Is Rathi Steel & Power a good quality company?

Past 10 year's financial track record analysis by Moneyworks4me indicates that Rathi Steel & Power Ltd is a average quality company .

Is Rathi Steel & Power undervalued or overvalued?

The key valuation ratios of Rathi Steel & Power Ltd's currently when compared to its past seem to suggest it is in the Overvalued zone .

What is Rathi Steel & Power share price return in the past 10 years?

Rathi Steel & Power Ltd share price has appreciated 24.5% annually (CAGR) over the past ten years.

Is Rathi Steel & Power a good buy now?

The Price Trend analysis by MoneyWorks4Me indicates it is Weak which suggest that the price of Rathi Steel & Power Ltd is likely to Fall in the short term. However, please check the rating on Quality and Valuation before investing.

Rathi Steel & Power Ltd - Stock Valuation and Financial Performance

Name: Rathi Steel & Power
Brand: Rathi Steel & Power

BSE: 504903 | NSE: | Steel & Iron Products | Small Cap

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Rathi Steel & Power Share Price

₹46.70 2.04 4.57%
as on 26-Nov'24 16:59

10 Year X-Ray of Rathi Steel & Power:

Analysis of Financial Track Record

Data adjusted to bonus, split, extra-ordinary income, rights issue and change in financial year end

Standalone Basis ^P Consolidated Basis

Data adjusted to bonus, split, extra-ordinary income, rights issue and change in financial year end

Value Creation ⓘ

Value Creation Index Colour Code Guide ⓘ

	Mar'15	Mar'16	Mar'17	Mar'18	Mar'19	Mar'20	Mar'21	Mar'22	Mar'23	Mar'24	TTM
ROCE % ⓘ	-6%	-14.1%	-9.7%	-25.1%	-26.6%	-9.1%	80.4%	-13.3%	98%	32.2%	-
Value Creation Index ⓘ	NA	NA	NA	NA	NA	NA	4.7	NA	6.0	1.3	-
Growth Parameters ⓘ Growth Parameters Colour Code Guide ⓘ
Sales ⓘ	669	597	382	350	350	37.5	427	543	727	493	469
Sales YoY Gr.	-	-10.7%	-36.1%	-8.3%	0.1%	-89.3%	1,038.6%	27%	33.9%	-32.2%	-
Adj EPS ⓘ	-24.7	-29.1	-20.2	-19.5	-16.3	-8.2	18.1	-2.6	11	1.1	3.6
YoY Gr.	-	NA	NA	NA	NA	NA	NA	-114.1%	NA	-90%	-
BVPS (₹) ⓘ	-19.1	-48.1	-68.4	-106.1	-132.7	-140.9	-60.8	-72.5	-22.7	13	14.2
Adj Net Profit ⓘ	-77.5	-91.1	-63.4	-61.1	-50.9	-25.6	56.7	-8	34.5	9.3	31
Cash Flow from Ops. ⓘ	-18.1	-48.6	4.8	-2.2	3	2.9	196	-11.8	105	24.2	-
Debt/CF from Ops. ⓘ	-30.3	-12.6	130.2	-297.3	211.1	222.8	2	-24.4	1.2	0	-

CAGR ⓘ

CAGR Colour Code Guide ⓘ

	9 Years	5 Years	3 Years	1 Years
Sales ⓘ	-3.3%	7.1%	4.9%	-32.2%
Adj EPS ⓘ	NA	NA	-60.7%	-90%
BVPSⓘ	NA	NA	NA	NA
Share Price	24.5%	86%	181.2%	77.8%

Key Financial Parameters ⓘ

Performance Ratio Colour Code Guide ⓘ

	Mar'15	Mar'16	Mar'17	Mar'18	Mar'19	Mar'20	Mar'21	Mar'22	Mar'23	Mar'24	TTM
Return on Equity % ⓘ	-598	156.9	46.9	27.1	15.6	6.7	-21.1	5	-33.9	18.8	26.4
Op. Profit Mgn % ⓘ	0.6	-8.4	-7.1	-3	-13.8	-206.3	3.1	5.2	4.4	4.2	4.5
Net Profit Mgn % ⓘ	-11.6	-15.3	-16.6	-17.5	-14.5	-68.3	13.3	-1.5	4.8	1.9	6.5
Debt to Equity ⓘ	-38	-5.8	-3.7	-2.2	-1.7	-1.6	-2.7	-1.6	-4.8	0	0
Working Cap Days ⓘ	125	141	195	169	86	448	45	38	30	50	33
Cash Conv. Cycle ⓘ	93	114	166	95	15	140	-6	-2	-5	-15	-2

Recent Performance Summary

Return on Equity has increased versus last 3 years average to 26.40%

Sales growth has been subdued in last 3 years 4.87%

Net Profit has been subdued in last 3 years -60.70%

Sales growth is not so good in last 4 quarters at -21.87%

Latest Financials - Rathi Steel & Power Ltd.

	Standalone	Consolidated
TTM EPS (₹)	3.6	-
TTM Sales (₹ Cr.)	469	-
BVPS (₹.) ⓘ	14.2	-
Reserves (₹ Cr.) ⓘ	35	-
P/BV ⓘ	3.30	-
PE ⓘ	13.01	-

From the Market
52 Week Low / High (₹)	20.35 / 97.81
All Time Low / High (₹)	0.85 / 261.50
Market Cap (₹ Cr.)	397
Equity (₹ Cr.)	85.1
Face Value (₹)	10
Industry PE ⓘ	22.3

Management X-Ray of Rathi Steel & Power:

Shareholding Pattern

Promoter's Holding & Share Pledging

Pledged ^*

100.00

46.98

0.00

* Pledged shares as % of Promoter's holding (%)

Valuation of Rathi Steel & Power

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Price to Earnings

Enterprise Value to EBIT

Price to Book-Value

Price to Sales

Dividend History

Analyst's Notes

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Key Ratios of Rathi Steel & Power

Standalone Basis Consolidated Basis

Adj EPS (Rs.)

Sales (Cr.)

ROE (%)

ROCE (%)

Profit And Loss

(All Figures are in Crores.)

Standalone Basis Consolidated Basis

PARTICULARS	Mar'15	Mar'16	Mar'17	Mar'18	Mar'19	Mar'20	Mar'21	Mar'22	Mar'23	Mar'24
Sales	669	597	382	350	350	38	427	543	727	493
Operating Expenses ⓘ	665	648	409	360	399	115	414	515	695	472
Manufacturing Costs	55	73	63	54	71	36	39	56	91	80
Material Costs	601	565	335	297	313	67	366	450	588	375
Employee Cost	4	4	4	6	10	7	5	6	7	10
Other Costs ⓘ	5	6	7	4	5	5	3	3	9	7
Operating Profit ⓘ	4	-50	-27	-10	-48	-77	13	28	32	21
Operating Profit Margin (%)	0.6%	-8.4%	-7.1%	-3.0%	-13.8%	-206.0%	3.1%	5.2%	4.4%	4.2%
Other Income ⓘ	3	1	4	9	20	62	10	3	1	3
Interest ⓘ	50	18	17	14	0	2	7	13	12	12
Depreciation ⓘ	32	24	23	19	8	9	16	13	8	9
Exceptional Items ⓘ	-7	0	0	-82	-46	0	190	-41	75	20
Profit Before Tax ⓘ	-82	-91	-63	-116	-83	-26	190	-36	87	24
Tax ⓘ	0	0	0	2	0	0	0	0	0	0
Profit After Tax	-82	-91	-63	-118	-83	-26	190	-36	87	24
PAT Margin (%)	-12.3%	-15.2%	-16.6%	-33.8%	-23.8%	-68.3%	44.5%	-6.7%	12.0%	4.8%
Adjusted EPS (₹)	-26.3	-29.1	-20.2	-37.8	-26.6	-8.2	60.7	-11.7	27.9	2.8
Dividend Payout Ratio (%)	0%	0%	0%	0%	0%	0%	0%	0%	0%	0%

Balance Sheet

(All Figures are in Crores.)

Standalone Basis Consolidated Basis

PARTICULARS	Mar'15	Mar'16	Mar'17	Mar'18	Mar'19	Mar'20	Mar'21	Mar'22	Mar'23	Mar'24
Equity and Liabilities
Shareholders Fund	-13	-104	-167	-285	-368	-394	-143	-180	-24	123
Share Capital ⓘ	77	77	77	77	77	77	77	77	77	95
Reserves ⓘ	-89	-180	-243	-362	-445	-471	-220	-256	-100	28
Minority Interest	0	0	0	0	0	0	0	0	0	0
Debt	513	613	626	642	642	642	391	278	77	0
Long Term Debt	385	437	451	464	464	464	309	205	63	0
Short Term Debt	128	177	175	178	178	178	82	73	14	0
Trade Payables	45	4	17	26	28	35	30	36	58	64
Others Liabilities ⓘ	6	-30	-16	-30	-24	-14	-7	-11	20	-41
Total Liabilities ⓘ	552	485	460	353	277	270	270	123	132	147
Fixed Assets
Gross Block	453	456	459	460	463	466	450	182	189	202
Accumulated Depreciation	162	186	209	228	236	244	242	114	123	131
Net Fixed Assetsⓘ	290	270	250	232	227	222	208	67	66	70
CWIP ⓘ	0	0	0	0	0	0	0	0	0	0
Investmentsⓘ	0	0	0	0	0	0	0	0	0	0
Inventories	90	85	79	13	13	8	11	25	35	30
Trade Receivables	142	104	105	32	16	12	19	7	8	16
Cash Equivalents	6	3	4	3	2	3	3	1	1	7
Others Assetsⓘ	23	21	22	73	18	24	30	23	21	24
Total Assets ⓘ	552	485	460	353	277	270	270	123	132	147

Cash Flow

(All Figures are in Crores.)

Standalone Basis Consolidated Basis

PARTICULARS	Mar'15	Mar'16	Mar'17	Mar'18	Mar'19	Mar'20	Mar'21	Mar'22	Mar'23	Mar'24
Cash Flow From Operating Activity ⓘ	-18	-49	5	-2	3	3	196	-12	105	24
PBT ⓘ	-82	-91	-63	-116	-37	-26	0	5	12	4
Adjustment ⓘ	78	39	39	29	8	8	20	26	19	17
Changes in Working Capital ⓘ	-13	3	29	87	78	20	-13	-1	-1	-17
Tax Paid ⓘ	0	0	0	-2	0	0	0	0	0	0
Cash Flow From Investing Activity ⓘ	5	-3	-3	-1	-3	-2	1	128	-6	-10
Capex	-3	-4	-3	-3	-4	-3	-3	127	-7	-13
Net Investments	0	0	0	0	0	0	0	0	0	0
Others ⓘ	8	1	0	2	0	0	4	1	1	3
Cash Flow From Financing Activityⓘ	15	49	-2	2	0	0	-198	-118	-100	-9
Net Proceeds from Shares ⓘ	31	0	0	0	0	0	0	0	0	111
Net Proceeds from Borrowing ⓘ	16	16	14	13	0	0	-61	0	-8	-47
Interest Paid ⓘ	-41	-16	-16	-14	0	0	-7	-13	-12	-12
Dividend Paid ⓘ	0	0	0	0	0	0	0	0	0	0
Others ⓘ	9	49	0	3	0	0	-130	-105	-79	-61
Net Cash Flow ⓘ	2	-2	0	-1	0	1	0	-1	0	5

Finance Ratio

Standalone Basis Consolidated Basis

PARTICULARS	Mar'15	Mar'16	Mar'17	Mar'18	Mar'19	Mar'20	Mar'21	Mar'22	Mar'23	Mar'24
Ratios
ROE (%)	N/A	N/A	N/A	N/A	N/A	N/A	N/A	N/A	N/A	118.37
ROCE (%)	N/A	N/A	N/A	N/A	N/A	N/A	N/A	N/A	N/A	32.24
Asset Turnover Ratio	1.24	1.17	0.82	0.86	1.11	0.14	1.58	2.76	5.7	3.54
PAT to CFO Conversion(x)	N/A	N/A	N/A	N/A	N/A	N/A	1.03	N/A	1.21	1
Working Capital Days
Receivable Days	70	75	98	71	25	140	13	9	4	9
Inventory Days	38	53	77	48	13	102	8	12	15	24
Payable Days	17	16	11	26	31	171	33	27	29	60

Rathi Steel & Power Ltd Stock News

Rathi Steel & Power Ltd FAQs

What is the share price of Rathi Steel & Power?

Company share prices are keep on changing according to the market conditions. The closing price of Rathi Steel & Power on 26-Nov-2024 16:59 is ₹46.70.

What is the market cap of Rathi Steel & Power?

Market capitalization or market cap is determined by multiplying the current market price of a company's shares with the total number of shares outstanding. As of 26-Nov-2024 16:59 the market cap of Rathi Steel & Power stood at ₹397.2.

What is the P/E ratio of Rathi Steel & Power?

The latest P/E ratio of Rathi Steel & Power as of 26-Nov-2024 16:59 is 13.01.

What is the P/B ratio of Rathi Steel & Power?

The latest P/B ratio of Rathi Steel & Power as of 26-Nov-2024 16:59 is 3.30.

What is the 52-week high and low of Rathi Steel & Power?

The 52-week high of Rathi Steel & Power is ₹97.81 and the 52-week low is ₹20.35.

What is the TTM revenue of Rathi Steel & Power?

The TTM revenue is Trailing Twelve Months sales. The TTM revenue/sales of Rathi Steel & Power is ₹468.7 ( Cr.) .

About Rathi Steel & Power Ltd

The Rathi Group owes its presence in the steel industry to the farsightedness of late Seth Gordhan Das Rathi. He setup a small re-rolling mill in Delhi in the early 40â€™s. Since then the Group has grown continuously. Gordhan Das Rathiâ€™s commitment to quality, integrity, honesty, and growth is being followed till date.

Rathi Steel & Power is headed by Punam Chand Rathi who is well known in the Steel Industry with experience of over five decades in Steel Melting and Rolling/Re-Rolling. Their Company is a profit making, dividend paying and listed company. They are engaged in manufacturing of Rebars and Wire Rods which are broadly categorized as the Long Products in the Steel Industry. The main application of their products currently being manufactured, is in the Construction Industry. Wire rods, another product being currently manufactured by us are further drawn into wires, which has various industrial applications.

The Rathi Group was amongst the first to adopt the technology of Tor-Steel in the country from Tor Istag Steel Corporation, Luxemberg, through the Tor-Steel Research Foundation in India. The Companyâ€™s latest product Thermo-Mechanically Treated (TMT) Steel has gained popularity in short span of time in the construction Industry. The state-of-the-art patented â€œThermexâ€ water quenching process makes the Steel earthquake resistant. We are one of the exclusive licencees for the use of â€œThermexâ€ technology in Northern India.

The company is having a very strong and committed network of dealers, consisting of nearly 800 retail outlets spread all over Northern India. Such a broad dealer network enables us to ensure quantitative as well as qualitative up-gradation.

They are constantly making every possible effort to upgrade their technology and improve their product quality to retain and enhance our market share. Their Company is conscious of the interest of Their stakeholders i.e. shareholders, the Government, employees and of our customers.

They are also in the process of setting up a backward integration project at Orissa (Orissa Project) to manufacture Steel Billets through DRI-captive power-CCM route.

Ghaziabad Plant

The Ghaziabad Plant consists of Steel Rolling Mills having an installed capacity of 1,25,000 TPA, a high speed No Twist Block Wire Rod Mill and Steel Melting Shop with 40,000 TPA installed capacity comprising of Induction Furnace, AOD Converter, Continuous Casting machine and other facilities for manufacturing high end value- added stainless steel and alloy steel products. We intend to further add value to the products being manufactured by us by converting them into bright bars, wires, flanges etc.

Orissa Project

Considering the Orissa Governmentâ€™s aggressive efforts for rapid industrialization of the State and future industrial growth of the Country, the Company has planned to setup an integrated Steel Project at village Potapali-Sikirdi, district Sambalpur (Orissa). The Company has already entered into an MOU with the Orissa Government for setting up the project. The project comprises of facilities for manufacture of 300,000 TPA Sponge Iron, a Steel Melting Shop of 5,00,000 TPA, Pig Iron of 200,000 TPA and captive Power Plant of 50 MW, to be implemented in phases, as per detailed Techno-Economic Feasibility Report submitted to the Orissa Government. The progress on the first phase of the project at a project outlay of Rs.220.50 crore, is going on at full swing and is expected to be completed by September 2006

Indore Plant

The company intends to make the Orissa plant a primary source of raw material for the existing rolling mills of the Punam Chand Rathi Group and also for the future rolling mill plants that we intend to setup all across the country. A chain of value addition from iron ore, sponge iron, captive power, steel making at the Orissa plant, to various rolling mills across the country will lead to tremendous synergy and will enable us to service our customers better by providing high quality products at competitive prices.

The promoters have also promoted a new company viz. Rathi Iron And Steel Industries Limited who has installed a Steel Rolling Mill project having capacity of 50,000 TPA at Pithampur Industrial Area, Distt. Dhar (M.P.). The production facilities are similar to that of Ghaziabad project and are well equipped with the latest technologies for producing quality CTD and TMT bars. The commercial production has already taken place and the products are being well accepted in the market.

Product range of the company includes