Ram Ratna Wires Limited

Industrials — Electrical Equipment & Parts · NSE

₹570.00+₹6.45 (+1.14%)

DalalBaazaar Score

60 / 100

🟢 Good

Verdict

CAUTION

Risk

Moderate

Driven by moderate debt load, negative free cash flow, small-cap size, which brings sharper price swings.

In simple words: Strong business and financial position, 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, 6:03 pm

Caution warranted. Multiple fundamental metrics — flagged in red below — point to either valuation stretch, leverage risk, or weakening profitability. This doesn't mean avoid the stock outright, but it does mean the burden of proof is on the growth story to justify the current price.

Understanding the Business

Company site ↗

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

What does this company do?

Ram Ratna Wires Limited, together with its subsidiaries, manufactures and sells winding wires in India and internationally. It operates through the Winding Wires and Strips, Copper Tubes and Pipes, and Other segments.

IndustryElectrical Equipment & Parts

SectorIndustrials

Employees1,288

Annual revenue₹5,156 Cr

How does it make money?

Turns over ₹5,156 Cr a year. Of every ₹100 of sales, about ₹2 reaches shareholders as profit, with ₹5 left at the operating level before interest, tax and depreciation. Each of its 1,288 employees supports ₹4.00 Cr of revenue a year, the signature of a capital- or asset-led business.

EBITDA margin5.4%

Net margin2.1%

Revenue / employee₹4.00 Cr

Who are its competitors?

The closest listed comparisons in its industry are SIEMENS LTD, ABB INDIA LIMITED, HAVELLS INDIA LIMITED. These are the companies its valuation and returns are measured against elsewhere in this report.

SIEMENS LTDP/E 88.8x · ROE 10.5%

ABB INDIA LIMITEDP/E 92.6x · ROE 19.1%

HAVELLS INDIA LIMITEDP/E 43.5x · ROE 17.1%

What is its competitive advantage?The numbers suggest a real one

ROCE has stayed above 15% in every year available and stands at 26.0%. Returns that high normally get competed away; when they persist, something is protecting them, and its ROE of 18.5% against a peer median of 17.1% is consistent with that. What that something is — brand, scale, switching costs, regulation — the accounts cannot tell you.

ROCE26.0%

ROE18.5%

Peer median ROE17.1%

What has been driving growth?

Growth has come mainly from selling more, rather than from keeping more of each sale. Over 3 years revenue moved +95% while net margin moved +22% 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+95%

Margin effect+22%

DalalBaazaar Score

60/ 100

Good

Weighted across six categories. Every point is explained below.

✗ P/E of 42.0x is demanding — it needs sustained high growth to justify
• P/E is close to its own historical median of 42.9x
✗ P/B of 9.18x is a steep premium to book

Quality vs. Valuation

Company Quality

66/ 100

Good

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

Valuation

56/ 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

42.0x

3Y Median

42.9x

40 monthly readings · mean 43.3x · range 25.0x–64.6x

Sector Median

88.8x

median of 3 sector peers

🟡Currently trading close to its 3y median of 42.9x — the market is paying about what it usually pays for this company.

🟢Against its sector it trades 53% below the peer median of 88.8x.

vs. its own history

Fair

42.9x median over 40 months · -2%

vs. sector peers

Cheap

88.8x median of 3 peers · -53%

vs. generic bands

Expensive

Above 35x

P/E (Trailing)

42.0x

P/B

9.18x

EV/EBITDA

21.5x

PEG

1.25

Dividend Yield

0.44%

What's Good / What's Bad

🟢 What's Going Well4

Return on equity is rising
ROE has improved from 14.4% to 18.5%.
Return on capital is rising
ROCE has improved from 21.9% to 26.0%.
High return on capital employed
ROCE of 26.0% is the mark of a business that converts capital into profit efficiently.
Consistently profitable
Profitable in every one of the last 4 reported years.

🔴 What Needs Attention3

Debt is rising
Total debt is up 153% over 3 years — worth checking what it funded.
Free cash flow is negative
The business is not currently covering its capital spending from operations.
Inventory building faster than sales
Inventory is up 160% against revenue growth of 95% — stock may not be moving.

Red Flags

4 items require attention · 3 high · 1 watch

🔴Debt has risen sharplyFinancial
Total debt is up 153% over 3 years, from ₹267 Cr to ₹675 Cr.
🔴Profit up while operating cash flow fallsFinancial
Reported profit rose but cash generated by operations declined — worth checking whether earnings are being supported by non-cash items or working capital.
🔴Inventory building faster than salesFinancial
Inventory up 160% against revenue up 95% — stock may not be moving.
🟡Free cash flow is negativeFinancial
Free cash flow was -₹264 Cr in the latest year.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Capital compounds at a high rate
ROCE of 26.0% means each rupee reinvested earns well above what capital costs. If the company can keep deploying at this rate, growth creates value rather than just consuming cash.
Cheaper than its peers
It trades 53% below the sector median. Either the market sees a problem the numbers do not show, or the discount closes.
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?

Size brings its own risk
Small 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.
Several serious flags at once
3 high-severity checks triggered. Individually each has an explanation; together they raise the chance that something structural is wrong rather than a one-off.

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

1Revenue growth stays above 19% a year✓ 25.0% CAGR
Latest reported year was 88.6%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
2EBITDA margin holds above 3%✓ 5.4%
Two points below today's level — enough room for noise, tight enough to catch real compression.
3Debt / EBITDA stays below 2x✗ 2.4x
The ratio lenders write covenants against; it survives a small or negative equity base, unlike Debt/Equity.
4Free cash flow remains positive✗ -₹264 Cr
Profit that never becomes cash eventually stops being profit.
5Interest cover stays above 3x✗ 2.9x
How much operating profit can fall before interest stops being comfortably covered.

Investment Checklist

7 / 11 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
✓ Short-term technical trend isn't bearish

Price history

Quick Metrics

5 good · 3 neutral · 3 weak

Market Cap

₹5,321 Cr

Small Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

42.0x

Expensive

Expensive — verify against sector peers

P/B Ratio

9.18x

Rich

Steep premium to book — needs high, durable returns to justify

EPS (TTM)

₹13.58

Profitable

Profitable on a per-share basis

ROE

18.5%

Strong

Strong capital efficiency

ROCE

26.0%

Strong

Earns comfortably above its likely cost of capital

Debt/Equity

1.15x

Moderate

Moderate leverage

Revenue Growth (YoY)

88.6%

Healthy

Healthy top-line growth

Profit Growth (YoY)

127.8%

Healthy

Profits growing at a healthy clip

Dividend Yield

0.44%

Modest

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

Free Cash Flow

-₹264 Cr

Cash burning

Spending more cash than the operations bring in

More Metrics

CMP

₹570

Operating Margin

4.1%

Weak

Thin margins leave little room for error

Net Margin

2.1%

Weak

Very little revenue reaches the bottom line

Current Ratio

1.15

Adequate

Adequate, but no real cushion

Beta (vs Nifty)

0.48

Defensive

Steadier than the market

52W Range Position

76%

Mid-range

Technical Snapshot

SMA 20 / SMA 50

584.9 / 541.0

Bullish alignment (short > long)

Price vs SMA 200

Above

Long-term uptrend

RSI (14)

50.8

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹2,639 Cr	₹2,976 Cr	₹3,665 Cr	₹5,156 Cr	+25.0%
EBITDA	₹115 Cr	₹130 Cr	₹170 Cr	₹279 Cr	+34.5%
EBITDA Margin	4.3%	4.4%	4.6%	5.4%	—
PAT (Net Profit)	₹45 Cr	₹56 Cr	₹70 Cr	₹107 Cr	+33.6%
EPS	₹5.1	₹6.02	₹7.52	₹11.46	+31.0%
ROE	14.4%	13.2%	14.5%	18.5%	—
ROCE	21.9%	20.8%	21.5%	26.0%	—
Total Debt	₹267 Cr	₹249 Cr	₹305 Cr	₹675 Cr	+36.3%
Free Cash Flow	₹39 Cr	₹23 Cr	-₹16 Cr	-₹264 Cr	—

🟢 Revenue has grown at 25.0% a year over 3 years.

🟢 EBITDA has grown at 34.5% a year over 3 years.

🟢 EBITDA Margin has risen from 4.3% to 5.4% over 3 years (+1.1 pts).

🟢 PAT (Net Profit) has grown at 33.6% a year over 3 years.

🟢 EPS has grown at 31.0% a year over 3 years.

🟢 ROE has risen from 14.4% to 18.5% over 3 years (+4.1 pts).

🟢 ROCE has risen from 21.9% to 26.0% over 3 years (+4.1 pts).

🔴 Total Debt has grown at 36.3% a year over 3 years.

🔴 Free Cash Flow has turned negative, from ₹39 Cr to -₹264 Cr.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹1,994 Cr

Total Liabilities

₹1,409 Cr

Total Debt

₹675 Cr

Cash & Equivalents

₹8 Cr

Operating Cash Flow

-₹93 Cr

Capex

-₹171 Cr

Shareholding (proxy)

Institutional Holding

0.2%

Insider Holding

75.3%

Corporate Actions

Dividend Rate

₹2.5

Ex-Dividend Date

22 Jul 2026

Peer Comparison

Company	P/E	ROE
SIEMENS LTD	88.8x	10.5%
ABB INDIA LIMITED	92.6x	19.1%
HAVELLS INDIA LIMITED	43.5x	17.1%

Recent News

1 positive3 mixed2 general

We Think That There Are Issues Underlying Ram Ratna Wires' (NSE:RAMRAT) Earnings

Simply Wall Street, 02 JunResults

🟡Mixed / dependsA results event. The figures on this page update once the new statements reach the data feed, which usually lags the announcement.

Ram Ratna Wires Reports Q1 Consolidated Net Profit Of ₹35.2 Crore Versus ₹15.5 Crore YoY

Sahi, 31 JulResults

🟡Mixed / dependsA results event. The figures on this page update once the new statements reach the data feed, which usually lags the announcement.

Ram Ratna Wires Share Price Target 2027 to 2030: Analyst Outlook

Univest, 14 AugAnalyst view

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

Ram Ratna Wires Ltd is Rated Hold by MarketsMOJO

MarketsMojo, 14 Oct

Ram Ratna Wires fixes July 22 record date for ₹2.50 dividend

scanx.trade, 03 OctCapital return

🟢Potentially positiveCash or shares returned to holders. A buyback is only good value if the shares were cheap when bought.

Market Trading Guide: Buy Ram Ratna Wires and Tata Motors PV on Monday for gains up to 12%

The Economic Times, 25 May

Watch Items

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

DalalBaazaar Thesis

🟡Business QualityAdequate12.4/20

🔴Financial HealthStretched8.7/20

🟢GrowthStrong18.5/20

🟢ProfitabilityStrong9.8/15

🔴ValuationDemanding5.3/15

🟡RiskModerate5/10

Good business at a fair price

A sound business at a reasonable valuation. Suitable for a long-term holding, with the valuation and the direction of margins worth watching rather than the business itself. 3 high-severity red flags sit above this conclusion and should be read first.

This thesis breaks if

✓Revenue growth stays above 19% a year25.0% CAGR
✓EBITDA margin holds above 3%5.4%
✗Debt / EBITDA stays below 2x2.4x
✗Free cash flow remains positive-₹264 Cr
✗Interest cover stays above 3x2.9x