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Rama Steel Tubes Ltd.
(RAMASTEEL)
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Rating:42Neutral
Price Target:
₹4.50
▲(5.39% 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 Leverage
The substantial reduction in debt-to-equity and expansion of equity provide a stronger balance-sheet foundation than in earlier years. This improves financial resilience, supports continued operations through weaker steel cycles, and gives management more flexibility to fund growth or absorb earnings volatility.
Negative Factors
Weak Cash Generation
Repeated negative operating and free cash flow indicates that reported earnings are not consistently converting into liquidity. The latest large outflow may increase reliance on external funding or balance-sheet resources, limiting flexibility to invest, manage working capital, or withstand a weaker operating period.
Read all positive and negative factors
Positive Factors
Negative Factors
Improved Leverage
The substantial reduction in debt-to-equity and expansion of equity provide a stronger balance-sheet foundation than in earlier years. This improves financial resilience, supports continued operations through weaker steel cycles, and gives management more flexibility to fund growth or absorb earnings volatility.
Read all positive factors
Rama Steel Tubes Ltd. (RAMASTEEL) vs. iShares MSCI India ETF (INDA)
Market Cap
₹7.35B
Dividend Yield0.17%
Average Volume (3M)1.63M
Price to Earnings (P/E)53.7
Beta (1Y)2.07
Revenue Growth-1.84%
EPS Growth-43.02%
CountryIN
Employees100
SectorGeneral
Sector StrengthN/A
IndustrySteel
Share Statistics
EPS (TTM)0.08
Shares Outstanding1,636,041,000
10 Day Avg. Volume490,738
30 Day Avg. Volume1,625,006
Financial Highlights & Ratios
PEG Ratio-0.97
Price to Book (P/B)1.20
Price to Sales (P/S)0.51
P/FCF Ratio-4.48
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)N/A
Revenue Forecast (FY)N/A
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 ...
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...
Rama Steel Tubes Ltd. Financial Statement Overview
Summary
Income Statement
46
Neutral
Balance Sheet
68
Positive
Cash Flow
24
Negative
| 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 | 580.36M | 491.42M |
| Net Income | 129.63M | 125.82M | 227.55M | 291.28M | 266.55M | 273.15M |
Balance Sheet | ||||||
| Total Assets | 0.00 | 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 | 0.00 | 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
Neutral
4.27
Price Trends
4.29
Positive
4.67
Negative
6.00
Negative
Market Momentum
0.06
Negative
57.41
Neutral
85.71
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:RAMASTEEL, the sentiment is Neutral. The current price of 4.27 is above the 20-day moving average (MA) of 4.21, below the 50-day MA of 4.29, and below the 200-day MA of 6.00, indicating a neutral trend. The MACD of 0.06 indicates Negative momentum. The RSI at 57.41 is Neutral, neither overbought nor oversold. The STOCH value of 85.71 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for IN:RAMASTEEL.
Rama Steel Tubes Ltd. Peers Comparison
UnderperformOutperform
Sector (55)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
76 Outperform | ₹612.51B | 50.04 | ― | 0.39% | 9.64% | 53.35% | |
65 Neutral | ₹194.63B | 44.99 | ― | 0.36% | -16.30% | -24.14% | |
65 Neutral | ₹46.82B | 28.41 | ― | ― | ― | ― | |
59 Neutral | ₹44.77B | 42.98 | ― | 0.07% | 21.73% | 13.47% | |
55 Neutral | $6.65B | 3.83 | -15.92% | 6.20% | 10.91% | 7.18% | |
51 Neutral | ₹8.18B | 21.93 | ― | ― | ― | ― | |
42 Neutral | ₹7.35B | 53.65 | ― | 0.17% | -1.84% | -43.02% |
* General Sector Average
IN:RAMASTEEL
Rama Steel Tubes Ltd.
4.49
-5.29
-54.09%
IN:APLAPOLLO
APL Apollo Tubes Limited
2,206.00
515.90
30.53%
IN:RATNAMANI
Ratnamani Metals & Tubes Ltd.
2,776.75
373.49
15.54%
IN:VENUSPIPES
Venus Pipes & Tubes Ltd.
2,161.10
873.21
67.80%
IN:SCODATUBES
Scoda Tubes Ltd.
136.55
-31.25
-18.62%
IN:SAMBHV
Sambhv Steel Tubes Limited
158.90
50.75
46.93%
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, confirm...
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 informatio...
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.