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Ratnamani Metals & Tubes Ltd Stock Analysis

Mid Cap
Evaluated by 1058 users | BSE: 520111 | NSE: RATNAMANI |
Steel & Iron Products

Since its inception in 1983, Ratnamani Metals & Tubes Ltd. is just not only manufacturing products but also delighting customers through its unmatched quality.

Over the span of time, Ratnamani has grown to...

Analysis of Financial Track Record

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.
Ratnamani Metals & Tubes Ltd has performed well in some of the past ten years indicating its past ten year financial track record is somewhat good
Value Creation
 Mar'11Mar'12Mar'13Mar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20
Return on Capital Employed 12.63%17.86%18.33%19.21%19.03%17%13.18%11.61%16.38%17.05%
Growth Parameters
Growth Parameters Colour Code Guide
Net Sales (Rs. Cr.) 8141,2221,2011,3531,6871,7181,4121,7672,7552,583
Y-o-Y Gr. Rt.-50.2%-1.7%12.6%24.7%1.8%-17.8%25.2%55.9%-6.2%
Adjusted EPS (Rs.) 15.9726.6429.8531.9935.1535.7530.8830.4949.9361.57
Y-o-Y Gr. Rt.-66.8%12.1%7.2%9.9%1.7%-13.6%-1.3%63.8%23.3%
Book Value per Share (Rs.) 93.79114.3138.91163.91194.4223.44254.01279.92325.69365.55
Adjusted Net Profit 74.1124139149164167144142233288
Net Op. Cash Flow (Rs. Cr.) 91.986.1236160146156135-72.9554215
Debt to Cash Flow from Ops 2.783.370.570.510.270.150-1.080.121.17
Standalone financials take only the parent company into account while consolidated financials take into account financials of the parent company as well as of all its subsidiaries. In most companies consolidated financials should be used for analysis.
Ratnamani Metals & Tubes Ltd. should be analysed on a Standalone basis
CAGR
CAGR Colour Code Guide
  9 yrs 5 yrs 3 yrs 1 yr
Net Sales 13.7%8.9%22.3%-6.2%
Adjusted EPS 16.2%11.9%25.9%23.3%
Book Value per Share 16.313.512.912.2
Share Price 38% 29.4% 24% 108.3%
Key Financial Parameter
Performance Ratio Colour Code Guide
 Mar'11Mar'12Mar'13Mar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20
Return on Equity (%) 18.4825.523.521.1419.6117.1112.9411.4216.4917.82
Operating Profit Margin (%) 18.2517.1720.1119.6517.7416.7818.231514.7516.4
Net Profit Margin (%) 9.110.1211.5311.049.749.7210.228.078.4711.14
Debt to Equity 0.590.550.210.110.040.0200.060.040.15
Working Capital Days 215158153143131146201213153169
Cash Conversion Cycle 10895107877894142157107112
Entity Percentage Holding
Promoters 60.16%
Institutions 25.47%
Non-Institutions 14.36%
Pledged *0.000.000.000.000.000.000.000.000.000.00
* Pledged shares as % of Promoter's holding (%)

MoneyWorks4Me analysed the past 10-year performance of Ratnamani Metals & Tubes Ltd and arrived at the following conclusion:

Past 10 year's financial track record indicates that Ratnamani Metals & Tubes Ltd is a average quality company. However, for specific investment actions please connect with your investment advisor.

The 5-year analysis of Ratnamani Metals & Tubes Ltd's performance infers:

Ratnamani Metals & Tubes Ltd earnings have grown by 11.9%, whereas share price has appreciated 29.4% CAGR over the past five years, indicating the company's share price is likely overvalued. However, for specific investment actions please connect with your investment advisor.

We analysed the performance of Ratnamani Metals & Tubes Ltd share prices over the last 10 years. Here is what we found out:

Ratnamani Metals & Tubes Ltd share price has appreciated 30.9% annually over the past ten years.

Since its inception in 1983, Ratnamani Metals & Tubes Ltd. is just not only manufacturing products but also delighting customers through its unmatched quality.

Over the span of time, Ratnamani has grown to become a multi-location, multi-product company providing critical tubing and piping solutions to diverse range of industries & niche markets in core sectors Viz., Oil & Gas, Refinery

Since its inception in 1983, Ratnamani Metals & Tubes Ltd. is just not only manufacturing products but also delighting customers through its unmatched quality.

Over the span of time, Ratnamani has grown to become a multi-location, multi-product company providing critical tubing and piping solutions to diverse range of industries & niche markets in core sectors Viz., Oil & Gas, Refinery & Petrochemical, Dairy, Chemical & Fertilizer, Thermal, Solar & Nuclear Power, LNG, Desalination, Defense, Aerospace, Chillers & Cooling system, Pulp & Paper Industry, Automobile etc. Ratnamani has an impressive clientele comprising of major public, private and joint sector companies across the globe, who are leaders in their respective segments.

Business area of the company

The company is engaged in the manufacturing of stainless steel pipes and tubes and carbon steel pipes at Kutch, Indrad and Chhatral in the state of Gujarat. The company caters both domestic and international markets.

Product Lines

  • Stainless Steel
  • Nickel Alloy
  • Titanium Welded Tubes
  • Carbon Steel
  • Coating Solutions
  • Induction Bending

Milestones

  • 1983: Year of establishment.
  • 1985: Commenced production of stainless steel welded pipes & seamless tubes, as a twin small-scale units.
  • 1991: Established facilities for manufacturing stainless steel electric fusion welded [EFW] pipes.
  • 1993: Listed on Mumbai (BSE) & Ahmedabad Stock Exchange (ASE) 
  • 1995: Commenced production of submerged arc welded [SAW] pipes
  • 1997: Received API 5L Monogramming License
  • 1999: Commenced production of stainless steel tubes for sutomobile exhaust systems.
  • 2000: First Mobile plant, for Narmada Canal Pipe Line Project under Government of Gujarat.
  • 2001: Quality Management System accredited to ISO 9002 Under Lloyd’s Register Quality Assurance (LRQA).  Addition of API 2B Monogramming License
  • 2002: AD 2000 - Merkblatt W 0 Certification Under RWTUV Recognition as a well known Tube / Pipe Maker Under IBR
  • 2003: Pressure Equipment Directive [PED] Certification Under LRQA - Approval from Nuclear Power Corporation of India Limited for the Supply of Critical Instrumentation Seamless Tubes & Primary Piping for Nuclear Reactors - Up-gradation of ISO 9002 Certification to ISO 9001-2000 under LRQA 
  • 2004: Delivered Duplex Stainless Steel Seamless Tubes as per SA 789 / UNS 31803 and UNS 32205 - Officially Implemented Safety, Health & Environment Policy [SHE] - Enhancement of current capacity by establishing new manufacturing facilities at Kutch, Gujarat
  • 2005: Commenced manufacturing of Welded Cold Drawn Duplex Steel Tubes as per SA 789 / UNS 31803 and UNS 32205.
  • 2008: Vendor Approval with Saudi Aramco for Stainless Steel Seamless Tubes and SABIC
  • 2008: Successfully executed the order of Titanium Welded Tubes
  • 2008: Delivered Stainless Steel Welded HP Heater Tubes for 5 x 800MW (first UMPP) power project
  • 2008: Hot Extrusion of Duplex Mother Pipes
  • 2009: 3 LPE coating and internal coating plant installed for pipes from 6' to 64' diameter Pipes 2009 ERW plant upgraded for the size from 16' to 18' diameter
  • 2013: Hot Extrusion of UNS S32750, UNS N08825, UNS N08800 and 904L
  • 2013: Enhanced Stainless Steel Cold Finishing capacity at Indrad works
  • 2013: Received Vendor Approval from Saudi Aramco for Stainless Steel Seamless and Welded Pipes, Titanium Welded Tubes
  • 2013: Supply of 20 KM of DSS Pipes with 3LPP coating
  • 2013: Supply of Stainless Steel Seamless Tubes for Brahmos Aerospace in size 3 mm OD x 0.5 mm THK and above
  • 2013: 146' diameter HSAW Pipes manufactured
  • 2014: Supplied Stainless Steel Seamless Tubes for Aerospace industry to Snecma, France
  • 2014: Successfully executed order for prestigious project of ITER
  • 2014: Hot Extrusion and Cold Finishing of Nickel Alloy UNS N06625 for Refinery and UNS N08800 for Nuclear sector
  • 2014: Received first order from LNG sector for Supply of Stainless Steel Seamless Pipes with painting
  • 2014: Breakthrough in USA market for Supply of Stainless Steel Seamless & Welded Pipes for DOW Chemicals & Exxon Mobil’s Baytown Project
  • 2014: Developed ERW pipes of 18 meters in length at Kutch works and successfully executed 152 km ERW pipe order in 18 meters length for transport of ethane gas for a reputed chemical company in USA
  • 2014: 3 LPE coating and internal coating plant upgraded from 64' to 120' diameter pipes
  • 2014: Developed facility to manufacture 8NPS and 10NPS Diameter pipes in LSAW.
  • 2015: Developed LSAW Pipes Manufacturing facility up-to 32 mm thickness (Earlier Capacity was 25 mm thickness)
  • 2016: Supplied 24 meter long Seamless Tubes in size 12.7 mm OD with Special Chemistry for Heat Tracing application
  • 2017: Supply of Stainless Steel Welded Piggable Pipes
  • 2017: Breakthrough in LNG sector for Supply of Stainless Steel Welded Pipes
  • 2017: Supply of Stainless Steel Seamless Tubes for CNG Sector
  • 2017: Highest Order booking in Company’s History for the Stainless Steel Division
  • 2017: Highest Order booking in Company’s History for the LSAW Division
  • 2017: Highest Order booking in Company’s History for the HSAW Division
  • 2017: Introduced Induction Bending Facility for the pipe size ranging from 4” to 48” diameter
  • 2018: Ratnamani Metals & Tubes Ltd receives domestic order of Rs 82 crore
  • 2019: The company has received a domestic order for supply of welded carbon steel pipes
  • 2020: the Company became an approved supplier of Condenser Tubes in stainless steel as well as in titanium to one of the major international Atomic energy corporation
Puchho Befikar
SEBI Registered: Investment Adviser - INA000013323

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