Generic selectors
Exact matches only
Search in title
Search in content
Post Type Selectors
post
Last Updated on: 04 March, 2024|Author: Getaka | Social: X Twitter Profile

Fundamental Analysis of Ratnamani Metals & Tubes Ltd

About the Company - Ratnamani Metals & Tubes Ltd

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. Divyabhash C AnjariaIndependent Director
Dr. VinodKumar M AgrawalIndependent Director
Mr. Pravinchandra M MehtaIndependent Director
Mr. Rajesh G DesaiIndependent Director
Mr. Sushil SolankiIndependent Director
Mr. Dhinal A ShahIndependent Director
Mrs. Nidhi G GadhechaIndependent Woman Director

Ratnamani Metals & Tubes Ltd. Share Price Update

Share PriceValue
Today₹3,021.20
Previous Day₹2,989.15

Basic Stock Data of Ratnamani Metals & Tubes Ltd

Market Cap 22,046 Cr.
Current Price 3,145
High / Low3,939/1,916
Stock P/E35.4
Book Value 402
Dividend Yield0.38 %
ROCE27.3 %
ROE21.0 %
Face Value 2.00

Data Source: screener.in

Competitors of Ratnamani Metals & Tubes Ltd

Stock NameMarket CapCurrent PriceHigh / LowStock P/EBook ValueDividend YieldROCEROEFace Value
Rama Steel Tubes Ltd 1,991 Cr. 40.450.5/26.159.5 6.250.00 %15.8 %15.2 % 1.00
Prakash Steelage Ltd 145 Cr. 8.3016.6/3.206.34 1.620.00 %%% 1.00
Welspun Corp Ltd 14,146 Cr. 541625/18613.1 1930.92 %6.42 %3.21 % 5.00
Oil Country Tubular Ltd 157 Cr. 35.659.2/12.8 50.10.00 %47.4 %169 % 10.0
Surani Steel Tubes Ltd 649 Cr. 684735/31.5401 85.10.00 %1.36 %8.07 % 10.0
Industry Average3,417.60 Cr261.8695.9967.210.18%14.20%39.10%5.40

Ratnamani Metals & Tubes Ltd Quarterly Results

MonthSep 2020Dec 2020Mar 2021Jun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023
Sales5774426965267129279749779001,0991,4991,1751,131
Expenses4953615374416007968068467559001,199969886
Operating Profit828115985111131169131145199301206245
OPM %14%18%23%16%16%14%17%13%16%18%20%18%22%
Other Income1412989111091077911
Interest6665556558141011
Depreciation14131519191923191920252424
Profit before tax76741476896118149116132178268181221
Tax %25%19%25%26%26%24%25%25%25%25%28%25%26%
Net Profit57601095072891128799134193135164
EPS in Rs8.098.5815.617.1910.2012.7115.9212.3914.0919.0227.3319.1023.38

Ratnamani Metals & Tubes Ltd Quarterly Chart

Ratnamani Metals & Tubes Ltd Profit & Loss

MonthMar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023TTM
Sales1,6881,7181,4121,7672,7552,5862,2983,1394,4744,904
Expenses1,3881,4311,1551,5012,3482,1591,8982,6443,6993,953
Operating Profit300287257266407427400495776951
OPM %18%17%18%15%15%16%17%16%17%19%
Other Income26161432415943383233
Interest96610152123213142
Depreciation54576061625957808394
Profit before tax262240205228371406363431694848
Tax %34%31%30%33%32%24%24%25%26%
Net Profit173165144152253308276323512626
EPS in Rs24.7423.5820.5521.6536.0843.8739.3746.0372.8388.83
Dividend Payout %15%16%18%18%17%18%24%20%16%

Ratnamani Metals & Tubes Ltd Profit & Loss Yearly Chart

Ratnamani Metals & Tubes Ltd Growth

Compounded Sales Growth
10 Years:%
5 Years:20%
3 Years:20%
TTM:28%
Compounded Profit Growth
10 Years:%
5 Years:27%
3 Years:18%
TTM:44%
Stock Price CAGR
10 Years:41%
5 Years:40%
3 Years:35%
1 Year:46%
Return on Equity
10 Years:%
5 Years:18%
3 Years:17%
Last Year:21%

Ratnamani Metals & Tubes Ltd Balance Sheet

MonthMar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Sep 2023
Equity Capital999999991414
Reserves9001,0361,1781,2991,5131,7001,9782,2392,5902,805
Borrowings392307965252207157237177
Other Liabilities279250226360465584422557939721
Total Liabilities1,2271,3191,4141,7472,0532,5452,6172,9623,7803,717
Fixed Assets4254464484454405008658751,1221,112
CWIP4248384717937176107101153
Investments2024740203155637109135157
Other Assets7408018541,2551,2311,5181,0391,8732,4222,296
Total Assets1,2271,3191,4141,7472,0532,5452,6172,9623,7803,717

Ratnamani Metals & Tubes Ltd Reserves and Borrowings Chart

Ratnamani Metals & Tubes Ltd Cash Flow

MonthMar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023
Cash from Operating Activity 148155134-73554215546-283310
Cash from Investing Activity -52-11-10421-360-358-470418-208
Cash from Financing Activity -74-179-2842-5647-79-135-116
Net Cash Flow23-353-10137-96-30-13

Ratnamani Metals & Tubes Ltd Financial Efficiency Indicators

MonthMar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023
Debtor Days48831101156152647082
Inventory Days11295141184113185133193156
Days Payable414048625657605546
Cash Conversion Cycle119138202237118180137208192
Working Capital Days861211671908610485151136
ROCE %25%19%18%26%24%19%20%27%

Ratnamani Metals & Tubes Ltd Financial Efficiency Indicators Chart

Ratnamani Metals & Tubes Ltd Share Holding Pattern

MonthMar 2021Jun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023
Promoters60.16%60.16%60.16%60.16%60.16%60.16%60.10%60.10%60.06%59.77%59.77%59.77%
FIIs11.21%11.92%11.92%12.01%12.13%12.28%12.51%12.51%12.77%12.79%12.87%12.77%
DIIs14.26%14.06%15.27%16.02%16.26%16.36%16.25%16.34%16.39%16.45%16.47%16.28%
Public14.36%13.85%12.65%11.81%11.45%11.20%11.14%11.03%10.76%10.99%10.87%11.15%
No. of Shareholders12,16116,75716,35216,31016,83018,74420,28720,18427,40326,56128,77834,253

Ratnamani Metals & Tubes Ltd Shareholding Pattern Chart

No. of Ratnamani Metals & Tubes Ltd Shareholders

Ratnamani Metals & Tubes Ltd Mutual Fund Holdings

Fund NameNo of SharesAUM (%)Amount Invested (Cr)
Kotak Emerging Equity Fund - Regular Plan18951051.93706.76
Kotak Small Cap Fund - Regular Plan13571193.78506.12
DSP Small Cap Fund11074393.15413.01
SBI Small Cap Fund8507951.39317.3
DSP Mid Cap Fund3225590.75120.3
Kotak Balanced Advantage Fund2895200.71107.97
Invesco India Multicap Fund2225362.8782.99
Invesco India Mid Cap Fund1920471.9171.62
DSP Focus Fund1854873.2969.18
Invesco India Smallcap Fund1587211.8259.19

Ratnamani Metals & Tubes Ltd ROCE Trend

Ratnamani Metals & Tubes Ltd EPS Trend

Ratnamani Metals & Tubes Ltd Key Financial Ratios

MonthMar 23Mar 22Mar 21Mar 20Mar 19
FaceValue2.002.002.002.002.00
Basic EPS (Rs.)73.0969.0559.0765.8254.13
Diluted EPS (Rs.)73.0969.0559.0765.8254.13
Cash EPS (Rs.)84.9886.2171.2378.3467.48
Book Value[Excl.RevalReserv]/Share (Rs.)381.78481.15425.35365.77325.88
Book Value[Incl.RevalReserv]/Share (Rs.)381.78481.15425.35365.77325.88
Revenue From Operations / Share (Rs.)638.36671.71491.81553.35589.56
PBDIT / Share (Rs.)115.29113.9694.85103.9795.82
PBIT / Share (Rs.)103.4096.7982.6891.4582.46
PBT / Share (Rs.)98.9592.2277.7886.9679.30
Net Profit / Share (Rs.)73.0969.0559.0765.8254.13
NP After MI And SOA / Share (Rs.)72.8369.0559.0765.8254.13
PBDIT Margin (%)18.0516.9619.2818.7816.25
PBIT Margin (%)16.1914.4116.8116.5213.98
PBT Margin (%)15.5013.7215.8115.7113.45
Net Profit Margin (%)11.4410.2712.0011.899.18
NP After MI And SOA Margin (%)11.4010.2712.0011.899.18
Return on Networth / Equity (%)19.6014.3513.8817.9916.60
Return on Capital Employeed (%)24.8218.8717.6422.1824.60
Return On Assets (%)13.5010.8910.5412.0812.31
Long Term Debt / Equity (X)0.020.040.070.100.00
Total Debt / Equity (X)0.080.060.070.120.04
Asset Turnover Ratio (%)1.341.130.891.121.45
Current Ratio (X)2.943.473.882.652.91
Quick Ratio (X)1.481.512.621.261.70
Inventory Turnover Ratio (X)2.632.821.952.423.33
Dividend Payout Ratio (NP) (%)12.810.000.0031.9011.08
Dividend Payout Ratio (CP) (%)11.010.000.0026.808.89
Earning Retention Ratio (%)87.190.000.0068.1088.92
Cash Earning Retention Ratio (%)88.990.000.0073.2091.11
Interest Coverage Ratio (X)25.9124.9319.3523.1830.32
Interest Coverage Ratio (Post Tax) (X)17.4216.1113.0515.6718.13
Enterprise Value (Cr.)14107.4012239.768969.194267.754100.99
EV / Net Operating Revenue (X)3.153.903.901.651.49
EV / EBITDA (X)17.4622.9920.248.789.16
MarketCap / Net Operating Revenue (X)3.093.873.861.631.52
Retention Ratios (%)87.180.000.0068.0988.91
Price / BV (X)5.325.404.472.472.74
Price / Net Operating Revenue (X)3.093.873.861.631.52
EarningsYield0.030.020.030.070.06

Ratnamani Metals & Tubes Ltd Profitability Ratios (%)

Ratnamani Metals & Tubes Ltd Liquidity Ratios

Ratnamani Metals & Tubes Ltd Liquidity Ratios (%)

Ratnamani Metals & Tubes Ltd Interest Coverage Ratios (X)

Ratnamani Metals & Tubes Ltd Valuation Ratios

Fair Value / Intrinsic Value of Ratnamani Metals & Tubes Ltd

Fair Value: ₹2999.82

The stock is overvalued by 4.62% compared to the current price ₹3145

*Investments are subject to market risks

Strength and Weakness of Ratnamani Metals & Tubes Ltd

StrengthWeakness
  1. The stock has a high average ROCE of 19.78%, which is a positive sign.
  2. The company has higher reserves (1,723.80 cr) compared to borrowings (123.60 cr), indicating strong financial stability.
  3. The company has shown consistent growth in sales (2.10 cr) and profit (404.80 cr) over the years.
  1. The stock is trading at a high valuation with an average P/B ratio of 91.36 and average Dividend Yield of 15.58%.
  2. The stock has a high average Working Capital Days of 125.11, which may not be favorable.
  3. The stock has a high average Cash Conversion Cycle of 170.11, which may not be favorable.

Should I Buy Ratnamani Metals & Tubes Ltd Share Now?

  • Based on the analysis of various financial indicators, it may be worth considering investment in Ratnamani Metals & Tubes Ltd:
    1. Net Profit Margin: 11.44% (Higher values are generally favorable)
      • 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: 24.82% (Industry Average ROCE: 18.76%)
      • 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): 17.42 (Higher values, preferably > 2, are recommended)
      • 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: 1.48 (Higher values, preferably > 1, are recommended)
      • 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: 33.8 (Industry average Stock P/E: 89.64)
      • 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: 0.08 (Lower values, preferably < 1, are preferred)
      • 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.
    While these metrics suggest potential opportunity, it's essential to conduct thorough research or seek advice from financial experts before making any investment decisions.

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