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Last Updated on: 04 March, 2024|Author: Getaka | Social: X Twitter Profile
Stock Ticker - BSE: 539309 | NSE: RAMASTEEL

Fundamental Analysis of Rama Steel Tubes Ltd

About the Company - Rama Steel Tubes Ltd

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
Mr. Vinod Pal Singh RawatExecutive Director
Mr. Bharat Bhushan SahnyInd. Non-Executive Director
Mrs. Anju GuptaInd. Non-Executive Director
Mr. Jai Prakash GuptaInd. Non-Executive Director

Rama Steel Tubes Ltd. Share Price Update

Share PriceValue
Today₹40.25
Previous Day₹40.88

Basic Stock Data of Rama Steel Tubes Ltd

Market Cap 1,991 Cr.
Current Price 40.4
High / Low50.5/26.1
Stock P/E59.5
Book Value 6.25
Dividend Yield0.00 %
ROCE15.8 %
ROE15.2 %
Face Value 1.00

Data Source: screener.in

Competitors of Rama Steel Tubes Ltd

Stock NameMarket CapCurrent PriceHigh / LowStock P/EBook ValueDividend YieldROCEROEFace Value
Oil Country Tubular Ltd 157 Cr. 35.659.2/12.8 50.10.00 %47.4 %169 % 10.0
Surya Roshni Ltd 6,403 Cr. 588842/30116.8 1821.06 %22.8 %19.7 % 5.00
Surani Steel Tubes Ltd 649 Cr. 684735/31.5401 85.10.00 %1.36 %8.07 % 10.0
Welspun Corp Ltd 14,146 Cr. 541625/18613.1 1930.92 %6.42 %3.21 % 5.00
Ratnamani Metals & Tubes Ltd 22,046 Cr. 3,1453,939/1,91635.4 4020.38 %27.3 %21.0 % 2.00
Industry Average8,680.20 Cr998.7293.26182.440.47%21.06%44.20%6.40

Rama Steel Tubes Ltd Quarterly Results

MonthSep 2020Dec 2020Mar 2021Jun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023
Sales129.90153.93139.16138.30192.99184.98251.90240.02347.24350.25399.24312.52203.33
Expenses124.45148.20131.53131.03183.77175.85236.26233.71339.57340.68371.59296.38191.18
Operating Profit5.455.737.637.279.229.1315.646.317.679.5727.6516.1412.15
OPM %4.20%3.72%5.48%5.26%4.78%4.94%6.21%2.63%2.21%2.73%6.93%5.16%5.98%
Other Income0.880.994.554.842.972.97-0.923.603.337.10-5.332.041.13
Interest2.151.821.772.252.502.893.253.844.065.696.627.193.94
Depreciation0.831.250.580.981.081.131.081.061.181.231.251.421.33
Profit before tax3.353.659.838.888.618.0810.395.015.769.7514.459.578.01
Tax %-3.28%17.81%20.35%20.05%17.65%30.69%28.78%15.57%10.94%20.00%19.24%22.05%17.98%
Net Profit3.453.017.837.107.095.607.404.235.137.8011.677.466.58
EPS in Rs0.080.070.190.170.170.130.180.100.110.160.240.150.13

Rama Steel Tubes Ltd Quarterly Chart

Rama Steel Tubes Ltd Profit & Loss

MonthMar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023TTM
Sales1922422603775043534707681,3371,265
Expenses1872272403544883444527261,2851,200
Operating Profit615202216918425166
OPM %3%6%8%6%3%2%4%5%4%5%
Other Income3345568985
Interest56869108112023
Depreciation2332333455
Profit before tax1913189215363542
Tax %22%30%28%31%11%80%16%24%22%
Net Profit169138012272734
EPS in Rs0.020.160.240.300.200.010.290.650.570.68
Dividend Payout %0%0%0%0%0%0%0%3%0%

Rama Steel Tubes Ltd Profit & Loss Yearly Chart

Rama Steel Tubes Ltd Growth

Compounded Sales Growth
10 Years:%
5 Years:29%
3 Years:56%
TTM:24%
Compounded Profit Growth
10 Years:%
5 Years:16%
3 Years:296%
TTM:43%
Stock Price CAGR
10 Years:%
5 Years:64%
3 Years:145%
1 Year:31%
Return on Equity
10 Years:%
5 Years:14%
3 Years:17%
Last Year:15%

Rama Steel Tubes Ltd Balance Sheet

MonthMar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Sep 2023
Equity Capital178888884751
Reserves18184068797992118179258
Preference Capital110000000
Borrowings55575763908385138193142
Other Liabilities2224311424676294277220
Total Liabilities96107135153200238248358695671
Fixed Assets1217264241415157106108
CWIP6110174612
Investments13122257881312
Other Assets6577106109154183184288574549
Total Assets96107135153200238248358695671

Rama Steel Tubes Ltd Reserves and Borrowings Chart

Rama Steel Tubes Ltd Cash Flow

MonthMar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023
Cash from Operating Activity 35-75-173025-35-96
Cash from Investing Activity -7-2-1-9-3-7-10-9-53
Cash from Financing Activity 9-510617-17-641143
Net Cash Flow5-112-369-3-6

Rama Steel Tubes Ltd Financial Efficiency Indicators

MonthMar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023
Debtor Days213646374775415064
Inventory Days555484374061625358
Days Payable5262551567433763
Cash Conversion Cycle7164105697269606758
Working Capital Days656795828496697779
ROCE %19%22%20%12%7%13%21%16%

Rama Steel Tubes Ltd Financial Efficiency Indicators Chart

Rama Steel Tubes Ltd Share Holding Pattern

MonthMar 2021Jun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023
Promoters62.33%62.33%62.33%62.33%70.46%70.46%65.40%65.40%65.11%63.91%57.14%57.22%
FIIs0.00%0.00%0.12%0.59%0.38%2.76%4.49%3.33%2.74%2.16%0.33%0.33%
DIIs0.00%0.00%0.00%0.00%0.71%0.71%0.66%0.66%0.67%0.63%0.69%0.59%
Public37.67%37.67%37.55%37.08%28.45%26.07%29.44%30.60%31.48%33.30%41.83%41.84%
No. of Shareholders3,3763,7634,2497,52127,02619,27324,27833,59254,99759,60871,73374,086

Rama Steel Tubes Ltd Shareholding Pattern Chart

No. of Rama Steel Tubes Ltd Shareholders

Rama Steel Tubes Ltd Mutual Fund Holdings

Fund NameNo of SharesAUM (%)Amount Invested (Cr)
Quant Value Fund30000001.2811.36

Rama Steel Tubes Ltd ROCE Trend

Rama Steel Tubes Ltd EPS Trend

Rama Steel Tubes Ltd Key Financial Ratios

MonthMar 23Mar 22Mar 21Mar 20Mar 19
FaceValue1.005.005.005.005.00
Basic EPS (Rs.)1.2216.417.210.935.09
Diluted EPS (Rs.)1.1616.417.210.935.09
Cash EPS (Rs.)0.6519.208.600.595.17
Book Value[Excl.RevalReserv]/Share (Rs.)5.6675.4259.5152.3051.81
Book Value[Incl.RevalReserv]/Share (Rs.)5.6675.4259.5152.3051.81
Revenue From Operations / Share (Rs.)28.70457.41280.12210.08300.19
PBDIT / Share (Rs.)1.2530.8214.577.3411.36
PBIT / Share (Rs.)1.1528.2712.505.619.71
PBT / Share (Rs.)0.7121.797.92-0.124.13
Net Profit / Share (Rs.)0.5516.656.53-1.133.53
NP After MI And SOA / Share (Rs.)0.5716.267.370.254.98
PBDIT Margin (%)4.356.735.193.493.78
PBIT Margin (%)4.006.184.462.673.23
PBT Margin (%)2.494.762.82-0.051.37
Net Profit Margin (%)1.923.642.33-0.531.17
NP After MI And SOA Margin (%)1.993.552.630.121.66
Return on Networth / Equity (%)10.6621.5612.380.489.62
Return on Capital Employeed (%)18.0329.6816.018.6914.98
Return On Assets (%)3.837.625.000.174.17
Long Term Debt / Equity (X)0.120.250.290.200.23
Total Debt / Equity (X)0.771.090.810.900.99
Asset Turnover Ratio (%)2.542.001.511.502.46
Current Ratio (X)1.351.371.471.341.61
Quick Ratio (X)0.850.860.840.921.05
Inventory Turnover Ratio (X)6.245.394.975.937.97
Dividend Payout Ratio (NP) (%)0.003.070.000.000.00
Dividend Payout Ratio (CP) (%)0.002.650.000.000.00
Earning Retention Ratio (%)0.0096.930.000.000.00
Cash Earning Retention Ratio (%)0.0097.350.000.000.00
Interest Coverage Ratio (X)2.884.753.181.282.04
Interest Coverage Ratio (Post Tax) (X)2.283.572.430.801.63
Enterprise Value (Cr.)1490.42649.08178.9399.04268.06
EV / Net Operating Revenue (X)1.110.840.380.280.53
EV / EBITDA (X)25.5912.547.318.0414.05
MarketCap / Net Operating Revenue (X)0.970.680.250.090.37
Retention Ratios (%)0.0096.920.000.000.00
Price / BV (X)5.184.181.190.362.16
Price / Net Operating Revenue (X)0.970.680.250.090.37
EarningsYield0.020.050.100.010.04

Rama Steel Tubes Ltd Profitability Ratios (%)

Rama Steel Tubes Ltd Liquidity Ratios

Rama Steel Tubes Ltd Liquidity Ratios (%)

Rama Steel Tubes Ltd Interest Coverage Ratios (X)

Rama Steel Tubes Ltd Valuation Ratios

Fair Value / Intrinsic Value of Rama Steel Tubes Ltd

Fair Value: ₹57.66

The stock is undervalued by 42.71% compared to the current price ₹40.4

*Investments are subject to market risks

Strength and Weakness of Rama Steel Tubes Ltd

StrengthWeakness
  1. The company has higher reserves (94.90 cr) compared to borrowings (0.20 cr), indicating strong financial stability.
  2. The company has shown consistent growth in sales (316.80 cr) and profit (18.00 cr) over the years.
  1. The stock is trading at a high valuation with an average P/B ratio of 11.45 and average Dividend Yield of 4.11%.
  2. The stock has a low average ROCE of 14.44%, which may not be favorable.
  3. The stock has a high average Working Capital Days of 79.33, which may not be favorable.
  4. The stock has a high average Cash Conversion Cycle of 70.56, which may not be favorable.

Should I Buy Rama Steel Tubes Ltd Share Now?

  • Considering various financial indicators, investors might exercise caution regarding investment in Rama Steel Tubes Ltd:
    1. Net Profit Margin: 1.92%
      • 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: 18.03% (Industry Average ROCE: 21.06%)
      • 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. Interest Coverage Ratio (Post Tax): 2.28
      • 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.
    4. Quick Ratio: 0.85
      • 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.
    5. ✓ Stock P/E: 59.0 (Industry average Stock P/E: 84.32)
      • 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.
    6. ✓ Total Debt / Equity: 0.77
      • 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 suggests exercising caution. It's advisable to conduct further research or consult with financial experts before considering any investment.

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