Rama Steel Tubes Ltd. (RAMASTEEL) AI Stock Analysis

• Market Cap: ₹14.32B
• Dividend Yield: N/A
• Average Volume (3M): 1.33M
• Price to Earnings (P/E): 71.6
• Beta (1Y): 0.81
• Revenue Growth: 14.51%
• EPS Growth: -30.02%
• Country: IN
• Employees: 157
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Steel
• EPS (TTM): N/A
• Shares Outstanding: 1,636,041,000
• 10 Day Avg. Volume: 497,716
• 30 Day Avg. Volume: 1,331,512
• PEG Ratio: -1.93
• Price to Book (P/B): 4.19
• Price to Sales (P/S): 1.46
• P/FCF Ratio: 59.62
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 55 Neutral
• Price Target: ₹11.50 ▲(20.67% Upside)

Rama Steel Tubes Ltd. has a moderate overall stock score. The stable financial position and improvements in debt management are positive, but the high P/E ratio and overbought technical indicators suggest caution. The lack of dividend yield and potential for price correction are significant factors impacting the score.

Positive Factors

Debt Management

Effective debt management enhances financial stability, reducing risk and improving the company's ability to invest in growth opportunities.

Operating Cash Flow

Positive operating cash flow indicates improved efficiency and supports the company's ability to fund operations and invest in future growth.

Return on Equity

An increase in ROE suggests better returns for shareholders, reflecting effective management and potential for sustainable growth.

Negative Factors

Gross Profit Margin Decline

A declining gross profit margin indicates increased cost pressures or pricing challenges, potentially impacting long-term profitability.

Net Profit Margin Decline

Decreasing net profit margins suggest challenges in cost management and pricing power, which could hinder sustained profitability.

Free Cash Flow Volatility

Inconsistent free cash flow indicates potential volatility in cash generation, affecting the company's ability to fund strategic initiatives.

Rama Steel Tubes Ltd. Business Overview & Revenue Model

Company Description

Rama Steel Tubes Limited manufactures and trades steel pipes and tubes, and rigid poly vinyl chloride and galvanized iron pipes in India and internationally. It offers ERW galvanized steel pipes and tubes, ERW black steel pipes and tubes, scaffolding pipes and tubes, swaged poles, structural steel products, and hollow sections. The company also exports its products to the United Kingdom, the United Arab Emirates, Sri Lanka, Ethiopia, Kenya, Uganda, Ghana, Kuwait, the Republic of Congo, Yemen, Guyana, Germany, the United States, South Africa, Zambia, Malta, etc. Rama Steel Tubes Limited was incorporated in 1974 and is based in New Delhi, India.

How the Company Makes Money

Rama Steel Tubes Ltd. generates revenue primarily through the production and sale of steel tubes and pipes. The company's revenue model is centered on manufacturing high-quality products that meet the needs of various industries, thereby establishing long-term contracts with key clients and distributors. Key revenue streams include direct sales to construction companies, automotive manufacturers, and agricultural firms, as well as exports to international markets. Additionally, RAMASTEEL may engage in strategic partnerships with suppliers and clients to enhance its market reach and operational efficiency, contributing to its overall earnings.

Rama Steel Tubes Ltd. Financial Statement Overview

Summary

Rama Steel Tubes Ltd. shows a stable financial position with moderate profitability. Improvements in debt management and returns on equity are positive, but challenges remain in maintaining consistent profitability and cash flow stability. Cost management and operational efficiencies are key areas for improvement.

Income Statement

Rama Steel Tubes Ltd. has shown moderate performance in its income statement. The company experienced a decline in gross profit margins, from 9.3% in 2022 to 4.9% in 2025, indicating increased cost pressures or pricing challenges. Net profit margins also decreased from 3.6% in 2022 to 2.2% in 2025. Revenue growth was volatile, with a significant spike in 2023 followed by a decline. While EBIT and EBITDA margins have remained relatively steady, the overall trajectory indicates potential challenges in maintaining profitability.

Balance Sheet

The balance sheet of Rama Steel Tubes Ltd. reflects a stable financial position with an improving equity base. The debt-to-equity ratio improved from 1.56 in 2020 to 0.24 in 2025, demonstrating effective debt management. Return on equity (ROE) showed a healthy increase in 2025 at 6.2%, indicating better returns for shareholders. However, the equity ratio remained static at around 48% in 2025, reflecting a balanced but not overly strong equity position relative to total assets.

Cash Flow

The cash flow statement reveals mixed results. Operating cash flow improved significantly in 2025, turning positive after previous losses. However, free cash flow was inconsistent, with growth impacted by fluctuating capital expenditures and financing activities. The operating cash flow to net income ratio improved, suggesting enhanced efficiency, but free cash flow to net income remains inconsistent, pointing to potential volatility in cash generation.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	11.00B	10.48B	10.47B	13.37B	7.68B	4.68B
Gross Profit	517.69M	511.38M	974.35M	928.11M	679.69M	362.82M
EBITDA	453.14M	457.93M	630.65M	580.36M	491.42M	244.62M
Net Income	217.22M	227.55M	291.28M	266.55M	273.15M	123.78M
Balance Sheet
Total Assets	0.00	7.58B	7.34B	6.95B	3.58B	2.48B
Cash, Cash Equivalents and Short-Term Investments	55.01M	55.36M	174.06M	126.11M	176.52M	220.77M
Total Debt	0.00	888.17M	1.45B	1.93B	1.38B	854.43M
Total Liabilities	-3.73B	3.85B	3.87B	4.31B	2.32B	1.48B
Stockholders Equity	3.73B	3.64B	3.35B	2.50B	1.27B	999.45M
Cash Flow
Free Cash Flow	0.00	256.22M	46.02M	-1.56B	-455.22M	135.02M
Operating Cash Flow	0.00	395.22M	180.93M	-961.62M	-349.81M	247.19M
Investing Cash Flow	0.00	-6.35M	-7.78M	-531.99M	-92.32M	-101.65M
Financing Cash Flow	0.00	-507.91M	-125.21M	1.43B	408.49M	-55.94M

Rama Steel Tubes Ltd. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 9.53
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Positive
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:RAMASTEEL, the sentiment is Negative. The current price of 9.53 is above the 20-day moving average (MA) of 9.43, below the 50-day MA of 9.90, and below the 200-day MA of 10.58, indicating a bearish trend. The MACD of -0.27 indicates Positive momentum. The RSI at 29.22 is Positive, neither overbought nor oversold. The STOCH value of 11.14 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for IN:RAMASTEEL.

Rama Steel Tubes Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
VSSL	75 Outperform	₹26.19B	24.46	―	1.03%	-1.47%	-15.20%
VENUSPIPES	70 Outperform	₹23.80B	25.43	―	0.08%	17.45%	-7.82%
HARIOMPIPE	66 Neutral	₹12.42B	19.87	―	0.17%	17.98%	-0.62%
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
HITECH	61 Neutral	₹17.71B	21.93	―	0.03%	9.05%	-4.65%
RAMASTEEL	55 Neutral	₹14.32B	71.62	―	―	14.51%	-30.02%
APOLLOPIPE	55 Neutral	₹13.28B	51.24	―	0.23%	9.39%	-26.87%

Rama Steel Tubes Ltd. Corporate Events

Rama Steel Tubes Posts Double-Digit Volume Growth in Q3 and 9MFY26

Rama Steel Tubes Limited reported strong sales volume growth for the nine months ended FY26 and the third quarter of FY26, underscoring its momentum in the structural steel tube market. The company’s Q3FY26 sales volume rose 14% year-on-year to 58,974.55 tonnes from 51,669.01 tonnes in Q3FY25, while 9MFY26 sales volume increased 23% year-on-year to 171,935.78 tonnes from 139,956.23 tonnes a year earlier, indicating robust demand for its products and potentially reinforcing its competitive positioning in both domestic and export markets.

ICRA Puts Rama Steel Tubes on Rating Watch After Big UAE Acquisition Plan

ICRA has placed Rama Steel Tubes Ltd.’s Rs 110-crore bank facilities on ‘Rating Watch with Developing Implications’, revising the outlook on its long-term [ICRA]BB+ rating and maintaining its short-term [ICRA]A4+ rating, following the company’s proposed acquisition of 100% of UAE-based Automech Group Holding Limited. The planned AED 296-million (about Rs 728 crore) deal, partly funded by debt and partly via share swap, is expected to significantly expand Rama Steel Tubes’ presence in the Middle East and diversify it into higher-margin engineering and fabrication segments, but also raises concerns over leverage, coverage metrics and execution and integration risks, prompting closer monitoring by the rating agency.

Rama Steel Tubes Ltd. Announces Strategic Acquisition of Automech Group Holding Limited

Rama Steel Tubes Ltd. has announced the joint acquisition of a 100% stake in Automech Group Holding Limited, registered under the Abu Dhabi Global Market, in collaboration with its wholly-owned subsidiary, RST International Trading FZE. The acquisition, valued at AED 296 million (approximately Rs. 728 Crores), will see RST International Trading FZE acquiring a 78.38% stake, while Rama Steel Tubes Ltd. will acquire a 21.62% stake. This strategic move is expected to enhance the company’s market positioning and expand its operational footprint in the global market.

Rama Steel Tubes Ltd. Acquires 100% Stake in Automech Group

Rama Steel Tubes Ltd. has announced its decision to acquire a 100% stake in Automech Group Holding Limited, a company registered under the Abu Dhabi Global Market. This strategic acquisition, valued at AED 296 million, involves Rama Steel Tubes and its wholly-owned subsidiary, RST International Trading FZE, acquiring 21.62% and 78.38% stakes respectively. This move is expected to enhance Rama Steel Tubes’ market presence and operational capabilities, potentially offering significant benefits to its stakeholders.

Rama Steel Tubes Ltd. Acquires 100% Stake in Automech Group

Rama Steel Tubes Ltd. has announced the approval of a share purchase agreement to acquire a 100% stake in Automech Group Holding Limited, a company registered in the Abu Dhabi Global Market. This acquisition, valued at approximately AED 296 million, involves Rama Steel Tubes and its wholly-owned subsidiary, RST International Trading FZE, with the latter acquiring a 78.38% stake and Rama Steel Tubes acquiring a 21.62% stake. The transaction is expected to enhance Rama Steel Tubes’ market presence and operational capabilities, subject to necessary regulatory approvals.

Rama Steel Tubes Acquires Automech Group to Boost Engineering Capabilities

Rama Steel Tubes Limited has announced its acquisition of the UAE-based Automech Group for AED 296 million, marking a strategic move into high-margin fabrication and engineering segments. This acquisition is expected to significantly boost RSTL’s financial performance, with projected revenue growth of over 113% and a substantial increase in EBITDA margins by FY27, driven by operational synergies and an enhanced product-service mix.

Rama Steel Tubes Ltd. Expands Investment in UAE Subsidiary

Rama Steel Tubes Ltd. announced the outcome of its board meeting where it approved further investment in its wholly-owned subsidiary, RST International Trading FZE in the UAE, through share acquisition. Additionally, the board sanctioned a working capital loan of AED 10 million for the subsidiary, aimed at supporting its expansion plans and exploring new business opportunities, indicating a strategic move to bolster its market presence and operational capabilities.

Rama Steel Tubes Ltd. Expands Investment in UAE Subsidiary

Rama Steel Tubes Ltd. announced the outcome of its board meeting held on November 25, 2025, where it approved further investment in its wholly-owned subsidiary, RST International Trading FZE in the UAE, by acquiring additional shares. Additionally, the board sanctioned a working capital loan of AED 10 million for the subsidiary, aiming to support its expansion plans and explore new business opportunities, which could enhance the company’s market positioning and growth potential.

Rama Steel Tubes Expands Investment in UAE Subsidiary

Rama Steel Tubes Ltd. has announced further investment in its wholly owned subsidiary, RST International Trading FZE in the UAE, through the acquisition of shares. The Board of Directors has also approved a working capital loan of AED 10 million to support the subsidiary’s expansion plans and explore additional business opportunities. This strategic move is expected to facilitate future growth initiatives and strengthen the company’s position in the market.

Rama Steel Tubes Expands Investment in UAE Subsidiary

Rama Steel Tubes Ltd. has announced a strategic move to further invest in its wholly-owned subsidiary, RST International Trading FZE, based in the U.A.E. The Board of Directors approved an acquisition of shares and a working capital loan of AED 10 million to support the subsidiary’s expansion plans and explore additional business opportunities. This decision aligns with the company’s growth initiatives and aims to enhance its market position in the steel and construction materials industry.