Is Rama Steel Tubes overvalued or undervalued?

As of September 4, 2024, Rama Steel Tubes is considered overvalued with a PE ratio of 94.28 and other high valuation metrics, despite recent strong stock performance.

As of 4 September 2024, the valuation grade for Rama Steel Tubes has moved from fair to expensive, indicating that the company is overvalued. The key ratios reflect this assessment, with a PE ratio of 94.28, an EV to EBITDA of 76.75, and a Price to Book Value of 5.89. These figures suggest that the company's valuation metrics are significantly higher than typical industry benchmarks.<BR><BR>In comparison to its peers, Rama Steel Tubes is notably more expensive, with its PE ratio far exceeding that of comparable companies in the sector. For instance, while Rama Steel Tubes has a PEG ratio of 0.00, which is unusual, its high valuation ratios suggest a disconnect between price and underlying performance. The company's recent stock performance has outpaced the Sensex, with a 1-month return of 47.53% compared to the Sensex's 3.83%, but this does not mitigate the overall valuation concerns.

What is the bonus history of the Rama Steel Tubes?

Rama Steel Tubes has a notable bonus history, with the most recent being a 2:1 bonus announced on March 19, 2024, and prior bonuses of 4:1 issued on January 6, 2023, and March 14, 2016. This demonstrates the company's commitment to rewarding its shareholders.

Rama Steel Tubes has a notable bonus history. The most recent bonus issue was a 2:1 bonus announced with an ex-date of March 19, 2024. Prior to that, on January 6, 2023, the company issued a 4:1 bonus. Additionally, there was another 4:1 bonus issued on March 14, 2016. This reflects the company's approach to rewarding its shareholders over the years.

Has Rama Steel Tubes declared dividend?

Rama Steel Tubes Ltd has declared a 10% dividend, amounting to 0.5 per share, with an ex-date of February 24, 2022. Despite this, the dividend yield is 0%, as cash dividends paid have been minimal compared to the share price.

Rama Steel Tubes Ltd has declared a 10% dividend.<BR><BR>Dividend Details:<BR>- Percentage announced: 10%<BR>- Amount per share: 0.5<BR>- Ex-date: Feb-24-2022<BR><BR>Dividend Yield: 0%<BR><BR>Total Returns by Period:<BR>In the 6-month period, the price return was 2.27%, with a dividend return of 0%, resulting in a total return of 2.27%.<BR><BR>For the 1-year period, the price return was 19.98%, with a dividend return of 0%, leading to a total return of 19.98%.<BR><BR>Over the 2-year period, the price return was 3.07%, with a dividend return of 0%, culminating in a total return of 3.07%.<BR><BR>In the 3-year period, the price return was 206.54%, with a dividend return of 0%, achieving a total return of 206.54%.<BR><BR>For the 4-year period, the price return was 1254.44%, with a dividend return of 31.85%, resulting in a total return of 1286.29%.<BR><BR>In the 5-year period, the price return was 3592.85%, with a dividend return of 111.11%, leading to a total return of 3703.96%.<BR><BR>Overall, Rama Steel Tubes has declared a dividend, but the dividend yield remains at 0%, indicating that while there have been substantial price returns over the years, the actual cash dividends paid have been minimal relative to the share price.

Who are the peers of the Rama Steel Tubes?

Rama Steel Tubes' peers include APL Apollo Tubes, Welspun Corp, Shyam Metalics, and Jindal Saw, among others. APL Apollo Tubes leads in management quality and growth, while Rama Steel Tubes shows average management risk and below-average capital structure, with a 1-year return of -1.10%.

Peers: The peers of Rama Steel Tubes are APL Apollo Tubes, Welspun Corp, Shyam Metalics, Ratnamani Metals, Jindal Saw, MSP Steel & Pow., Rhetan TMT Ltd, Bharat Wire, Electrotherm(I), and Hariom Pipe.<BR><BR>Quality Snapshot: Excellent management risk is observed at APL Apollo Tubes, while Good management risk is found at Welspun Corp, Shyam Metalics, and Ratnamani Metals, and Average management risk is present at Jindal Saw, Rama Steel Tubes, and Hariom Pipe. Growth is Excellent at APL Apollo Tubes, Rama Steel Tubes, and Hariom Pipe, while Average growth is noted at Shyam Metalics and Ratnamani Metals, and Below Average growth is seen at Welspun Corp, Jindal Saw, MSP Steel & Pow., Rhetan TMT Ltd, Bharat Wire, and Electrotherm(I). Excellent capital structure is noted at APL Apollo Tubes, Shyam Metalics, and Ratnamani Metals, while Below Average capital structure is found at Jindal Saw, Rama Steel Tubes, MSP Steel & Pow., Rhetan TMT Ltd, Bharat Wire, and Electrotherm(I).<BR><BR>Return Snapshot: The peer with the highest 1-year return is Welspun Corp at 68.71%, while the lowest is Jindal Saw at -22.99%. Rama Steel Tubes has a 1-year return of -1.10%, which is higher than Jindal Saw but lower than most peers. Additionally, MSP Steel & Pow., Jindal Saw, Ratnamani Metals, and Bharat Wire have negative six-month returns.

Who are in the management team of Rama Steel Tubes?

As of March 2023, the management team of Rama Steel Tubes includes Naresh Kumar Bansal (Chairman/Executive Director), Richi Bansal (Executive Director & CEO), and four Independent Non-Executive Directors: Vinod Pal Singh Rawat, Bharat Bhushan Sahny, Jai Prakash Gupta, and Anju Gupta. They oversee the company's operations and strategic direction.

As of March 2023, the management team of Rama Steel Tubes includes:<BR><BR>1. Naresh Kumar Bansal - Chairman / Executive Director<BR>2. Richi Bansal - Executive Director & CEO<BR>3. Vinod Pal Singh Rawat - Independent Non-Executive Director<BR>4. Bharat Bhushan Sahny - Independent Non-Executive Director<BR>5. Jai Prakash Gupta - Independent Non-Executive Director<BR>6. Anju Gupta - Independent Non-Executive Director<BR><BR>This team is responsible for overseeing the company's operations and strategic direction.

What does Rama Steel Tubes do?

Rama Steel Tubes Ltd manufactures steel pipes and tubes and is classified as a small-cap company in the Iron & Steel Products industry. As of March 2025, it reported net sales of ₹2,932 Cr and a net profit of ₹68 Cr.

Overview:<BR>Rama Steel Tubes Ltd is engaged in the manufacturing of steel pipes and tubes, operating within the Iron & Steel Products industry and categorized as a small-cap company.<BR><BR>History:<BR>Rama Steel Tubes Limited was incorporated on February 26, 1974, in New Delhi. The latest quarterly results reported net sales and net profit for the period ending March 2025.<BR><BR>Financial Snapshot:<BR>Net Sales: 2,932 Cr (Quarterly Results - Mar 2025) <BR>Net Profit: 68 Cr (Quarterly Results - Mar 2025) <BR>Market Cap: INR 1,870 Cr (Small Cap)<BR><BR>Key Metrics:<BR>P/E: 82.00 <BR>Industry P/E: 34 <BR>Dividend Yield: 0.00% <BR>Debt-Equity: 0.23 <BR>Return on Equity: 6.24% <BR>Price to Book: 5.15 <BR><BR>Contact Details:<BR>Address: B-5 3rd Floor, Main Road Ghazipur New Delhi New Delhi : 110066 <BR>Tel: +91-11-43446600 <BR>Email: accounts@ramasteel.com <BR>Website: http://www.fence-steeltubes.com

Who are the top shareholders of the Rama Steel Tubes?

The top shareholder of Rama Steel Tubes is promoter Naresh Kumar Bansal, holding 25.65%. Individual investors own 43.33%, while The Great International Tusker Fund is the largest public shareholder at 2.02%, with no pledged promoter holdings.

The top shareholders of Rama Steel Tubes include Naresh Kumar Bansal, who is the promoter with the highest holding at 25.65%. The company has a significant portion of its shares held by individual investors, accounting for 43.33%. Additionally, the highest public shareholder is The Great International Tusker Fund, which holds 2.02%. There are also 17 Foreign Institutional Investors (FIIs) with a combined holding of 0.46%, and one mutual fund scheme that holds 0.0%. Notably, there are no pledged promoter holdings.

How big is Rama Steel Tubes?

As of 24th July, Rama Steel Tubes Ltd has a market capitalization of 1,809.00 Cr, with recent net sales of 1,048.06 Cr and a net profit of 22.75 Cr. Shareholder's funds are 335.15 Cr and total assets amount to 733.04 Cr as of March 2024.

As of 24th July, Rama Steel Tubes Ltd has a market capitalization of 1,809.00 Cr, categorizing it as a Small Cap company.<BR><BR>In the latest four quarters, the company reported Net Sales of 1,048.06 Cr and a Net Profit of 22.75 Cr.<BR><BR>The latest annual period for the balance sheet is March 2024, with Shareholder's Funds amounting to 335.15 Cr and Total Assets of 733.04 Cr.

Are Rama Steel Tubes latest results good or bad?

Rama Steel Tubes' latest results show mixed signals; while net sales grew by 23.77%, profitability declined sharply with a negative Profit Before Tax and decreased cash reserves, indicating more negative than positive outcomes for the company.

Rama Steel Tubes' latest results indicate a challenging situation for the company. While net sales for the quarter ending June 2025 grew by 23.77% year-on-year, reaching Rs 268.13 crore, profitability has taken a significant hit. The Profit Before Tax (PBT) has fallen to Rs -2.88 crore, marking a drastic decline of 144.51% compared to the previous year. Additionally, the Profit After Tax (PAT) decreased by 16.4%, totaling Rs 5.32 crore.<BR><BR>The company's financial health presents mixed signals. On one hand, the low debt-equity ratio of 0.24 suggests a conservative approach to borrowing. However, the drop in cash and cash equivalents to Rs 5.50 crore raises concerns about short-term liquidity. Furthermore, the debtor's turnover ratio has declined to 4.31 times, indicating a slowdown in collecting receivables. The significant rise in non-operating income, now 140.06% of PBT, also raises questions about the sustainability of the company's earnings.<BR><BR>Overall, while sales growth is a positive sign, the decline in profitability and liquidity issues suggest that the results are more negative than positive for Rama Steel Tubes.

When is the next results date for Rama Steel Tubes?

Rama Steel Tubes will announce its results on 14 November 2025.

Rama Steel Tubes is scheduled to declare its results on 14 November 2025.

How has been the historical performance of Rama Steel Tubes?

Rama Steel Tubes has experienced fluctuating financial performance, with net sales slightly increasing to 1,048.05 Cr in March 2025 but down from 1,336.75 Cr in March 2023. Key metrics such as operating profit and profit after tax have declined, reflecting challenges in managing rising costs and cash flow.

Answer:<BR>The historical performance of Rama Steel Tubes shows a fluctuating trend in key financial metrics over the years. <BR><BR>Breakdown:<BR>Rama Steel Tubes reported net sales of 1,048.05 Cr in March 2025, slightly up from 1,046.51 Cr in March 2024, but down from 1,336.75 Cr in March 2023. The total operating income mirrored this trend, with figures of 1,048.05 Cr in March 2025 and 1,046.51 Cr in March 2024, compared to 1,336.75 Cr in March 2023. The company faced rising raw material costs, which were 784.12 Cr in March 2025, down from 844.41 Cr in March 2024, but still higher than previous years. Operating profit (PBDIT) decreased to 45.79 Cr in March 2025 from 63.68 Cr in March 2024, while profit before tax also fell to 28.27 Cr from 36.79 Cr in the same period. Profit after tax was reported at 22.15 Cr in March 2025, down from 29.26 Cr in March 2024. The company's total assets increased to 756.98 Cr in March 2025 from 733.04 Cr in March 2024, while total liabilities also rose to 756.98 Cr from 733.04 Cr. Cash flow from operating activities improved to 51.00 Cr in March 2025 from 18.00 Cr in March 2024, although the net cash outflow was recorded at -11.00 Cr in March 2025. Overall, the financial performance of Rama Steel Tubes reflects a challenging environment with fluctuations in sales, profits, and cash flow management.

Is Rama Steel Tubes technically bullish or bearish?

As of November 17, 2025, Rama Steel Tubes has shifted to a bearish trend with moderate strength, driven by bearish signals from daily moving averages and monthly indicators, despite some mildly bullish signals on the weekly timeframe.

As of 17 November 2025, the technical trend has changed from mildly bearish to bearish. The current technical stance for Rama Steel Tubes is bearish with a moderate strength. Key indicators driving this stance include the bearish signals from the moving averages on the daily timeframe, as well as the bearish readings from both the Bollinger Bands and the monthly MACD. Although the weekly MACD and KST show mildly bullish signals, the overall monthly indicators suggest a bearish outlook. The stock's recent performance, including a significant decline over the past year, further supports this bearish sentiment.

Should I buy, sell or hold Rama Steel Tubes?

Which are the latest news on Rama Steel Tubes?

Why is Rama Steel Tubes falling/rising?

As of 03-Dec, Rama Steel Tubes Ltd's stock price is slightly rising at 9.92, but it faces significant challenges, including a -27.54% return over the past year and a -65.7% decline in profit after tax. Despite a minor price increase, investor confidence is waning, indicated by a drop in delivery volume and promoter stake.

As of 03-Dec, Rama Steel Tubes Ltd's stock price is experiencing a slight rise, currently at 9.92, with a change of 0.02 (0.2%) upward. However, this positive movement occurs against a backdrop of significant challenges for the company. Over the past year, the stock has generated a return of -27.54%, indicating a consistent underperformance compared to the benchmark, the Sensex, which has increased by 5.27% during the same period. <BR><BR>The company's financial results have also raised concerns, with a notable decline in profit after tax (PAT) of -65.7% reported for the quarter ending September 25. Additionally, the return on capital employed (ROCE) is at a low of 6.27%, and the dividend payout ratio is at 0.00%, suggesting limited returns to shareholders. The stock's valuation appears expensive with a price-to-book value of 3.5, despite trading at a discount compared to its peers' historical valuations.<BR><BR>Investor participation is waning, as evidenced by a 21.41% drop in delivery volume compared to the 5-day average. Furthermore, promoter confidence is diminishing, with a 10.08% reduction in their stake over the previous quarter, now holding 37.76% of the company. This decline in stake may signal a lack of confidence in the company's future prospects.<BR><BR>While the stock has shown healthy long-term growth in net sales, with an annual growth rate of 27.10%, the overall performance metrics and recent trends indicate that the stock is facing significant headwinds, contributing to its overall negative trajectory despite the minor uptick in price observed today.