1. At a Glance – The Packaging Plot Thickens
Shree Rama Multi-Tech Ltd (SRMTL) is that low-profile packaging company which quietly went from “Wasn’t this the loss making one” to “wait, ROE 40%??” while the market was busy chasing EV chargers and AI buzzwords.
Let’s get the quick masala out first:
- Market Cap: ₹742 Cr
- CMP: ₹55.6
- Stock P/E: 13.2 (Industry PE ~18.4)
- ROE: 40.4% (yes, forty)
- ROCE: 15.3%
- Debt to Equity: 0.13 (basically gym-bod balance sheet)
- Sales (TTM): ₹236 Cr
- PAT (TTM): ₹56.6 Cr
- 3-Month Return: ~1% (market is still yawning)
- 1-Year Return: ~47% (late realisation party)
Latest Q3 FY26 (Dec 2025) numbers:
- Revenue: ₹59.85 Cr
- PAT: ₹5.53 Cr
- EPS: ₹0.41
And behind this boring name sits Nirma Group holding 61.57% stake. Yes, that Nirma. The detergent that bullied Surf Excel before memes existed.
Question before we go deeper:
Why is a boring laminated tube manufacturer suddenly throwing elite ROE numbers? 🤔
2. Introduction – From Financial ICU to Packaging Gym Bro
If SRMTL were a Bollywood character, it would be the guy who was written off in the first half and returns in interval with six-pack abs and background music.
Between FY14–FY22, this company:
- Made losses
- Had negative reserves
- ROCE flirted with 0%
- Cash flows played hide-and-seek
Then suddenly post FY23, things changed:
- Rights issue cleaned debt mess
- Operating margins started flexing
- Capacity utilisation improved
- Nirma tightened the screws (in a good way)
By FY25:
- OPM reached ~18%
- PAT exploded to ₹51 Cr
- EPS jumped to ₹4.24
- ROE hit 40%
This is not a startup miracle.
This is boring packaging discipline + debt reduction + operating leverage.
Now ask yourself:
Is this sustainable or just one lucky toothpaste squeeze?
3. Business Model – WTF Do They
Even Do? (In Simple Words)
Shree Rama Multi-Tech manufactures primary packaging. Not boxes. Not cartons. The stuff inside which actually touches your toothpaste, gel, pharma cream, or cosmetic goo.
Core Products:
- Multilayer Tubes
- Used in toothpaste, cosmetics, pharma gels
- This is the hero product
- Tube Laminates
- High-performance pharma laminates
- Think compliance, not jugaad
- Flexible Laminates
- Sachets, mini packs, carry-home packs
- FMCG ka oxygen
Capacity:
- 9,514 lakh multilayer tubes
- Single major manufacturing base in Gujarat
Client Base:
- ~150 clients globally
- Top 10 clients = 60–65% of revenue
Yes, customer concentration exists.
But this is packaging — once approved, switching suppliers is a pain.
Analogy time:
This business is like being the only toothpaste tube supplier in a gated society.
Once you’re inside, eviction is hard.
Question for you:
Would Colgate risk changing tube suppliers to save 1 paisa? 😏
4. Financials Overview – Numbers Don’t Lie, They Just Roast
Quarterly Comparison Table (₹ Crores)
| Metric | Latest Qtr (Dec-25) | YoY Qtr (Dec-24) | Prev Qtr (Sep-25) | YoY % | QoQ % |
|---|---|---|---|---|---|
| Revenue | 59.85 | 52.90 | 62.02 | 13.1% | -3.5% |
| EBITDA | 9.93 | 7.61 | 10.50 | 30.5% | -5.4% |
| PAT | 5.53 | 5.26 | 7.17 | 5.1% | -22.9% |
| EPS (₹) | 0.41 | 0.39 | 0.54 | 5.1% | -24.1% |
Commentary (Auditor Mode ON):
- Revenue growth is steady, not explosive
- Margins are structurally higher
- QoQ dip is seasonal +
