Ratnamani Metals & Tubes Ltd. (RATNAMANI) AI Stock Analysis

• Market Cap: ₹167.98B
• Dividend Yield: 0.6%
• Average Volume (3M): 1.22K
• Price to Earnings (P/E): 38.0
• Beta (1Y): 0.66
• Revenue Growth: 9.51%
• EPS Growth: 14.31%
• Country: IN
• Employees: 2,922
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Steel
• EPS (TTM): 17.60
• Shares Outstanding: 70,092,000
• 10 Day Avg. Volume: 852
• 30 Day Avg. Volume: 1,218
• PEG Ratio: -2.61
• Price to Book (P/B): 5.10
• Price to Sales (P/S): 3.57
• P/FCF Ratio: 89.49
• 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): 89.6
• Revenue Forecast (FY): ₹51.59B

• Rating: 68 Neutral
• Price Target: ₹2,722.00 ▲(15.68% Upside)
• Action: Reiterated Date: 02/19/26
• Date: Action: Reiterated 02/19/26

The score is driven primarily by strong financial performance (rising margins, very low leverage, and solid operating cash generation). Offsetting this are mixed technical signals (negative MACD with neutral RSI) and a valuation that appears somewhat full (P/E ~27) with a low dividend yield.

Positive Factors

Margin Improvement

A 35% gross margin and 10.5% net margin indicate durable cost control and pricing power in engineered tubular products. Sustained margins support long-term profitability through steel price cycles and allow reinvestment in higher value-added product lines and quality testing capabilities.

Very Low Leverage

Extremely low debt and a high equity ratio provide financial flexibility to fund capex, absorb cyclical downturns, and pursue strategic projects without heavy interest burdens. This balance sheet strength reduces refinancing risk and supports durable capital allocation choices.

Strong Cash Conversion

Nearly one-to-one OCF to net income shows high quality earnings and reliable cash generation from operations. Consistent operational cash flow sustains working capital needs, funds organic growth and maintenance capex, and lowers dependence on external financing.

Negative Factors

Declining Free Cash Flow

A nearly 27% drop in free cash flow from higher capex suggests elevated investment needs that compress distributable cash. If sustained, higher growth or modernization capex could limit dividends, slow deleveraging, or require external funding, reducing near-term financial flexibility.

Modest Revenue Growth

Single-digit top-line growth constrains scale economies and the company's ability to materially expand margins over time. In capital goods markets, modest revenue gains can reflect competitive pricing pressure or limited order book expansion versus peers pursuing faster diversification.

End‑market Cyclicality

High exposure to capex-driven sectors like oil & gas and refineries makes demand and utilization sensitive to long investment cycles and commodity swings. This structural cyclicality can cause durable volatility in order intake and margins across 2–6 month horizons and beyond.

Ratnamani Metals & Tubes Ltd. Business Overview & Revenue Model

Company Description

Ratnamani Metals & Tubes Limited manufactures and sells stainless steel pipes and tubes, and carbon steel pipes in India and internationally. The company's stainless steel products comprise seamless and welded tubes and pipes, and heat exchanger tubes; and instrumentation seamless tubes. It also provides nickel alloy seamless heat exchanger tubes; titanium welded tubes; induction bending; and carbon steel products, such as high frequency electric resistance and submerged arc welded pipes. In addition, the company offers coating solutions comprising external three layer polyethylene/polypropylene coating and dual layer fusion bonded epoxy coating products; and internal coating solutions, such as food grade epoxy / polyurethane / coal tar epoxy / cement lining, and other prevalent coatings. Further, it is also involved in the generation of power by windmills. The company serves oil and gas, thermal power, chemical, fertilizer, sugar, paper, automobile, aeronautics, refinery, nuclear power, petrochemical, water distribution, food and dairy, pharmaceutical, defense, infrastructure, ship building, pumping station, and space industries. The company was incorporated in 1983 and is based in Ahmedabad, India.

How the Company Makes Money

RATNAMANI generates revenue primarily through the sale of its steel pipes and tubes to various industries such as oil and gas, power generation, and infrastructure development. The company has multiple key revenue streams including the manufacturing of seamless and welded pipes, which are essential for transporting fluids and gases in critical applications. RATNAMANI benefits from long-term contracts with major companies in the oil and gas sector, providing stable income. Additionally, the company engages in exports, thereby diversifying its revenue sources. Strategic partnerships with leading players in the industry enhance its market presence and contribute to earnings. The demand for its products is further driven by infrastructure projects and government initiatives in sectors such as water supply and sanitation, which ensures a consistent flow of orders.

Ratnamani Metals & Tubes Ltd. Financial Statement Overview

Summary

Strong fundamentals: improving gross margin to 35% (2025), healthy net margin at 10.5%, and low leverage with debt-to-equity at 0.04. Operating cash flow is solid (INR 5.36B) with strong cash conversion (OCF/net income 0.99), though free cash flow fell 27.31% due to higher capital spending.

Income Statement

Ratnamani Metals & Tubes Ltd. shows strong financial performance with a consistent increase in total revenue from 2020 to 2025. The gross profit margin has improved significantly, reaching 35% in 2025, indicating efficient cost management. The net profit margin is slightly lower in 2025 compared to 2024, due to a drop in net income, but remains healthy at 10.5%. Revenue growth is robust with a 2.52% increase from 2024 to 2025, reflecting consistent demand and market position.

Balance Sheet

The company's balance sheet is solid, with a decreasing debt-to-equity ratio reaching 0.04 in 2025, highlighting strong equity and low leverage risk. Return on Equity (ROE) is at a reasonable level of 14.95% in 2025, indicating effective use of equity. The equity ratio stands at 74.14%, showcasing robust financial stability and a strong asset base supported by equity.

Cash Flow

Cash flow statements reflect improving operational efficiency with an increasing operating cash flow, reaching INR 5.36 billion in 2025. The free cash flow, however, decreased by 27.31% from 2024 to 2025, indicating higher capital expenditures. The operating cash flow to net income ratio is strong at 0.99, suggesting good cash conversion from profits.

Breakdown	TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	53.75B	51.86B	50.59B	44.74B	31.39B	22.98B
Gross Profit	19.66B	18.14B	10.37B	9.67B	9.35B	7.61B
EBITDA	9.80B	8.24B	9.56B	7.98B	5.32B	4.42B
Net Income	6.06B	5.44B	6.23B	5.10B	3.23B	2.76B
Balance Sheet
Total Assets	49.78B	49.06B	40.20B	37.80B	29.62B	26.17B
Cash, Cash Equivalents and Short-Term Investments	7.44B	4.05B	2.96B	1.69B	1.75B	6.92B
Total Debt	2.41B	1.57B	1.53B	2.37B	1.57B	2.07B
Total Liabilities	10.47B	12.41B	8.04B	11.04B	7.14B	6.29B
Stockholders Equity	38.72B	36.37B	31.41B	26.04B	22.48B	19.88B
Cash Flow
Free Cash Flow	5.04B	2.07B	2.85B	1.69B	-4.27B	4.16B
Operating Cash Flow	7.39B	5.36B	4.98B	3.10B	-2.83B	5.46B
Investing Cash Flow	-9.30B	-3.97B	-1.45B	-2.08B	4.18B	-4.70B
Financing Cash Flow	-71.36M	-1.30B	-1.93B	-1.16B	-1.35B	-787.85M

Ratnamani Metals & Tubes Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 2353.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:RATNAMANI, the sentiment is Positive. The current price of 2353 is below the 20-day moving average (MA) of 2393.65, above the 50-day MA of 2236.86, and below the 200-day MA of 2451.18, indicating a neutral trend. The MACD of 33.14 indicates Positive momentum. The RSI at 55.38 is Neutral, neither overbought nor oversold. The STOCH value of 61.90 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for IN:RATNAMANI.

Ratnamani Metals & Tubes Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
KANSAINER	75 Outperform	₹141.45B	39.21	―	1.11%	1.06%	83.53%
RATNAMANI	68 Neutral	₹167.98B	37.97	―	0.60%	9.51%	14.31%
MAHSEAMLES	68 Neutral	₹75.62B	7.74	―	1.82%	0.81%	-7.11%
SHYAMMETL	66 Neutral	₹219.68B	29.89	―	0.77%	18.36%	13.94%
WELCORP	66 Neutral	₹216.59B	11.86	―	0.61%	-1.19%	96.91%
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
KIOCL	45 Neutral	₹197.46B	336.52	―	―	-39.14%	-12.75%