Rama Steel Tubes Limited (RAMASTEEL.NS) Valuation

Valuation

Model-based estimates, not advice. The DCF is the discounted-cash-flow value per share; compare it with the price, not as a target.

DCF fair value

-109.6%

-₹0.39

vs ₹4.12 price

Levered DCF

-₹10.39

After debt service

Piotroski score

4 / 9

Average

Altman Z-score

—

Rating

Overall 2 / 5

Ratios by fiscal year

Margins and yields are shares of revenue, equity or price; multiples are ×.

Metric	FY2026	FY2025	FY2024	FY2023	FY2022	FY2021	FY2020	FY2019
P/E	45.38×	65.53×	62.17×	44.19×	18.91×	9.49×	27.54×	7.65×
P/B	1.2×	4.19×	5.37×	4.67×	4.14×	1.18×	0.36×	0.74×
P/S	0.51×	1.46×	1.72×	0.87×	0.68×	0.25×	0.09×	0.13×
EV / EBITDA	19.46×	35.18×	30.58×	23.16×	13.11×	7.39×	8.75×	7.17×
Gross margin	3.4%	4.9%	9.3%	6.9%	8.8%	7.8%	7.1%	5.7%
Operating margin	1.0%	2.2%	7.8%	3.5%	5.0%	6.6%	3.6%	3.8%
Net margin	1.1%	2.2%	2.8%	2.0%	3.6%	2.6%	0.3%	1.7%
Current ratio	1.8×	1.66×	1.68×	1.35×	1.37×	1.47×	1.34×	1.61×
Debt / equity	0.27×	0.24×	0.43×	0.77×	1.09×	0.85×	0.94×	1.03×
Interest coverage	0.9×	1.98×	3.85×	2.34×	3.52×	4.01×	1.29×	2×
Dividend yield	0.0%	0.0%	0.0%	0.0%	0.2%	0.0%	0.0%	0.0%
Payout ratio	0.0%	0.0%	0.0%	0.0%	3.1%	0.0%	0.0%	0.0%

Key metrics by fiscal year

Metric	FY2026	FY2025	FY2024	FY2023	FY2022	FY2021	FY2020	FY2019
Return on equity	2.6%	6.2%	8.7%	10.7%	21.6%	12.4%	1.3%	9.6%
Return on invested capital	1.1%	3.9%	13.3%	8.1%	11.0%	13.9%	2.9%	9.5%
Return on assets	1.4%	3.0%	4.0%	3.8%	7.6%	5.0%	0.5%	4.2%
Free cash flow yield	-22.3%	1.7%	0.3%	-13.4%	-8.7%	11.5%	67.6%	-32.0%
Earnings yield	2.2%	1.5%	1.6%	2.3%	5.2%	10.5%	3.6%	13.0%
Enterprise value	₹7B	₹16.1B	₹19.3B	₹13.5B	₹6.4B	₹1.8B	₹1.1B	₹1.5B
Net debt / EBITDA	3.48×	1.82×	2.02×	3.09×	2.45×	2.59×	6.16×	4.17×
Cash conversion cycle (days)	54	27	46	62	67	65	75	75