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Check Before You Invest : Ratnamani Metals & Tubes Ltd

BSE: 520111 NSE: RATNAMANI ISIN: INE703B01027
  |   Sector:  Metals & Mining   |   Industry:  Steel & Iron Products

Snapshot

Q.1 Which industry/sub-sector does Ratnamani Metals & Tubes Ltd belong to?
Ratnamani Metals & Tubes Ltd belongs to the Metals & Mining sector, operating specifically within the Steel & Iron Products segment.
Q.2 Is Ratnamani Metals & Tubes Ltd a good quality company?
Ratnamani Metals & Tubes Ltd is a good quality company, based on a consistently good multi-year financial track record.

This assessment is based on company’s performance on Revenue growth, ROCE, Equity and Assets, key margin ratios, cash conversion cycle, and debt to cash flow from operations and how it compares with its long term averages.

Q.3 Is Ratnamani Metals & Tubes Ltd undervalued or overvalued?
Ratnamani Metals & Tubes Ltd appears Overvalued, as its key valuation ratios are higher than their past averages.

Based on the industry it operates in, the relevant valuation ratios include one of the following, P/E, P/BV, P/Sales, EV/EBITDA or a combination of two or more.

Valuation Ratios Current 5-year
Historic Median
Price to Earnings 35.54 34.92
Price to Book 5.07 5.65
Price to Sales 4.6 4.01
EV to EBITDA 22.45 22.20
Q.4 Is Ratnamani Metals & Tubes Ltd a good buy now?
Ratnamani Metals & Tubes Ltd is a good buy now, based on strong price trend analysis suggesting prices may rise. However, you need to check its quality and valuation before making a decision

Performance Analysis

We have analysed the performance of the company on the following:

  • How has it performed on generating Profits?

    By checking its Revenue growth, Gross, Operating and Net Margins compared to its last 5-year median.

  • How efficiently has it utilized Capital?

    By checking its ROCE, ROA, ROE and its Cash Conversion Cycle.

  • How is it managing its Debt?

    By checking its Debt to Equity and Cash Flow from Operations.

A: What are the trends in revenue and profit margins?

Q.1 Revenue growth of Ratnamani Metals & Tubes Ltd?
Ratnamani Metals & Tubes Ltd revenue growth is 1.4% for FY-2025, which is below its 5-year CAGR of 13.53%, indicating slower growth.

Q.2 Gross Profit margin of Ratnamani Metals & Tubes Ltd?
Ratnamani Metals & Tubes Ltd Gross profit margin which is the profit after deduction of direct costs, is 17.7% for FY-2025, which is in line with its 5-year median of 17.7%, indicating stable margins.

Q.3 Operating Profit Margin of Ratnamani Metals & Tubes Ltd?
Ratnamani Metals & Tubes Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 16.59% for FY-2025, which is in line with its 5-year median of 17.36% indicating stable margins.

Q.4 Net Profit Margin of Ratnamani Metals & Tubes Ltd?
Ratnamani Metals & Tubes Ltd Net Profit Margin is 11.85% for FY-2025, is in line with its 5-year median of 11.85%, indicating stable margins.
Current Level 5-year
Historic Median
Gross Profit Margin (%) 17.7 17.7
Operating Profit Margin (%) 16.59 17.36
Net Profit Margin (%) 11.85 11.85

B: Does the business utilize capital efficiently?

Q.5 Return on Asset of Ratnamani Metals & Tubes Ltd?
Ratnamani Metals & Tubes Ltd Return on Asset is 13.77%, which is in line with its 5-year historical median of 13.77%, indicating stable asset utilization efficiency.

Q.6 Return on capital employed (ROCE) of Ratnamani Metals & Tubes Ltd?
Ratnamani Metals & Tubes Ltd Return on capital employed is 22.95% for FY-2025, which is in line with its 5-year historical median of 22.95%. The current ROCE is above its estimated weighted average cost of capital (WACC) of 13.5%, indicating value creation.

Q.7 Return on Equity (ROE) of Ratnamani Metals & Tubes Ltd?
Ratnamani Metals & Tubes Ltd Return on equity is 16.71% for FY-2025, which is in line with its 5-year historical median of 16.71%, indicating the business is making similar use of its shareholders capital.

Q.8 Cash conversion cycle of Ratnamani Metals & Tubes Ltd?
Ratnamani Metals & Tubes Ltd Cash conversion cycle is 146 days, above its 5-year historical median of 124 days, indicating deteriorated working capital management. However, you need to compare this with its peers in the industry.
Current Level 5-year
Historic Median
Asset Turnover (x) 1.17 1.17
ROE (%) 16.71 16.71
ROCE (%) 22.95 22.95
Cash Conversion Cycle 146 days 124 days

C: How much debt does the business have and is it at a sustainable level?

Q.9 Debt to Equity ratio of Ratnamani Metals & Tubes Ltd?
Ratnamani Metals & Tubes Ltd Debt-to-Equity ratio is 0.00, which is lower the industry average of 0.31, indicating lower debt levels in the industry.

Q.10 Debt to cash flow from operations of Ratnamani Metals & Tubes Ltd?
Ratnamani Metals & Tubes Ltd Debt to cash flow from operations is 0, which is at a healthy level.

Ownership & governance

D: Promoter shareholding and pledge status of Ratnamani Metals & Tubes Ltd?

Q.1 Promoter shareholding and pledge status of Ratnamani Metals & Tubes Ltd?
Promoters hold 59.77% of the Ratnamani Metals & Tubes Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

E: How does Ratnamani Metals & Tubes Ltd performance compare with that of its Peers?

Q.1 Revenue growth of Ratnamani Metals & Tubes Ltd vs industry peers?
Ratnamani Metals & Tubes Ltd revenue CAGR is 13.53%, compared to the industry median CAGR of 7.56%, indicating faster growth and gaining its market share.
Profit Metrics
Current Level 5-year
Industry Median
Revenue Growth (%) 1.4 7.6
Gross Profit Growth (%) -2.6 19.2
Operating Profit Growth (%) -7.4 13.8
Net Profit Growth (%) -5.1 24.6
Operating Efficiency
Current Level 5-year
Industry Median
Asset Turnover (x) 1.17 1.27
ROE (%) 16.71 8.04
ROCE (%) 22.95 11.28
Cash Conversion Cycle (days) 146.44 72

Valuation & price assessment

Q.1 Stock return of Ratnamani Metals & Tubes Ltd over the last decade?
Over the last 9 year(s), the stock has delivered a CAGR of 24.3% based on the current price.
9Y 5Y 3Y 1Y
Share Price
CAGR
24.3% 17.6% 6.2% 9.4%
Q.2 Valuation ratios of Ratnamani Metals & Tubes Ltd vs historical?
The current P/E ratio of 35.54 is in line with than its historical median of 34.92, indicating that the stock is trading near its historical average valuation.
Q.3 How do the current valuation ratios compare with 5-year historical median and industry numbers?
Valuation Ratios Current 5-year
Historic Median
5-year
Industry Median
Price to Earnings 35.54 34.92 17.36
Price to Book 5.07 5.65 1.63
Price to Sales 4.6 4.01 0.74
EV to EBITDA 22.45 22.20 10.05

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