Remi Edelstahl Tubulars Limited

Basic Materials — Steel · BSE

₹194.40−₹7.40 (−3.67%)

DalalBaazaar Score

49 / 100

🟡 Moderate

Verdict

CAUTION

Risk

High

Driven by negative free cash flow, micro-cap size, which brings thin liquidity, a very high earnings multiple, which leaves little margin for disappointment.

In simple words: The business is earning a fairly low return on the money invested in it, 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, 7:03 pm

Understanding the Business

Company site ↗

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

What does this company do?

Remi Edelstahl Tubulars Limited manufactures and sells stainless steel pipes and tubes in India.

IndustrySteel

SectorBasic Materials

Annual revenue₹139 Cr

How does it make money?

Turns over ₹139 Cr a year. Of every ₹100 of sales, about ₹2 reaches shareholders as profit, with ₹6 left at the operating level before interest, tax and depreciation.

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?Little sign of one

Returns on capital of 6.1% 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.

Peer median ROE10.8%

What has been driving growth?

Profit has moved mainly because margins changed, not because the business sold much more. Over 3 years revenue moved +7% while net margin moved +1639% 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+7%

Margin effect+1639%

DalalBaazaar Score

49/ 100

Moderate

Weighted across six categories. Every point is explained below.

✗ ROCE of 6.1% is below 10% — capital is not working hard
• ROCE has been broadly stable
✗ EBITDA margin of 6.2% is thin — little cushion if costs rise
✗ Net margin of 2.0% is slim
• Revenue has compounded at 2.2% a year, which is the base these returns are earned on

Quality vs. Valuation

Company Quality

51/ 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

78.1x

3Y Median

80.2x

40 monthly readings · mean 222.2x · range 54.3x–772.6x

Sector Median

18.2x

median of 4 sector peers

🟡Currently trading close to its 3y median of 80.2x — the market is paying about what it usually pays for this company.

⚠️Against its sector it trades 329% above the peer median of 18.2x.

vs. its own history

Fair

80.2x median over 40 months · -3%

vs. sector peers

Expensive

18.2x median of 4 peers · +329%

vs. generic bands

Expensive

Above 35x

EV/EBITDA

36.4x

PEG

0.47

What's Good / What's Bad

🟢 What's Going Well4

Margins are improving
EBITDA margin is up from 4.5% to 6.2% over 3 years.
Return on equity is rising
ROE has improved from 0.3% to 3.9%.
Return on capital is rising
ROCE has improved from 3.9% to 6.1%.
Consistently profitable
Profitable in every one of the last 4 reported years.

🔴 What Needs Attention0

Nothing stands out as clearly deteriorating on the years of data available.

Red Flags

4 items require attention · 2 high · 2 watch

🔴Debt has risen sharplyFinancial
Total debt is up 117% over 3 years, from ₹24 Cr to ₹53 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.
🟡Free cash flow is negativeFinancial
Free cash flow was -₹58 Cr in the latest year.
🟡Inventory building faster than salesFinancial
Inventory up 44% against revenue up 7% — stock may not be moving.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Margin expansion has further to run
EBITDA margin has risen from 4.5% to 6.2%. If that holds, profit compounds faster than sales and today's multiple looks cheaper in hindsight than it does now.
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?

The debt load needs earnings to hold up
Debt is 6.1x EBITDA. At that level a downturn in earnings turns a manageable balance sheet into a refinancing problem, and lenders get paid before shareholders.
A premium to the sector to defend
It trades 329% above the peer median. That premium needs a reason that persists, or it closes.
Growth barely outpaces inflation
Revenue compounding at 2.2% a year is close to the rate prices rise, so the business is gaining little ground in real terms. That leaves the share price dependent on a re-rating rather than on earnings growth.
Earnings are hard to forecast
Profit has swung sharply from year to year, so any single year — good or bad — is a weak guide to the next. Cyclical earnings deserve lower multiples for that reason.
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 4%✓ 6.2%
Two points below today's level — enough room for noise, tight enough to catch real compression.
2Debt / EBITDA falls below 3x✗ 6.1x
Already stretched, so this is a reduction target rather than a level to hold. Around 3x is where lenders typically start attaching conditions.
3Free cash flow remains positive✗ -₹58 Cr
Profit that never becomes cash eventually stops being profit.
4Interest cover stays above 3x✓ 3.0x
How much operating profit can fall before interest stops being comfortably covered.
5Revenue growth stays above 4% a year✗ 2.2% CAGR
Latest reported year was 32.2%. The bar is set below the established compounding rate, so ordinary variation does not trip it.

Investment Checklist

5 / 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

3 good · 4 neutral · 4 weak

Market Cap

₹261 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

78.1x

Expensive

Expensive — verify against sector peers

P/B Ratio

3.53x

Fair

Moderate premium to the company's book value

EPS (TTM)

₹2.49

Profitable

Profitable on a per-share basis

ROE

3.9%

Weak

Weak capital efficiency

ROCE

6.1%

Weak

Low return on total capital employed

Debt/Equity

0.76x

Moderate

Moderate leverage

Revenue Growth (YoY)

32.2%

Healthy

Healthy top-line growth

Profit Growth (YoY)

89.5%

Healthy

Profits growing at a healthy clip

Dividend Yield

None

No dividend yield reported — usually means no payout, but verify if one was recently initiated

Free Cash Flow

-₹58 Cr

Cash burning

Spending more cash than the operations bring in

More Metrics

Operating Margin

3.0%

Weak

Thin margins leave little room for error

Net Margin

2.0%

Weak

Very little revenue reaches the bottom line

Current Ratio

1.73

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

0.25

Defensive

Steadier than the market

52W Range Position

49%

Mid-range

Technical Snapshot

SMA 20 / SMA 50

219.7 / 226.9

Bearish alignment (short < long)

Price vs SMA 200

Above

Long-term uptrend

RSI (14)

28.0

Oversold zone

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹130 Cr	₹117 Cr	₹136 Cr	₹139 Cr	+2.2%
EBITDA	₹6 Cr	₹7 Cr	₹8 Cr	₹9 Cr	+14.0%
EBITDA Margin	4.5%	5.6%	6.1%	6.2%	—
PAT (Net Profit)	₹0 Cr	₹1 Cr	₹3 Cr	₹3 Cr	+164.8%
EPS	₹0.13	₹1.26	₹2.43	₹2.17	+155.6%
ROE	0.3%	3.2%	5.8%	3.9%	—
ROCE	3.9%	6.0%	8.0%	6.1%	—
Total Debt	₹24 Cr	₹30 Cr	₹15 Cr	₹53 Cr	+29.5%
Free Cash Flow	₹8 Cr	-₹6 Cr	₹16 Cr	-₹58 Cr	—

🟢 Revenue has grown at 2.2% a year over 3 years.

🟢 EBITDA has grown at 14.0% a year over 3 years.

🟢 EBITDA Margin has risen from 4.5% to 6.2% over 3 years (+1.7 pts).

🟢 PAT (Net Profit) has grown at 164.8% a year over 3 years.

🟢 EPS has grown at 155.6% a year over 3 years.

🟢 ROE has risen from 0.3% to 3.9% over 3 years (+3.6 pts).

🟢 ROCE has risen from 3.9% to 6.1% over 3 years (+2.2 pts).

🔴 Total Debt has grown at 29.5% a year over 3 years.

🔴 Free Cash Flow has turned negative, from ₹8 Cr to -₹58 Cr.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹138 Cr

Total Liabilities

₹68 Cr

Cash & Equivalents

₹0 Cr

Operating Cash Flow

-₹22 Cr

Capex

-₹36 Cr

Shareholding (proxy)

Institutional Holding

0.0%

Insider Holding

82.5%

Corporate Actions

Ex-Dividend Date

24 Sept 2008

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

6 general

Remi Edelstahl Tubulars postpones Board meeting to July 31

scanx.trade, 28 Jul

Remi Edelstahl Tubulars Ltd. Share Price Live Today

CNBC TV18, 03 Jan

Remi Edelstahl Tubulars passes all 55th AGM resolutions with 99.99% vote

scanx.trade, 31 Aug

Remi Edelstahl Tubulars (BSE:513043) - Stock Analysis

Simply Wall Street, 02 Dec

Remi Edelstahl Tubulars Ltd. Share Price Near 52-Week High

Univest, 12 Aug

Remi Edelstahl Tubulars Ltd. Peer Comparison – Compare with Others

Value Research, 31 Aug

Watch Items

Cross-check against the company's latest quarterly filing / investor presentation before acting.
RSI is in oversold territory — could mean either a bargain or a stock still falling for good reason. Check the 'why' before assuming reversal.

DalalBaazaar Thesis

StrongGrowth

MiddlingFinancial Health · Profitability · Valuation

WeakBusiness Quality · Risk

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. 2 high-severity red flags sit above this conclusion and should be read first.

3 of 5 tripwires tripped — Debt / EBITDA falls below 3x; Free cash flow remains positive; Revenue growth stays above 4% a year · see Key things to watch ↑