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Last Updated on: 24 November, 2024
Author: Getaka|Social: Getaka Financial Services X (Earlier Twitter) Profile Getaka Financial Services LinkedIn Logo

Ratnamani Metals & Tubes Ltd: Intrinsic Value and Fundamental Analysis

Share Price and Basic Stock Data

Last Updated: November 22, 2024, 9:40 pm

Market Cap 24,263 Cr.
Current Price 3,466
High / Low3,978/2,581
Stock P/E45.8
Book Value 470
Dividend Yield0.40 %
ROCE27.7 %
ROE21.6 %
Face Value 2.00
PEG Ratio3.02

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

View Share Price Target for Ratnamani Metals & Tubes Ltd

Competitors of Ratnamani Metals & Tubes Ltd

Stock NameMarket CapCurrent PriceHigh / LowStock P/EBook ValueDividend YieldROCEROEFace Value
Hariom Pipe Industries Ltd 1,760 Cr. 570889/44029.4 1780.11 %15.0 %14.3 % 10.0
Earthstahl & Alloys Ltd 50.3 Cr. 41.166.0/0.0033.3 30.70.00 %8.22 %5.21 % 10.0
Crimson Metal Engineering Company Ltd 4.57 Cr. 10.310.3/9.38 12.50.00 %7.27 %21.7 % 10.0
Welspun Corp Ltd 18,405 Cr. 701806/44016.7 2300.71 %20.2 %19.8 % 5.00
Surya Roshni Ltd 6,155 Cr. 565842/46719.1 2080.44 %20.8 %16.2 % 5.00
Industry Average10,582.09 Cr593.1842.93136.190.26%15.56%13.95%4.85

All Competitor Stocks of Ratnamani Metals & Tubes Ltd

Quarterly Result

MonthMar 2021Jun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023Mar 2024
Sales6965267129279749779001,0991,4991,1751,1311,2571,496
Expenses5374416007968068467559001,1999698861,0571,250
Operating Profit15985111131169131145199301206245200246
OPM %23%16%16%14%17%13%16%18%20%18%22%16%16%
Other Income9891110910779111539
Interest655565581410111312
Depreciation15191919231919202524242525
Profit before tax1476896118149116132178268181221178248
Tax %25%26%26%24%25%25%25%25%28%25%26%25%22%
Net Profit1095072891128799134193135164133193
EPS in Rs15.617.1910.2012.7115.9212.3914.0919.0227.3319.1023.3818.9627.42

Last Updated: Unknown

Quarterly Chart

Profit & Loss - Annual Report

Last Updated: Unknown

MonthMar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Sales1,6881,7181,4121,7672,7552,5862,2983,1394,4745,059
Expenses1,3881,4311,1551,5012,3482,1591,8982,6443,6994,162
Operating Profit300287257266407427400495776897
OPM %18%17%18%15%15%16%17%16%17%18%
Other Income26161432415943383273
Interest96610152123213145
Depreciation54576061625957808398
Profit before tax262240205228371406363431694828
Tax %34%31%30%33%32%24%24%25%26%24%
Net Profit173165144152253308276323512625
EPS in Rs24.7423.5820.5521.6536.0843.8739.3746.0372.8388.85
Dividend Payout %15%16%18%18%17%18%24%20%16%16%

Profit & Loss Yearly Chart

YoY Net Profit Growth

Year2015-20162016-20172017-20182018-20192019-20202020-20212021-20222022-20232023-2024
YoY Net Profit Growth (%)-4.62%-12.73%5.56%66.45%21.74%-10.39%17.03%58.51%22.07%
Change in YoY Net Profit Growth (%)0.00%-8.10%18.28%60.89%-44.71%-32.13%27.42%41.48%-36.44%

Ratnamani Metals & Tubes Ltd has shown an inconsistent trend in YoY Net Profit Growth (%) in the last 9 years from 2015-2016 to 2023-2024.

Growth

Compounded Sales Growth
10 Years:%
5 Years:13%
3 Years:30%
TTM:0%
Compounded Profit Growth
10 Years:%
5 Years:20%
3 Years:31%
TTM:-15%
Stock Price CAGR
10 Years:24%
5 Years:40%
3 Years:34%
1 Year:-2%
Return on Equity
10 Years:%
5 Years:19%
3 Years:20%
Last Year:22%

Last Updated: Unknown

Balance Sheet

Last Updated: Unknown

MonthMar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Equity Capital999999991414
Reserves9001,0361,1781,2991,5131,7001,9782,2392,5903,127
Borrowings392307965252207157237153
Other Liabilities279250226360465584422557939726
Total Liabilities1,2271,3191,4141,7472,0532,5452,6172,9623,7804,020
Fixed Assets4254464484454405008658751,1221,164
CWIP4248384717937176107101167
Investments202474020315563710913589
Other Assets7408018541,2551,2311,5181,0391,8732,4222,601
Total Assets1,2271,3191,4141,7472,0532,5452,6172,9623,7804,020

Reserves and Borrowings Chart

Cash Flow

MonthMar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Cash from Operating Activity +148155134-73554215546-283310511
Cash from Investing Activity +-52-11-10421-360-358-470418-204-146
Cash from Financing Activity +-74-179-2842-5647-79-135-116-193
Net Cash Flow23-353-10137-96-30-10173

Free Cash Flow

MonthMar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Free Cash Flow261.00264.00257.00187.00342.00175.00193.00338.00539.00744.00

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 Days4883110115615264708268
Inventory Days11295141184113185133193156148
Days Payable41404862565760554639
Cash Conversion Cycle119138202237118180137208192177
Working Capital Days861211671908610485151136137
ROCE %25%19%18%26%24%19%20%27%28%

Financial Efficiency Indicators Chart

Share Holding Pattern

MonthSep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023Mar 2024Jun 2024
Promoters60.16%60.16%60.16%60.16%60.10%60.10%60.06%59.77%59.77%59.77%59.77%59.77%
FIIs11.92%12.01%12.13%12.28%12.51%12.51%12.77%12.79%12.87%12.77%12.86%12.61%
DIIs15.27%16.02%16.26%16.36%16.25%16.34%16.39%16.45%16.47%16.28%16.14%16.58%
Government0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.01%
Public12.65%11.81%11.45%11.20%11.14%11.03%10.76%10.99%10.87%11.15%11.22%11.03%
No. of Shareholders16,35216,31016,83018,74420,28720,18427,40326,56128,77834,25339,19039,503

Shareholding Pattern Chart

No. of Shareholders

Mutual Fund Holdings

Fund NameNo of SharesAUM (%)Amount Invested (Cr)Previous Number of SharesPrevious DatePercentage Change
Kotak Emerging Equity Fund - Regular Plan1,895,1051.93706.76222,5362024-11-22751.59%
Kotak Small Cap Fund - Regular Plan1,357,1193.78506.12222,5362024-11-22509.84%
DSP Small Cap Fund1,107,4393.15413.01222,5362024-11-22397.64%
SBI Small Cap Fund850,7951.39317.3222,5362024-11-22282.32%
DSP Mid Cap Fund322,5590.75120.3222,5362024-11-2244.95%
Kotak Balanced Advantage Fund289,5200.71107.97222,5362024-11-2230.1%
Invesco India Multicap Fund222,5362.8782.99222,5362024-11-220%
Invesco India Mid Cap Fund192,0471.9171.62222,5362024-11-22-13.7%
DSP Focus Fund185,4873.2969.18222,5362024-11-22-16.65%
Invesco India Smallcap Fund158,7211.8259.19222,5362024-11-22-28.68%

ROCE Trend

EPS Trend

Key Financial Ratios

MonthMar 24Mar 23Mar 22Mar 21Mar 20
FaceValue2.002.002.002.002.00
Basic EPS (Rs.)89.1873.0969.0559.0765.82
Diluted EPS (Rs.)89.1873.0969.0559.0765.82
Cash EPS (Rs.)103.1084.9886.2171.2378.34
Book Value[Excl.RevalReserv]/Share (Rs.)458.85381.78481.15425.35365.77
Book Value[Incl.RevalReserv]/Share (Rs.)458.85381.78481.15425.35365.77
Revenue From Operations / Share (Rs.)721.78638.36671.71491.81553.35
PBDIT / Share (Rs.)138.44115.29113.9694.85103.97
PBIT / Share (Rs.)124.52103.4096.7982.6891.45
PBT / Share (Rs.)118.0898.9592.2277.7886.96
Net Profit / Share (Rs.)89.1873.0969.0559.0765.82
NP After MI And SOA / Share (Rs.)88.8572.8369.0559.0765.82
PBDIT Margin (%)19.1818.0516.9619.2818.78
PBIT Margin (%)17.2516.1914.4116.8116.52
PBT Margin (%)16.3615.5013.7215.8115.71
Net Profit Margin (%)12.3511.4410.2712.0011.89
NP After MI And SOA Margin (%)12.3111.4010.2712.0011.89
Return on Networth / Equity (%)19.8319.6014.3513.8817.99
Return on Capital Employeed (%)25.5224.8218.8717.6422.18
Return On Assets (%)15.4913.5010.8910.5412.08
Long Term Debt / Equity (X)0.010.020.040.070.10
Total Debt / Equity (X)0.040.080.060.070.12
Asset Turnover Ratio (%)1.301.341.130.891.12
Current Ratio (X)4.442.943.473.882.65
Quick Ratio (X)2.191.481.512.621.26
Inventory Turnover Ratio (X)2.642.632.821.952.42
Dividend Payout Ratio (NP) (%)13.5012.810.000.0031.90
Dividend Payout Ratio (CP) (%)11.6711.010.000.0026.80
Earning Retention Ratio (%)86.5087.190.000.0068.10
Cash Earning Retention Ratio (%)88.3388.990.000.0073.20
Interest Coverage Ratio (X)21.5025.9124.9319.3523.18
Interest Coverage Ratio (Post Tax) (X)14.8517.4216.1113.0515.67
Enterprise Value (Cr.)19557.0614107.4012239.768969.194267.75
EV / Net Operating Revenue (X)3.873.153.903.901.65
EV / EBITDA (X)20.1517.4622.9920.248.78
MarketCap / Net Operating Revenue (X)3.863.093.873.861.63
Retention Ratios (%)86.4987.180.000.0068.09
Price / BV (X)6.225.325.404.472.47
Price / Net Operating Revenue (X)3.863.093.873.861.63
EarningsYield0.030.030.020.030.07

Profitability Ratios (%)

Liquidity Ratios

Liquidity Ratios (%)

Interest Coverage Ratios (%)

Valuation Ratios

Fair Value

Fair Value of Ratnamani Metals & Tubes Ltd as of November 24, 2024 is: 4,668.21

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 November 24, 2024, Ratnamani Metals & Tubes Ltd is Undervalued by 34.69% compared to the current share price 3,466.00

Intrinsic Value of Ratnamani Metals & Tubes Ltd as of November 24, 2024 is: 5,375.86

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 November 24, 2024, Ratnamani Metals & Tubes Ltd is Undervalued by 55.10% compared to the current share price 3,466.00

Last 5 Year EPS CAGR: 15.16%

*Investments are subject to market risks

Strength and Weakness

StrengthWeakness
  1. The stock has a high average ROCE of 20.60%, which is a positive sign.
  2. The company has higher reserves (1,756.00 cr) compared to borrowings (121.20 cr), indicating strong financial stability.
  3. The company has shown consistent growth in sales (2.20 cr) and profit (402.80 cr) over the years.
  1. The stock has a high average Working Capital Days of 126.30, which may not be favorable.
  2. The stock has a high average Cash Conversion Cycle of 170.80, 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 Ratnamani Metals & Tubes Ltd:
    1. Net Profit Margin: 12.35%
      • 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: 25.52% (Industry Average ROCE: 14.36%)
      • 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%: 19.83% (Industry Average ROE: 12.87%)
      • 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): 14.85
      • 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: 2.19
      • 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: 45.8 (Industry average Stock P/E: 39.62)
      • 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: 0.04
      • 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

Ratnamani Metals & Tubes Ltd. is a Public Limited Listed company incorporated on 15/09/1983 and has its registered office in the State of Gujarat, India. Company’s Corporate Identification Number(CIN) is L70109GJ1983PLC006460 and registration number is 006460. Currently Company is involved in the business activities of Manufacture of tube and tube fittings of basic iron and steel. Company’s Total Operating Revenue is Rs. 3138.78 Cr. and Equity Capital is Rs. 9.35 Cr. for the Year ended 31/03/2022.
INDUSTRYADDRESSCONTACT
Steel - Tubes/Pipes17, Rajmugat Society, Ahmedabad Gujarat 380013info@ratnamani.com
http://www.ratnamani.com
Management
NamePosition Held
Mr. Prakash M SanghviChairman & Managing Director
Mr. Jayanti M SanghviJoint Managing Director
Mrs. Shanti M SanghviWhole Time Director
Mr. Sushil SolankiIndependent Director
Mr. Dhinal A ShahIndependent Director
Mr. Rajesh G DesaiIndependent Director
Mrs. Nidhi G GadhechaIndependent Woman Director

FAQ

What is the latest intrinsic value of Ratnamani Metals & Tubes Ltd?

The latest intrinsic value of Ratnamani Metals & Tubes Ltd as on 24 November 2024 is ₹4668.21, which is 34.69% higher than the current market price of ₹3,466.00.

What is the Market Cap of Ratnamani Metals & Tubes Ltd?

The Market Cap of Ratnamani Metals & Tubes Ltd is 24,263 Cr..

What is the current Stock Price of Ratnamani Metals & Tubes Ltd as on 24 November 2024?

The current stock price of Ratnamani Metals & Tubes Ltd as on 24 November 2024 is 3,466.

What is the High / Low of Ratnamani Metals & Tubes Ltd stocks in FY 2024?

In FY 2024, the High / Low of Ratnamani Metals & Tubes Ltd stocks is 3,978/2,581.

What is the Stock P/E of Ratnamani Metals & Tubes Ltd?

The Stock P/E of Ratnamani Metals & Tubes Ltd is 45.8.

What is the Book Value of Ratnamani Metals & Tubes Ltd?

The Book Value of Ratnamani Metals & Tubes Ltd is 470.

What is the Dividend Yield of Ratnamani Metals & Tubes Ltd?

The Dividend Yield of Ratnamani Metals & Tubes Ltd is 0.40 %.

What is the ROCE of Ratnamani Metals & Tubes Ltd?

The ROCE of Ratnamani Metals & Tubes Ltd is 27.7 %.

What is the ROE of Ratnamani Metals & Tubes Ltd?

The ROE of Ratnamani Metals & Tubes Ltd is 21.6 %.

What is the Face Value of Ratnamani Metals & Tubes Ltd?

The Face Value of Ratnamani Metals & Tubes Ltd is 2.00.

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 Ratnamani Metals & 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