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RTL IPO

Rama Telecom Limited
Start Date25-06-2025
Application Timing10am-5pm
Price Range₹65 - ₹68
Min Qty2000
Min. Investment₹130000
Listing DateNA
Close Date27-06-2025

About Rama Telecom Limited

Rama Telecom Limited, incorporated in July 2004, is a specialized telecom and datacom infrastructure company delivering end-to-end customized networking solutions. The company has significant expertise in optical fibre cable (OFC) laying, horizontal directional drilling (HDD), broadband connectivity, and telecom equipment installation.

Rama Telecom has successfully executed large-scale projects for prominent clients such as Indian Railways, Airtel, IOCL, and Airport Authority of India. The company also collaborates with OEMs and distributors including Nokia, D-Link, Tejas Networks, Exide, and Statcon to strengthen its service offerings.

With a Pan-India presence, the company provides services like OFC maintenance, network planning, telecom project management, and data communication services. As of September 2024, the company employs 40 professionals, including technical, managerial, and compliance teams.

Why To Invest in Rama Telecom Limited

Strong Growth in Financials: Between FY24 and FY25, revenue grew by 13% and PAT surged by 112%, indicating robust financial health.

High Operating Margins: Impressive EBITDA Margin of 17.44% and PAT Margin of 13.24%, reflecting efficient operations.

Sectoral Demand: Increasing demand for broadband and telecom infrastructure across India is a strong growth driver.

Strategic Clients & OEM Tie-ups: Partnerships with major telecom players (Jio, Airtel, BSNL) and OEMs enhance project reliability and execution capabilities.

Pan-India Execution & Customisation: Proven capability in executing diverse telecom projects with tailored solutions.

Low Debt Ratio: With a Debt/Equity ratio of 0.30, the company maintains financial discipline and low leverage risk.

Financial Table
Period Ended 31 Mar 2025 31 Mar 2024 31 Mar 2023
Assets28.6519.44 16.41
Revenue42.4737.4833.22
Profit After Tax 5.532.611.08
EBITDA8.004.101.65
Net Worth 16.46 9.53 6.92
Reserves and Surplus 6.96 9.386.76
Total Borrowing 5.00 4.64 3.96
Strengths And Risks
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Strong Financial Growth: Rama Telecom has showcased impressive financial performance, with Profit After Tax (PAT) rising by 112% year-on-year. The company’s net worth also increased significantly from 9.53 crore in FY24 to 16.46 crore in FY25, indicating healthy financial stability.
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Low Leverage: With a Debt-to-Equity ratio of just 0.30, the company maintains a low debt profile, which reduces financial risk and ensures better creditworthiness.
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High Return Ratios: The company has demonstrated strong return metrics, including Return on Capital Employed (ROCE) of 37.06% and Return on Net Worth (RoNW) of 33.58%, reflecting efficient capital utilization and operational excellence.
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Diversified Client Base: Rama Telecom serves a wide range of reputed clients such as Indian Railways, IOCL, Airtel, and AAI, along with partnerships with leading OEMs like Nokia, Tejas Networks, and Exide, reducing dependency on any single source of revenue.
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End-to-End Service Capabilities: The company offers complete telecom and datacom solutions, including OFC laying, broadband connectivity, network design, wireless communication, and data centre solutions, ensuring comprehensive service delivery.
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Experienced Leadership: Rama Telecom is led by a team of skilled professionals with vast experience in telecom engineering, project management, and network optimisation, providing a strong foundation for future growth.
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SME Platform Listing: As the IPO is listed on the NSE SME platform, it may face lower trading volumes and liquidity, compared to mainboard stocks, potentially affecting exit options for investors.
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Revenue Concentration Risk: A considerable portion of the company’s revenue is derived from a few major clients. Any changes in contracts or delays in project execution could impact financial performance.
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High Retail Investment Requirement: The minimum lot size requires an investment of around Rs.1.3 lakhs, which might discourage small or first-time retail investors due to higher capital entry barriers.
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Sector Dependency: Rama Telecom’s growth is closely tied to the telecom infrastructure sector and government-driven connectivity projects. Any slowdown in these areas may pose a business risk.
FAQs
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