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

• Market Cap: ₹158.57B
• Dividend Yield: 0.6%
• Average Volume (3M): 1.22K
• Price to Earnings (P/E): 23.5
• Beta (1Y): 0.86
• Revenue Growth: 9.51%
• EPS Growth: 14.31%
• Country: IN
• Employees: 2,922
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Steel
• EPS (TTM): 20.85
• 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): N/A
• Revenue Forecast (FY): N/A

• Rating: 70 Neutral
• Price Target: ₹2,233.00 ▼(-5.10% Downside)

Ratnamani Metals & Tubes Ltd. has a strong financial foundation with consistent growth and low financial risk, which is the most significant factor in its score. However, the technical analysis presents mixed signals, and the valuation suggests the stock may be overvalued, which impacts the overall score.

Positive Factors

Balance Sheet Strength

Very low leverage and a high equity ratio give the company durable financial flexibility. This reduces refinancing risk, supports multi-year capex or working-capital needs, and allows Ratnamani to sustain operations and bid on large project contracts through cyclical downturns.

Strong Operating Cash Conversion

Near-parity of operating cash flow and net income indicates high earnings quality and stable cash generation. Reliable OCF funds working capital and reinvestment, lowers dependence on external finance, and supports steady execution of multi-year industrial supply contracts.

Improving Gross Margins and Consistent Revenue

Material gross margin improvement signals effective cost control or favorable product mix toward higher-value grades. Combined with steady revenue, this supports sustainable operating profitability and the ability to absorb raw-material swings in a capital-goods business over the medium term.

Negative Factors

Free Cash Flow Decline from Capex

A significant FCF decline from elevated capex reduces distributable cash and lengthens payback on investments. If capex remains high, it can constrain cash available for dividends, debt reduction or strategic M&A, raising execution and liquidity risk over the next few quarters.

End-Market Cyclicality Risk

Heavy exposure to capex-driven industrial sectors makes revenue and utilization vulnerable to commodity cycles and project timing. Prolonged weakness in oil/gas or petrochemical investment can materially reduce order inflows and depress margins for manufacturers of engineered tubular products.

Slight Net Margin Contraction and Slow Growth

A decline in net margin alongside decelerating revenue growth may signal rising operating or financing costs, or limited pricing power. If this trend persists, it could limit earnings leverage, slow ROE expansion, and weaken cash generation relative to capital needs.

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

Ratnamani Metals & Tubes Ltd. demonstrates strong financial performance with consistent revenue growth and profitability. The balance sheet is robust with low debt levels, and cash flow management is efficient, despite a decrease in free cash flow due to capital investments.

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	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	51.54B	51.86B	50.59B	44.74B	31.39B	22.98B
Gross Profit	18.72B	18.14B	10.37B	9.67B	9.35B	7.61B
EBITDA	9.14B	8.24B	9.56B	7.98B	5.32B	4.42B
Net Income	5.71B	5.44B	6.23B	5.10B	3.23B	2.76B
Balance Sheet
Total Assets	0.00	49.06B	40.20B	37.80B	29.62B	26.17B
Cash, Cash Equivalents and Short-Term Investments	4.05B	4.05B	2.96B	1.69B	1.75B	6.92B
Total Debt	0.00	1.57B	1.53B	2.37B	1.57B	2.07B
Total Liabilities	-36.65B	12.41B	8.04B	11.04B	7.14B	6.29B
Stockholders Equity	36.65B	36.37B	31.41B	26.04B	22.48B	19.88B
Cash Flow
Free Cash Flow	0.00	2.07B	2.85B	1.69B	-4.27B	4.16B
Operating Cash Flow	0.00	5.36B	4.98B	3.10B	-2.83B	5.46B
Investing Cash Flow	0.00	-3.97B	-1.45B	-2.08B	4.18B	-4.70B
Financing Cash Flow	0.00	-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: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• 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 above the 20-day moving average (MA) of 2138.71, above the 50-day MA of 2272.23, and below the 200-day MA of 2511.42, indicating a neutral trend. The MACD of -61.12 indicates Negative momentum. The RSI at 58.22 is Neutral, neither overbought nor oversold. The STOCH value of 59.01 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	₹185.92B	15.91	―	1.11%	1.06%	83.53%
RATNAMANI	70 Neutral	₹158.57B	23.48	―	0.60%	9.51%	14.31%
MAHSEAMLES	68 Neutral	₹69.64B	8.24	―	1.82%	0.81%	-7.11%
WELCORP	68 Neutral	₹192.29B	10.07	―	0.61%	-1.19%	96.91%
SHYAMMETL	66 Neutral	₹239.69B	24.99	―	0.77%	18.36%	13.94%
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
KIOCL	45 Neutral	₹219.34B	-157.12	―	―	-39.14%	-12.75%