Investing in the stock market needs careful analysis. You must understand a company’s performance, growth potential, and market trends. One company that has caught investors’ attention is Rama Steel Tubes Limited. It has a steady presence in the steel sector and shows bullish momentum in the share market. This makes it a solid option for both short-term and long-term investors. In today’s fast-changing market, it’s vital to evaluate all aspects of a company before investing.
In this blog, we will explore the Rama Steel Share Price Target for 2025, 2027, 2028, 2030, and 2050. We’ll look at the company’s historical performance, including profit growth, sales growth, and return on equity (ROE) from the past five years. We’ll also check how the share has performed in terms of returns and price volatility. To give a clearer outlook, we will include expert opinions on the best time to invest. Whether you’re a new investor or an experienced trader, this analysis will help you decide if Rama Steel should be part of your portfolio.
Rama Steel Tubes Limited Overview
Parameter | Details |
---|---|
Company Name | Rama Steel Tubes Limited |
Year of Establishment | 1974 |
Headquarters | New Delhi, India |
Industry | Steel Manufacturing |
Main Products | Steel Pipes and Tubes |
Initial Production Capacity | 10,000 tonnes per annum (1981) |
Current Production Capacity | 2,64,000 metric tonnes per annum |
Key Business Areas | Infrastructure, Construction, Automobile, Agriculture, Steel |
Stock Market Status | Active; showing bullish trend |
Market Segment | Small-cap, Steel Sector |
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Rama Steel Tubes Limited Products
Category | Products |
---|---|
Steel Pipes & Tubes | ERW Steel Pipes, Galvanized Steel Pipes, Black Steel Pipes |
Structural Steel Products | Hollow Sections, Square and Rectangular Pipes |
Water Line Products | Plumbing Pipes, Water Supply Pipes |
Agricultural Use | Irrigation Pipes, Casing Pipes |
Automobile Applications | Steel Tubes for Auto Components |
Construction Applications | Scaffolding Pipes, Structural Tubes |
Specialty Products | Pre-Galvanized Tubes, Crash Barriers, Electric Resistance Welded Pipes |
Rama Steel Tubes Limited Fundamentals
Metric | Value | Remarks |
---|---|---|
Market Capitalization | ₹1,736 crore | Reflects the company’s total market value. |
Revenue (TTM) | ₹1,023 crore | Indicates total income over the trailing twelve months. |
Net Profit (TTM) | ₹23 crore | Shows profit after taxes over the trailing twelve months. |
Earnings Per Share (EPS) | ₹0.43 | Earnings allocated to each outstanding share. |
Price-to-Earnings (P/E) Ratio | 79.5 | High P/E suggests premium valuation. |
Price-to-Book (P/B) Ratio | 4.68 | Indicates market value relative to book value. |
Return on Equity (ROE) | 8.69% | Measures profitability relative to shareholders’ equity. |
Return on Assets (ROA) | 3.97% | Indicates how efficiently assets generate profit. |
Net Profit Margin | 2.78% | Reflects net income as a percentage of revenue. |
EBITDA Margin | 6.08% | Earnings before interest, taxes, depreciation, and amortization. |
Debt-to-Equity Ratio | 0.05 | Low ratio indicates conservative leverage. |
Current Ratio | 4.10 | Measures liquidity; values above 1 suggest good short-term financial health. |
Altman Z-Score | 4.91 | Scores above 3 suggest low bankruptcy risk. |
Dividend Yield | 0% | Indicates no dividend payout in recent periods. |
Rama Steel Tubes Limited Financials
Financial Year | Revenue (₹ Cr) | Revenue Growth (%) | Net Profit (₹ Cr) | Net Profit Growth (%) | EPS (₹) | Remarks |
---|---|---|---|---|---|---|
FY 2020–21 | 329 | 11.64% | 5 | 291.77% | 3.24 | Recovery phase post-pandemic. |
FY 2021–22 | 522 | 58.83% | 11 | 95.57% | 6.25 | Significant growth in revenue and profit. |
FY 2022–23 | 1,014 | 94.27% | 17 | 56.44% | 0.71 | Revenue nearly doubled; EPS declined. |
FY 2023–24 | 804 | -20.69% | 23 | 35.29% | 0.43 | Revenue declined; net profit increased. |
Rama Steel Shareholding Patterns
Investor Type | Percentage |
Promoter Holding (Owned by the company’s promoter) | 51.90% |
Public Holding (Held by the public) | 46.10% |
FII (Invest by Foreign Institutional Investor) | 2.00% |
DII (Invest money by Domestic Institutional Investor) | 0% |
Peer’s Company Of Rama Steel Limited
Company Name | Market Cap (Crore) |
JSW Steel Limited | ₹2,25,848.29 |
Tata Steel Limited | ₹1,65,346.65 |
Jindal Steel & Power Limited | ₹95,241.53 |
Jindal Stainless Limited | ₹51,585.46 |
Tube Investments Of India Limited | ₹66,540.59 |
Rama Steel Share Price Target 2025
The forecasted price range for Rama Steel shares in 2025 is expected to be between ₹12.29 and ₹17.57. Several growth factors are likely to drive this increase. One key factor is the rising demand for steel in construction, infrastructure, and agriculture. Rama Steel Tubes makes popular products like galvanized iron pipes, ERW black steel pipes, hollow sections, and structural steel. These items are seeing steady market growth.
The company’s strong presence in international markets, including Kenya, Ethiopia, Sri Lanka, Ghana, and Kuwait, has boosted its global reach and export potential. Another promising development is Rama Steel’s entry into the defence sector. This is through its subsidiary, Rama Defence Private Limited, established in August 2024. With the government’s focus on defence manufacturing, this move could create new revenue streams and enhance the company’s long-term growth prospects.
Year | Rama Steel Share Price Target 2025 |
1st Price Target | ₹12.29 |
2nd Price Target | ₹17.57 |
Rama Steel Tube Share Price Target 2026
Aspect | Details |
---|
Price Target Range (2026) | ₹18.50 to ₹23.75 |
Rama Steel Share Price Target 2027
The projected share price target for Rama Steel in 2027 is between ₹22.49 and ₹28.95. This estimate is backed by several strong growth factors. One key factor is the company’s entry into the green energy sector. They did this through their subsidiary, ONIX IPP Pvt. Ltd., which has an authorized capital of ₹1 lakh. This move allows Rama Steel to tap into the growing demand for renewable energy, boosting its future revenue and market position.
Another positive sign is the big improvement in cash flow from operations. The company reported a cash flow of ₹-96 crore in March 2023. By March 2024, it improved to ₹18 crore. This shift shows better financial health and operational efficiency.
Moreover, Rama Steel has outperformed market benchmarks. It delivered a 152.4% return over the past three years, while Nifty Metal returned 50.59%. This performance strengthens investor confidence in its long-term prospects.
Year | Rama Steel Share Price Target 2027 |
1st Price Target | ₹22.49 |
2nd Price Target | ₹28.95 |
Rama Steel Share Price Target 2028
The estimated share price target for Rama Steel in 2028 is between ₹29.42 and ₹33.67. Several positive factors support this view. First, the company has a strong client base. It includes industry leaders like SAIL, GAIL, Airtel, BSNL, Tata, and Ashok Leyland. These partnerships show the trust in Rama Steel’s products.
Investor interest is another key metric. In 2024, the buy quantity for Rama Steel shares was 3,33,955. The sell quantity reached 29,17,113, showing high trading volume and market involvement.
The company’s international reach is also expanding. Its subsidiary, RST International Trading FZE in Dubai, trades construction materials and boosts its global presence. Production capacity has grown from 10,000 tonnes in 1981 to 2,64,000 tonnes. Rama Steel is set for long-term growth.
Year | Rama Steel Share Price Target 2028 |
1st Price Target | ₹29.42 |
2nd Price Target | ₹33.67 |
Rama Steel Share Price Target 2030
The projected share price for Rama Steel Tubes in 2030 is expected to be between ₹34.27 and ₹40.29. A major factor in this growth is the company’s focus on sustainable energy. In 2017-18, it set up a 750 KW solar power plant at its Khopoli unit in Maharashtra. This move has greatly lowered energy costs and improved profit margins in recent years.
The company has also grown through strategic acquisitions. It has a 51% stake in Ashoka Infrasteel, a 50% stake in Hagar Mega Mart Pvt. Ltd., and a 25% stake in Panchal Construction (JV). Moreover, it fully owns Lepakshi Tubes Private Limited, which strengthens its business portfolio and increases revenue.
Additionally, Rama Steel’s Compound Annual Growth Rate (CAGR) in operating performance has been impressive. It rose from 14.98% over five years to 35% in the last three years, showing its operational efficiency and long-term growth potential.
Year | Rama Steel Share Price Target 2030 |
1st Price Target | ₹34.27 |
2nd Price Target | ₹40.29 |
Rama Steel Share Price Target 2040
Rama Steel expects its share price to hit between ₹100.29 and ₹109.85 by 2040. This forecast is based on solid fundamentals and steady growth. A key factor is the improved EBIDT margin, which increased from ₹37.1 crore (3.65%) in March 2023 to ₹46.8 crore (4.60%) in March 2024. This shows better operational efficiency.
The company has boosted its manufacturing capacity to 2,94,000 MTPA as of September 2023. It runs several production units in India, including Sahibabad (60,000 MTPA), Khopoli (now 1,62,000 MTPA), and Anantapur (72,000 MTPA). This setup helps meet rising market demand.
To further enhance its position, Rama Steel secured ₹157 crore in equity infusion during 2023 and 2024. This has lowered leverage and improved its capital structure. With over 40 years of experience, the company has a strong presence in steel tubes and GI pipes, setting it up for long-term growth.
Year | Rama Steel Share Price Target 2040 |
1st Price Target | ₹100.29 |
2nd Price Target | ₹109.85 |
Share Price Target 2050
Year | Minimum Price | Maximum Price |
2040 | 1700 | 1900 |
Month (2050) | MinimumTarget | Maximum Target |
January | Rs 1700 | Rs 1863 |
February | Rs 1762 | Rs 1871 |
March | Rs 1760 | Rs 1870 |
April | Rs 1744 | Rs 1865 |
May | Rs 1740 | Rs 1877 |
June | Rs 1774 | Rs 1882 |
July | Rs 1771 | Rs 1878 |
August | Rs 1748 | Rs 1861 |
September | Rs 1767 | Rs 1877 |
October | Rs 1774 | Rs 1885 |
November | Rs 1792 | Rs 1883 |
December | Rs 1808 | Rs 1900 |
What Is The Expert Analysis To Invest In Rama Steel Share Right Now?
Positive Aspects of Rama Steel Tubes Limited
In the past three years, Rama Steel Tubes has shown strong financial performance. Revenue grew by 35.20%. Profit also grew impressively by 62.15%, thanks to the company’s efficient operations. The cash conversion cycle stands at 60.96 days, which shows good working capital management. Its liquidity position is solid too, with a current ratio of 2.00. This ensures short-term financial stability. The Return on Capital Employed (ROCE) averaged 11.96% over three years. Sales growth has remained steady at 34.95%, highlighting the company’s ability to expand its market presence.
Negative Aspects of Rama Steel Tubes Limited
The company has some challenges despite its positives. It reported a negative operating cash flow of -7.25. This may hurt short-term liquidity. The stock has a high Price-to-Earnings (PE) ratio of 107.66. This suggests it may be overvalued compared to its earnings. Also, the company’s EBITDA margin is high at 48.96. This could mean high operating costs or pressure on profitability.
FAQs
Who is the owner of Rama Steel Tubes Limited?
Mr. Naresh Kumar Bansal is the proprietor of Rama Steel Tubes Limited.
What is the expected share price target of Rama Steel for 2025?
The forecasted price range for Rama Steel shares in 2025 is between ₹12.29 and ₹17.57.
What is the share price target for Rama Steel in 2027?
Rama Steel’s share price is projected to range from ₹22.49 to ₹28.95 by 2027.
What is the expected share price for Rama Steel in 2028?
For the year 2028, Rama Steel’s share price target is estimated between ₹29.42 and ₹33.67.
What is the Rama Steel share price forecast for 2030?
The price target for Rama Steel shares in 2030 is expected to lie between ₹34.27 and ₹40.29.
What is the long-term price target for Rama Steel in 2040?
Looking ahead to 2040, Rama Steel’s share price is anticipated to be in the range of ₹100.29 to ₹109.85.
Conclusion
This website helps investors understand the market strategy of Rama Steel shares. We base our analysis on thorough research and expert insights to give a clear view of the company’s performance and growth potential. The Rama Steel Share Price Target shows a strong opportunity for long-term investment. This is fueled by steady demand for steel pipes and tubes in India and around the world.
Steel products are vital in sectors like infrastructure, construction, and manufacturing. This rising demand supports sustained growth for Rama Steel. It also positions the company—and its shares—for possible gains in the market.
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DISCLAIMER: We are not registered financial advisors. We have not given real investment advice or stock recommendations for Ion Exchange (India) Ltd. The share price targets and reasons in this article are hypothetical examples for educational purposes only. Stock prices depend on various factors, and future returns are not guaranteed. Readers should research before investing or consult a registered financial advisor for help. We do not guarantee stock performance or returns. Investing in stocks carries risks.