ScoreWhy is Rathi Steel & Power Ltd ?
1
Low ability to service debt as the company has a high Debt to EBITDA ratio of 141.19 times
- Low ability to service debt as the company has a high Debt to EBITDA ratio of 141.19 times
- The company has been able to generate a Return on Equity (avg) of 3.39% signifying low profitability per unit of shareholders funds
2
Poor long term growth as Net Sales has grown by an annual rate of 9.28% and Operating profit at 18.30% over the last 5 years
3
Flat results in Sep 25
- INTEREST(9M) At Rs 5.59 cr has Grown at 47.49%
- PAT(Latest six months) At Rs 3.52 cr has Grown at -28.46%
- INVENTORY TURNOVER RATIO(HY) Lowest at 9.06 times
4
Below par performance in long term as well as near term
- Along with generating -42.14% 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 Rathi Steel for you?
High Risk, Low Return
Absolute
Risk Adjusted
Volatility
Rathi Steel
-42.14%
-0.89
47.34%
Sensex
8.65%
0.76
11.31%
Quality
Management Risk
Growth
Capital StructureQuality key factors
Factor
Value
Sales Growth (5y)
9.28%
EBIT Growth (5y)
18.30%
EBIT to Interest (avg)
0.65
Debt to EBITDA (avg)
Negative Net Debt
Net Debt to Equity (avg)
0.25
Sales to Capital Employed (avg)
5.79
Tax Ratio
0
Dividend Payout Ratio
0
Pledged Shares
0
Institutional Holding
11.09%
ROCE (avg)
14.07%
ROE (avg)
3.39%
ValuationValuation Key Factors 
Factor
Value
P/E Ratio
27
Industry P/E
29
Price to Book Value
1.50
EV to EBIT
18.73
EV to EBITDA
10.56
EV to Capital Employed
1.40
EV to Sales
0.43
PEG Ratio
0.98
Dividend Yield
NA
ROCE (Latest)
7.45%
ROE (Latest)
5.59%
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
Bullish
Mildly Bearish
Dow Theory
Mildly Bearish
Mildly Bearish
Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned 
Financial Trend9What is working for the Company
PAT(9M)
At Rs 7.32 cr has Grown at 38.67%
NET SALES(Q)
At Rs 156.30 cr has Grown at 28.72%
-8What is not working for the Company
INTEREST(9M)
At Rs 5.59 cr has Grown at 47.49%
PAT(Latest six months)
At Rs 3.52 cr has Grown at -28.46%
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
Net Sales - Quarterly
Highest at Rs 156.30 cr
in the last five quartersMOJO Watch
Near term sales trend is positive
Net Sales (Rs Cr)
Net Sales - Quarterly
At Rs 156.30 cr has Grown at 28.72%
Year on Year (YoY)MOJO Watch
Near term sales trend is positive
Net Sales (Rs Cr)
Here's what is not working for Rathi Steel
Interest - Nine Monthly
At Rs 5.59 cr has Grown at 47.49%
over preceding nine months periodMOJO Watch
Rising interest cost signifies increased borrowings
Interest Paid (Rs cr)
Profit After Tax (PAT) - Latest six months
At Rs 3.52 cr has Grown at -28.46%
Year on Year (YoY)MOJO Watch
Near term PAT trend is negative
PAT (Rs Cr)
Inventory Turnover Ratio- Half Yearly
Lowest at 9.06 times and Fallen
each half year in the last five half yearly periodsMOJO Watch
Company's pace of selling inventory has slowed
Inventory Turnover Ratio
Cash and Cash Equivalents - Half Yearly
Lowest at Rs 1.16 cr
in the last six half yearly periodsMOJO Watch
Short Term liquidity is deteriorating
Cash and Cash Equivalents
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