RR Metalmakers India Limited

Basic Materials — Steel · BSE

₹47.70+₹1.31 (+2.82%)

DalalBaazaar Score

32 / 100

🔴 Weak

Verdict

CAUTION

Risk

Very High

Driven by high debt relative to equity, negative free cash flow, the company is currently loss-making.

In simple words: The company is currently losing money, though profits are falling even as sales grow. Debt is the main factor to watch.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 6:09 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 RR Metalmakers India Limited — what it does, how it earns, and who it competes with, before any of the numbers below.

What does this company do?

RR Metalmakers India Limited manufactures and sells steel pipes, and doors and windows in India.

IndustrySteel

SectorBasic Materials

Employees5

Annual revenue₹87 Cr

How does it make money?

Turns over ₹87 Cr a year. Of every ₹100 of sales, about ₹-1 reaches shareholders as profit, with ₹-1 left at the operating level before interest, tax and depreciation. Each of its 5 employees supports ₹17.38 Cr of revenue a year, the signature of a capital- or asset-led business.

EBITDA margin-1.1%

Net margin-0.8%

Revenue / employee₹17.38 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 5.7% 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.

ROCE5.7%

ROE-8.0%

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 +4% while net margin moved -37% 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+4%

Margin effect-37%

DalalBaazaar Score

32/ 100

Weak

Weighted across six categories. Every point is explained below.

✗ No meaningful P/E — the company is lossmaking
✗ P/B of 5.13x is a steep premium to book

Quality vs. Valuation

Company Quality

34/ 100

Weak

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

Valuation

21/ 100

Expensive

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

Weak on business quality and not cheap enough to compensate.

vs. its own history

Not enough price and earnings history

vs. sector peers

Not enough peers with a usable P/E

vs. generic bands

N/A

No P/E — the company is lossmaking

P/E (Trailing)

Not meaningful

P/B

5.13x

EV/EBITDA

—

PEG

—

Dividend Yield

None

What's Good / What's Bad

🟢 What's Going Well2

Debt is being paid down
Total debt is down 39% over 3 years.
Return on equity is rising
ROE has improved from -15.7% to -8.0%.

🔴 What Needs Attention4

Margins are compressing
EBITDA margin has slipped from 2.8% to -1.1% over 3 years.
Free cash flow is negative
The business is not currently covering its capital spending from operations.
Return on capital is falling
ROCE has declined from 18.6% to 5.7% — often a sign of competition or overexpansion.
Receivables growing faster than sales
Receivables are up 287% against revenue growth of 4% — customers are taking longer to pay.

Red Flags

7 items require attention · 4 high · 3 watch

🔴High leverageFinancial
Debt/Equity of 1.57x — earnings must service borrowings before shareholders see anything.
🔴Thin interest coverageFinancial
Operating profit covers interest only 0.9x — little room if earnings dip.
🔴The company is lossmakingFinancial
Net profit of -₹1 Cr in the latest reported year.
🔴Receivables growing faster than salesFinancial
Receivables up 287% against revenue up 4% — sales are being booked faster than they are collected.
🟡Interest coverage is deterioratingFinancial
Cover has fallen from 1.6x to 0.9x.
🟡Free cash flow is negativeFinancial
Free cash flow was -₹5 Cr in the latest year.
🟡Margins are compressingFinancial
EBITDA margin is down 3.9 points over 3 years.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Deleveraging frees up earnings
Debt is down 39% over 3 years. Every rupee of interest not paid drops to the bottom line, so profit can grow even if revenue does not.

🔴 Bear CaseWhat could go wrong?

Margins are being competed away
EBITDA margin has fallen from 2.8% to -1.1%. If the trend continues, profit falls even on flat sales — and margin decline rarely reverses quickly.
Leverage amplifies any setback
Debt/Equity of 1.57x. Interest is payable whether or not the business has a good year.
Sales are being booked faster than collected
Receivables are up 287% against revenue up 4%. If customers keep taking longer to pay, reported profit will not turn into cash — and write-offs follow if some never do.
Growth barely outpaces inflation
Revenue compounding at 1.4% 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.

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

1EBITDA margin holds above -3%✓ -1.1%
Two points below today's level — enough room for noise, tight enough to catch real compression.
2Free cash flow remains positive✗ -₹5 Cr
Profit that never becomes cash eventually stops being profit.
3Interest cover stays above 3x✗ 0.9x
How much operating profit can fall before interest stops being comfortably covered.
4Revenue growth stays above 4% a year✗ 1.4% CAGR
Latest reported year was 71.3%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
5ROCE stays above 8%✗ 5.7%
Falling returns on capital are usually competition arriving, and show up here before they reach the margin.

Investment Checklist

4 / 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

1 good · 2 neutral · 8 weak

Market Cap

₹43 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

Not meaningful

Loss-making

Earnings are negative, so a P/E multiple can't be read here

P/B Ratio

5.13x

Rich

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

EPS (TTM)

₹-2.6

Loss-making

Negative earnings per share — the business is losing money

ROE

-8.0%

Weak

Weak capital efficiency

ROCE

5.7%

Weak

Low return on total capital employed

Debt/Equity

1.57x

High

High leverage

Revenue Growth (YoY)

71.3%

Healthy

Healthy top-line growth

Profit Growth (YoY)

-140.1%

Falling

Profits are shrinking

Dividend Yield

None

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

Free Cash Flow

-₹5 Cr

Cash burning

Spending more cash than the operations bring in

More Metrics

CMP

₹47.7

Operating Margin

-1.4%

Weak

Thin margins leave little room for error

Net Margin

-2.3%

Weak

Very little revenue reaches the bottom line

Current Ratio

1.28

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

0.51

Defensive

Steadier than the market

52W Range Position

44%

Mid-range

Technical Snapshot

SMA 20 / SMA 50

44.5 / 52.2

Bearish alignment (short < long)

Price vs SMA 200

Above

Long-term uptrend

RSI (14)

60.1

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹83 Cr	₹97 Cr	₹52 Cr	₹87 Cr	+1.4%
EBITDA	₹2 Cr	₹6 Cr	₹5 Cr	-₹1 Cr	—
EBITDA Margin	2.8%	5.8%	9.1%	-1.1%	—
PAT (Net Profit)	-₹1 Cr	₹1 Cr	₹2 Cr	-₹1 Cr	—
EPS	₹-1.23	₹1.17	₹1.86	₹-0.75	—
ROE	-15.7%	13.8%	18.1%	-8.0%	—
ROCE	18.6%	45.1%	40.4%	5.7%	—
Total Debt	₹22 Cr	₹17 Cr	₹9 Cr	₹13 Cr	-15.2%
Free Cash Flow	₹4 Cr	₹6 Cr	₹11 Cr	-₹5 Cr	—

🟡 Revenue has been broadly flat over 3 years (1.4% a year).

🔴 EBITDA has turned negative, from ₹2 Cr to -₹1 Cr.

🔴 EBITDA Margin has fallen from 2.8% to -1.1% over 3 years (-3.9 pts).

🟢 ROE has risen from -15.7% to -8.0% over 3 years (+7.7 pts).

🔴 ROCE has fallen from 18.6% to 5.7% over 3 years (-13.0 pts).

🟢 Total Debt has shrunk at 15.2% a year over 3 years.

🔴 Free Cash Flow has turned negative, from ₹4 Cr to -₹5 Cr.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹55 Cr

Total Liabilities

₹46 Cr

Total Debt

₹13 Cr

Cash & Equivalents

₹0 Cr

Operating Cash Flow

-₹5 Cr

Capex

—

Shareholding (proxy)

Institutional Holding

0.0%

Insider Holding

83.8%

Corporate Actions

Ex-Dividend Date

06 Jun 2018

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

RR Metalmakers open offer price revised to ₹36.83 per share

scanx.trade, 06 Oct

RR Metalmakers India Ltd. Shareholding Pattern – Promoters, FIIs & DIIs

Value Research, 02 Sept

RR Metalmakers open offer opens on September 23 at ₹23.85

scanx.trade, 30 Jul

RB International leads ₹55.8 crore open offer for RR Metalmakers stake

Dealroom, 30 Jul

RR MetalMakers India Limited Completes Sale of Gujarat Manufacturing Plant for ₹2.65 Crores

scanx.trade, 18 Apr

Mukesh Patel sells 50100 shares in RR Metalmakers India

scanx.trade, 06 Jul

Watch Items

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

DalalBaazaar Thesis

🔴Business QualityWeak4.7/20

🔴Financial HealthStretched8/20

🔴GrowthWeak7.6/20

🔴ProfitabilityWeak5/15

🔴ValuationDemanding2.6/15

🔴RiskHigh3.7/10

Weak on the fundamentals

Poor scores on business quality without a price low enough to compensate. There is no obvious argument for owning this over a stronger company at a similar valuation. 4 high-severity red flags sit above this conclusion and should be read first.

This thesis breaks if

✓EBITDA margin holds above -3%-1.1%
✗Free cash flow remains positive-₹5 Cr
✗Interest cover stays above 3x0.9x
✗Revenue growth stays above 4% a year1.4% CAGR
✗ROCE stays above 8%5.7%