Rajratan Global Wire Limited

Basic Materials — Steel · NSE

₹446.00−₹0.10 (−0.02%)

DalalBaazaar Score

48 / 100

🟡 Moderate

Verdict

NEUTRAL

Risk

Moderate

Driven by negative free cash flow, micro-cap size, which brings thin liquidity.

In simple words: Reasonable but unspectacular business quality, with both sales and profits growing well. Cash generation is currently the main factor to watch.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 6:08 pm

Mixed / neutral. No major red flags jump out, but nothing here screams "obviously cheap" either. This is a name that needs a peer comparison and a view on near-term earnings triggers before sizing a position.

Understanding the Business

Company site ↗

The 60-second version of Rajratan Global Wire Limited — what it does, how it earns, and who it competes with, before any of the numbers below.

What does this company do?

Rajratan Global Wire Limited engages in manufacturing and sale of tyre bead wires in India, Thailand, the United States, and internationally. It also offers high carbon steel wires that are used in construction, engineering, and automobile industries.

IndustrySteel

SectorBasic Materials

Employees737

Annual revenue₹1,155 Cr

How does it make money?

Turns over ₹1,155 Cr a year. Of every ₹100 of sales, about ₹6 reaches shareholders as profit, with ₹12 left at the operating level before interest, tax and depreciation. Each of its 737 employees supports ₹1.57 Cr of revenue a year, the signature of a capital- or asset-led business.

EBITDA margin12.3%

Net margin6.1%

Revenue / employee₹1.57 Cr

Who are its competitors?

The closest listed comparisons in its industry are TATA STEEL LIMITED, JSW STEEL LIMITED, JINDAL STEEL LIMITED, STEEL AUTHORITY OF INDIA. These are the companies its valuation and returns are measured against elsewhere in this report.

TATA STEEL LIMITEDP/E 19.8x · ROE 10.8%

JSW STEEL LIMITEDP/E 12.0x · ROE 24.7%

JINDAL STEEL LIMITEDP/E 39.1x · ROE 5.3%

STEEL AUTHORITY OF INDIAP/E 16.5x · ROE 7.1%

What is its competitive advantage?Little sign of one

Returns on capital of 14.3% are at or below what the capital likely costs. That is the financial pattern of a business competing largely on price, where advantage has to come from execution rather than position.

ROCE14.3%

ROE10.8%

Peer median ROE10.8%

What is the outlook?

5 analysts covering the stock expect revenue to grow about 14.4% and earnings to grow about 27.0% in the year to 2028. These are estimates by people who follow the company, not a forecast for the wider industry.

Est. revenue growth+14.4%

Est. earnings growth+27.0%

Analysts5

What has been driving growth?

Profit has moved mainly because margins changed, not because the business sold much more. Over 3 years revenue moved +29% while net margin moved -46% relative to itself. What this cannot tell you is which products, customers or geographies did the work — that lives in the segment disclosures of the annual report.

Revenue effect+29%

Margin effect-46%

DalalBaazaar Score

48/ 100

Moderate

Weighted across six categories. Every point is explained below.

• Revenue CAGR of 8.9% is steady
✗ Profit has declined at 11.2% a year
✗ Profit is compounding slower than revenue — margins are being squeezed as the business grows

Quality vs. Valuation

Company Quality

46/ 100

Average

How good the business is, ignoring the share price entirely.

Valuation

45/ 100

Fair

What you are being asked to pay, ignoring how good the business is.

A reasonable business at a reasonable price — neither the quality nor the valuation stands out in either direction.

Historical Valuation

Current P/E

28.4x

3Y Median

34.5x

40 monthly readings · mean 33.6x · range 20.7x–42.7x

Sector Median

18.2x

median of 4 sector peers

🟢Current valuation is approximately 18% below its 3y median of 34.5x. Cheaper than its own history, which is worth a reason too: the market may be pricing in something the backward-looking numbers do not show.

⚠️Against its sector it trades 56% above the peer median of 18.2x.

vs. its own history

Fair

34.5x median over 40 months · -18%

vs. sector peers

Expensive

18.2x median of 4 peers · +56%

vs. generic bands

Fair

15x–35x

P/E (Trailing)

28.4x

P/B

3.48x

EV/EBITDA

18.0x

PEG

—

Dividend Yield

0.45%

What's Good / What's Bad

🟢 What's Going Well1

Consistently profitable
Profitable in every one of the last 4 reported years.

🔴 What Needs Attention6

Margins are compressing
EBITDA margin has slipped from 18.3% to 12.3% over 3 years.
Debt is rising
Total debt is up 89% over 3 years — worth checking what it funded.
Free cash flow is negative
The business is not currently covering its capital spending from operations.
Return on equity is falling
ROE has dropped from 22.8% to 10.8% — each rupee of shareholder capital earns less than it did.
Return on capital is falling
ROCE has declined from 26.9% to 14.3% — often a sign of competition or overexpansion.
Receivables growing faster than sales
Receivables are up 87% against revenue growth of 29% — customers are taking longer to pay.

Red Flags

5 items require attention · 4 high · 1 watch

🔴Debt has risen sharplyFinancial
Total debt is up 89% over 3 years, from ₹171 Cr to ₹324 Cr.
🔴Free cash flow negative for 4 yearsFinancial
The business has not covered its capital spending from operations for several years running, which has to be funded externally.
🔴Significant margin compressionFinancial
EBITDA margin has fallen 5.9 points, from 18.3% to 12.3%.
🔴Receivables growing faster than salesFinancial
Receivables up 87% against revenue up 29% — sales are being booked faster than they are collected.
🟡Profit is decliningFinancial
Net profit is down 30% over 3 years.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Earnings have proved durable
Profitable in every one of the last 4 reported years. Consistency lowers the risk that any single bad year is structural rather than cyclical.

🔴 Bear CaseWhat could go wrong?

Margins are being competed away
EBITDA margin has fallen from 18.3% to 12.3%. If the trend continues, profit falls even on flat sales — and margin decline rarely reverses quickly.
Sales are being booked faster than collected
Receivables are up 87% against revenue up 29%. If customers keep taking longer to pay, reported profit will not turn into cash — and write-offs follow if some never do.
A premium to the sector to defend
It trades 56% above the peer median. That premium needs a reason that persists, or it closes.
Returns on shareholder capital are falling
ROE has dropped from 22.8% to 10.8%. Each rupee of equity earns less than it did, so profit growth increasingly depends on raising more capital rather than on the existing base working harder.
Size brings its own risk
Micro Cap businesses are thinly traded, so exits are harder in a falling market and single events move the price more than they would for a larger company.

🟡 Key Things to WatchMeasurable tripwires, set against where this company stands today

1EBITDA margin holds above 10%✓ 12.3%
Two points below today's level — enough room for noise, tight enough to catch real compression.
2Debt / EBITDA stays below 2x✗ 2.3x
The ratio lenders write covenants against; it survives a small or negative equity base, unlike Debt/Equity.
3Free cash flow remains positive✗ -₹31 Cr
Profit that never becomes cash eventually stops being profit.
4Revenue growth stays above 7% a year✓ 8.9% CAGR
Latest reported year was 29.1%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
5ROCE stays above 11%✓ 14.3%
Falling returns on capital are usually competition arriving, and show up here before they reach the margin.

Investment Checklist

7 / 12 checks passed

✗ Strong return on equity (ROE ≥ 15%)
✗ Strong return on capital employed (ROCE ≥ 15%)
✗ Healthy net margin (≥ 10%)
✗ Generates positive free cash flow
✓ Manageable leverage (Debt/Equity < 1.0)
✓ Adequate short-term liquidity (Current Ratio ≥ 1.0)
✓ Revenue growing year-over-year
✓ Profit growing year-over-year
✓ Not trading at an extreme valuation (P/E < 40x)
✓ Not buying right at the 52-week high
✓ Analyst consensus isn't majority-sell
✗ Short-term technical trend isn't bearish

Price history

Quick Metrics

4 good · 6 neutral · 1 weak

Market Cap

₹2,264 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

28.4x

Fair

Fairly valued against the generic band

P/B Ratio

3.48x

Fair

Moderate premium to the company's book value

EPS (TTM)

₹15.69

Profitable

Profitable on a per-share basis

ROE

10.8%

Moderate

Moderate capital efficiency

ROCE

14.3%

Moderate

Moderate return on the capital in the business

Debt/Equity

0.50x

Low

Conservative leverage

Revenue Growth (YoY)

29.1%

Healthy

Healthy top-line growth

Profit Growth (YoY)

69.9%

Healthy

Profits growing at a healthy clip

Dividend Yield

0.45%

Modest

Small cash return — most of the return has to come from the price

Free Cash Flow

-₹31 Cr

Cash burning

Spending more cash than the operations bring in

More Metrics

CMP

₹446

P/E (Forward)

18.7x

Improving

Below the trailing multiple — the street expects earnings to grow into the price

Operating Margin

10.7%

Average

Average margins

Net Margin

6.5%

Average

Average bottom-line conversion

Current Ratio

1.21

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

0.39

Defensive

Steadier than the market

52W Range Position

51%

Mid-range

Technical Snapshot

SMA 20 / SMA 50

458.0 / 484.0

Bearish alignment (short < long)

Price vs SMA 200

Below

Long-term downtrend

RSI (14)

36.0

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹895 Cr	₹889 Cr	₹934 Cr	₹1,155 Cr	+8.9%
EBITDA	₹163 Cr	₹131 Cr	₹124 Cr	₹142 Cr	-4.5%
EBITDA Margin	18.3%	14.7%	13.2%	12.3%	—
PAT (Net Profit)	₹100 Cr	₹72 Cr	₹59 Cr	₹70 Cr	-11.2%
EPS	₹19.72	₹14.15	₹11.58	₹13.81	-11.2%
ROE	22.8%	14.6%	10.5%	10.8%	—
ROCE	26.9%	18.6%	14.6%	14.3%	—
Total Debt	₹171 Cr	₹191 Cr	₹237 Cr	₹324 Cr	+23.7%
Free Cash Flow	-₹7 Cr	-₹14 Cr	-₹2 Cr	-₹31 Cr	—

🟢 Revenue has grown at 8.9% a year over 3 years.

🔴 EBITDA has shrunk at 4.5% a year over 3 years.

🔴 EBITDA Margin has fallen from 18.3% to 12.3% over 3 years (-5.9 pts).

🔴 PAT (Net Profit) has shrunk at 11.2% a year over 3 years.

🔴 EPS has shrunk at 11.2% a year over 3 years.

🔴 ROE has fallen from 22.8% to 10.8% over 3 years (-12.0 pts).

🔴 ROCE has fallen from 26.9% to 14.3% over 3 years (-12.7 pts).

🔴 Total Debt has grown at 23.7% a year over 3 years.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹1,159 Cr

Total Liabilities

₹509 Cr

Total Debt

₹324 Cr

Cash & Equivalents

₹23 Cr

Operating Cash Flow

₹75 Cr

Capex

-₹106 Cr

Shareholding (proxy)

Institutional Holding

7.8%

Insider Holding

69.7%

Corporate Actions

Dividend Rate

₹2

Ex-Dividend Date

17 Jul 2026

Analyst Consensus

Recommendations

4 Buy · 1 Hold · 0 Sell

Target Price (Mean)

₹599

+34.3% vs CMP

Target Range

₹564 – ₹650

Peer Comparison

Company	P/E	ROE
TATA STEEL LIMITED	19.8x	10.8%
JSW STEEL LIMITED	12.0x	24.7%
JINDAL STEEL LIMITED	39.1x	5.3%
STEEL AUTHORITY OF INDIA	16.5x	7.1%

Recent News

3 mixed3 general

Rajratan Global Wire (RAJRATAN) Share/Stock Price Live, NSE

TechGraph, 10 Oct

Rajratan Global Wire Limited (RAJRATAN.NS) Stock Price, News, Quote & History

Yahoo! Finance Canada, 01 Oct

Rajratan Global Wire (NSEI:RAJRATAN) Stock Forecast & Analyst Predictions

Simply Wall Street, 05 OctAnalyst view

🟡Mixed / dependsBroker commentary — an opinion about the price rather than new information about the business.

RAJRATAN Forecast — Price Target — Prediction for 2027

TradingView, 25 JunAnalyst view

🟡Mixed / dependsBroker commentary — an opinion about the price rather than new information about the business.

Rajratan Global Wire Share Price Rise in Auto Ancillary

Univest, 23 SeptPrice move

🟡Mixed / dependsA price move, which is not by itself a change in the business. Worth finding the cause before reading it as either good or bad.

Rajratan Global Wire (RAJRATAN.NS) Edges Lower to ₹449.9 as Stock Consolidates Below ₹472 Resistance - Donchian Channel

https://www.siam.in/, 22 Sept

Watch Items

Cross-check against the company's latest quarterly filing / investor presentation before acting.

DalalBaazaar Thesis

🟡Business QualityAdequate9/20

🟡Financial HealthAdequate10.8/20

🔴GrowthWeak7.7/20

🟡ProfitabilityModerate7.1/15

🟡ValuationFair8.1/15

🟡RiskModerate5.4/10

Unremarkable in both directions

A reasonable business at a reasonable price. Nothing here is alarming and nothing is compelling, which usually means the decision rests on things this data cannot see — the industry's direction, management's intent, and what else is available to you. 4 high-severity red flags sit above this conclusion and should be read first.

This thesis breaks if

✓EBITDA margin holds above 10%12.3%
✗Debt / EBITDA stays below 2x2.3x
✗Free cash flow remains positive-₹31 Cr
✓Revenue growth stays above 7% a year8.9% CAGR
✓ROCE stays above 11%14.3%