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Last Updated on: 19 December, 2024
Author: Getaka|Social: Getaka Financial Technology X (Earlier Twitter) Profile Getaka Financial Technology LinkedIn Logo
Stock Ticker - BSE: 539309 | NSE: RAMASTEEL

Rama Steel Tubes Ltd: Share Price Intrinsic Value and Fundamental Analysis

Share Price and Basic Stock Data

Last Updated: December 18, 2024, 9:19 pm

Market Cap 1,954 Cr.
Current Price 12.6
High / Low 17.6/9.90
Stock P/E74.3
Book Value 2.26
Dividend Yield0.00 %
ROCE12.4 %
ROE9.96 %
Face Value 1.00
PEG Ratio20.01

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

View Share Price Target for Rama Steel Tubes Ltd

Competitors of Rama Steel Tubes Ltd

Stock NameMarket CapCurrent PriceHigh / LowStock P/EBook ValueDividend YieldROCEROEFace Value
Mukat Pipes Ltd 24.2 Cr. 20.4 26.0/9.54173 5.760.00 %%% 5.00
Hariom Pipe Industries Ltd 1,753 Cr. 565 889/44029.3 1780.11 %14.6 %13.5 % 10.0
Earthstahl & Alloys Ltd 51.4 Cr. 42.0 66.0/0.0034.0 30.70.00 %8.22 %5.21 % 10.0
Crimson Metal Engineering Company Ltd 4.57 Cr. 10.3 10.3/9.38 12.50.00 %7.27 %21.7 % 10.0
Welspun Corp Ltd 20,664 Cr. 788 824/44018.8 2300.63 %20.2 %19.8 % 5.00
Industry Average9,803.23 Cr611.4350.85145.940.33%16.71%14.57%4.69

All Competitor Stocks of Rama Steel Tubes Ltd

Quarterly Result

MonthMar 2021Jun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023Mar 2024
Sales139.16138.30192.99184.98251.90240.02347.24350.25399.24312.52203.33262.39268.27
Expenses131.53131.03183.77175.85236.26233.71339.57340.68371.59296.38191.18245.16254.81
Operating Profit7.637.279.229.1315.646.317.679.5727.6516.1412.1517.2313.46
OPM %5.48%5.26%4.78%4.94%6.21%2.63%2.21%2.73%6.93%5.16%5.98%6.57%5.02%
Other Income4.554.842.972.97-0.923.603.337.10-5.332.041.131.780.51
Interest1.772.252.502.893.253.844.065.696.627.193.947.272.84
Depreciation0.580.981.081.131.081.061.181.231.251.421.331.451.45
Profit before tax9.838.888.618.0810.395.015.769.7514.459.578.0110.299.68
Tax %20.35%20.05%17.65%30.69%28.78%15.57%10.94%20.00%19.24%22.05%17.98%13.31%21.07%
Net Profit7.837.107.095.607.404.235.137.8011.677.466.588.927.65
EPS in Rs0.060.060.060.040.060.030.040.050.080.050.040.060.05

Last Updated: Unknown

Quarterly Chart

Profit & Loss - Annual Report

Last Updated: Unknown

MonthMar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Sales1922422603775043534707681,3371,047
Expenses1872272403544883444527261,285987
Operating Profit615202216918425159
OPM %3%6%8%6%3%2%4%5%4%6%
Other Income3345568985
Interest56869108112021
Depreciation2332333456
Profit before tax1913189215363538
Tax %22%30%28%31%11%80%16%24%22%20%
Net Profit169138012272730
EPS in Rs0.010.050.080.100.070.000.100.220.190.20
Dividend Payout %0%0%0%0%0%0%0%3%0%0%

Profit & Loss Yearly Chart

YoY Net Profit Growth

Year2015-20162016-20172017-20182018-20192019-20202021-20222022-20232023-2024
YoY Net Profit Growth (%)500.00%50.00%44.44%-38.46%-100.00%125.00%0.00%11.11%
Change in YoY Net Profit Growth (%)0.00%-450.00%-5.56%-82.91%-61.54%225.00%-125.00%11.11%

Rama Steel Tubes Ltd has shown an inconsistent trend in YoY Net Profit Growth (%) in the last 8 years from 2015-2016 to 2023-2024.

Growth

Compounded Sales Growth
10 Years:%
5 Years:16%
3 Years:31%
TTM:-20%
Compounded Profit Growth
10 Years:%
5 Years:28%
3 Years:33%
TTM:-18%
Stock Price CAGR
10 Years:%
5 Years:86%
3 Years:64%
1 Year:6%
Return on Equity
10 Years:%
5 Years:12%
3 Years:14%
Last Year:10%

Last Updated: Unknown

Balance Sheet

Last Updated: December 14, 2024, 2:53 pm

MonthMar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024Sep 2024
Equity Capital1788888847154155
Reserves18184470797992118204181196
Borrowings5658576390838513819314596
Other Liabilities2123261124676294252254223
Total Liabilities96107135153200238248358695734670
Fixed Assets1217264241415157106110103
CWIP61101746116
Investments13122257881366
Other Assets6577106109154183184288574617555
Total Assets96107135153200238248358695734670

Reserves and Borrowings Chart

Cash Flow

MonthMar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Cash from Operating Activity +35-75-173025-35-9618
Cash from Investing Activity +-7-2-1-9-3-7-10-9-53-1
Cash from Financing Activity +9-510617-17-641143-13
Net Cash Flow5-112-369-3-65

Free Cash Flow

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

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 2024
Debtor Days21364637477541506476
Inventory Days55548437406162535851
Days Payable526255156743376388
Cash Conversion Cycle716410569726960675838
Working Capital Days656795828496697779119
ROCE %19%22%20%12%7%13%21%16%13%

Financial Efficiency Indicators Chart

Share Holding Pattern

MonthSep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023Mar 2024Jun 2024
Promoters62.33%62.33%70.46%70.46%65.40%65.40%65.11%63.91%57.14%57.22%56.70%56.33%
FIIs0.12%0.59%0.38%2.76%4.49%3.33%2.74%2.16%0.33%0.33%0.08%0.05%
DIIs0.00%0.00%0.71%0.71%0.66%0.66%0.67%0.63%0.69%0.59%0.00%0.00%
Public37.55%37.08%28.45%26.07%29.44%30.60%31.48%33.30%41.83%41.84%43.24%43.61%
No. of Shareholders4,2497,52127,02619,27324,27833,59254,99759,60871,73374,0861,64,8802,79,751

Shareholding Pattern Chart

No. of Shareholders

Mutual Fund Holdings

Fund NameNo of SharesAUM (%)Amount Invested (Cr)Previous Number of SharesPrevious DatePercentage Change
Quant Value Fund3,000,0001.2113.533,000,0002024-12-140%

ROCE Trend

EPS Trend

Key Financial Ratios

MonthMar 24Mar 23Mar 22Mar 21Mar 20
FaceValue1.001.005.005.005.00
Basic EPS (Rs.)0.501.2216.417.210.93
Diluted EPS (Rs.)0.491.1616.417.210.93
Cash EPS (Rs.)0.220.6519.208.600.59
Book Value[Excl.RevalReserv]/Share (Rs.)2.175.6675.4259.5152.30
Book Value[Incl.RevalReserv]/Share (Rs.)2.175.6675.4259.5152.30
Revenue From Operations / Share (Rs.)6.7828.70457.41280.12210.08
PBDIT / Share (Rs.)0.411.2530.8214.577.34
PBIT / Share (Rs.)0.371.1528.2712.505.61
PBT / Share (Rs.)0.230.7121.797.92-0.12
Net Profit / Share (Rs.)0.180.5516.656.53-1.13
NP After MI And SOA / Share (Rs.)0.180.5716.267.370.25
PBDIT Margin (%)6.084.356.735.193.49
PBIT Margin (%)5.544.006.184.462.67
PBT Margin (%)3.512.494.762.82-0.05
Net Profit Margin (%)2.791.923.642.33-0.53
NP After MI And SOA Margin (%)2.781.993.552.630.12
Return on Networth / Equity (%)8.6910.6621.5612.380.48
Return on Capital Employeed (%)15.4118.0329.6816.018.69
Return On Assets (%)3.963.837.625.000.17
Long Term Debt / Equity (X)0.080.120.250.290.20
Total Debt / Equity (X)0.430.771.090.810.90
Asset Turnover Ratio (%)1.462.542.001.511.50
Current Ratio (X)1.681.351.371.471.34
Quick Ratio (X)1.310.850.860.840.92
Inventory Turnover Ratio (X)5.146.245.394.975.93
Dividend Payout Ratio (NP) (%)0.000.003.070.000.00
Dividend Payout Ratio (CP) (%)0.000.002.650.000.00
Earning Retention Ratio (%)0.000.0096.930.000.00
Cash Earning Retention Ratio (%)0.000.0097.350.000.00
Interest Coverage Ratio (X)3.002.884.753.181.28
Interest Coverage Ratio (Post Tax) (X)2.382.283.572.430.80
Enterprise Value (Cr.)2359.391490.42649.08178.9399.04
EV / Net Operating Revenue (X)2.251.110.840.380.28
EV / EBITDA (X)37.0525.5912.547.318.04
MarketCap / Net Operating Revenue (X)2.120.970.680.250.09
Retention Ratios (%)0.000.0096.920.000.00
Price / BV (X)6.635.184.181.190.36
Price / Net Operating Revenue (X)2.120.970.680.250.09
EarningsYield0.010.020.050.100.01

Profitability Ratios (%)

Liquidity Ratios

Liquidity Ratios (%)

Interest Coverage Ratios (%)

Valuation Ratios

Fair Value

Fair Value of Rama Steel Tubes Ltd as of December 19, 2024 is: 17.06

Calculation basis:

  • Fair value = P/E Ratio * (Return on Equity / 100) * Book Value * (1 + Dividend Yield / 100)
  • P/E Ratio (Price-to-Earnings Ratio): Represents the price of the stock relative to its earnings per share. A higher P/E ratio indicates that investors are willing to pay a higher price for the stock.
  • Return on Equity (ROE): Measures a company's profitability relative to its shareholder equity. It showcases the company's ability to generate profits using the investment made by its shareholders, offering valuable insight into its operational efficiency and financial performance.
  • Book Value: Represents the net asset value of the company per share. It is calculated as the total assets minus intangible assets and liabilities, divided by the number of outstanding shares.
  • Dividend Yield: The ratio of the annual dividend per share to the current market price per share. It offers valuable insights into the profitability of an investment through dividends.

This formula allows us to gauge the fair value of the stock by analyzing its fundamental indicators.

As of December 19, 2024, Rama Steel Tubes Ltd is Undervalued by 35.40% compared to the current share price 12.60

Intrinsic Value of Rama Steel Tubes Ltd as of December 19, 2024 is: 17.69

Calculation basis:

  • Intrinsic value = P/E Ratio * (Return on Equity / 100) * Book Value * (1 + Dividend Yield / 100) * (1 + EPS CAGR for Last 5 Years)
  • P/E Ratio (Price-to-Earnings Ratio): Represents the price of the stock relative to its earnings per share. A higher P/E ratio indicates that investors are willing to pay a higher price for the stock.
  • Return on Equity (ROE): Measures a company's profitability relative to its shareholder equity. It showcases the company's ability to generate profits using the investment made by its shareholders, offering valuable insight into its operational efficiency and financial performance.
  • Book Value: Represents the net asset value of the company per share. It is calculated as the total assets minus intangible assets and liabilities, divided by the number of outstanding shares.
  • Dividend Yield: The ratio of the annual dividend per share to the current market price per share. It offers valuable insights into the profitability of an investment through dividends.
  • EPS CAGR (Compound Annual Growth Rate): Represents the geometric mean growth rate of earnings per share over the last 5 years. It provides insight into the historical growth trajectory of the company's earnings.

This formula allows us to gauge the intrinsic value of the stock by analyzing its fundamental indicators along with EPS growth.

As of December 19, 2024, Rama Steel Tubes Ltd is Undervalued by 40.40% compared to the current share price 12.60

Last 5 Year EPS CAGR: 3.71%

*Investments are subject to market risks

Strength and Weakness

StrengthWeakness
  1. The company has higher reserves (99.91 cr) compared to borrowings (96.73 cr), indicating strong financial stability.
  2. The company has shown consistent growth in sales (316.80 cr) and profit (17.60 cr) over the years.
  1. The stock has a low average ROCE of 14.30%, which may not be favorable.
  2. The stock has a high average Working Capital Days of 83.30, which may not be favorable.
  3. The stock has a high average Cash Conversion Cycle of 67.30, which may not be favorable.

Stock Analysis

  • Considering all of the following key financial indicators, prospective investors are encouraged to conduct thorough research and seek professional guidance before considering any investment in Rama Steel Tubes Ltd:
    1. Net Profit Margin: 2.79%
      • Net Profit Margin: This metric indicates the percentage of profit a company makes from its total revenue. A higher net profit margin is generally desirable as it reflects better profitability.
    2. ROCE: 15.41% (Industry Average ROCE: 16.71%)
      • ROCE (Return on Capital Employed): ROCE measures a company's profitability and the efficiency with which its capital is employed. A higher ROCE indicates efficient use of capital.
    3. ROE%: 8.69% (Industry Average ROE: 14.57%)
      • ROE (Return on Equity): ROE measures a company's profitability relative to shareholders' equity. A higher ROE indicates efficient use of shareholders' funds.
    4. Interest Coverage Ratio (Post Tax): 2.38
      • Interest Coverage Ratio: The interest coverage ratio measures a company's ability to cover its interest payments on outstanding debt. A ratio greater than 2 is generally considered healthy as it indicates the company can meet its interest obligations comfortably.
    5. Quick Ratio: 1.31
      • Quick Ratio: The quick ratio assesses a company's ability to cover its short-term liabilities with its most liquid assets. A ratio higher than 1 suggests the company can meet its short-term obligations without relying heavily on inventory.
    6. Stock P/E: 74.3 (Industry average Stock P/E: 50.85)
      • Stock P/E (Price-to-Earnings) Ratio: The P/E ratio compares a company's current share price to its earnings per share. A lower P/E ratio relative to industry peers or historical values may indicate that the stock is undervalued.
    7. Total Debt / Equity: 0.43
      • Total Debt / Equity: This ratio measures a company's financial leverage by comparing its total debt to its total equity. A lower ratio indicates lower financial risk and greater financial stability.
    The current analysis is available for review. It's important to conduct thorough research and consider consulting with financial professionals before making any investment decisions.
    Stock Rating:

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. 517.32 Cr. and Equity Capital is Rs. 8.40 Cr. for the Year ended 31/03/2022.
INDUSTRYADDRESSCONTACT
Steel - Tubes/PipesB-5, 3rd Floor, Main Road, New Delhi Delhi 110096investors@ramasteel.com
http://www.ramasteel.com
Management
NamePosition Held
Mr. Naresh Kumar BansalChairman & Managing Director
Mr. Richi BansalExecutive Director & CEO
Mr. Vinod Pal Singh RawatExecutive Director
Mr. Bharat Bhushan SahnyIndependent Director
Mrs. Anju GuptaIndependent Director
Mr. Jai Prakash GuptaIndependent Director

FAQ

What is the latest intrinsic value of Rama Steel Tubes Ltd?

The latest intrinsic value of Rama Steel Tubes Ltd as on 18 December 2024 is ₹17.06, which is 35.40% higher than the current market price of ₹12.60. The stock has a market capitalization of 1,954 Cr. and recorded a high/low of ₹17.6/9.90 during the current fiscal year 2024-2025. As of Sep 2024, the company has reserves of ₹196 Cr and total liabilities of ₹670 Cr.

What is the Market Cap of Rama Steel Tubes Ltd?

The Market Cap of Rama Steel Tubes Ltd is 1,954 Cr..

What is the current Stock Price of Rama Steel Tubes Ltd as on 18 December 2024?

The current stock price of Rama Steel Tubes Ltd as on 18 December 2024 is 12.6.

What is the High / Low of Rama Steel Tubes Ltd stocks in FY 2024-2025?

In FY 2024-2025, the High / Low of Rama Steel Tubes Ltd stocks is 17.6/9.90.

What is the Stock P/E of Rama Steel Tubes Ltd?

The Stock P/E of Rama Steel Tubes Ltd is 74.3.

What is the Book Value of Rama Steel Tubes Ltd?

The Book Value of Rama Steel Tubes Ltd is 2.26.

What is the Dividend Yield of Rama Steel Tubes Ltd?

The Dividend Yield of Rama Steel Tubes Ltd is 0.00 %.

What is the ROCE of Rama Steel Tubes Ltd?

The ROCE of Rama Steel Tubes Ltd is 12.4 %.

What is the ROE of Rama Steel Tubes Ltd?

The ROE of Rama Steel Tubes Ltd is 9.96 %.

What is the Face Value of Rama Steel Tubes Ltd?

The Face Value of Rama Steel Tubes Ltd is 1.00.

About the Author

Author Avatar
Getaka

Getaka, CFA, a financial analyst with 15 years of experience in the industry. Getaka holds an MBA degree and the Chartered Financial Analyst designation, demonstrating his profound understanding of financial analysis and investment management. Throughout his career, he has conducted numerous financial analyses and due diligence processes for companies in the industry, and has a strong track record of identifying key trends and opportunities. He leverages his expertise to deliver a thorough financial analysis of a company, encompassing its financial performance, key ratios, future prospects, and risks. Getaka is committed to providing accurate, reliable, and trustworthy information to help readers make informed decisions about their finances and investments.

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