Check Before You Invest : Riddhi Steel & Tube Ltd

Snapshot

Q.1 Which industry/sub-sector does Riddhi Steel & Tube Ltd belong to?

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

Q.2 Is Riddhi Steel & Tube Ltd a good quality company?

Riddhi Steel & Tube Ltd is a weak quality company, based on a inconsistent 10-year financial track record.

Q.3 Is Riddhi Steel & Tube Ltd undervalued or overvalued?

Riddhi Steel & Tube Ltd appears Overvalued, as its key valuation ratios are above with their past averages.

Q.4 Is Riddhi Steel & Tube Ltd a good buy now?

Riddhi Steel & Tube 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

Q.1 Revenue growth of Riddhi Steel & Tube Ltd?

Riddhi Steel & Tube Ltd revenue growth is 19.4% for FY-2025, which is above its 5-year CAGR of 6.04%, indicating faster growth.

Q.2 Return on capital employed (ROCE) of Riddhi Steel & Tube Ltd?

Riddhi Steel & Tube Ltd Return on capital employed is 11.58% for FY-2025, which is above its 5-year historical median of 9.47%. The current ROCE is below its estimated weighted average cost of capital (WACC) of 14%, indicating value preservation.

Q.3 Return on Asset of Riddhi Steel & Tube Ltd?

Riddhi Steel & Tube Ltd Return on Asset is 3.82%, which is above its 5-year historical median of 1.82%, indicating improved asset utilization efficiency.

Q.4 Return on Equity (ROE) of Riddhi Steel & Tube Ltd?

Riddhi Steel & Tube Ltd Return on equity is 12.71% for FY-2025, which is above its 5-year historical median of 6.7%, indicating the business is making better use of its shareholders capital.

Q.5 Cash conversion cycle of Riddhi Steel & Tube Ltd?

Riddhi Steel & Tube Ltd Cash conversion cycle is 129 days, in line with its 5-year historical median of 129 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	1.97	1.73
ROE	12.71	6.7
ROCE	11.58	9.47
Cash Conversion Cycle	129 days	129 days

Q.6 Gross Profit margin of Riddhi Steel & Tube Ltd?

Riddhi Steel & Tube Ltd Gross profit margin which is the profit after deduction of direct costs, is 3.4% for FY-2025, which is above its 5-year median of 2.6%, indicating increasing margins.

Q.7 Operating Profit Margin of Riddhi Steel & Tube Ltd?

Riddhi Steel & Tube Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 5.7% for FY-2025, which is in line with its 5-year median of 5.67% indicating stable margins.

Q.8 Net Profit Margin of Riddhi Steel & Tube Ltd?

Riddhi Steel & Tube Ltd Net Profit Margin is 1.94% for FY-2025, is above with its 5-year median of 1.12%, indicating increasing margins.

	Current Level	5-year Historic Median
Gross Profit Margin	3.4	2.6
Operating Profit Margin	5.7	5.67
Net Profit Margin	1.94	1.12

Q.9 Debt to Equity ratio of Riddhi Steel & Tube Ltd?

Riddhi Steel & Tube Ltd Debt-to-Equity ratio is 2.09, which is above with the industry average of 0.35, indicating higher debt levels in the industry.

Q.10 Debt to cash flow from operations of Riddhi Steel & Tube Ltd?

Riddhi Steel & Tube Ltd Debt to cash flow from operations is 10.22, which is at a unhealthy level.

Ownership & governance

Q.1 Promoter shareholding and pledge status of Riddhi Steel & Tube Ltd?

Promoters hold 74.61% of the Riddhi Steel & Tube Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

Q.1 Revenue growth of Riddhi Steel & Tube Ltd vs industry peers?

Riddhi Steel & Tube Ltd revenue CAGR is 6.04%, compared to the industry median CAGR of 11.40%, indicating slower growth and losing its market share.

Profit Metrics

	Current Level	5-year Industry Median
Revenue Growth	19.4	11.4
Gross Profit Growth	30	19.8
Operating Profit Growth	15.8	13.9
Net Profit Growth	60	25.2

Operating Efficiency

	Current Level	5-year Industry Median
Asset Turnover	1.97	1.33
ROE	12.71	9.64
ROCE	11.58	12.04
Cash Conversion Cycle (days)	128.97	80

Valuation & price assessment

Q.1 Stock return of Riddhi Steel & Tube Ltd over the last decade?

Over the last 5 year(s), the stock has delivered a CAGR of 80.47% based on the current price.

Q.2 What return has the stock given over the last decade?

	9Y	5Y	3Y	1Y
Share Price CAGR	-	80.5%	88.6%	257.1%

Q.3 Valuation ratios of Riddhi Steel & Tube Ltd vs historical?

The current P/E is higher that its historical median.

Q.4 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	34.42	15.24	17.26
Price to Book	3.94	0.79	1.63
Price to Sales	0.67	0.13	0.74
EV to EBITDA	15.25	8.15	10.03

Check more companies

1. Welspun Corp

2. Shyam Metalics&Ener

3. Sarda Energy&Min.

4. Godawari Power & Isp

5. Gallantt Ispat

6. Ratnamani Metals

7. Jindal Saw

8. Usha Martin

9. NMDC Steel

10. Jayaswal Neco Inds

Check trending companies

1. JSW Infrastructure Ltd.

2. Aditya Birla Fashion and Retail Ltd.

3. Zydus Lifesciences Ltd.

4. Techno Electric & Engineering Company Ltd.

5. Cello World Ltd.