BSE:539309

Stock Analysis Report

Executive Summary

Rama Steel Tubes Limited manufactures and sells steel pipes and tubes, and rigid PVC and G.I.


Snowflake Analysis

Mediocre balance sheet and slightly overvalued.


Similar Companies

Share Price & News

How has Rama Steel Tubes's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: 539309's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

-7.2%

539309

5.1%

IN Metals and Mining

8.9%

IN Market


1 Year Return

-83.2%

539309

-52.0%

IN Metals and Mining

-30.6%

IN Market

Return vs Industry: 539309 underperformed the Indian Metals and Mining industry which returned -50.4% over the past year.

Return vs Market: 539309 underperformed the Indian Market which returned -29.3% over the past year.


Shareholder returns

539309IndustryMarket
7 Day-7.2%5.1%8.9%
30 Day-52.4%-32.4%-24.8%
90 Day-58.7%-44.3%-29.4%
1 Year-83.2%-83.2%-51.1%-52.0%-29.2%-30.6%
3 Year-85.0%-85.0%-47.8%-53.1%-17.0%-21.5%
5 Yearn/a-20.8%-34.3%-5.4%-10.4%

Price Volatility Vs. Market

How volatile is Rama Steel Tubes's share price compared to the market and industry in the last 5 years?


Simply Wall St News

No news available

Valuation

Is Rama Steel Tubes undervalued compared to its fair value and its price relative to the market?

8.56x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: Insufficient data to calculate 539309's fair value to establish if it is undervalued.

Significantly Below Fair Value: Insufficient data to calculate 539309's fair value to establish if it is undervalued.


Price To Earnings Ratio

PE vs Industry: 539309 is poor value based on its PE Ratio (8.3x) compared to the Metals and Mining industry average (6.3x).

PE vs Market: 539309 is good value based on its PE Ratio (8.3x) compared to the Indian market (9.2x).


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate 539309's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: 539309 is good value based on its PB Ratio (0.4x) compared to the IN Metals and Mining industry average (0.5x).


Next Steps

Future Growth

How is Rama Steel Tubes forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

21.6%

Forecasted Materials industry annual growth in earnings


In this section we usually present revenue and earnings growth projections based on the consensus estimates of professional analysts to help investors understand the company’s ability to generate profit. But as Rama Steel Tubes has not provided enough past data and has no analyst forecast, its future earnings cannot be reliably calculated by extrapolating past data or using analyst predictions.

This is quite a rare situation as 97% of companies covered by SimplyWall St do have past financial data.


Next Steps

Past Performance

How has Rama Steel Tubes performed over the past 5 years?

14.5%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 539309 has high quality earnings.

Growing Profit Margin: 539309's current net profit margins (0.8%) are lower than last year (2%).


Past Earnings Growth Analysis

Earnings Trend: 539309's earnings have grown by 14.5% per year over the past 5 years.

Accelerating Growth: 539309's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: 539309 had negative earnings growth (-67.6%) over the past year, making it difficult to compare to the Metals and Mining industry average (-7.1%).


Return on Equity

High ROE: 539309's Return on Equity (3.6%) is considered low.


Next Steps

Financial Health

How is Rama Steel Tubes's financial position?


Financial Position Analysis

Short Term Liabilities: 539309's short term assets (₹1.3B) exceed its short term liabilities (₹821.2M).

Long Term Liabilities: 539309's short term assets (₹1.3B) exceed its long term liabilities (₹179.7M).


Debt to Equity History and Analysis

Debt Level: 539309's debt to equity ratio (87.9%) is considered high.

Reducing Debt: 539309's debt to equity ratio has reduced from 279.7% to 87.9% over the past 5 years.

Debt Coverage: 539309's operating cash flow is negative, therefore debt is not well covered.

Interest Coverage: 539309's interest payments on its debt are not well covered by EBIT (1.1x coverage).


Balance Sheet

Inventory Level: 539309 has a high level of physical assets or inventory.

Debt Coverage by Assets: 539309's debt is covered by short term assets (assets are 1.7x debt).


Next Steps

Dividend

What is Rama Steel Tubes's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

Notable Dividend: Unable to evaluate 539309's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate 539309's dividend yield against the top 25% of dividend payers, as the company has not reported any payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if 539309's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if 539309's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of 539309's dividend in 3 years as they are not forecast to pay a notable one for the Indian market.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

2.8yrs

Average management tenure


CEO

Richi Bansal (39yo)

no data

Tenure

₹3,400,000

Compensation

Mr. Richi Bansal serves as the Chief Executive Officer and Executive Director of Rama Steel Tubes Limited. Mr. Bansal has Bsc (Hons) in Management from Bradford University. 


CEO Compensation Analysis

Compensation vs Market: Richi's total compensation ($USD45.11K) is about average for companies of similar size in the Indian market ($USD48.15K).

Compensation vs Earnings: Richi's compensation has been consistent with company performance over the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Naresh Bansal
Chairman & MD46yrs₹4.00m36.89% 117.7m
Richi Bansal
CEO & Executive Directorno data₹3.40m8.75% 27.9m
Rajeev Agarwal
Chief Financial Officer1.67yrsno datano data
Kapil Datta
Company Secretary & Compliance Officerno datano datano data
Dev Kamra
Head of Sales & Marketingno datano datano data
Surender Sharma
Executive Director3.83yrs₹400.00kno data
J. Singhal
President of Operations2.83yrsno datano data
Ranjeet Singh
Senior Manager of Accounts & Financeno datano datano data
Nikhil Bansal
Administration Manager13.58yrsno data8.07% 25.8m

2.8yrs

Average Tenure

38.5yo

Average Age

Experienced Management: 539309's management team is considered experienced (2.8 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Naresh Bansal
Chairman & MD46yrs₹4.00m36.89% 117.7m
Richi Bansal
CEO & Executive Directorno data₹3.40m8.75% 27.9m
Surender Sharma
Executive Director3.83yrs₹400.00kno data
Bharat Sahny
Non-Executive Independent Director5.25yrs₹30.00kno data
Rajendra Khanna
Non-Executive Independent Director5.25yrs₹10.00kno data
Anju Gupta
Independent Non-Executive Director3.17yrs₹30.00kno data
Charat Sharma
Non Executive Independent Director0.25yrno datano data

5.3yrs

Average Tenure

64yo

Average Age

Experienced Board: 539309's board of directors are considered experienced (5.3 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Rama Steel Tubes Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Rama Steel Tubes Limited
  • Ticker: 539309
  • Exchange: BSE
  • Founded: 1974
  • Industry: Steel
  • Sector: Materials
  • Market Cap: ₹319.086m
  • Shares outstanding: 16.79m
  • Website: https://www.ramasteel.com

Number of Employees


Location

  • Rama Steel Tubes Limited
  • B-5, Main Road
  • 3rd Floor
  • New Delhi
  • Delhi
  • 110096
  • India

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
RAMASTEELNSEI (National Stock Exchange of India)YesEquity SharesININRAug 2015
539309BSE (Mumbai Stock Exchange)YesEquity SharesININRAug 2015
539309BSE (Mumbai Stock Exchange)INR5ININRMar 2016
RAMASTEELNSEI (National Stock Exchange of India)INR5ININRMar 2016

Biography

Rama Steel Tubes Limited manufactures and sells steel pipes and tubes, and rigid PVC and G.I. pipes in India. It offers ERW galvanized steel pipes and tubes, ERW black steel pipes and tubes, scaffolding pipes and tubes, pre grooved pipes, swaged poles, telecommunication transmission towers and substation structures, hollow sections, cold rolled coils/sheets, galvanized plain coils/sheets, galvanized corrugated sheets, and color coated coils/sheets. The company also exports its products to the United Kingdom, the United Arab Emirates, Sri Lanka, Ethiopia, Kenya, Uganda, Ghana, Kuwait, the Republic of Congo, Yemen, Guyana, Germany, the United States, South Africa, Zambia, Malta, etc. Rama Steel Tubes Limited was founded in 1974 and is based in New Delhi, India. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/03/31 14:20
End of Day Share Price2020/03/31 00:00
Earnings2019/12/31
Annual Earnings2019/03/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.