Ratnamani Metals & Tubes Limited

Basic Materials — Steel · NSE

₹2,528.50−₹36.60 (−1.43%)

DalalBaazaar Score

50 / 100

🟡 Moderate

Verdict

CAUTION

Risk

High

Driven by high debt relative to equity, small-cap size, which brings sharper price swings, falling profits.

In simple words: Strong business and financial position, but sales are shrinking. Debt is the main factor to watch.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 7:01 pm

Understanding the Business

Company site ↗

The 60-second version of Ratnamani Metals & Tubes Limited — what it does, how it earns, and who it competes with, before any of the numbers below.

What does this company do?

Ratnamani Metals & Tubes Limited engages in the manufacturing of stainless-steel pipes, tubes, and carbon steel pipes in India and internationally.

IndustrySteel

SectorBasic Materials

Employees3,324

Annual revenue₹4,417 Cr

How does it make money?

Turns over ₹4,417 Cr a year. Of every ₹100 of sales, about ₹11 reaches shareholders as profit, with ₹19 left at the operating level before interest, tax and depreciation. Each of its 3,324 employees supports ₹1.33 Cr of revenue a year, the signature of a capital- or asset-led business.

Revenue / employee₹1.33 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.

Compared side by side in Peers ↓

What is its competitive advantage?Some evidence

ROCE of 16.0% is above what capital typically costs, which suggests some pricing power, though not yet the sustained, wide gap that marks a durable advantage.

Peer median ROE10.8%

What is the outlook?

4 analysts covering the stock expect revenue to grow about 17.9% and earnings to grow about 22.2% in the year to 2028. These are estimates by people who follow the company, not a forecast for the wider industry.

Est. revenue growth+17.9%

Est. earnings growth+22.2%

Analysts4

What has been driving growth?

Profit has moved mainly because margins changed, not because the business sold much more. Over 3 years revenue moved -1% while net margin moved -5% 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-1%

Margin effect-5%

DalalBaazaar Score

50/ 100

Moderate

Weighted across six categories. Every point is explained below.

✗ Revenue has contracted at 0.3% a year
✗ Profit has declined at 1.9% a year
✗ Latest-year revenue growth of -8.5% is below the longer-term trend — momentum is fading
✗ Profit fell 43.4% in the latest year

Quality vs. Valuation

Company Quality

49/ 100

Average

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

Valuation

40/ 100

Expensive

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

41.0x

3Y Median

35.8x

40 monthly readings · mean 36.6x · range 27.7x–51.2x

Sector Median

18.2x

median of 4 sector peers

⚠️Current valuation is approximately 15% above its 3y median of 35.8x. Paying more than usual needs a reason — faster growth, a better balance sheet, or a re-rating you believe in.

⚠️Against its sector it trades 125% above the peer median of 18.2x.

vs. its own history

Fair

35.8x median over 40 months · +15%

vs. sector peers

Expensive

18.2x median of 4 peers · +125%

vs. generic bands

Expensive

Above 35x

EV/EBITDA

21.5x

PEG

—

What's Good / What's Bad

🟢 What's Going Well2

Cash generation is improving
Free cash flow is up 167% over 3 years.
Consistently profitable
Profitable in every one of the last 4 reported years.

🔴 What Needs Attention2

Return on equity is falling
ROE has dropped from 19.6% to 11.7% — each rupee of shareholder capital earns less than it did.
Return on capital is falling
ROCE has declined from 24.5% to 16.0% — often a sign of competition or overexpansion.

Red Flags

2 items require attention · 1 high · 1 watch

🔴High leverageFinancial
Debt/Equity of 7.55x — earnings must service borrowings before shareholders see anything.
🟡Debt is increasingFinancial
Total debt is up 34% 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?

Leverage amplifies any setback
Debt/Equity of 7.55x. Interest is payable whether or not the business has a good year.
A premium to the sector to defend
It trades 125% above the peer median. That premium needs a reason that persists, or it closes.
Returns on shareholder capital are falling
ROE has dropped from 19.6% to 11.7%. 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
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.

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

1EBITDA margin holds above 17%✓ 18.9%
Two points below today's level — enough room for noise, tight enough to catch real compression.
2Free cash flow remains positive✓ ₹451 Cr
Profit that never becomes cash eventually stops being profit.
3Debt / EBITDA stays below 2x✓ 0.4x
The ratio lenders write covenants against; it survives a small or negative equity base, unlike Debt/Equity.
4ROCE stays above 13%✓ 16.0%
Falling returns on capital are usually competition arriving, and show up here before they reach the margin.
5Valuation vs its own median of 35.8x✓ 41.0x today
A re-rating above its own history needs a reason; without one it is just a higher price.

Investment Checklist

6 / 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

3 good · 4 neutral · 4 weak

Market Cap

₹17,723 Cr

Small Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

41.0x

Expensive

Expensive — verify against sector peers

P/B Ratio

4.31x

Fair

Moderate premium to the company's book value

EPS (TTM)

₹61.71

Profitable

Profitable on a per-share basis

ROE

11.7%

Moderate

Moderate capital efficiency

ROCE

16.0%

Strong

Earns comfortably above its likely cost of capital

Debt/Equity

7.55x

High

High leverage

Revenue Growth (YoY)

-8.5%

Shrinking

Sales are contracting

Profit Growth (YoY)

-43.4%

Falling

Profits are shrinking

Dividend Yield

0.40%

Modest

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

Free Cash Flow

₹451 Cr

Cash generative

Generates cash even after funding its capex

More Metrics

P/E (Forward)

28.3x

Improving

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

Operating Margin

13.0%

Average

Average margins

Net Margin

9.9%

Average

Average bottom-line conversion

Current Ratio

3.92

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

0.36

Defensive

Steadier than the market

52W Range Position

42%

Mid-range

Technical Snapshot

SMA 20 / SMA 50

2659.2 / 2589.7

Bullish alignment (short > long)

Price vs SMA 200

Above

Long-term uptrend

RSI (14)

31.9

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹4,461 Cr	₹5,028 Cr	₹5,146 Cr	₹4,417 Cr	-0.3%
EBITDA	₹792 Cr	₹917 Cr	₹858 Cr	₹836 Cr	+1.8%
EBITDA Margin	17.8%	18.2%	16.7%	18.9%	—
PAT (Net Profit)	₹510 Cr	₹623 Cr	₹544 Cr	₹483 Cr	-1.9%
EPS	₹72.83	₹88.85	₹77.25	₹68.81	-1.9%
ROE	19.6%	19.8%	15.0%	11.7%	—
ROCE	24.5%	25.1%	19.5%	16.0%	—
Total Debt	₹237 Cr	₹153 Cr	₹157 Cr	₹318 Cr	+10.3%
Free Cash Flow	₹169 Cr	₹298 Cr	₹207 Cr	₹451 Cr	+38.8%

🟡 Revenue has been broadly flat over 3 years (-0.3% a year).

🟡 EBITDA has been broadly flat over 3 years (1.8% a year).

🟢 EBITDA Margin has risen from 17.8% to 18.9% over 3 years (+1.2 pts).

🟡 PAT (Net Profit) has been broadly flat over 3 years (-1.9% a year).

🟡 EPS has been broadly flat over 3 years (-1.9% a year).

🔴 ROE has fallen from 19.6% to 11.7% over 3 years (-7.9 pts).

🔴 ROCE has fallen from 24.5% to 16.0% over 3 years (-8.5 pts).

🔴 Total Debt has grown at 10.3% a year over 3 years.

🟢 Free Cash Flow has grown at 38.8% a year over 3 years.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹5,388 Cr

Total Liabilities

₹1,180 Cr

Cash & Equivalents

₹72 Cr

Operating Cash Flow

₹936 Cr

Capex

-₹485 Cr

Shareholding (proxy)

Institutional Holding

25.8%

Insider Holding

65.5%

Corporate Actions

Next Earnings

13 Nov 2026

Dividend Rate

₹10

Ex-Dividend Date

11 Aug 2026

Analyst Consensus

Recommendations

4 Buy · 1 Hold · 0 Sell

Target Price (Mean)

₹2,659.8

+5.2% vs CMP

Target Range

₹2,384 – ₹2,940

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

1 positive4 mixed1 general

RATNAMANI 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.

Why You Might Be Interested In Ratnamani Metals & Tubes Limited (NSE:RATNAMANI) For Its Upcoming Dividend

Simply Wall Street, 07 AugCapital return

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

Ratnamani Metals & Tubes shares jump 18% on securing export orders worth ₹2,700 crore

Upstox, 24 AugPrice 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.

Ratnamani Metals shares rally up to 21% in two sessions after securing Rs 2,700 crore order

The Economic Times, 25 AugPrice 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.

Ratnamani Metals & Tubes shares surge 18% on bagging export orders worth Rs 2,700 crore

Moneycontrol.com, 24 AugPrice 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.

Ratnamani Metals & Tubes arm wins export orders worth Rs 2,700 cr

Business Standard, 24 Aug

Watch Items

Revenue growth is negative (-8.5%) on the latest reported period — check if this is one-off or a trend.
Cross-check against the company's latest quarterly filing / investor presentation before acting.

DalalBaazaar Thesis

StrongFinancial Health

MiddlingBusiness Quality · Profitability · Valuation · Risk

WeakGrowth

Points for each in the Score ↑

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. 1 high-severity red flag sits above this conclusion and should be read first.

All 5 tripwires holding · see Key things to watch ↑