Check Before You Invest : Tamilnadu Steel Tubes Ltd

Q: Which industry/sub-sector does Tamilnadu Steel Tubes Ltd belong to?

Tamilnadu Steel Tubes Ltd belongs to the Metals & Mining sector, operating specifically within the Steel & Iron Products segment.

Q: Is Tamilnadu Steel Tubes Ltd a good quality company?

Tamilnadu Steel Tubes Ltd is a quality company, based on a 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: Is Tamilnadu Steel Tubes Ltd undervalued or overvalued?

Tamilnadu Steel Tubes Ltd appears Somewhat Undervalued, as its key valuation ratios are lower 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. Price to Earnings, Current: 235.98, Historic Median: 20.88. Price to Book, Current: 1.06, Historic Median: 0.79. Price to Sales, Current: 0.12, Historic Median: 0.10. EV to EBITDA, Current: 13.24, Historic Median: 14.39

Q: Is Tamilnadu Steel Tubes Ltd a good buy now?

Tamilnadu Steel Tubes Ltd is not a good buy now, based on weak price trend analysis suggesting prices may fall. However, you need to check its quality and valuation before making a decision

Q: Revenue growth of Tamilnadu Steel Tubes Ltd?

Tamilnadu Steel Tubes Ltd revenue growth is 3.3% for FY-2025, which is below its 5-year CAGR of 7.75%, indicating slower growth.

Q: Gross Profit margin of Tamilnadu Steel Tubes Ltd?

Tamilnadu Steel Tubes Ltd Gross profit margin which is the profit after deduction of direct costs, is 0.6% for FY-2025, which is below its 5-year median of 0.8%, indicating decreasing margins.

Q: Operating Profit Margin of Tamilnadu Steel Tubes Ltd?

Tamilnadu Steel Tubes Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 1.29% for FY-2025, which is above its 5-year median of 0.72% indicating increasing margins.

Q: Net Profit Margin of Tamilnadu Steel Tubes Ltd?

Tamilnadu Steel Tubes Ltd Net Profit Margin is 0.13% for FY-2025, is below its 5-year median of 0.4%, indicating decreasing margins. Profitability Metrics. Gross Profit Margin (%), Current: 0.6, Historic Median: 0.8. Operating Profit Margin (%), Current: 1.29, Historic Median: 0.72. Net Profit Margin (%), Current: 0.13, Historic Median: 0.4

Q: Return on Asset of Tamilnadu Steel Tubes Ltd?

Tamilnadu Steel Tubes Ltd Return on Asset is 0.29%, which is below its 5-year historical median of 0.88%, indicating deteriorated asset utilization efficiency.

Q: Return on capital employed (ROCE) of Tamilnadu Steel Tubes Ltd?

Tamilnadu Steel Tubes Ltd Return on capital employed is 4.51% for FY-2025, which is in line with its 5-year historical median of 4.51%. The current ROCE is below its estimated weighted average cost of capital (WACC) of 14%, indicating value preservation.

Check Before You Invest : Tamilnadu Steel Tubes Ltd

Snapshot

Q.1 Which industry/sub-sector does Tamilnadu Steel Tubes Ltd belong to?

Tamilnadu Steel Tubes Ltd belongs to the Metals & Mining sector, operating specifically within the Steel & Iron Products segment.

Q.2 Is Tamilnadu Steel Tubes Ltd a good quality company?

Tamilnadu Steel Tubes Ltd is a quality company, based on a 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 Tamilnadu Steel Tubes Ltd undervalued or overvalued?

Tamilnadu Steel Tubes Ltd appears Somewhat Undervalued, as its key valuation ratios are lower 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	235.98	20.88
Price to Book	1.06	0.79
Price to Sales	0.12	0.10
EV to EBITDA	13.24	14.39

Q.4 Is Tamilnadu Steel Tubes Ltd a good buy now?

Tamilnadu Steel Tubes Ltd is not a good buy now, based on weak price trend analysis suggesting prices may fall. 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 Tamilnadu Steel Tubes Ltd?

Tamilnadu Steel Tubes Ltd revenue growth is 3.3% for FY-2025, which is below its 5-year CAGR of 7.75%, indicating slower growth.

Q.2 Gross Profit margin of Tamilnadu Steel Tubes Ltd?

Tamilnadu Steel Tubes Ltd Gross profit margin which is the profit after deduction of direct costs, is 0.6% for FY-2025, which is below its 5-year median of 0.8%, indicating decreasing margins.

Q.3 Operating Profit Margin of Tamilnadu Steel Tubes Ltd?

Tamilnadu Steel Tubes Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 1.29% for FY-2025, which is above its 5-year median of 0.72% indicating increasing margins.

Q.4 Net Profit Margin of Tamilnadu Steel Tubes Ltd?

Tamilnadu Steel Tubes Ltd Net Profit Margin is 0.13% for FY-2025, is below its 5-year median of 0.4%, indicating decreasing margins.

	Current Level	5-year Historic Median
Gross Profit Margin (%)	0.6	0.8
Operating Profit Margin (%)	1.29	0.72
Net Profit Margin (%)	0.13	0.4

B: Does the business utilize capital efficiently?

Q.5 Return on Asset of Tamilnadu Steel Tubes Ltd?

Tamilnadu Steel Tubes Ltd Return on Asset is 0.29%, which is below its 5-year historical median of 0.88%, indicating deteriorated asset utilization efficiency.

Q.6 Return on capital employed (ROCE) of Tamilnadu Steel Tubes Ltd?

Tamilnadu Steel Tubes Ltd Return on capital employed is 4.51% for FY-2025, which is in line with its 5-year historical median of 4.51%. The current ROCE is below its estimated weighted average cost of capital (WACC) of 14%, indicating value preservation.

Q.7 Return on Equity (ROE) of Tamilnadu Steel Tubes Ltd?

Tamilnadu Steel Tubes Ltd Return on equity is 1.05% for FY-2025, which is below its 5-year historical median of 3.02%, indicating the business is making worse use of its shareholders capital.

Q.8 Cash conversion cycle of Tamilnadu Steel Tubes Ltd?

Tamilnadu Steel Tubes Ltd Cash conversion cycle is 133 days, in line with its 5-year historical median of 133 days, indicating stable working capital management. However, you need to compare this with its peers in the industry.

	Current Level	5-year Historic Median
Asset Turnover (x)	2.16	2.22
ROE (%)	1.05	3.02
ROCE (%)	4.51	4.51
Cash Conversion Cycle	133 days	133 days

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

Q.9 Debt to Equity ratio of Tamilnadu Steel Tubes Ltd?

Tamilnadu Steel Tubes Ltd Debt-to-Equity ratio is 0.93, which is above the industry average of 0.31, indicating higher debt levels in the industry.

Q.10 Debt to cash flow from operations of Tamilnadu Steel Tubes Ltd?

Tamilnadu Steel Tubes Ltd Debt to cash flow from operations is 55.24, which is at a unhealthy level.

Ownership & governance

D: Promoter shareholding and pledge status of Tamilnadu Steel Tubes Ltd?

Q.1 Promoter shareholding and pledge status of Tamilnadu Steel Tubes Ltd?

Promoters hold 13.61% of the Tamilnadu Steel Tubes Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

E: How does Tamilnadu Steel Tubes Ltd performance compare with that of its Peers?

Q.1 Revenue growth of Tamilnadu Steel Tubes Ltd vs industry peers?

Tamilnadu Steel Tubes Ltd revenue CAGR is 7.75%, compared to the industry median CAGR of 7.56%, indicating stable growth and maintaining its market share.

Profit Metrics

	Current Level	5-year Industry Median
Revenue Growth (%)	3.3	7.6
Gross Profit Growth (%)	9.3	19.2
Operating Profit Growth (%)	86.3	13.8
Net Profit Growth (%)	-64.3	24.6

Operating Efficiency

	Current Level	5-year Industry Median
Asset Turnover (x)	2.16	1.27
ROE (%)	1.05	8.04
ROCE (%)	4.51	11.28
Cash Conversion Cycle (days)	133.49	72

Valuation & price assessment

Q.1 Stock return of Tamilnadu Steel Tubes Ltd over the last decade?

Over the last 9 year(s), the stock has delivered a CAGR of -9.7% based on the current price.

	9Y	5Y	3Y	1Y
Share Price CAGR	-9.7%	12.6%	25.5%	34.2%

Q.2 Valuation ratios of Tamilnadu Steel Tubes Ltd vs historical?

The current P/E ratio of 235.98 is higher than its historical median of 20.88, indicating that the stock is trading above 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	235.98	20.88	17.36
Price to Book	1.06	0.79	1.63
Price to Sales	0.12	0.10	0.74
EV to EBITDA	13.24	14.39	10.05

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Check Before You Invest : Tamilnadu Steel Tubes Ltd

Snapshot

Performance Analysis

Ownership & governance

Peer comparison (industry-wise, mcap)

Profit Metrics

Operating Efficiency

Valuation & price assessment

Check more companies

Check trending companies

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