Rama Steel Tubes Ltd (RAMASTEEL) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

Comparison

Company

Score

Quality

Valuation

Financial

Technical

Gandhi Spl. Tube

Beekay Steel Ind

Manaksia

Panchmahal Steel

India Homes

Uni Abex Alloy

Azad India

Scoda Tubes

Rama Steel Tubes

Aerpace Indus

P S Raj Steels

Why is Rama Steel Tubes Ltd ?

Weak Long Term Fundamental Strength with a -7.13% CAGR growth in Operating Profits over the last 5 years

Low ability to service debt as the company has a high Debt to EBITDA ratio of 7.65 times
The company has been able to generate a Return on Capital Employed (avg) of 9.19% signifying low profitability per unit of total capital (equity and debt)

Flat results in Jun 26

PAT(Latest six months) At Rs 9.39 cr has Grown at -22.78%
ROCE(HY) Lowest at 4.93%
NET SALES(Q) At Rs 223.34 cr has Fallen at -16.70%

Reducing Promoter Confidence

Promoters have decreased their stake in the company by -1.71% over the previous quarter and currently hold 34.18% of the company
Promoters decreasing their stake may signify reduced confidence in the future of the business

Consistent Underperformance against the benchmark over the last 3 years

Along with generating -56.04% returns in the last 1 year, the stock has also underperformed BSE500 in each of the last 3 annual periods

Real-Time Research Report

Verdict Report

How much should you sell?

All quantity irrespective of whether you are making profits or losses

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Iron & Steel Products)

When to re-enter? - We will constantly monitor the company and review our call based on new data

Is Rama Steel Tubes for you?

High Risk, Low Return

Absolute

Risk Adjusted

Volatility

Rama Steel Tubes

-54.69%

-1.14

49.20%

Sensex

-9.08%

-0.69

13.52%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

13.97%

EBIT Growth (5y)

-7.13%

EBIT to Interest (avg)

2.15

Debt to EBITDA (avg)

3.78

Net Debt to Equity (avg)

0.26

Sales to Capital Employed (avg)

2.52

Tax Ratio

14.38%

Dividend Payout Ratio

Pledged Shares

Institutional Holding

2.70%

ROCE (avg)

9.56%

ROE (avg)

10.70%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

Industry P/E

Price to Book Value

1.55

EV to EBIT

55.73

EV to EBITDA

40.25

EV to Capital Employed

1.44

EV to Sales

0.80

PEG Ratio

Dividend Yield

ROCE (Latest)

1.85%

ROE (Latest)

2.76%

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Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bullish

Bearish

RSI

No Signal

Bollinger Bands

Mildly Bearish

Moving Averages

Mildly Bearish (Daily)

KST

Mildly Bullish

Bearish

Dow Theory

Mildly Bullish

Mildly Bearish

OBV

Mildly Bearish

No Trend

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

7What is working for the Company

PBT LESS OI(Q)

At Rs 2.76 cr has Grown at 195.83%

OPERATING PROFIT TO INTEREST(Q)

Highest at 3.59 times

OPERATING PROFIT TO NET SALES(Q)

Highest at 2.73%

-12What is not working for the Company

PAT(Latest six months)

At Rs 9.39 cr has Grown at -22.78%

ROCE(HY)

Lowest at 4.93%

NET SALES(Q)

At Rs 223.34 cr has Fallen at -16.70%

CASH AND CASH EQUIVALENTS(HY)

Lowest at Rs 5.39 cr

DEBTORS TURNOVER RATIO(HY)

Lowest at 3.72 times

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Here's what is working for Rama Steel Tubes

Profit Before Tax less Other Income (PBT) - Quarterly

At Rs 2.76 cr has Grown at 195.83%

Year on Year (YoY)

MOJO Watch

Near term PBT trend is very positive

PBT less Other Income (Rs Cr)

Operating Profit to Interest - Quarterly

Highest at 3.59 times

in the last five quarters

MOJO Watch

The company's ability to manage interest payments is improving

Operating Profit to Interest

Operating Profit Margin - Quarterly

Highest at 2.73%

in the last five quarters

MOJO Watch

Company's efficiency has improved

Operating Profit to Sales

Profit Before Tax less Other Income (PBT) - Quarterly

Highest at Rs 2.76 cr.

in the last five quarters

MOJO Watch

Near term PBT trend is positive

PBT less Other Income (Rs Cr)

Here's what is not working for Rama Steel Tubes

Net Sales - Quarterly

At Rs 223.34 cr has Fallen at -16.70%

Year on Year (YoY)

MOJO Watch

Near term sales trend is very negative

Net Sales (Rs Cr)

Profit After Tax (PAT) - Latest six months

At Rs 9.39 cr has Grown at -22.78%

Year on Year (YoY)

MOJO Watch

Near term PAT trend is negative

PAT (Rs Cr)

Net Sales - Quarterly

Lowest at Rs 223.34 cr

in the last five quarters

MOJO Watch

Near term sales trend is negative

Net Sales (Rs Cr)

Cash and Cash Equivalents - Half Yearly

Lowest at Rs 5.39 cr

in the last six half yearly periods

MOJO Watch

Short Term liquidity is deteriorating

Cash and Cash Equivalents

Debtors Turnover Ratio- Half Yearly

Lowest at 3.72 times

in the last five half yearly periods

MOJO Watch

Company's pace of settling its Debtors has slowed

Debtors Turnover Ratio