP Status : Not Filed
280
Fundamentals About Ramaraju Surgical Cotton Mills
Downloads & Investor Documents
All documents are provided for informational purposes and are subject to regulatory disclosures.
Key Financials of Ramaraju Surgical Cotton Mills
| P&L Statement | 2021 | 2022 | 2023 | 2024 |
|---|---|---|---|---|
| Revenue | 284.24 | 376.03 | 407 | 365 |
| Cost of Material Consumed | 129.74 | 214.91 | 256 | 220 |
| Gross Margins | 54.36 | 42.85 | 37.1 | 39.73 |
| Change in Inventory | 30.41 | -10 | -3 | -2 |
| Employee Benefit Expenses | 28.5 | 35.29 | 49 | 56 |
| Other Expenses | 53.73 | 69.89 | 73 | 74 |
| EBITDA | 41.86 | 65.94 | 32 | 17 |
| OPM | 14.73 | 17.54 | 7.86 | 4.66 |
| Other Income | 31.41 | 1.95 | 3 | 6 |
| Finance Cost | 21.99 | 19.25 | 32 | 37 |
| D&A | 17.53 | 40.82 | 42 | 35 |
| EBIT | 24.33 | 25.12 | -10 | -18 |
| EBIT Margins | 8.56 | 6.68 | -2.46 | -4.93 |
| PBT | 33.72 | 7.8 | -39 | -50 |
| PBT Margins | 11.86 | 2.07 | -9.58 | -13.7 |
| Tax | 2.05 | 4.79 | -4 | -7 |
| PAT | 31.67 | 3.01 | -35 | -43 |
| NPM | 11.14 | 0.8 | -8.6 | -11.78 |
| EPS | 80.38 | 7.64 | -87.72 | -74.01 |
Financial Ratios |
2021 | 2022 | 2023 | 2024 |
|---|---|---|---|---|
| Operating Profit Margin | 14.73 | 17.54 | 7.86 | 4.66 |
| Net Profit Margin | 11.14 | 0.8 | -8.6 | -11.78 |
| Earning Per Share (Diluted) | 80.38 | 7.64 | -87.72 | -74.01 |
| Assets | 2021 | 2022 | 2023 | 2024 |
|---|---|---|---|---|
| Fixed Assets | 244.69 | 221.42 | 297 | 278 |
| CWIP | 1.21 | 24.97 | 9 | 2.3 |
| Investments | 168.68 | 182.64 | 188 | 199 |
| Trade Receivables | 76.04 | 58.39 | 38 | 46 |
| Inventory | 55.11 | 96.45 | 130 | 116 |
| Other Assets | 38.95 | 59.65 | 65 | 111.7 |
| Total Assets | 584.68 | 643.52 | 727 | 753 |
| Liabilities | 2021 | 2022 | 2023 | 2024 |
|---|---|---|---|---|
| Share Capital | 3.94 | 3.94 | 3.99 | 5.81 |
| FV | 10 | 10 | 10 | 10 |
| Reserves | 260.93 | 275.71 | 264 | 260 |
| Borrowings | 234.52 | 307.74 | 423 | 450 |
| Trade Payables | 14.37 | 13.12 | 15 | 13 |
| Other Liabilities | 70.92 | 43.01 | 21.01 | 24.19 |
| Total Liabilities | 584.68 | 643.52 | 727 | 753 |
About Company
The following table shows a 10-point analysis of Ramaraju Surgical Cotton Mills Limited. We will discuss each point in detail after this table.
| Parameter | Key Numbers | Insights |
|---|---|---|
| Business Overview | FY25 Revenue from Operations ~₹394 cr · Total Income ~₹406 cr · Net Loss ~₹29–30 cr · PAT Margin Negative | Part of Ramco Group; manufactures surgical cotton, absorbent cotton wool, gauze, bandages, sanitary products, yarns & fabrics; legacy healthcare textile player; diversified into hospital & consumer cotton products; facing demand slowdown & input cost pressures leading to losses. |
| Industry & Market Position | Established surgical cotton player · Healthcare & hygiene exposure | Strong presence in organized surgical cotton & dressings; trusted medical supplier; competes with unorganized players; exposed to cotton price volatility & healthcare cycles; group backing provides resilience but margins under pressure. |
| Revenue Growth Trend | FY23–FY25 volatile/declining · FY25 slight dip/flat YoY | Growth impacted by weak textile demand & cost headwinds; modest recovery in segments but overall softness; long-term healthcare demand supportive yet cyclical performance persists. |
| Profitability & Margins | EBITDA pressured · ROE Negative · PAT Margin Negative | Losses driven by high raw cotton costs, operational inefficiencies & depreciation; margins squeezed; turnaround initiatives ongoing but recent years remain challenging. |
| Cash Flow Quality | OCF mixed · Dividends limited | Cash flows affected by losses & working capital cycles; inventory & receivables impact liquidity; group support possible; moderate quality amid volatility. |
| Balance Sheet Strength | Net Worth ~₹2,300–3,000 cr (est.) · Debt Manageable | Strong equity base; asset-backed downside protection; moderate leverage with group backing; continued losses may impact reserves if prolonged. |
| Valuation Comfort | Unlisted Price ₹210–285 (Feb 2026) · P/B ~0.5–1x · EPS Negative | Trades at discount to book due to losses & cyclicality; Market Cap ~₹120–170 cr; potential recovery play but high risk; no premium valuation currently. |
| Management & Governance | Ramco Group promoter-led · Transparent disclosures | Experienced group with diversified textile presence; regular filings & governance standards maintained; no major governance concerns noted. |
| Growth Triggers & Catalysts | Healthcare demand revival · Cost control · Textile recovery | Upside from hygiene awareness, cotton price stabilization & operational efficiencies; benefits from group synergies; no confirmed IPO/DRHP catalyst. |
| Liquidity & Exit Visibility | OTC liquidity only · No confirmed IPO plans | Limited unlisted trading volumes; liquidity risk present; exit primarily via OTC or strategic interest; uncertainty remains amid ongoing losses. |
The Ramaraju Surgical Cotton Mills Ltd (RSCM) is part of the Ramco Group, a large industrial conglomerate with interests in textiles, building products, software, etc. It was founded in 1939 in Rajapalayam, Tamil Nadu. The company’s core business includes manufacturing absorbent cotton wool, gauze, bandages, and other medical / wound-care dressings. Over time, it has diversified into textiles — spinning (yarns), weaving, and producing premium fabrics (shirtings, bed linens, jacquard cloth) via its Sudarsanam Spinning Mills and fabric divisions. RSCM also has a wind-power (windmills) division, which helps power its operations.
Challenges in Ramaraju Surgical’s Business
- Operational Loss in Textiles: In recent quarters, the textile business (spinning/weaving) has reported losses before finance costs.
- Raw Material & Power Cost Pressure: As a cotton-based business, input cotton prices and power costs (for manufacturing) can significantly affect margins. Indeed, in Q3 FY25, material costs rose sharply.
- Capital Intensity: Maintaining surgical-grade cotton production (bleaching, purity), as well as textile operations, requires high-quality CAPEX, which could stress cash flows.
- Cyclicality of Textile Demand: The spinning/fabric business is exposed to cyclic demand in the textile market, making revenue volatile.
- Financial Risk: Despite its core surgical business, the company’s overall profitability has been challenging; as per its FY25 report, there is a significant exceptional gain, but core business PBT is under strain
Quick Summary
Ramaraju Surgical Cotton Mills is a long-established business (since 1939) with a diversified operations model: surgical cotton / wound-care products, textile spinning & weaving, and wind power. The surgical division is a core strength, giving RSCM a niche in medical-grade cotton products. However, its textile business is facing losses, and its overall financials are under pressure due to rising costs. Its recent capital raise through a rights issue suggests they are trying to strengthen its balance sheet. For an investor, this is a mixed-risk company: on one hand, a strong legacy, diversified operations, and a strategic niche; on the other, cyclic textile risk and cost pressures.
Shareholding Pattern of Ramaraju Surgical Cotton Mills
Promoters of Ramaraju Surgical Cotton Mills
- Chairman: P. R. Venketrama Raja.
- Managing Director: Nalina Ramalakshmi.
- New Independent Director (2024): R. Ramanathan (textile industry veteran).
Click here to visit the official website of Ramaraju Surgical Cotton Mills.
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Frequently Asked Questions
Ramaraju Surgical Cotton Mills Ltd unlisted shares refer to equity in a privately held medical textile and surgical cotton products company. These shares are not listed on NSE or BSE and can be acquired through private-market platforms like UnlistedKraft.
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Investing in unlisted shares carries risks such as limited liquidity and reduced public disclosure. However, Ramaraju Surgical Cotton Mills is known for producing medical textiles and surgical cotton products, and UnlistedKraft ensures a secure, transparent, and verified investment process.
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