ScoreWhy is Rathi Steel & Power Ltd ?
1
Low ability to service debt as the company has a high Debt to EBITDA ratio of 141.19 times
- Low ability to service debt as the company has a high Debt to EBITDA ratio of 141.19 times
- The company has been able to generate a Return on Equity (avg) of 3.39% signifying low profitability per unit of shareholders funds
2
Poor long term growth as Net Sales has grown by an annual rate of 9.28% and Operating profit at 18.30% over the last 5 years
3
Flat results in Sep 25
- INTEREST(9M) At Rs 5.59 cr has Grown at 47.49%
- PAT(Latest six months) At Rs 3.52 cr has Grown at -28.46%
- INVENTORY TURNOVER RATIO(HY) Lowest at 9.06 times
4
Underperformed the market in the last 1 year
- Even though the market (BSE500) has generated returns of 2.26% in the last 1 year, the stock has hugely underperformed and has generate negative returns of -44.73% returns
Real-Time Research ReportHow much should you sell?
- All quantity irrespective of whether you are making profits or losses
(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Iron & Steel Products)
When to re-enter? - We will constantly monitor the company and review our call based on new data
Is Rathi Steel for you?
High Risk, Low Return
Absolute
Risk Adjusted
Volatility
Rathi Steel
-28.76%
-0.87
51.19%
Sensex
-4.95%
0.43
11.83%
Quality
Management Risk
Growth
Capital StructureQuality key factors
Factor
Value
Sales Growth (5y)
15.22%
EBIT Growth (5y)
20.37%
EBIT to Interest (avg)
1.20
Debt to EBITDA (avg)
Negative Net Debt
Net Debt to Equity (avg)
0.28
Sales to Capital Employed (avg)
6.06
Tax Ratio
0
Dividend Payout Ratio
0
Pledged Shares
0
Institutional Holding
8.78%
ROCE (avg)
16.78%
ROE (avg)
4.60%
ValuationValuation Key Factors 
Factor
Value
P/E Ratio
13
Industry P/E
26
Price to Book Value
1.11
EV to EBIT
10.50
EV to EBITDA
7.33
EV to Capital Employed
1.08
EV to Sales
0.29
PEG Ratio
0.33
Dividend Yield
NA
ROCE (Latest)
10.31%
ROE (Latest)
8.59%
Loading Valuation Snapshot...
TechnicalsTechnical key factors
Indicator
Weekly
Monthly
MACD
Mildly Bullish
Bearish
RSI
No Signal
No Signal
Bollinger Bands
Mildly Bearish
Mildly Bearish
Moving Averages
Bearish (Daily)
KST
Mildly Bullish
Mildly Bearish
Dow Theory
No Trend
No Trend
Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned 
Financial Trend33What is working for the Company
NET SALES(Q)
Highest at Rs 244.44 cr
OPERATING PROFIT TO INTEREST(Q)
Highest at 5.84 times
PBDIT(Q)
Highest at Rs 9.76 cr.
PBT LESS OI(Q)
Highest at Rs 7.33 cr.
PAT(Q)
Highest at Rs 7.45 cr.
EPS(Q)
Highest at Rs 0.86
-2What is not working for the Company
DEBT-EQUITY RATIO(HY)
Highest at 0.30 times
DEBTORS TURNOVER RATIO(HY)
Lowest at 12.66 times
Loading Valuation Snapshot...
Here's what is working for Rathi Steel
Profit Before Tax less Other Income (PBT) - Quarterly
At Rs 7.33 cr has Grown at 101.37%
Year on Year (YoY)MOJO Watch
Near term PBT trend is very positive
PBT less Other Income (Rs Cr)
Profit After Tax (PAT) - Quarterly
At Rs 7.45 cr has Grown at 96.1%
Year on Year (YoY)MOJO Watch
Near term PAT trend is very positive
PAT (Rs Cr)
Net Sales - Quarterly
Highest at Rs 244.44 cr and Grown
each quarter in the last five quartersMOJO Watch
Near term sales trend is very positive
Net Sales (Rs Cr)
Net Sales - Quarterly
At Rs 244.44 cr has Grown at 63.43%
Year on Year (YoY)MOJO Watch
Near term sales trend is very positive
Net Sales (Rs Cr)
Operating Profit to Interest - Quarterly
Highest at 5.84 times
in the last five quartersMOJO Watch
The company's ability to manage interest payments is improving
Operating Profit to Interest
Operating Profit (PBDIT) - Quarterly
Highest at Rs 9.76 cr.
in the last five quartersMOJO Watch
Near term Operating Profit trend is positive
Operating Profit (Rs Cr)
Profit Before Tax less Other Income (PBT) - Quarterly
Highest at Rs 7.33 cr.
in the last five quartersMOJO Watch
Near term PBT trend is positive
PBT less Other Income (Rs Cr)
Profit After Tax (PAT) - Quarterly
Highest at Rs 7.45 cr.
in the last five quartersMOJO Watch
Near term PAT trend is positive
PAT (Rs Cr)
Earnings per Share (EPS) - Quarterly
Highest at Rs 0.86
in the last five quartersMOJO Watch
Increasing profitability; company has created higher earnings for shareholders
EPS (Rs)
Here's what is not working for Rathi Steel
Debt-Equity Ratio - Half Yearly
Highest at 0.30 times
in the last five half yearly periodsMOJO Watch
The company is borrowing more to fund its operations; it's liquidity situation may be stressed
Debt-Equity Ratio
Debtors Turnover Ratio- Half Yearly
Lowest at 12.66 times
in the last five half yearly periodsMOJO Watch
Company's pace of settling its Debtors has slowed
Debtors Turnover Ratio
