Rama Steel Tubes Ltd. (RAMASTEEL) AI Stock Analysis

• Market Cap: ₹16.81B
• Dividend Yield: N/A
• Average Volume (3M): 898.66K
• Price to Earnings (P/E): 77.9
• Beta (1Y): 0.78
• Revenue Growth: 15.67%
• EPS Growth: -28.54%
• Country: IN
• Employees: 157
• Sector: Basic Materials
• Sector Strength: 60
• Industry: Steel
• EPS (TTM): 0.03
• Shares Outstanding: 1,558,263,200
• 10 Day Avg. Volume: 513,432
• 30 Day Avg. Volume: 898,657
• PEG Ratio: N/A
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• 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: ₹12.00
• Price Target Upside: 13.53% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 57 Neutral
• Price Target: ₹12.00 ▲(13.53% Upside)

Rama Steel Tubes Ltd. shows a stable financial foundation with effective debt management, but faces significant challenges with profitability and valuation. The technical analysis indicates bearish momentum, and the high P/E ratio suggests a potential overvaluation. These factors weigh heavily on the stock's overall score.

Rama Steel Tubes Ltd. Business Overview & Revenue Model

Company Description

Rama Steel Tubes Ltd. (RAMASTEEL) is a prominent manufacturer and supplier of steel tubes and pipes in India. The company operates in the steel and construction sectors, offering a wide range of products including galvanized steel tubes, ERW (Electric Resistance Welded) steel pipes, and other tubular products. With a strong focus on quality and innovation, RAMASTEEL serves various industries such as infrastructure, construction, agriculture, and automotive, providing solutions that cater to both domestic and international markets.

How the Company Makes Money

Rama Steel Tubes Ltd. generates revenue primarily through the manufacturing and sale of steel tubes and related products. The company's key revenue streams include the domestic sale of galvanized and ERW steel tubes to industries like construction and automotive, as well as export sales to international markets. RAMASTEEL capitalizes on its extensive distribution network and strategic partnerships with construction companies and industrial manufacturers to boost sales. Additionally, the company benefits from economies of scale and operational efficiencies in its manufacturing processes, contributing to its profitability. The company may also engage in long-term contracts and direct sales to large infrastructure projects, further enhancing its revenue potential.

Rama Steel Tubes Ltd. Financial Statement Overview

Summary

Rama Steel Tubes Ltd. demonstrates a stable financial position with moderate profitability. Improvements in debt management and returns on equity are notable, yet challenges remain in maintaining consistent profitability and cash flow stability.

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	Mar 2025	Mar 2023	Mar 2024	Mar 2022	Mar 2021
Income Statement
Total Revenue	11.54B	10.48B	13.37B	10.47B	7.60B	4.68B
Gross Profit	805.73M	511.38M	928.11M	974.35M	679.69M	362.82M
EBITDA	466.02M	457.93M	580.36M	630.65M	517.59M	244.62M
Net Income	257.78M	227.55M	266.55M	291.28M	273.15M	123.78M
Balance Sheet
Total Assets	0.00	7.58B	6.95B	7.34B	3.58B	2.48B
Cash, Cash Equivalents and Short-Term Investments	86.54M	55.01M	126.85M	174.06M	176.52M	199.62M
Total Debt	0.00	888.17M	1.93B	1.45B	1.38B	854.43M
Total Liabilities	-3.65B	3.85B	4.31B	3.87B	2.32B	1.48B
Stockholders Equity	3.65B	3.64B	2.50B	3.35B	1.27B	999.45M
Cash Flow
Free Cash Flow	0.00	256.22M	-1.56B	46.02M	-455.22M	135.02M
Operating Cash Flow	0.00	395.22M	-961.62M	180.93M	-349.81M	247.19M
Investing Cash Flow	0.00	-6.35M	-531.99M	-7.78M	-92.32M	-101.65M
Financing Cash Flow	0.00	-507.91M	1.43B	-125.21M	408.49M	-55.94M

Rama Steel Tubes Ltd. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 10.57
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Positive
• STOCH: Neutral

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 10.57 is below the 20-day moving average (MA) of 11.14, below the 50-day MA of 11.92, and below the 200-day MA of 11.52, indicating a bearish trend. The MACD of -0.31 indicates Positive momentum. The RSI at 27.33 is Positive, neither overbought nor oversold. The STOCH value of 38.32 is Neutral, 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	74 Outperform	₹24.44B	23.77		0.79%	6.99%	-12.54%
HARIOMPIPE	72 Outperform	₹15.45B	22.69		0.14%	17.68%	-2.33%
VENUSPIPES	69 Neutral	₹26.40B	29.15		0.07%	19.49%	7.84%
HITECH	65 Neutral	₹17.80B	21.07		0.03%	2.32%	7.37%
APOLLOPIPE	64 Neutral	₹16.84B	58.40		0.26%	10.92%	-36.57%
RAMASTEEL	57 Neutral	₹16.81B	77.89		―	15.67%	-28.54%
Sector *	44 Neutral	AU$1.54B	-7.28	-26.52%	4.40%	-3.13%	-36.41%

Rama Steel Tubes Ltd. Corporate Events

Rama Steel Tubes Ltd. Confirms SEBI Compliance for June 2025 Quarter

Rama Steel Tubes Ltd. has submitted a certificate to the National Stock Exchange of India and BSE Limited, confirming compliance with Regulation 74(5) of the SEBI (Depositories and Participants) Regulations, 2018 for the quarter ending June 30, 2025. The certificate, issued by Bigshare Services Pvt. Ltd., indicates that no dematerialization requests were received from shareholders during this period, reflecting stable shareholder engagement and compliance with regulatory requirements.