Rhetan TMT Ltd - Stock Valuation and Financial Performance

BSE: 543590 | NSE: | Steel & Iron Products | Small Cap

Rhetan TMT Share Price

8.50 0.15 1.80%
as on 28-Mar'24 16:00

DeciZen - make an informed investing decision on Rhetan TMT

Overall Rating
Bole Toh

1. Quality

2. Valuation

Fair

3. Price Trend

Rhetan TMT stock performance -

mw4me loader
P/E Ratio (SA):
122.82
Market Cap:
665.4 Cr.
52-wk low:
7.3
52-wk high:
15.8

Is Rhetan TMT Ltd an attractive stock to invest in?

1. Is Rhetan TMT Ltd a good quality company?

Past 10 year’s financial track record analysis by Moneyworks4me indicates that Rhetan TMT Ltd is a below average quality company.

2. Is Rhetan TMT Ltd undervalued or overvalued?

The key valuation ratios of Rhetan TMT Ltd's currently when compared to its past seem to suggest it is in the Fair zone.

3. Is Rhetan TMT Ltd a good buy now?

The Price Trend analysis by MoneyWorks4Me indicates it is Weak which suggest that the price of Rhetan TMT 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 Rhetan TMT:

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.
Rhetan TMT 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'20Mar'21Mar'22Mar'23TTM
ROCE % -1.5%2.8%7.7%8.3%-
Value Creation
Index
NA-0.8-0.5-0.4-

Growth Parameters

Growth Parameters Colour Code Guide

Sales 2052.1678686
Sales YoY Gr.-160.3%28.7%28.3%-
Adj EPS -000.10.10.1
YoY Gr.-NANA40%-
BVPS (₹) -00.20.51.11.1
Adj Net
Profit
-0.60.12.35.46
Cash Flow from Ops. -11.9-7-14.4-44.3-
Debt/CF from Ops. -2-3.6-1.8-0.4-

CAGR

CAGR Colour Code Guide

9 Years 5 Years 3 Years 1 Years
Sales NANA62.6%28.3%
Adj EPS NANANA40%
BVPSNANANA130.4%
Share Price - - - -43%

Key Financial Parameters

Performance Ratio Colour Code Guide

Mar'20Mar'21Mar'22Mar'23TTM
Return on
Equity %
-65.72.914.6106.6
Op. Profit
Mgn %
2.93.16.99.5NAN
Net Profit
Mgn %
-2.90.33.56.36.5
Debt to
Equity
-92.33.41.20.2-
Working Cap
Days
01732143210
Cash Conv.
Cycle
01141722000

Recent Performance Summary

Sales growth is growing at healthy rate in last 3 years 62.60%

Debt to equity has declined versus last 3 years average to 0.21

Return on Equity has declined versus last 3 years average to 6.60%

Net Profit has been subdued in last 3 years 0.00%

Sales growth is not so good in last 4 quarters at 0.00%

Latest Financials - Rhetan TMT Ltd.

Standalone Consolidated
TTM EPS (₹) 0.1 -
TTM Sales (₹ Cr.) 86 -
BVPS (₹.) 1.1 -
Reserves (₹ Cr.) 5 -
P/BV 7.91 -
PE 122.82 -
From the Market
52 Week Low / High (₹) 7.30 / 15.75
All Time Low / High (₹) 1.35 / 15.75
Market Cap (₹ Cr.) 665
Equity (₹ Cr.) 79.7
Face Value (₹) 1
Industry PE 25.1

Management X-Ray of Rhetan TMT:

Shareholding Pattern

Promoter's Holding & Share Pledging

Pledged *0.000.000.000.00
* Pledged shares as % of Promoter's holding (%)

Event Update

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Analyst's Notes

Key Ratios of Rhetan TMT

Adj EPS (Rs.)

Sales (Cr.)

ROE (%)

ROCE (%)

Profit And Loss

(All Figures are in Crores.)
PARTICULARSMar'20Mar'21Mar'22Mar'23
Sales20526786
Operating Expenses 19506278
Manufacturing Costs3534
Material Costs16435872
Employee Cost 1111
Other Costs 1101
Operating Profit 1258
Operating Profit Margin (%) 2.9%3.1%6.9%9.5%
Other Income 0001
Interest 0111
Depreciation 0001
Exceptional Items 0000
Profit Before Tax 0037
Tax 1012
Profit After Tax -1025
PAT Margin (%) -2.9%0.3%3.5%6.3%
Adjusted EPS (₹)0.00.00.10.1
Dividend Payout Ratio (%)0%0%0%0%

Balance Sheet

(All Figures are in Crores.)
PARTICULARSMar'20Mar'21Mar'22Mar'23

Equity and Liabilities

Shareholders Fund 182485
Share Capital 4111380
Reserves -3-3105
Minority Interest0000
Debt24252617
Long Term Debt1515145
Short Term Debt9101212
Trade Payables5456
Others Liabilities 1245
Total Liabilities 304059113

Fixed Assets

Gross Block99910
Accumulated Depreciation0112
Net Fixed Assets9989
CWIP 0000
Investments 1111
Inventories8122432
Trade Receivables7142227
Cash Equivalents 0000
Others Assets54344
Total Assets 304059113

Cash Flow

(All Figures are in Crores.)
PARTICULARSMar'20Mar'21Mar'22Mar'23
Cash Flow From Operating Activity -12-7-14-44
PBT 0037
Adjustment 0222
Changes in Working Capital -12-9-19-52
Tax Paid 000-2
Cash Flow From Investing Activity -200-1
Capex -200-1
Net Investments 0000
Others 0000
Cash Flow From Financing Activity 1471445
Net Proceeds from Shares 071356
Net Proceeds from Borrowing 0000
Interest Paid 0-1-1-1
Dividend Paid 0000
Others 1413-10
Net Cash Flow 0000
PARTICULARSMar'20Mar'21Mar'22Mar'23
Ratios
ROE (%)03.7615.5610.14
ROCE (%)1.724.1110.111.17
Asset Turnover Ratio0.661.481.361
PAT to CFO Conversion(x)N/A-INF-7-8.8
Working Capital Days
Receivable Days1347598104
Inventory Days1557097119
Payable Days109392926

Rhetan TMT Ltd Stock News

Rhetan TMT Ltd FAQs

Company share prices are keep on changing according to the market conditions. The closing price of Rhetan TMT on 28-Mar-2024 16:00 is ₹8.50.
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 16:00 the market cap of Rhetan TMT stood at ₹665.4.
The latest P/E ratio of Rhetan TMT as of 28-Mar-2024 16:00 is 122.8.
The latest P/B ratio of Rhetan TMT as of 28-Mar-2024 16:00 is 7.91.
The 52-week high of Rhetan TMT is ₹15.75 and the 52-week low is ₹7.30.
The TTM revenue is Trailing Twelve Months sales. The TTM revenue/sales of Rhetan TMT is ₹86.02 ( Cr.) .

About Rhetan TMT Ltd

The company was incorporated as Shivani Rolling Mills Private Limited on June 26, 1984 under the Companies Act, 1956 with the Registrar of Companies, Gujarat bearing Registration number 007041. Further name of the company was changed from Shivani Rolling Mills Private Limited to Shree Ghantakarna Rolling Mills Private Limited vide Special resolution dated December 27, 1996. The fresh certificate of incorporation consequent of name change was issued on January 03, 1997 by the Registrar of Companies, Gujarat, Dadra & Nagar Haveli. Further name of company was changed from Shree Ghantakarna Rolling Mills Private Limited to Rhetan Rolling Mills Private Limited vide Special resolution dated August 29, 2018. The fresh certificate of incorporation consequent of name change was issued on September 12, 2018 by the Registrar of Companies, Ahmedabad. Further name of company was changed from Rhetan Rolling Mills Private Limited to Rhetan TMT Private Limited vide Special resolution dated December 31, 2021. The fresh certificate of incorporation consequent of name change was issued on January 07, 2022 by the Registrar of Companies, Ahmedabad. The status of the Company was changed to public limited and the name of the Company was changed to Rhetan TMT Limited vide Special Resolution dated January 10, 2022. The fresh certificate of incorporation consequent to conversion was issued on January 19, 2022 by the Registrar of Companies, Ahmedabad.

The company owns and operates a Steel Rolling Mill with an aggregate installed capacity of 30,000 MTPA. It is an IS 1786: 2008 certified company and it manufactures TMT Bars and Round Bars which are primarily used in construction industry. Its products have been used in construction of dams, bridges, residential and commercial towers and major infrastructure projects in Gujarat. Its plant is located at Survey No. 325, Karannagar, Kadi-Kalol Road, Taluka Kadi, Dist. Mehsana, Gujarat and is spread over 15,000 sq. yards. The plant is fully geared with latest technologies to provide good quality steel products and the plant is operating smoothly since 2019. It has a vision to become one the trusted brands in TMT Bars manufacturing in its geography.

The company’s sales have increased at a CAGR of 83.18 % from Rs. 2,000.84 lakh in FY 2020 to Rs 6,702.87 lakh in FY 2022. Further its EBIDTA has increased at a CAGR of 167.07 % from Rs 64.62 lakh in FY 2020 to Rs 459.67 lakh in FY 2022. Due to this strong historical growth, it has decided to further expand its manufacturing capacities and hence it has decided to raise funds to increase its plant capacities and also its working capital capabilities.

Business area of the company

The company is actively engaged in the manufacturing of premium Quality TMT Bars confirming to ISI Standards.

Key Events, Milestones and Achievements

  • 1984: Incorporated as Shivani Rolling Mills Private Limited.
  • 1986: Commenced production of TMT bars at Manufacturing facility located at 325, Karannagar, Kadi-Kalol Road, Taluka Kadi, Dist. Mehsana, Gujarat.
  • 1992: Uttar Gujrat Vij Company Limited (UGVCL) filed special civil suit No. 49 of 1992 for recovery of electricity charges incurred at the factory site.
  • 1994: Revaluation of Land was done by the Management of the Company.
  • 1997: Name of the Company was changed to Shree Ghantakarna Rolling Mills Private Limited vide special resolution passed at general meeting dated December 12, 1996.
  • 2001: Closure of Plant due to internal financial constrain as well as unfavorable Market conditions.
  • 2002: Electricity connection was discontinued at the factory site due to non-payment of dues.
  • 2012: State of Gujarat vide notification dated March 29, 2012 had declared Amnesty Scheme for settlement of outstanding claims of consumers. At that time Company had applied for the Amnesty Scheme which was rejected by the UGVCL/Industries‘ Commissioner stating that the Company does not come under the said Scheme.
  • 2017: Company applied to the UGVCL/ Industries‘ Commissioner to re-consider it for eligibility under the Scheme.
  • 2018: Company availed low-tension (LT) load of 13.33 KVA from Uttar Gujarat Vij Company Ltd (UGVCL) for carrying out modernization and overhauling of existing Plant and Machinery and for installation of new machinery at the factory site.
  • 2018: Name of the Company was changed to Rhetan Rolling Mills Private Limited vide special resolution passed at general meeting dated August 29, 2018.
  • 2018: Company availed high-tension (HT) load of 1500 KVA from Uttar Gujarat Vij Company Ltd (UGVCL) for Manufacturing.
  • 2019: Company re-commenced commercial production of TMT bars.
  • 2021: Sub-Division of Equity shares from 100 to 10 each vide special resolution passed at general meeting dated August 29, 2021.
  • 2022: Name of the Company was changed to Rhetan TMT Private Limited vide special resolution passed at General Meeting dated December 31, 2021.
  • 2022 Company converted from Private Limited Company to Public Limited Company vide special resolution passed at General Meeting dated January 10, 2022.
  • 2022: Company crossed turnover of Rs 50 crore.
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