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Rama Steel Tubes Ltd

NSE: RAMASTEEL BSE: 539309

7.76

(1.04)%

Tue, 03 Feb 2026, 11:14 am

Analysis

dividend

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Pros

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    Cons

    • Unable to evaluate Rama Steel Tubes's dividend yield against the bottom 25% of dividend payers as the company has not reported any payouts.
    • Unable to evaluate Rama Steel Tubes's dividend against the top 25% market benchmark as the company has not reported any payouts.

    health

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    Pros

    • Rama Steel Tubes is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
    • Rama Steel Tubes is profitable, therefore cash runway is not a concern.
    • Rama Steel Tubes is profitable, therefore cash runway is not a concern.
    • Debt is covered by short term assets, assets are 1.7x debt.
    • Rama Steel Tubes's cash and other short term assets cover its long term commitments.
    • The level of debt compared to net worth has been reduced over the past 5 years (279.7% vs 87.9% today).
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    Cons

    • Operating cash flow is negative therefore debt is not well covered.
    • Interest payments on debt are not well covered by earnings (EBIT is 1.1x annual interest expense, ideally 3x coverage).
    • Rama Steel Tubes's level of debt (87.9%) compared to net worth is high (greater than 40%).
    • High level of physical assets or inventory.

    management

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    Pros

    • The tenure for the Rama Steel Tubes board of directors is about average.
    • Richi's remuneration is about average for companies of similar size in India.
    • Richi's compensation has been consistent with company performance over the past year, both up more than 20%.
    • The tenure for the Rama Steel Tubes management team is about average.
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    Cons

      misc

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      Pros

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        Cons

        • Rama Steel Tubes is not covered by any analysts.
        • Rama Steel Tubes has significant price volatility in the past 3 months.

        past

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        Pros

        • Rama Steel Tubes's year on year earnings growth rate has been positive over the past 5 years, however the most recent earnings are below average.
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        Cons

        • Rama Steel Tubes's 1-year earnings growth is negative, it can't be compared to the 5-year average.
        • Rama Steel Tubes used its assets less efficiently than the IN Metals and Mining industry average last year based on Return on Assets.
        • Rama Steel Tubes's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).
        • Rama Steel Tubes has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
        • Rama Steel Tubes's 1-year earnings growth is negative, it can't be compared to the IN Metals and Mining industry average.

        value

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        Pros

        • NSEI:RAMASTEEL is up 19.1% outperforming the Metals and Mining industry which returned 7.5% over the past month.
        • NSEI:RAMASTEEL is up 19.1% outperforming the market in India which returned 8% over the past month.
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        Cons

        • Rama Steel Tubes is overvalued based on assets compared to the IN Metals and Mining industry average.
        • Rama Steel Tubes is overvalued based on earnings compared to the IN Metals and Mining industry average.
        • Rama Steel Tubes is overvalued based on earnings compared to the India market.
        • RAMASTEEL underperformed the Metals and Mining industry which returned -28.6% over the past year.
        • RAMASTEEL underperformed the Market in India which returned -14.5% over the past year.

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