Rama Steel Tubes Ltd. (RAMASTEEL) AI Stock Analysis

• Market Cap: ₹15.47B
• Dividend Yield: N/A
• Average Volume (3M): 1.33M
• Price to Earnings (P/E): 71.1
• Beta (1Y): 0.80
• Revenue Growth: 15.67%
• EPS Growth: -26.43%
• Country: IN
• Employees: 157
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Steel
• EPS (TTM): 0.03
• Shares Outstanding: 1,558,263,200
• 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: ₹10.50
• Price Target Upside: 5.74% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 55 Neutral
• Price Target: ₹10.50 ▲(5.74% Upside)

Rama Steel Tubes Ltd. has a moderate overall stock score driven by stable financial performance but challenged by weak technical indicators and high valuation. The lack of earnings call data and corporate events means these factors do not influence the score. The most significant concern is the high P/E ratio, suggesting overvaluation, while technical analysis indicates bearish momentum.

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, catering to various sectors including construction, automotive, agriculture, and infrastructure. The company specializes in producing a diverse range of products such as ERW (Electric Resistance Welded) tubes, pre-galvanized tubes, and black steel pipes, which are known for their durability and versatility. With a strong commitment to quality and innovation, RAMASTEEL serves both domestic and international markets, providing essential materials for a wide array of applications.

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 in maintaining consistent profitability and cash flow stability persist. Cost management and operational efficiencies are crucial for future performance.

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: 9.93
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• 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 9.93 is below the 20-day moving average (MA) of 10.08, below the 50-day MA of 10.30, and below the 200-day MA of 10.95, indicating a bearish trend. The MACD of -0.11 indicates Negative momentum. The RSI at 40.42 is Neutral, neither overbought nor oversold. The STOCH value of 14.01 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
VENUSPIPES	70 Outperform	₹26.88B	29.72	―	0.08%	15.31%	-6.80%
VSSL	68 Neutral	₹26.84B	26.12	―	1.10%	6.99%	-12.58%
HARIOMPIPE	66 Neutral	₹14.32B	21.11	―	0.13%	17.40%	6.49%
HITECH	64 Neutral	₹23.76B	28.69	―	0.02%	2.32%	5.26%
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
APOLLOPIPE	58 Neutral	₹14.89B	51.78	―	0.21%	10.92%	-36.77%
RAMASTEEL	55 Neutral	₹15.47B	71.08	―	―	15.67%	-26.43%

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.