Rama Steel Tubes Ltd
Iron & Steel Products
FV – Rs 5; 52wks H/L – 155.8/88.1; TTQ – 25 K; CMP – Rs 151 (As On May 02, 2017);
Market Cap – Rs 226 Crs
Consolidated Financials and Valuations for FY16 (Amt in Rs Crs unless specified)
Equity Capital |
Net worth |
Long Term Debt | Total Sales |
PAT | BV (Rs) |
EPS (Rs) |
P/E |
Industry P/E |
P/BV |
Promoter’s Stake |
Beta |
| 7.47 | 26 | 17 | 245 | 6.02 | 17 | 4.03 | 37.4 | 20.06 | 8.9 | 59.52 | – |
Consolidated Financials and Valuations for 9Mnths FY17
Equity Capital |
Net worth |
Long Term Debt | Total Sales |
PAT | BV (Rs) |
EPS (Rs) |
P/E |
Industry P/E |
P/BV |
Promoter’s Stake |
Beta |
| 7.47 | 37 | 14 | 191 | 7.86 | 25 | 9.95 | 15.2 | 20.06 | 6.04 | 59.52 | – |
Valuation Parameters:
- Long Term Debt to Equity – 0.65
- ROE % – 23
- Market Cap/Sales – 0.92
Rama Steel Tubes, a leading manufacturer of ERW pipes, has said that it has bagged prestigious export orders worth ₹30 crore. The company will execute the orders from its facility at Delhi. This facility has an overall manufacturing capacity of 60,000 tonnes per annum. These orders will boost the performance of the company. In line with its vision of profitable growth, the company has been successful in further strengthening its presence in highly profitable geographies. http://www.thehindubusinessline.com/markets/stock-markets/rama-steel-tubes-limited/article9637936.ece
On March 29, 2017 the Company approved Preferential Allotment of 1500000 Fully Convertible Warrants and 1100000 Equity Shares of Rs.5 each at an Issue Price of Rs.122 each to Promoter and Non – Promoter group.
Operating currently from two locations, Rama Steel Tubes has a total production capacity of 99,000 tonnes which the company plans to increase to 340,000 tonnes by 2019-20 at an investment of Rs 50 crore (excluding land value). http://www.business-standard.com/article/companies/rama-steel-tubes-to-quadruple-production-capacity-in-four-years-116051801184_1.html
Overview:
- Rama Group, One of the leading manufactures of Steel Pipes & Tubes and Rigid PVC & G.I. Pipes in India. Established in 1974 by Sh. H.L. Bansal, Rama in one of the most trusted and established name in the Steel Tube and pipe market in India, and one which in rapidly gaining recognition in overseas markers.
- With its 20% exports rate, the company has global presence in the Countries like United Kingdom, UAE, Sri Lanka, Ethiopia, Kenya, Uganda, Ghana, Kuwait, Republic of Congo, Yemen, Guyana, Germany, USA, South Africa, Zambia and Malta etc. being its prime markets.
- The Company’s range includes MS ERW black pipes from 15mm to 200mm diameter pipes .Pipes from 15mm to 150mm NB in light, medium and heavy sizes.
- As a pioneer and leader in the steel tubes industry, Rama is at the forefront of technology and research and are constantly innovating, listening to the rapidly changing market and giving the consumer the best value for his money. We are Rama, where every effort is towards being better – than the best.
- Rama has developed a very sophisticated manufacturing facility and the company constantly invests in the latest advances in technology.
- To take the lead & full fill the market demand Rama Group has installed a modern high speed Tube Mill based on latest technology of world leader M/s Kusakabe of Japan.
- The plants are located in New Delhi, India’s national capital, in the industrial belt of Sahibabad (Capacity -60000 MT) and in Khopoli (Capacity – 72000 MT).
Management:
- Naresh Kumar Bansal – CMD
- Richi Bansal – CEO
- Rajkumar Malik – CFO
Major Non – Promoter Holdings:
| Non – Promoters | No. of shares held | % of shares held |
| Madhukar Sheth | 365000 | 2.28 |
| Tarun Dhir | 954821 | 5.95 |
| Rashi Fincorp Ltd | 180000 | 1.12 |
| Share India Securities Ltd | 222941 | 1.39 |
Consolidated Financial Trends (In Rs. Crs) :
| Particulars | FY16 | FY15 | FY14 | FY13 | FY12 | FY11 |
| Equity Paid Up | 7.47 | 1.49 | 1.25 | 0.25 | 0.25 | 0.25 |
| Networth | 26 | 20 | 20 | 17 | 16 | 15 |
| Total Debt | 55 | 53 | 39 | 40 | 47 | 37 |
| Net Sales | 245 | 195 | 184 | 191 | 156 | 128 |
| Other Income | 3 | 2 | 3 | 6 | 2 | 0.6 |
| PAT | 6.02 | 0.69 | 2.13 | 1.11 | 0.26 | 1.37 |
| Book Value (Rs) | 17 | 67 | 80 | 340 | 320 | 300 |
| EPS (Rs) | 4.03 | 2.32 | 8.52 | 22.2 | 5.2 | 27.4 |
The Company had, in the year ending March 31 2016, split the shares to face value Rs.5 Rs.10 and issues 4 bonus shares for every share held resulting in the total equity to Rs.7.47 Crs from Rs.1.49 Crs.
The total revenue grew at 26% due to starting of a new manufacturing facility at Khopoli.
