ScoreWhy is Rama Steel Tubes Ltd ?
1
The company has declared Negative results for the last 4 consecutive quarters
- PBT LESS OI(Q) At Rs 0.87 cr has Fallen at -89.78%
- PAT(9M) At Rs 15.91 cr has Grown at -29.07%
- ROCE(HY) Lowest at 11.02%
2
Stock is technically in a Bearish range
- The technical trend has deteriorated from Mildly Bearish on 27-Jan-25 and has generated -20.17% returns since then
- Multiple factors for the stock are Bearish like MACD, Bollinger Band and KST
3
With ROCE of 8.4, it has a Expensive valuation with a 3.5 Enterprise value to Capital Employed
- The stock is trading at a discount compared to its peers' average historical valuations
- Over the past year, while the stock has generated a return of -26.58%, its profits have fallen by -31.7%
4
Despite the size of the company, domestic mutual funds hold only 0% of the company
- Domestic mutual funds have capability to do in-depth on-the-ground research on companies- their small stake may signify either they are not comfortable at the price or the business
5
Underperformed the market in the last 1 year
- Even though the market (BSE 500) generated negative returns of -0.94% in the last 1 year, its fall in the stock was much higher with a return of -26.58%
Real-Time Research ReportHow much should you sell?
- All quantity irrespective of whether you are making profits or losses
(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Steel/Sponge Iron/Pig Iron)
When to re-enter? - We will constantly monitor the company and review our call based on new data
Is Rama Steel Tubes for you?
High Risk, Low Return
Absolute
Risk Adjusted
Volatility
Rama Steel Tubes
-26.27%
-0.49
54.08%
SENSEX
0.45%
0.03
14.48%
Quality
Management Risk
Growth
Capital StructureQuality key factors
Factor
Value
Sales Growth (5y)
20.37%
EBIT Growth (5y)
29.47%
EBIT to Interest (avg)
2.27
Debt to EBITDA (avg)
4.33
Net Debt to Equity (avg)
0
Sales to Capital Employed (avg)
2.58
Tax Ratio
18.72%
Dividend Payout Ratio
0
Pledged Shares
0
Institutional Holding
0.07%
ROCE (avg)
10.26%
ROE (avg)
10.39%
ValuationValuation Key Factors 
Factor
Value
P/E Ratio
62
Industry P/E
29
Price to Book Value
4.08
EV to EBIT
62.16
EV to EBITDA
50.01
EV to Capital Employed
3.47
EV to Sales
1.49
PEG Ratio
NA
Dividend Yield
NA
ROCE (Latest)
8.40%
ROE (Latest)
7.60%
Loading Valuation Snapshot...
TechnicalsTechnical key factors
Indicator
Weekly
Monthly
MACD
Bearish
Mildly Bearish
RSI
No Signal
No Signal
Bollinger Bands
Bearish
Bearish
Moving Averages
Bearish (Daily)
KST
Bearish
Mildly Bearish
Dow Theory
Mildly Bearish
Mildly Bearish
OBV
Mildly Bullish
No Trend
Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned 
Financial Trend2What is working for the Company
DEBT-EQUITY RATIO(HY)
Lowest at 0.27 times
NET SALES(Q)
Highest at Rs 275.17 cr
-14What is not working for the Company
PBT LESS OI(Q)
At Rs 0.87 cr has Fallen at -89.78%
PAT(9M)
At Rs 15.91 cr has Grown at -29.07%
ROCE(HY)
Lowest at 11.02%
CASH AND CASH EQUIVALENTS(HY)
Lowest at Rs 8.65 cr
NON-OPERATING INCOME(Q)
is 85.88 % of Profit Before Tax (PBT
Loading Valuation Snapshot...
Here's what is working for Rama Steel Tubes
Net Sales - Quarterly
Highest at Rs 275.17 cr
in the last five quartersMOJO Watch
Near term sales trend is positive
Net Sales (Rs Cr)
Debt-Equity Ratio - Half Yearly
Lowest at 0.27 times
in the last five half yearly periodsMOJO Watch
The company has been reducing its borrowing as compared to equity capital
Debt-Equity Ratio
Here's what is not working for Rama Steel Tubes
Profit Before Tax less Other Income (PBT) - Quarterly
At Rs 0.87 cr has Fallen at -89.78%
Year on Year (YoY)MOJO Watch
Near term PBT trend is very negative
PBT less Other Income (Rs Cr)
Profit After Tax (PAT) - Quarterly
At Rs 5.50 cr has Fallen at -40.0%
Year on Year (YoY)MOJO Watch
Near term PAT trend is very negative
PAT (Rs Cr)
Non Operating Income - Quarterly
is 85.88 % of Profit Before Tax (PBT)
MOJO Watch
The company's income from non business activities is high; which is not a sustainable business model
Non Operating Income to PBT
Cash and Cash Equivalents - Half Yearly
Lowest at Rs 8.65 cr
in the last six half yearly periodsMOJO Watch
Short Term liquidity is deteriorating
Cash and Cash Equivalents
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