ScoreWhy is Rama Steel Tubes Ltd ?
1
Weak Long Term Fundamental Strength with a -5.63% 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)
2
With a fall in Net Sales of -16.05%, the company declared Very Negative results in Mar 26
- PBT LESS OI(Q) At Rs -0.10 cr has Fallen at -101.23%
- PAT(Q) At Rs 4.28 cr has Fallen at -37.4%
- ROCE(HY) Lowest at 4.93%
3
With ROCE of 1.9, it has a Expensive valuation with a 1.6 Enterprise value to Capital Employed
- The stock is trading at a discount compared to its peers' average historical valuations
- Over the past year, while the stock has generated a return of -60.08%, its profits have fallen by -42.2%
4
Reducing Promoter Confidence
- Promoters have decreased their stake in the company by -1.87% over the previous quarter and currently hold 35.89% of the company
- Promoters decreasing their stake may signify reduced confidence in the future of the business
5
Below par performance in long term as well as near term
- Along with generating -60.08% returns in the last 1 year, the stock has also underperformed BSE500 in the last 3 years, 1 year and 3 months
Real-Time Research ReportHow 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
-60.08%
-1.29
46.46%
Sensex
-7.55%
-0.58
13.06%
Quality
Management Risk
Growth
Capital StructureQuality key factors
Factor
Value
Sales Growth (5y)
19.03%
EBIT Growth (5y)
-5.63%
EBIT to Interest (avg)
2.25
Debt to EBITDA (avg)
3.78
Net Debt to Equity (avg)
0.26
Sales to Capital Employed (avg)
2.52
Tax Ratio
33.83%
Dividend Payout Ratio
0
Pledged Shares
0
Institutional Holding
5.71%
ROCE (avg)
9.56%
ROE (avg)
10.70%
ValuationValuation Key Factors 
Factor
Value
P/E Ratio
65
Industry P/E
26
Price to Book Value
1.80
EV to EBIT
88.18
EV to EBITDA
57.97
EV to Capital Employed
1.63
EV to Sales
0.87
PEG Ratio
NA
Dividend Yield
NA
ROCE (Latest)
1.85%
ROE (Latest)
2.76%
Loading Valuation Snapshot...
TechnicalsTechnical key factors
Indicator
Weekly
Monthly
MACD
Mildly Bullish
Bearish
RSI
No Signal
No Signal
Bollinger Bands
Bearish
Bearish
Moving Averages
Bearish (Daily)
KST
Mildly Bullish
Bearish
Dow Theory
Mildly Bearish
No Trend
OBV
Mildly Bullish
No Trend
Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned 
Financial Trend0What is working for the Company
NO KEY POSITIVE TRIGGERS
-22What is not working for the Company
PBT LESS OI(Q)
At Rs -0.10 cr has Fallen at -101.23%
PAT(Q)
At Rs 4.28 cr has Fallen at -37.4%
ROCE(HY)
Lowest at 4.93%
CASH AND CASH EQUIVALENTS(HY)
Lowest at Rs 5.39 cr
DEBTORS TURNOVER RATIO(HY)
Lowest at 3.72 times
NET SALES(Q)
Lowest at Rs 246.15 cr
INTEREST(Q)
Highest at Rs 3.39 cr
NON-OPERATING INCOME(Q)
is 102.74 % of Profit Before Tax (PBT
Loading Valuation Snapshot...
Here's what is not working for Rama Steel Tubes
Profit Before Tax less Other Income (PBT) - Quarterly
At Rs -0.10 cr has Fallen at -101.23%
Year on Year (YoY)MOJO Watch
Near term PBT trend is very negative
PBT less Other Income (Rs Cr)
Profit After Tax (PAT) - Quarterly
At Rs 4.28 cr has Fallen at -37.4%
Year on Year (YoY)MOJO Watch
Near term PAT trend is very negative
PAT (Rs Cr)
Net Sales - Quarterly
At Rs 246.15 cr has Fallen at -16.05%
Year on Year (YoY)MOJO Watch
Near term sales trend is very negative
Net Sales (Rs Cr)
Net Sales - Quarterly
Lowest at Rs 246.15 cr
in the last five quartersMOJO Watch
Near term sales trend is negative
Net Sales (Rs Cr)
Interest - Quarterly
Highest at Rs 3.39 cr
in the last five quarters and Increased by 18.12 % (QoQ)MOJO Watch
Rising interest cost signifies increased borrowings
Interest Paid (Rs cr)
Non Operating Income - Quarterly
is 102.74 % of Profit Before Tax (PBT)
MOJO Watch
The company's income from non business activities is high; which is not a sustainable business model
Non Operating Income to PBT
Cash and Cash Equivalents - Half Yearly
Lowest at Rs 5.39 cr
in the last six half yearly periodsMOJO 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 periodsMOJO Watch
Company's pace of settling its Debtors has slowed
Debtors Turnover Ratio
InfinHub Market Technologies FZ-LLC, Building-2, Unit 112, Dubai Internet City, Dubai, United Arab Emirates
GET THE MARKETSMOJO APP
Company
Stocks
Portfolio
"Investment in securities markets are subject to market risk. Read all the related documents carefully before investing."
