Rathi Steel & Power Ltd - Stock Valuation and Financial Performance

BSE: 504903 | NSE: | Steel & Iron Products | Small Cap

Rathi Steel & Power Share Price

60.63 2.88 4.99%
as on 28-Mar'24 16:01

DeciZen - make an informed investing decision on Rathi Steel & Power

Overall Rating
M-Cap below 500cr. High Risk from low Liquidity Bole Toh

1. Quality

2. Valuation

Overvalued

3. Price Trend

Rathi Steel & Power stock performance -

mw4me loader
P/E Ratio (SA):
5.88
Market Cap:
491.2 Cr.
52-wk low:
3.2
52-wk high:
62.5

Is Rathi Steel & Power Ltd an attractive stock to invest in?

1. Is Rathi Steel & Power Ltd a good quality company?

Past 10 year’s financial track record analysis by Moneyworks4me indicates that Rathi Steel & Power Ltd is a below average quality company.

2. Is Rathi Steel & Power Ltd undervalued or overvalued?

The key valuation ratios of Rathi Steel & Power Ltd's currently when compared to its past seem to suggest it is in the Overvalued zone.

3. Is Rathi Steel & Power Ltd a good buy now?

The Price Trend analysis by MoneyWorks4Me indicates it is Weak which suggest that the price of Rathi Steel & Power Ltd is likely to Fall in the short term. However, please check the rating on Quality and Valuation before investing.

10 Year X-Ray of Rathi Steel & Power:

Analysis of Financial Track Record

Data adjusted to bonus, split, extra-ordinary income, rights issue and change in financial year end
Data adjusted to bonus, split, extra-ordinary income, rights issue and change in financial year end

Data adjusted to bonus, split, extra-ordinary income, rights issue and change in financial year end.

Financial track record gives insight into the company's performance on key parameters over the past ten years. MoneyWorks4me’s proprietary colour codes make it easy for retail investors to gauge the company’s past performance.
Rathi Steel & Power Ltd has not performed well majority of the past ten years indicating its past ten year financial track record is not good

Value Creation

Value Creation Index Colour Code Guide

Mar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22Mar'23TTM
ROCE % -8.3%-7.9%-15%-10.7%-12.5%-16.1%-9.3%25%0.7%41.5%-
Value Creation
Index
-1.6NANANANANANA0.8NA2.0-

Growth Parameters

Growth Parameters Colour Code Guide

Sales 46666959738235035037.5427543727541
Sales YoY Gr.-43.7%-10.7%-36.1%-8.3%0.1%-89.3%1,038.6%27%33.9%-
Adj EPS -23.9-24.7-29.1-20.2-19.5-16.3-8.218.1-2.6119.8
YoY Gr.-NANANANANANANA-114.1%NA-
BVPS (₹) 1.3-19.1-48.1-68.4-106.1-132.7-140.9-60.8-72.5-22.7-1.6
Adj Net
Profit
-74.9-77.5-91.1-63.4-61.1-50.9-25.656.7-834.584
Cash Flow from Ops. -117-18.1-48.64.8-2.232.9196-11.8105-
Debt/CF from Ops. -4.2-30.3-12.6130.2-297.3211.1222.82-24.41.2-

CAGR

CAGR Colour Code Guide

9 Years 5 Years 3 Years 1 Years
Sales 5.1%15.7%168.5%33.9%
Adj EPS NANANANA
BVPS-238%NANANA
Share Price 34.3% 95.9% 206.8% 2787.1%

Key Financial Parameters

Performance Ratio Colour Code Guide

Mar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22Mar'23TTM
Return on
Equity %
-126.3-598156.946.927.115.66.7-21.15-33.9-80.8
Op. Profit
Mgn %
-9.80.6-8.4-7.1-3-13.8-206.33.15.24.44.9
Net Profit
Mgn %
-16.1-11.6-15.3-16.6-17.5-14.5-68.313.3-1.54.815.4
Debt to
Equity
13.4-38-5.8-3.7-2.2-1.7-1.6-2.7-1.6-4.8-
Working Cap
Days
1571251411951698644845383019
Cash Conv.
Cycle
123931141669515140-6-2-5-29

Recent Performance Summary

Sales growth is growing at healthy rate in last 3 years 168.51%

Return on Equity is Poor

Net Profit has been subdued in last 3 years 0.00%

Sales growth is not so good in last 4 quarters at -7.97%

Latest Financials - Rathi Steel & Power Ltd.

Standalone Consolidated
TTM EPS (₹) 9.8 -
TTM Sales (₹ Cr.) 541 -
BVPS (₹.) -1.6 -
Reserves (₹ Cr.) -99 -
P/BV -35.49 -
PE 5.88 -
From the Market
52 Week Low / High (₹) 3.15 / 62.48
All Time Low / High (₹) 0.85 / 261.50
Market Cap (₹ Cr.) 491
Equity (₹ Cr.) 85.1
Face Value (₹) 10
Industry PE 24.8

Management X-Ray of Rathi Steel & Power:

Shareholding Pattern

Promoter's Holding & Share Pledging

Pledged *100.00100.00100.00100.00100.00100.00100.00100.00100.00100.00
* Pledged shares as % of Promoter's holding (%)

Event Update

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Analyst's Notes

Key Ratios of Rathi Steel & Power

Adj EPS (Rs.)

Sales (Cr.)

ROE (%)

ROCE (%)

Profit And Loss

(All Figures are in Crores.)
PARTICULARSMar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22Mar'23
Sales46666959738235035038427543727
Operating Expenses 511665648409360399115414515695
Manufacturing Costs53557363547136395691
Material Costs44760156533529731367366450588
Employee Cost 64446107567
Other Costs 5567455339
Operating Profit -464-50-27-10-48-77132832
Operating Profit Margin (%) -9.8%0.6%-8.4%-7.1%-3.0%-13.8%-206.0%3.1%5.2%4.4%
Other Income 2314920621031
Interest 49501817140271312
Depreciation 9322423198916138
Exceptional Items 0-700-82-460190-4175
Profit Before Tax -102-82-91-63-116-83-26190-3687
Tax -28000200000
Profit After Tax -74-82-91-63-118-83-26190-3687
PAT Margin (%) -16.0%-12.3%-15.2%-16.6%-33.8%-23.8%-68.3%44.5%-6.7%12.0%
Adjusted EPS (₹)-23.7-26.3-29.1-20.2-37.8-26.6-8.260.7-11.727.9
Dividend Payout Ratio (%)0%0%0%0%0%0%0%0%0%0%

Balance Sheet

(All Figures are in Crores.)
PARTICULARSMar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22Mar'23

Equity and Liabilities

Shareholders Fund 38-13-104-167-285-368-394-143-180-24
Share Capital 64777777777777777777
Reserves -25-89-180-243-362-445-471-220-256-100
Minority Interest0000000000
Debt48251361362664264264239127877
Long Term Debt39638543745146446446430920563
Short Term Debt87128177175178178178827314
Trade Payables1045417262835303658
Others Liabilities 56-30-16-30-24-14-7-1120
Total Liabilities 536552485460353277270270123132

Fixed Assets

Gross Block450453456459460463466450182189
Accumulated Depreciation130162186209228236244242114123
Net Fixed Assets3192902702502322272222086766
CWIP 7000000000
Investments 0000000000
Inventories4990857913138112535
Trade Receivables1151421041053216121978
Cash Equivalents 4634323311
Others Assets43232122731824302321
Total Assets 536552485460353277270270123132

Cash Flow

(All Figures are in Crores.)
PARTICULARSMar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22Mar'23
Cash Flow From Operating Activity -117-18-495-233196-12105
PBT -102-82-91-63-116-37-260512
Adjustment 557839392988202619
Changes in Working Capital -70-13329877820-13-1-1
Tax Paid 0000-200000
Cash Flow From Investing Activity -15-3-3-1-3-21128-6
Capex -4-3-4-3-3-4-3-3127-7
Net Investments 1000000000
Others 2810200411
Cash Flow From Financing Activity 1141549-2200-198-118-100
Net Proceeds from Shares 333100000000
Net Proceeds from Borrowing 2101616141300-610-8
Interest Paid -42-41-16-16-1400-7-13-12
Dividend Paid 0000000000
Others -869490300-130-105-79
Net Cash Flow -32-20-1010-10
PARTICULARSMar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22Mar'23
Ratios
ROE (%)-180.98N/AN/AN/AN/AN/AN/AN/AN/AN/A
ROCE (%)-10.82N/AN/AN/AN/AN/AN/AN/AN/AN/A
Asset Turnover Ratio0.871.241.170.820.861.110.141.582.765.7
PAT to CFO Conversion(x)N/AN/AN/AN/AN/AN/AN/A1.03N/A1.21
Working Capital Days
Receivable Days9370759871251401394
Inventory Days36385377481310281215
Payable Days71716112631171332729

Rathi Steel & Power Ltd Stock News

Rathi Steel & Power Ltd FAQs

Company share prices are keep on changing according to the market conditions. The closing price of Rathi Steel & Power on 28-Mar-2024 16:01 is ₹60.63.
Market capitalization or market cap is determined by multiplying the current market price of a company's shares with the total number of shares outstanding. As of 28-Mar-2024 16:01 the market cap of Rathi Steel & Power stood at ₹491.2.
The latest P/E ratio of Rathi Steel & Power as of 28-Mar-2024 16:01 is 5.88.
The latest P/B ratio of Rathi Steel & Power as of 28-Mar-2024 16:01 is -35.49.
The 52-week high of Rathi Steel & Power is ₹62.48 and the 52-week low is ₹3.15.
The TTM revenue is Trailing Twelve Months sales. The TTM revenue/sales of Rathi Steel & Power is ₹541.2 ( Cr.) .

About Rathi Steel & Power Ltd

The Rathi Group owes its presence in the steel industry to the farsightedness of late Seth Gordhan Das Rathi. He setup a small re-rolling mill in Delhi in the early 40’s. Since then the Group has grown continuously. Gordhan Das Rathi’s commitment to quality, integrity, honesty, and growth is being followed till date.   
                     
Rathi Steel & Power is headed by Punam Chand Rathi who is well known in the Steel Industry with experience of over five decades in Steel Melting and Rolling/Re-Rolling. Their Company is a profit making, dividend paying and listed company. They are engaged in manufacturing of Rebars and Wire Rods which are broadly categorized as the Long Products in the Steel Industry. The main application of their products currently being manufactured, is in the Construction Industry. Wire rods, another product being currently manufactured by us are further drawn into wires, which has various industrial applications. 

The Rathi Group was amongst the first to adopt the technology of Tor-Steel in the country from Tor Istag Steel Corporation, Luxemberg, through the Tor-Steel Research Foundation in India. The Company’s latest product Thermo-Mechanically Treated (TMT) Steel has gained popularity in short span of time in the construction Industry. The state-of-the-art patented “Thermex” water quenching process makes the Steel earthquake resistant. We are one of the exclusive licencees for the use of “Thermex” technology in Northern India. 

The company is having a very strong and committed network of dealers, consisting of nearly 800 retail outlets spread all over Northern India. Such a broad dealer network enables us to ensure quantitative as well as qualitative up-gradation. 

They are constantly making every possible effort to upgrade their technology and improve their product quality to retain and enhance our market share. Their Company is conscious of the interest of Their stakeholders i.e. shareholders, the Government, employees and of our customers. 

They are also in the process of setting up a backward integration project at Orissa (Orissa Project) to manufacture Steel Billets through DRI-captive power-CCM route.

Ghaziabad Plant

The Ghaziabad Plant consists of Steel Rolling Mills having an installed capacity of 1,25,000 TPA, a high speed No Twist Block Wire Rod Mill and Steel Melting Shop with 40,000 TPA installed capacity comprising of Induction Furnace, AOD Converter, Continuous Casting machine and other facilities for manufacturing high end value- added stainless steel and alloy steel products. We intend to further add value to the products being manufactured by us by converting them into bright bars, wires, flanges etc.
 
Orissa Project

Considering the Orissa Government’s aggressive efforts for rapid industrialization of the State and future industrial growth of the Country, the Company has planned to setup an integrated Steel Project at village Potapali-Sikirdi, district Sambalpur (Orissa). The Company has already entered into an MOU with the Orissa Government for setting up the project. The project comprises of facilities for manufacture of 300,000 TPA Sponge Iron, a Steel Melting Shop of 5,00,000 TPA, Pig Iron of 200,000 TPA and captive Power Plant of 50 MW, to be implemented in phases, as per detailed Techno-Economic Feasibility Report submitted to the Orissa Government. The progress on the first phase of the project at a project outlay of Rs.220.50 crore, is going on at full swing and is expected to be completed by September 2006
 
Indore Plant 

The company intends to make the Orissa plant a primary source of raw material for the existing rolling mills of the Punam Chand Rathi Group and also for the future rolling mill plants that we intend to setup all across the country. A chain of value addition from iron ore, sponge iron, captive power, steel making at the Orissa plant, to various rolling mills across the country will lead to tremendous synergy and will enable us to service our customers better by providing high quality products at competitive prices. 

The promoters have also promoted a new company viz. Rathi Iron And Steel Industries Limited who has installed a Steel Rolling Mill project having capacity of 50,000 TPA at Pithampur Industrial Area, Distt. Dhar (M.P.). The production facilities are similar to that of Ghaziabad project and are well equipped with the latest technologies for producing quality CTD and TMT bars. The commercial production has already taken place and the products are being well accepted in the market.

Product range of the company includes

  • CTD & TMT Steel High Strength Reinforcement Bars
  • Wire Rods

Achievements/ recognition:-

  • It is an ISO 9001 certified company

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