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Last Updated: April 2, 2026, 3:34 am
Author: Getaka|Social: XLinkedIn
Stock Ticker - BSE: 539309 | NSE: RAMASTEEL

Rama Steel Tubes Ltd: Intrinsic Value & Share Price Analysis

Fair Value

₹4.46Undervalued by 11.78%vs CMP ₹3.99

P/E (41.5) × ROE (4.6%) × BV (₹2.85) × DY (2.00%)

₹2.20Overvalued by 44.86%vs CMP ₹3.99
MoS: -81.4% (Negative)Confidence: 58/100 (Moderate)Models: 1 Under, 1 Fair, 7 Over
ModelCategoryValueWeightSignal
PE-ROEEarnings₹3.7322%Fair (-6.5%)
Graham NumberEarnings₹2.4016%Over (-39.8%)
Earnings PowerEarnings₹0.6013%Over (-85%)
DCFCash Flow₹0.0713%Over (-98.2%)
Net Asset ValueAssets₹2.857%Over (-28.6%)
EV/EBITDAEnterprise₹0.949%Over (-76.4%)
Earnings YieldEarnings₹0.907%Over (-77.4%)
ROCE CapitalReturns₹4.839%Under (+21.1%)
Revenue MultipleRevenue₹3.205%Over (-19.8%)
Consensus (9 models)₹2.20100%Overvalued
Key Drivers: EPS CAGR -16.4% drags value — could be higher if earnings stabilize. | ROE 4.6% is below cost of equity.

PE-ROE · Graham · EPV · DCF · NAV · EV/EBITDA · DDM · Earnings Yield · ROCE Capital · Revenue Multiple | CoE: 12% · Terminal: 4% · EPS CAGR: -16.4%

*Investments are subject to market risks

Investment Snapshot

50
Rama Steel Tubes Ltd scores 50/100 (Average)
Based on 5 dimensions: health, institutional flow, earnings quality, momentum, and peer comparison
Stock Health53/100 · Moderate
ROCE 6.8% WeakROE 4.6% WeakD/E 0.81 ModerateInterest Coverage 0.0x RiskyProfitable 5/5 years Consistent
Smart Money70/100 · Strong
FII holding up 5.29% (6mo) AccumulatingPromoter holding at 37.8% Stable
Earnings Quality50/100 · Moderate
OPM stable around 5% Steady
Quarterly Momentum50/100 · Moderate
Revenue (4Q): +14% YoY GrowingProfit (4Q): -39% YoY Declining
Industry Rank30/100 · Weak
P/E 41.5 vs industry 40.7 In-lineROCE 6.8% vs industry 15.3% Below peersROE 4.6% vs industry 11.7% Below peers3Y sales CAGR: 11% Moderate

Weights: Health 30% · Earnings Quality 25% · Momentum 20% · Industry Rank 15% · Smart Money 10%. Scores are computed from reported financials and recalculated daily. Not investment advice.

Rama Steel Tubes Ltd Investor Signals

Computed from valuation, cash flow, balance sheet, ownership and quarterly trend data already available in this stock page.

Value Trap Score
50/100
Moderate
Derived from: Cheapness + weak quality + weak cash support
Current data: P/E 41.5 vs Ind 40.7 | ROCE 6.8% | ROE 4.6% | CFO/NP N/A
Balance Sheet Stress
30/100
Comfortable
Derived from: Leverage + debt servicing + liquidity + debt trend
Current data: D/E 0.81x | IntCov 0.0x | Current 1.47x | Borrow/Reserve 0.42x
Cash Flow Reliability
29/100
Weak
Derived from: Cash backing of earnings + working capital pressure
Current data: CFO ₹0 Cr | NP ₹23 Cr | CFO/NP N/A
Ownership Accumulation
+25
Neutral
Derived from: FII + DII + promoter direction, adjusted by crowding
Current data: FII +0.28 pp | DII 0.00 pp | Prom 0.00 pp
Business Momentum
+86
Watch closely
Derived from: Latest quarter sales + profit + OPM change
Current data: Q Sales -9.7% | Q NP +78.0% | Q OPM +0.6 pp
Derived FieldValueHow it is derived
Valuation Gap %-44.9%((Fair Value - CMP) / CMP) × 100
Borrowings / Reserves0.42xLatest borrowings divided by latest reserves
CFO / Net ProfitN/ALatest operating cash flow divided by latest net profit
FII Change+0.28 ppLatest FII% minus previous FII%
DII Change0.00 ppLatest DII% minus previous DII%
Promoter Change0.00 ppLatest promoter% minus previous promoter%
Shareholder Count Change-40,470Latest shareholder count minus previous count
Quarterly Sales Change-9.7%Latest quarter sales vs previous quarter sales
Quarterly Profit Change+78.0%Latest quarter net profit vs previous quarter net profit
Quarterly OPM Change+0.6 ppLatest quarter OPM minus previous quarter OPM

Share Price and Basic Stock Data

Last Updated: April 2, 2026, 3:34 am

Market Cap 653 Cr.
Current Price 3.99
Intrinsic Value₹3.73
High / Low 14.9/3.43
Stock P/E41.5
Book Value 2.85
Dividend Yield0.00 %
ROCE6.75 %
ROE4.62 %
Face Value 1.00
PEG Ratio-2.54

Stock P/E, Current Price, and Intrinsic Value Over Time

View Share Price Target for Rama Steel Tubes Ltd

Competitors

Stock Name ⇩Market Cap ⇩Current Price ⇩High / Low ⇩Stock P/E ⇩Book Value ⇩Dividend Yield ⇩ROCE ⇩ROE ⇩Face Value ⇩
Rama Steel Tubes Ltd 653 Cr. 3.99 14.9/3.4341.5 2.850.00 %6.75 %4.62 % 1.00
Hariom Pipe Industries Ltd 942 Cr. 304 572/27315.0 1950.20 %14.1 %11.9 % 10.0
Gandhi Special Tubes Ltd 982 Cr. 808 1,034/60713.7 2361.86 %27.5 %21.0 % 5.00
Surani Steel Tubes Ltd 169 Cr. 109 139/47.356.8 79.70.00 %1.91 %1.12 % 10.0
Hi-Tech Pipes Ltd 1,549 Cr. 76.3 128/70.124.0 60.20.03 %11.3 %7.47 % 1.00
Industry Average9,873.50 Cr511.9240.74163.020.44%15.34%11.65%4.69

All Competitor Stocks of Rama Steel Tubes Ltd

Quarterly Result

MetricDec 2022Mar 2023Jun 2023Sep 2023Dec 2023Mar 2024Jun 2024Sep 2024Dec 2024Mar 2025Jun 2025Sep 2025Dec 2025
Sales 350.25399.24312.52203.33262.39268.27216.64263.05275.17293.20268.13320.45289.38
Expenses 340.68371.59296.38191.18245.16254.81205.23262.47270.20281.14266.56315.54283.14
Operating Profit 9.5727.6516.1412.1517.2313.4611.410.584.9712.061.574.916.24
OPM % 2.73%6.93%5.16%5.98%6.57%5.02%5.27%0.22%1.81%4.11%0.59%1.53%2.16%
Other Income 7.10-5.332.041.131.780.510.969.405.431.5910.072.102.34
Interest 5.696.627.193.947.272.843.232.662.872.912.983.232.87
Depreciation 1.231.251.421.331.451.451.731.401.371.371.471.401.48
Profit before tax 9.7514.459.578.0110.299.687.415.926.169.377.192.384.23
Tax % 20.00%19.24%22.05%17.98%13.31%21.07%16.33%27.03%9.90%28.71%31.15%57.98%57.92%
Net Profit 7.8011.677.466.588.927.656.204.315.556.674.951.001.78
EPS in Rs 0.050.080.050.040.060.050.040.030.040.040.030.010.01

Last Updated: March 3, 2026, 3:10 pm

Quarterly Chart

Profit & Loss - Annual Report

Last Updated: February 25, 2026, 1:46 pm

MetricMar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024Mar 2025TTM
Sales 1922422603775043534707681,3371,0471,0481,171
Expenses 1872272403544883444527261,2859871,0191,146
Operating Profit 6152022169184251592925
OPM % 3%6%8%6%3%2%4%5%4%6%3%2%
Other Income 33455689851716
Interest 568691081120211212
Depreciation 233233345666
Profit before tax 19131892153635382923
Tax % 22%30%28%31%11%80%16%24%22%20%21%
Net Profit 1691380122727302314
EPS in Rs 0.010.050.080.100.070.000.100.220.190.190.150.09
Dividend Payout % 0%0%0%0%0%0%0%3%0%0%0%

Profit & Loss Yearly Chart

YoY Net Profit Growth

Year2015-20162016-20172017-20182018-20192019-20202021-20222022-20232023-20242024-2025
YoY Net Profit Growth (%)500.00%50.00%44.44%-38.46%-100.00%125.00%0.00%11.11%-23.33%
Change in YoY Net Profit Growth (%)0.00%-450.00%-5.56%-82.91%-61.54%225.00%-125.00%11.11%-34.44%

Rama Steel Tubes Ltd has shown an inconsistent trend in YoY Net Profit Growth (%) in the last 9 years from 2015-2016 to 2024-2025.

Growth

Compounded Sales Growth
10 Years:18%
5 Years:24%
3 Years:11%
TTM:16%
Compounded Profit Growth
10 Years:42%
5 Years:121%
3 Years:-6%
TTM:-25%
Stock Price CAGR
10 Years:25%
5 Years:84%
3 Years:11%
1 Year:-26%
Return on Equity
10 Years:12%
5 Years:11%
3 Years:9%
Last Year:7%

Last Updated: September 5, 2025, 12:55 pm

Balance Sheet

Last Updated: February 1, 2026, 3:47 am

MonthMar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024Mar 2025Sep 2025
Equity Capital 1788888847154155164
Reserves 18184470797992118204181209303
Borrowings 5658576390838513819314589126
Other Liabilities 2123261124676294252254305252
Total Liabilities 96107135153200238248358695734758843
Fixed Assets 1217264241415157106110103109
CWIP 611-0174611103
Investments 1312225788136510
Other Assets 6577106109154183184288574617640721
Total Assets 96107135153200238248358695734758843

Reserves and Borrowings Chart

Cash Flow

MonthMar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024Mar 2025
Cash from Operating Activity + 35-75-173025-35-961851
Cash from Investing Activity + -7-2-1-9-3-7-10-9-53-13
Cash from Financing Activity + 9-510617-17-641143-13-66
Net Cash Flow 5-112-369-3-65-12
Free Cash Flow -23-20-6-202314-46-146951
CFO/OP 65%41%-19%41%-75%351%139%-75%-172%53%196%

Free Cash Flow

MonthMar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024Mar 2025
Free Cash Flow-50.00-43.00-37.00-41.00-74.00-74.00-67.00-96.00-142.00-86.00-60.00

Free Cash Flow = Income Generated from Operational Activities - Borrowings - Capital Work in Progress (CWIP)

Consistent positive free cash flow is crucial for businesses as it indicates their ability to generate cash from their core operations. It provides financial flexibility, allowing companies to invest in growth opportunities, pay dividends to shareholders, reduce debt, and weather economic downturns more effectively.

Free Cash Flow Chart

Financial Efficiency Indicators

MonthMar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024Mar 2025
Debtor Days 2136463747754150647685
Inventory Days 5554843740616253585147
Days Payable 526255156743376388106
Cash Conversion Cycle 71641056972696067583826
Working Capital Days -310394036332626357885
ROCE %19%22%20%12%7%13%21%15%12%7%

Financial Efficiency Indicators Chart

Share Holding Pattern

MonthMar 2023Jun 2023Sep 2023Dec 2023Mar 2024Jun 2024Sep 2024Dec 2024Mar 2025Jun 2025Sep 2025Dec 2025
Promoters 65.11%63.91%57.14%57.22%56.70%56.33%47.97%47.97%47.97%47.84%37.76%37.76%
FIIs 2.74%2.16%0.33%0.33%0.08%0.05%0.17%0.07%0.44%0.46%5.45%5.73%
DIIs 0.67%0.63%0.69%0.59%0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%
Public 31.48%33.30%41.83%41.84%43.24%43.61%51.87%51.98%51.60%51.70%56.79%56.52%
No. of Shareholders 54,99759,60871,73374,0861,64,8802,79,7518,51,9488,50,5988,42,6618,97,3898,58,2788,17,808

Shareholding Pattern Chart

No. of Shareholders

Rama Steel Tubes Ltd: Intrinsic Value & Share Price Analysis - Shareholder trend analysis

Mutual Fund Holdings

Fund NameNo of SharesAUM (%)Amount Invested (Cr)Previous Number of SharesPrevious DatePercentage Change
Quant Value Fund 3,000,000 1.21 13.533,000,0002025-04-22 15:56:540%

ROCE Trend

EPS Trend

Key Financial Ratios

MonthMar 25Mar 24Mar 23Mar 22Mar 21
FaceValue 1.001.001.005.005.00
Basic EPS (Rs.) 0.150.501.2216.417.21
Diluted EPS (Rs.) 0.150.491.1616.417.21
Cash EPS (Rs.) 0.180.220.6519.208.60
Book Value[Excl.RevalReserv]/Share (Rs.) 2.342.175.6675.4259.51
Book Value[Incl.RevalReserv]/Share (Rs.) 2.342.175.6675.4259.51
Revenue From Operations / Share (Rs.) 6.746.7828.70457.41280.12
PBDIT / Share (Rs.) 0.290.411.2530.8214.57
PBIT / Share (Rs.) 0.250.371.1528.2712.50
PBT / Share (Rs.) 0.180.230.7121.797.92
Net Profit / Share (Rs.) 0.140.180.5516.656.53
NP After MI And SOA / Share (Rs.) 0.140.180.5716.267.37
PBDIT Margin (%) 4.366.084.356.735.19
PBIT Margin (%) 3.815.544.006.184.46
PBT Margin (%) 2.693.512.494.762.82
Net Profit Margin (%) 2.112.791.923.642.33
NP After MI And SOA Margin (%) 2.172.781.993.552.63
Return on Networth / Equity (%) 6.248.6910.6621.5612.38
Return on Capital Employeed (%) 10.4515.4118.0329.6816.01
Return On Assets (%) 3.003.963.837.625.00
Long Term Debt / Equity (X) 0.010.080.120.250.29
Total Debt / Equity (X) 0.240.430.771.090.81
Asset Turnover Ratio (%) 1.401.462.542.001.51
Current Ratio (X) 1.661.681.351.371.47
Quick Ratio (X) 1.331.310.850.860.84
Inventory Turnover Ratio (X) 8.095.146.245.394.97
Dividend Payout Ratio (NP) (%) 0.000.000.003.070.00
Dividend Payout Ratio (CP) (%) 0.000.000.002.650.00
Earning Retention Ratio (%) 0.000.000.0096.930.00
Cash Earning Retention Ratio (%) 0.000.000.0097.350.00
Interest Coverage Ratio (X) 3.923.002.884.753.18
Interest Coverage Ratio (Post Tax) (X) 2.902.382.283.572.43
Enterprise Value (Cr.) 1550.692359.391490.42649.08178.93
EV / Net Operating Revenue (X) 1.482.251.110.840.38
EV / EBITDA (X) 33.8637.0525.5912.547.31
MarketCap / Net Operating Revenue (X) 1.392.120.970.680.25
Retention Ratios (%) 0.000.000.0096.920.00
Price / BV (X) 4.016.635.184.181.19
Price / Net Operating Revenue (X) 1.392.120.970.680.25
EarningsYield 0.010.010.020.050.10

Profitability Ratios (%)

Liquidity Ratios

Liquidity Ratios (%)

Interest Coverage Ratios (%)

Valuation Ratios

About the Company - Qualitative Analysis

Rama Steel Tubes Ltd. is a Public Limited Listed company incorporated on 26/02/1974 and has its registered office in the State of Delhi, India. Company's Corporate Identification Number(CIN) is L27201DL1974PLC007114 and registration number is 007114. Currently Company is involved in the business activities of Manufacture of tubes, pipes and hollow profiles and of tube or pipe fittings of cast-iron/cast-steel. Company's Total Operating Revenue is Rs. 840.03 Cr. and Equity Capital is Rs. 155.42 Cr. for the Year ended 31/03/2025.
INDUSTRYADDRESSCONTACT
Steel - Tubes/PipesB-5, 3rd Floor, Main Road, New Delhi Delhi 110096Contact not found
Management
NamePosition Held
Mr. Naresh Kumar BansalChairman & Managing Director
Mr. Richi BansalExecutive Director & CEO
Mr. Hari Shankar SinghExecutive Director
Mrs. Anju GuptaIndependent Director
Mr. Jai Prakash GuptaIndependent Director
Mr. Saurabh ShashwatIndependent Director

FAQ

What is the intrinsic value of Rama Steel Tubes Ltd and is it undervalued?

As of 05 April 2026, Rama Steel Tubes Ltd's intrinsic value is ₹2.20, which is 44.86% lower than the current market price of ₹3.99, suggesting the stock is overvalued. This is calculated using the PE ratio method factoring in ROE (4.62 %), book value (₹2.85), dividend yield (0.00 %), and 5-year EPS CAGR.

What is the current share price and 52-week range of Rama Steel Tubes Ltd?

Rama Steel Tubes Ltd is trading at ₹3.99 as of 05 April 2026, with a FY2026-2027 high of ₹14.9 and low of ₹3.43. The stock is currently near its 52-week low. Market cap stands at ₹653 Cr..

How does Rama Steel Tubes Ltd's P/E ratio compare to its industry?

Rama Steel Tubes Ltd has a P/E ratio of 41.5, which is above the industry average of 40.74. The premium over industry average may reflect growth expectations or speculative interest.

Is Rama Steel Tubes Ltd financially healthy?

Key indicators for Rama Steel Tubes Ltd: ROCE of 6.75 % is on the lower side compared to the industry average of 15.34%; ROE of 4.62 % is below ideal levels (industry average: 11.65%). Dividend yield is 0.00 %.

Is Rama Steel Tubes Ltd profitable and how is the profit trend?

Rama Steel Tubes Ltd reported a net profit of ₹23 Cr in Mar 2025 on revenue of ₹1,048 Cr. Compared to ₹27 Cr in Mar 2022, the net profit shows a declining trend.

Does Rama Steel Tubes Ltd pay dividends?

Rama Steel Tubes Ltd has a dividend yield of 0.00 % at the current price of ₹3.99. The company is currently not paying meaningful dividends.

Disclaimer: This article is for informational purposes only and should not be construed as financial advice. The author is not a SEBI registered financial advisor and does not have any vested interest in Rama Steel Tubes Ltd. Investors are advised to conduct their own due diligence and consult with a financial professional before making any investment decisions. The information provided in this article is based on publicly available data and the author's analysis, but it may not be comprehensive or up-to-date. The author and getaka.co.in are not responsible for any errors or omissions in the content. This article is not intended to promote any particular investment strategy or recommendation, and readers should consult with their own financial advisors before making any investment decisions. Data Source: NSE
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