Rama Steel Tubes Ltd. (RAMASTEEL) AI Stock Analysis

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Rama Steel Tubes Ltd.

(NSE:RAMASTEEL)

Select Model

Rating:42Neutral

Price Target:INR 4.50▲(19.36% Upside)

Action:reiterated

Date:09/06/26

The score is driven primarily by weak recent fundamentals—sharp cash-flow volatility/negative operating cash flow in the latest year and compressed margins—despite an improved leverage profile. Technicals also weigh on the rating as the stock trades below all key moving averages with negative MACD. Valuation adds further pressure given the high P/E and no stated dividend support.

Positive Factors

Improved LeverageThe substantial reduction in debt-to-equity indicates a stronger capital structure and greater balance-sheet resilience than in earlier years. Lower leverage can reduce financial pressure, preserve borrowing capacity, and give the company more flexibility to manage cyclical steel demand and fund operations.

Negative Factors

Volatile Cash GenerationRepeated negative operating and free cash flow signals that reported earnings are not consistently converting into liquidity. Working-capital swings or reinvestment demands may continue to increase funding reliance, constrain growth spending, and reduce flexibility during weaker steel-market conditions.

Rama Steel Tubes Ltd. (RAMASTEEL) vs. iShares MSCI India ETF (INDA)

Market Cap: INR 6.14B
Dividend Yield: ―
Average Volume (3M): 910.53K
Price to Earnings (P/E): 44.9
Beta (1Y): 1.97
Revenue Growth: -1.84%
EPS Growth: -43.02%
Country: India
Employees: 100
Sector: General
Sector Strength: 55
Industry: Steel

Rama Steel Tubes Ltd. Business Overview & Revenue Model

Company Description

Rama Steel Tubes Limited operates as a key manufacturer and distributor, offering a diverse array of piping solutions. These include steel pipes and tubes, rigid polyvinyl chloride (PVC) pipes, and galvanized iron (GI) pipes, catering to both the Ind...

How the Company Makes Money

Rama Steel Tubes Ltd. primarily makes money by manufacturing and selling steel tubes and pipes (notably ERW steel tubes/hollow sections) to customers who use these products in construction, infrastructure, fabrication, and engineering applications. R...

Rama Steel Tubes Ltd. Financial Statement Overview

Summary

Financials are pressured by weakened profitability and poor cash generation. The income statement shows meaningful margin compression and lower net income in the latest year, while cash flow has been volatile and negative in multiple years (including a large outflow most recently). The balance sheet is a relative positive with improved leverage (lower debt-to-equity) and higher equity, but rising total debt in the latest year adds risk if cash flows remain weak.

Income Statement

46Neutral

Balance Sheet

68Positive

Cash Flow

24Negative

Financial statement breakdown
Breakdown	TTM	Mar 2026	Mar 2025	Mar 2024	Mar 2023	Mar 2022
Income Statement
Total Revenue	10.79B	11.24B	10.48B	10.47B	13.37B	7.68B
Gross Profit	425.98M	387.56M	511.38M	974.35M	928.11M	679.69M
EBITDA	278.38M	357.23M	457.93M	630.65M	582.37M	491.42M
Net Income	129.63M	125.82M	227.55M	291.28M	266.55M	273.15M
Balance Sheet
Total Assets	0	8.90B	7.58B	7.34B	6.95B	3.58B
Cash, Cash Equivalents and Short-Term Investments	53.91M	53.91M	55.36M	174.06M	126.11M	176.52M
Total Debt	0	1.30B	888.17M	1.45B	1.93B	1.38B
Total Liabilities	-4.83B	4.08B	3.85B	3.87B	4.31B	2.32B
Stockholders Equity	4.83B	4.77B	3.64B	3.35B	2.50B	1.27B
Cash Flow
Free Cash Flow	-328.47M	-1.27B	256.22M	46.02M	-1.56B	-455.22M
Operating Cash Flow	-291.72M	-1.20B	395.22M	180.93M	-961.62M	-349.81M
Investing Cash Flow	-79.26M	-141.05M	-6.35M	-7.78M	-531.99M	-92.32M
Financing Cash Flow	1.23B	1.34B	-507.91M	-125.21M	1.43B	408.49M

Rama Steel Tubes Ltd. Technical Analysis

Technical Analysis SentimentNegative

Last Price3.77

Price Trends

50DMA4.12Negative

100DMA4.36Negative

200DMA5.34Negative

Market Momentum

MACD-0.14Positive

RSI36.94Neutral

STOCH50.67Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:RAMASTEEL, the sentiment is Negative. The current price of 3.77 is below the 20-day moving average (MA) of 3.98, below the 50-day MA of 4.12, and below the 200-day MA of 5.34, indicating a bearish trend. The MACD of -0.14 indicates Positive momentum. The RSI at 36.94 is Neutral, neither overbought nor oversold. The STOCH value of 50.67 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for IN:RAMASTEEL.

Rama Steel Tubes Ltd. Peers Comparison

Overall Rating

UnderperformOutperform

Sector (55)

Financial Indicators

IN:RAMASTEEL against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
IN:SAMBHV	77Outperform	INR 44.89B	27.19	―	―	41.91%	99.85%
IN:RATNAMANI	71Outperform	INR 162.60B	37.55	―	0.43%	-16.30%	-24.14%
IN:VENUSPIPES	71Outperform	INR 37.32B	35.91	―	0.08%	21.73%	13.47%
IN:APLAPOLLO	70Outperform	INR 600.02B	46.05	―	0.39%	15.83%	24.85%
IN:SCODATUBES	63Neutral	INR 6.27B	16.83	―	―	―	―
Sector *	55Neutral	$6.65B	3.83	-15.92%	6.20%	10.91%	7.18%
IN:RAMASTEEL	42Neutral	INR 6.17B	44.91	―	―	-1.84%	-43.02%

* General Sector Average

Performance Comparison

IN:RAMASTEEL and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
IN:RAMASTEEL	Rama Steel Tubes Ltd.	3.77	-6.36	-62.78%
IN:APLAPOLLO	APL Apollo Tubes Limited	2161.00	370.34	20.68%
IN:RATNAMANI	Ratnamani Metals & Tubes Ltd.	2319.85	-150.56	-6.09%
IN:VENUSPIPES	Venus Pipes & Tubes Ltd.	1801.45	533.54	42.08%
IN:SCODATUBES	Scoda Tubes Ltd.	104.65	-55.40	-34.61%
IN:SAMBHV	Sambhv Steel Tubes Limited	152.35	38.25	33.52%

Rama Steel Tubes Ltd. Corporate Events

Rama Steel Tubes Publishes Q1 FY27 Unaudited Results in National Dailies

Aug 15, 2026

Rama Steel Tubes Ltd. has notified the stock exchanges that its unaudited financial results for the quarter ended June 30, 2026 have been published in the Financial Express and Jansatta newspapers. The disclosure, made to both BSE and NSE, confirms t...

Rama Steel Tubes Gets ICRA Credit Ratings Withdrawn on Rs 110 Crore Bank Lines

Jul 13, 2026

Rama Steel Tubes Ltd. has requested and obtained the withdrawal of its ICRA credit ratings on long-term fund-based cash credit and short-term non-fund-based bank facilities, following no-objection from its bankers. ICRA stated it has no information i...

Glossary

BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.

Date of analysis: Sep 06, 2026

Rama Steel Tubes Ltd. AI Stock Analysis

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