Rathi Steel & Power Ltd () 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

Bansal Roofing

Rathi Steel

Rudra Global

Kanishk Steel

Incredible Indus

Kritika Wires

Sh. Bajrang All.

VMS TMT

Jay Bee Laminati

Surani Steel Tub

Kataria Indust.

Why is Rathi Steel & Power Ltd ?

Low ability to service debt as the company has a high Debt to EBITDA ratio of 1.58 times

Low ability to service debt as the company has a high Debt to EBITDA ratio of 1.58 times
The company has been able to generate a Return on Equity (avg) of 3.39% signifying low profitability per unit of shareholders funds

Poor long term growth as Net Sales has grown by an annual rate of 11.43% and Operating profit at 18.97% over the last 5 years

Positive results in Dec 25

NET SALES(Latest six months) At Rs 316.32 cr has Grown at 40.05%
PBT LESS OI(Q) At Rs 1.84 cr has Grown at 268.81%
PAT(Q) At Rs 1.91 cr has Grown at 260.4%

With ROCE of 7.4, it has a Very Attractive valuation with a 1.2 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 -31.95%, its profits have risen by 58.9% ; the PEG ratio of the company is 0.3

Falling Participation by Institutional Investors

Institutional investors have decreased their stake by -2.31% over the previous quarter and collectively hold 8.78% of the company
These investors have better capability and resources to analyse fundamentals of companies than most retail investors

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Rathi Steel should be less than 10%
Overall Portfolio exposure to Iron & Steel Products should be less than 30%

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

When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock

Is Rathi Steel for you?

High Risk, Low Return

Absolute

Risk Adjusted

Volatility

Rathi Steel

-31.85%

-0.67

47.38%

Sensex

-8.1%

-0.61

13.15%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

11.43%

EBIT Growth (5y)

18.97%

EBIT to Interest (avg)

0.95

Debt to EBITDA (avg)

Negative Net Debt

Net Debt to Equity (avg)

0.25

Sales to Capital Employed (avg)

5.79

Tax Ratio

Dividend Payout Ratio

Pledged Shares

Institutional Holding

8.78%

ROCE (avg)

14.07%

ROE (avg)

3.39%

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

1.27

EV to EBIT

13.21

EV to EBITDA

8.06

EV to Capital Employed

1.22

EV to Sales

0.34

PEG Ratio

0.34

Dividend Yield

ROCE (Latest)

7.45%

ROE (Latest)

6.57%

Loading Valuation Snapshot...

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bullish

Bearish

RSI

No Signal

Bollinger Bands

Bearish

Moving Averages

Mildly Bearish (Daily)

KST

Mildly Bullish

Mildly Bearish

Dow Theory

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

15What is working for the Company

NET SALES(Latest six months)

At Rs 316.32 cr has Grown at 40.05%

PBT LESS OI(Q)

At Rs 1.84 cr has Grown at 268.81%

PAT(Q)

At Rs 1.91 cr has Grown at 260.4%

-5What is not working for the Company

INTEREST(9M)

At Rs 5.75 cr has Grown at 29.80%

INVENTORY TURNOVER RATIO(HY)

Lowest at 9.06 times

CASH AND CASH EQUIVALENTS(HY)

Lowest at Rs 1.16 cr

Loading Valuation Snapshot...

Here's what is working for Rathi Steel

Profit Before Tax less Other Income (PBT) - Quarterly

At Rs 1.84 cr has Grown at 268.81%

Year on Year (YoY)

MOJO Watch

Near term PBT trend is very positive

PBT less Other Income (Rs Cr)

Profit After Tax (PAT) - Quarterly

At Rs 1.91 cr has Grown at 260.4%

Year on Year (YoY)

MOJO Watch

Near term PAT trend is very positive

PAT (Rs Cr)

Net Sales - Quarterly

Highest at Rs 160.02 cr and Grown

each quarter in the last five quarters

MOJO Watch

Near term sales trend is very positive

Net Sales (Rs Cr)

Net Sales - Quarterly

At Rs 160.02 cr has Grown at 53.23%

Year on Year (YoY)

MOJO Watch

Near term sales trend is very positive

Net Sales (Rs Cr)

Here's what is not working for Rathi Steel

Inventory Turnover Ratio- Half Yearly

Lowest at 9.06 times and Fallen

each half year in the last five half yearly periods

MOJO Watch

Company's pace of selling inventory has slowed

Inventory Turnover Ratio

Interest - Nine Monthly

At Rs 5.75 cr has Grown at 29.80%

over preceding nine months period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (Rs cr)

Cash and Cash Equivalents - Half Yearly

Lowest at Rs 1.16 cr

in the last six half yearly periods

MOJO Watch

Short Term liquidity is deteriorating

Cash and Cash Equivalents