Ratnaveer Precision Engineering Ltd. (RATNAVEER) AI Stock Analysis

• Market Cap: ₹7.92B
• Dividend Yield: N/A
• Average Volume (3M): 32.43K
• Price to Earnings (P/E): 15.9
• Beta (1Y): 1.39
• Revenue Growth: 39.64%
• EPS Growth: 29.32%
• Country: IN
• Employees: 137
• Sector: Industrials
• Sector Strength: 72
• Industry: Steel
• EPS (TTM): 2.81
• Shares Outstanding: 53,049,390
• 10 Day Avg. Volume: 14,152
• 30 Day Avg. Volume: 32,434
• PEG Ratio: 0.68
• Price to Book (P/B): 1.91
• Price to Sales (P/S): 0.79
• P/FCF Ratio: -16.44
• 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: ₹162.00
• Price Target Upside: 8.54% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 69 Neutral
• Price Target: ₹162.00 ▲(8.54% Upside)

Ratnaveer Precision Engineering Ltd. has a solid financial performance with strong revenue growth and improved margins. The technical indicators suggest mixed signals, with some short-term bearishness but medium-term strength. The valuation is reasonable, though the lack of a dividend yield is a downside. Overall, the stock presents moderate investment potential with some risks related to cash flow management.

Ratnaveer Precision Engineering Ltd. Business Overview & Revenue Model

Company Description

Ratnaveer Precision Engineering Limited engages in the manufacture, export, and supply of stainless-steel products for commercial and residential sector in India and internationally. It produces finished sheets, washers, solar roofing hooks, and pipes and tubes. The company's products are used in various industries, including automotive, solar power, wind energy, power plants, oil and gas, pharmaceuticals, sanitary and plumbing, instrumentation, electro mechanics, architecture, building and construction, electrical appliances, transportation, kitchen appliances, chimney liners, etc. The company was formerly known as Ratnaveer Metals Limited and changed its name to Ratnaveer Precision Engineering Limited in November 2022. Ratnaveer Precision Engineering Limited was founded in 2000 and is based in Vadodara, India.

How the Company Makes Money

RATNAVEER generates revenue primarily through the sale of precision-engineered components and assemblies to various industrial sectors. The company operates on a business-to-business (B2B) model, where it partners with manufacturers in industries such as automotive and aerospace to supply custom-engineered parts. Key revenue streams include direct sales of manufactured components, long-term contracts with major clients for steady supply, and value-added services like design and engineering support. Significant partnerships with established players in the automotive and aerospace sectors further enhance its revenue potential, allowing RATNAVEER to secure large-volume orders and maintain a competitive edge in the market.

Ratnaveer Precision Engineering Ltd. Financial Statement Overview

Summary

Ratnaveer Precision Engineering Ltd. shows strong revenue growth and improved profitability margins, supported by a healthier balance sheet with reduced leverage. However, challenges in free cash flow generation pose potential risks. Continued focus on cash management and maintaining growth momentum will be key to sustaining financial health.

Income Statement

Ratnaveer Precision Engineering Ltd. has demonstrated strong revenue growth with a 31.38% increase in the latest year, indicating a robust upward trajectory. The gross profit margin improved to 15.78%, reflecting efficient cost management. However, the net profit margin remains modest at 5.23%, suggesting room for improvement in profitability. Overall, the company shows solid growth and stable margins, which are positive indicators for future performance.

Balance Sheet

The company's debt-to-equity ratio has improved to 0.53, indicating a more balanced capital structure compared to previous years. Return on equity is healthy at 12.62%, showcasing effective use of equity to generate profits. The equity ratio stands at 49.71%, suggesting a stable financial position. While the balance sheet reflects improved leverage and equity utilization, maintaining this trend will be crucial to mitigate potential risks.

Cash Flow

Operating cash flow has increased significantly, but free cash flow remains negative, highlighting challenges in generating surplus cash after capital expenditures. The operating cash flow to net income ratio of 0.31 indicates moderate cash flow efficiency. The negative free cash flow to net income ratio suggests a need for better cash management to support long-term sustainability. Overall, while operating cash flow shows improvement, the negative free cash flow is a concern.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	9.52B	8.96B	5.95B	4.80B	4.27B	3.59B
Gross Profit	1.42B	1.41B	761.22M	869.13M	627.33M	462.30M
EBITDA	925.26M	904.23M	546.96M	458.90M	269.99M	211.00M
Net Income	492.51M	468.15M	310.50M	250.44M	94.76M	54.59M
Balance Sheet
Total Assets	0.00	7.46B	5.16B	3.89B	3.09B	2.56B
Cash, Cash Equivalents and Short-Term Investments	658.60M	658.60M	34.94M	2.35M	2.00M	7.37M
Total Debt	0.00	1.95B	2.07B	2.29B	1.91B	1.51B
Total Liabilities	-3.71B	3.75B	2.64B	2.83B	2.43B	1.99B
Stockholders Equity	3.71B	3.71B	2.52B	1.06B	659.74M	565.77M
Cash Flow
Free Cash Flow	0.00	-431.91M	-536.56M	-179.90M	-282.94M	4.70M
Operating Cash Flow	0.00	949.28M	123.50M	4.71M	-155.09M	129.30M
Investing Cash Flow	0.00	-1.36B	-633.64M	-170.33M	-116.10M	-111.50M
Financing Cash Flow	0.00	471.64M	801.85M	272.40M	280.44M	-9.98M

Ratnaveer Precision Engineering Ltd. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 149.25
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:RATNAVEER, the sentiment is Negative. The current price of 149.25 is below the 20-day moving average (MA) of 154.57, above the 50-day MA of 148.57, and below the 200-day MA of 150.74, indicating a neutral trend. The MACD of 0.47 indicates Positive momentum. The RSI at 45.48 is Neutral, neither overbought nor oversold. The STOCH value of 19.63 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for IN:RATNAVEER.

Ratnaveer Precision Engineering Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
MMFL	70 Outperform	₹14.45B	13.03	―	1.34%	-4.47%	-17.62%
SONACOMS	70 Outperform	₹287.36B	48.66	―	0.69%	5.20%	1.76%
RATNAVEER	69 Neutral	₹7.92B	15.88	―	―	39.64%	29.32%
INGERRAND	66 Neutral	₹117.91B	44.55	―	2.14%	9.63%	14.81%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
SUNDRMBRAK	56 Neutral	₹2.98B	94.79	―	0.20%	5.14%	-61.05%
RKFORGE	51 Neutral	₹96.85B	23.00	―	0.37%	0.55%	17.34%