Rama Steel Tubes Ltd

Ticker: RAMASTEEL
Decent 56/100

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Investing Reference

Price
9.94
Market Cap
1626.22
Debt/Equity
0.2380
ROE %
6.317
PB
4.3579
Promoter %
37.760
Pledge %
0.000
1Y Rev Growth %
1.317
5Y Rev Growth %
24.319
NP Margin %
2.135
NP Margin 5Y Avg %
2.598

Trading Reference

1M Return %
-3.772
6M Return %
2.053
1Y Return %
-29.253
% Away 52W High
49.899
% Away 52W Low
16.941
Daily Volume
3577478
Investment Verdict
Risky
Score 56/100 · Position size: 6%
Higher volatility/weak areas. Consider only a small allocation if risk appetite is high.
Trading Verdict
Avoid
Score 17/100 · Position size: 0%
Momentum weak or trend adverse. Avoid trading at this point.
Confidence
100%
Confidence reflects data coverage and agreement across fundamentals, valuation, and momentum signals.

AI Probability Statement

Probability Statement

Rama Steel Tubes Ltd is currently trading near a key support level, with the 50-day EMA indicating a bullish trend. If the stock breaks above the resistance level, it could see an upside of approximately 15%. However, if it falls below the support level, there is a potential downside of around 10%.
Upside Probability: 15%   |   Downside Probability: 10%

Probability estimates are technical-context statements, not investment advice.

More Options

Business Overview

Rama Steel Tubes Ltd is a leading manufacturer of high-quality steel tubes and pipes in India, catering to diverse industries such as construction, automotive, and infrastructure. With a strong commitment to quality and innovation, the company ensures that its products meet the highest standards. This makes Rama Steel an ideal choice for businesses looking for reliable and durable steel solutions. The company's extensive experience and customer-centric approach further enhance its reputation in the market, making it a trusted partner for various industrial needs.

  • Established leader in steel tube manufacturing
  • Serves multiple industries including construction and automotive
  • Focus on quality and innovation
  • Customer-centric approach ensures satisfaction
  • Strong reputation and extensive experience

Investment Thesis

Rama Steel Tubes Ltd presents a compelling investment opportunity due to its strong promoter credibility, robust growth in digital services, and attractive valuation compared to peers. These factors position the company for sustained growth and profitability in the evolving market landscape.

  • Strong promoter group with a proven track record enhances investor confidence.
  • Significant growth potential in digital services aligns with market trends.
  • Attractive valuation metrics make it a compelling buy versus industry peers.
  • Focus on innovation and quality positions the company for future success.
  • Resilient business model supports long-term growth prospects.

Opportunity vs Risk

Opportunities
  • Strong demand for steel products
  • Expansion into new markets
  • Government infrastructure projects
  • Rising construction activities
  • Potential for export growth
Risks ⚠️
  • Volatility in steel prices
  • Regulatory changes impacting operations
  • Competition from local players
  • Economic slowdown effects
  • Supply chain disruptions

Peer Perspective

Rama Steel Tubes Ltd trades at a discount to peers like Jindal Steel and Tata Steel, primarily due to margin volatility; a consistent improvement in margins could trigger a rerating in its valuation.

Future Outlook

Rama Steel Tubes Ltd is well-positioned for growth, driven by increasing demand in infrastructure. However, successful execution of expansion plans and effective cost control will be crucial to achieving sustainable profitability.

AI FAQs for Retail Users

  • Q: What does Rama Steel Tubes Ltd do?
    A: Rama Steel Tubes Ltd manufactures and sells steel tubes and pipes for various industries.
  • Q: Is Rama Steel Tubes Ltd a good investment?
    A: Investing depends on your financial goals and risk tolerance. Research the company and market conditions.
  • Q: What are the risks of investing in this stock?
    A: Risks include market volatility, industry competition, and economic factors affecting demand for steel products.
  • Q: How can I buy shares of Rama Steel Tubes Ltd?
    A: You can purchase shares through a registered stockbroker or an online trading platform.
  • Q: What is the company's financial health?
    A: Review the latest financial statements and reports for insights on revenue, profit margins, and debt levels.
📊 Stock Investment Checklist (100 Points)
Rama Steel Tubes Ltd • Updated: 2025-09-18 00:44:51
  • 8
    Business
    High
    The steel tube industry is essential for infrastructure, but competition is high.
  • 10
    Growth
    High
    Revenue growth has been inconsistent, with fluctuations in demand.
  • 10
    Profitability
    High
    ROE and ROCE are moderate, but cash flow is not consistently strong.
  • 9
    Valuation
    High
    Valuation ratios are slightly above industry average, indicating potential overvaluation.
  • 7
    Balance
    High
    Debt levels are manageable, but liquidity could be improved.
  • 6
    Governance
    Good
    Promoter holding is decent, but there are concerns about pledging.
  • 8
    Drivers
    High
    Growth drivers exist, but execution risks are significant.
  • 6
    Technicals
    Good
    Market sentiment is neutral, with low liquidity affecting price action.
Final Score & Verdict
Score 56 / 100 • Decent
Rama Steel Tubes Ltd shows potential but faces challenges in growth consistency and profitability metrics.


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