Remi Edelstahl Tubulars Ltd: Valuation Shift Signals Price Attractiveness Change Amidst Mixed Market Returns

Valuation Metrics and Recent Changes

As of 16 Feb 2026, Remi Edelstahl’s price-to-earnings (P/E) ratio stands at a lofty 76.92, a figure that remains significantly above the industry average and peer group benchmarks. This elevated P/E ratio signals that the stock is priced for substantial growth, yet it also raises concerns about overvaluation relative to earnings. The price-to-book value (P/BV) ratio at 3.34 further corroborates the expensive valuation status, indicating investors are paying over three times the company’s net asset value.

Comparatively, peers such as Rama Steel Tubes trade at a fair P/E of 64.07, while Hariom Pipe, rated as very attractive, posts a much lower P/E of 18.29. This disparity highlights Remi Edelstahl’s premium valuation, which has recently softened from a 'very expensive' to an 'expensive' grade, suggesting some moderation in market exuberance.

Enterprise Value Multiples and Profitability Ratios

Enterprise value to EBITDA (EV/EBITDA) for Remi Edelstahl is 27.59, again elevated compared to industry peers like Hariom Pipe (8.04) and Ratnaveer Precis (11.41). Such multiples imply that the market anticipates strong operational cash flow growth, though the company’s latest return on capital employed (ROCE) of 5.34% and return on equity (ROE) of 4.34% remain modest. These profitability metrics lag behind what might justify the current valuation, raising questions about the sustainability of the premium.

Additionally, the EV to capital employed ratio of 2.55 and EV to sales of 1.35 suggest that while the company is valued richly, its asset utilisation and sales generation efficiency are not markedly superior to peers.

Stock Price Performance and Market Context

Remi Edelstahl’s stock price closed at ₹132.00 on 16 Feb 2026, down 1.82% from the previous close of ₹134.45. The 52-week trading range spans from ₹71.25 to ₹182.00, indicating significant volatility over the past year. Despite recent short-term declines—1.09% over the past week and 1.90% over the last month—the stock has delivered exceptional long-term returns, with a 1-year gain of 51.12%, a 3-year surge of 233.75%, and a remarkable 5-year appreciation of 633.33%. These figures far exceed the Sensex’s respective returns of 8.52%, 36.73%, and 60.30% over the same periods.

Mojo Score and Grade Evolution

MarketsMOJO assigns Remi Edelstahl a Mojo Score of 38.0, reflecting a cautious stance on the stock’s near-term prospects. The Mojo Grade was downgraded from 'Strong Sell' to 'Sell' on 24 Nov 2025, signalling a slight improvement but still indicating a negative outlook. The Market Cap Grade remains low at 4, underscoring concerns about the company’s size and liquidity relative to its valuation.

This downgrade aligns with the valuation grade shift from 'very expensive' to 'expensive', suggesting that while the stock’s premium has moderated, it remains elevated relative to fundamentals and peer valuations.

Peer Comparison and Relative Attractiveness

Within the Iron & Steel Products sector, Remi Edelstahl’s valuation contrasts sharply with several peers. Hariom Pipe and Beekay Steel Industries are rated as 'very attractive' with P/E ratios of 18.29 and 11.68 respectively, and EV/EBITDA multiples below 10. Ratnaveer Precis and Scoda Tubes also present more reasonable valuations with P/E ratios under 30 and EV/EBITDA multiples around 11.

Conversely, Gandhi Spl. Tube and S.A.L Steel are classified as 'very expensive' or 'risky', with some companies even loss-making, highlighting the varied risk-reward profiles within the sector. Remi Edelstahl’s valuation places it among the more expensive names, demanding strong growth or operational improvements to justify its premium.

Investment Implications and Outlook

Investors considering Remi Edelstahl must weigh its impressive long-term returns against the current valuation stretch and modest profitability metrics. The elevated P/E and EV/EBITDA ratios imply high expectations for future earnings growth, which the company’s current ROCE and ROE figures do not yet fully support.

Short-term price declines and a recent downgrade in Mojo Grade suggest caution, particularly given the stock’s sensitivity to market sentiment and sector dynamics. However, the company’s ability to outperform the Sensex substantially over multiple years indicates underlying strengths that may appeal to growth-oriented investors willing to accept valuation risk.

Conclusion: Valuation Moderation Amid Mixed Signals

Remi Edelstahl Tubulars Ltd’s shift from a very expensive to an expensive valuation grade reflects a subtle easing of market exuberance, yet the stock remains priced at a premium relative to peers and historical averages. While the company’s long-term returns have been exceptional, recent profitability metrics and a cautious Mojo Grade downgrade counsel prudence.

For investors, the key consideration is whether Remi Edelstahl can translate its growth potential into improved returns on capital and earnings stability to justify its valuation. Until then, the stock’s elevated multiples and recent price softness suggest a more measured approach may be warranted.

Upgrade at special rates, valid only for the next few days. Claim Your Special Rate →