Rathi Steel & Power Ltd - Stock Valuation and Financial Performance

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

Rathi Steel & Power Share Price

41.98 -3.92 -8.54%
as on 20-Dec'24 16:59

DeciZen - make an informed investing decision on Rathi Steel & Power

Overall Rating
M-Cap below 500cr. High Risk from low Liquidity Bole Toh

1. Quality

2. Valuation

Overvalued

3. Price Trend

Rathi Steel & Power stock performance -

mw4me loader
P/E Ratio (SA):
11.69
Market Cap:
357.1 Cr.
52-wk low:
28.4
52-wk high:
97.8

Is Rathi Steel & Power Ltd an attractive stock to invest in?

1. Is Rathi Steel & Power Ltd 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.

2. Is Rathi Steel & Power Ltd 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.

3. Is Rathi Steel & Power Ltd 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.

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

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

Financial track record gives insight into the company's performance on key parameters over the past ten years. MoneyWorks4me’s proprietary colour codes make it easy for retail investors to gauge the company’s past performance.
Rathi Steel & Power Ltd has performed well in some of the past ten years indicating its past ten year financial track record is somewhat good

Value Creation

Value Creation Index Colour Code Guide

Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22Mar'23Mar'24TTM
ROCE % -6%-14.1%-9.7%-25.1%-26.6%-9.1%80.4%-13.3%98%32.2%-
Value Creation
Index
NANANANANANA4.7NA6.01.3-

Growth Parameters

Growth Parameters Colour Code Guide

Sales 66959738235035037.5427543727493469
Sales YoY Gr.--10.7%-36.1%-8.3%0.1%-89.3%1,038.6%27%33.9%-32.2%-
Adj EPS -24.7-29.1-20.2-19.5-16.3-8.218.1-2.6111.13.6
YoY Gr.-NANANANANANA-114.1%NA-90%-
BVPS (₹) -19.1-48.1-68.4-106.1-132.7-140.9-60.8-72.5-22.71314.2
Adj Net
Profit
-77.5-91.1-63.4-61.1-50.9-25.656.7-834.59.331
Cash Flow from Ops. -18.1-48.64.8-2.232.9196-11.810524.2-
Debt/CF from Ops. -30.3-12.6130.2-297.3211.1222.82-24.41.20-

CAGR

CAGR Colour Code Guide

9 Years 5 Years 3 Years 1 Years
Sales -3.3%7.1%4.9%-32.2%
Adj EPS NANA-60.7%-90%
BVPSNANANANA
Share Price 23.9% 82% 171.4% 47.9%

Key Financial Parameters

Performance Ratio Colour Code Guide

Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22Mar'23Mar'24TTM
Return on
Equity %
-598156.946.927.115.66.7-21.15-33.918.826.4
Op. Profit
Mgn %
0.6-8.4-7.1-3-13.8-206.33.15.24.44.24.5
Net Profit
Mgn %
-11.6-15.3-16.6-17.5-14.5-68.313.3-1.54.81.96.5
Debt to
Equity
-38-5.8-3.7-2.2-1.7-1.6-2.7-1.6-4.800
Working Cap
Days
125141195169864484538305033
Cash Conv.
Cycle
931141669515140-6-2-5-15-2

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 2.97 -
PE 11.69 -
From the Market
52 Week Low / High (₹) 28.36 / 97.81
All Time Low / High (₹) 0.85 / 261.50
Market Cap (₹ Cr.) 357
Equity (₹ Cr.) 85.1
Face Value (₹) 10
Industry PE 22.2

Management X-Ray of Rathi Steel & Power:

Shareholding Pattern

Promoter's Holding & Share Pledging

Pledged *100.00100.00100.00100.00100.00100.00100.0046.9846.980.00
* Pledged shares as % of Promoter's holding (%)

Event Update

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Analyst's Notes

Key Ratios of Rathi Steel & Power

Adj EPS (Rs.)

Sales (Cr.)

ROE (%)

ROCE (%)

Profit And Loss

(All Figures are in Crores.)
PARTICULARSMar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22Mar'23Mar'24
Sales66959738235035038427543727493
Operating Expenses 665648409360399115414515695472
Manufacturing Costs55736354713639569180
Material Costs60156533529731367366450588375
Employee Cost 444610756710
Other Costs 5674553397
Operating Profit 4-50-27-10-48-7713283221
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 3149206210313
Interest 50181714027131212
Depreciation 3224231989161389
Exceptional Items -700-82-460190-417520
Profit Before Tax -82-91-63-116-83-26190-368724
Tax 0002000000
Profit After Tax -82-91-63-118-83-26190-368724
PAT Margin (%) -12.3%-15.2%-16.6%-33.8%-23.8%-68.3%44.5%-6.7%12.0%4.8%
Adjusted EPS (₹)-26.3-29.1-20.2-37.8-26.6-8.260.7-11.727.92.8
Dividend Payout Ratio (%)0%0%0%0%0%0%0%0%0%0%

Balance Sheet

(All Figures are in Crores.)
PARTICULARSMar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22Mar'23Mar'24

Equity and Liabilities

Shareholders Fund -13-104-167-285-368-394-143-180-24123
Share Capital 77777777777777777795
Reserves -89-180-243-362-445-471-220-256-10028
Minority Interest0000000000
Debt513613626642642642391278770
Long Term Debt385437451464464464309205630
Short Term Debt1281771751781781788273140
Trade Payables4541726283530365864
Others Liabilities 6-30-16-30-24-14-7-1120-41
Total Liabilities 552485460353277270270123132147

Fixed Assets

Gross Block453456459460463466450182189202
Accumulated Depreciation162186209228236244242114123131
Net Fixed Assets290270250232227222208676670
CWIP 0000000000
Investments 0000000000
Inventories9085791313811253530
Trade Receivables142104105321612197816
Cash Equivalents 6343233117
Others Assets23212273182430232124
Total Assets 552485460353277270270123132147

Cash Flow

(All Figures are in Crores.)
PARTICULARSMar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22Mar'23Mar'24
Cash Flow From Operating Activity -18-495-233196-1210524
PBT -82-91-63-116-37-2605124
Adjustment 783939298820261917
Changes in Working Capital -13329877820-13-1-1-17
Tax Paid 000-2000000
Cash Flow From Investing Activity 5-3-3-1-3-21128-6-10
Capex -3-4-3-3-4-3-3127-7-13
Net Investments 0000000000
Others 8102004113
Cash Flow From Financing Activity 1549-2200-198-118-100-9
Net Proceeds from Shares 3100000000111
Net Proceeds from Borrowing 1616141300-610-8-47
Interest Paid -41-16-16-1400-7-13-12-12
Dividend Paid 0000000000
Others 9490300-130-105-79-61
Net Cash Flow 2-20-1010-105
PARTICULARSMar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22Mar'23Mar'24
Ratios
ROE (%)N/AN/AN/AN/AN/AN/AN/AN/AN/A118.37
ROCE (%)N/AN/AN/AN/AN/AN/AN/AN/AN/A32.24
Asset Turnover Ratio1.241.170.820.861.110.141.582.765.73.54
PAT to CFO Conversion(x)N/AN/AN/AN/AN/AN/A1.03N/A1.211
Working Capital Days
Receivable Days707598712514013949
Inventory Days38537748131028121524
Payable Days171611263117133272960

Rathi Steel & Power Ltd Stock News

Rathi Steel & Power Ltd FAQs

Company share prices are keep on changing according to the market conditions. The closing price of Rathi Steel & Power on 20-Dec-2024 16:59 is ₹41.98.
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 20-Dec-2024 16:59 the market cap of Rathi Steel & Power stood at ₹357.1.
The latest P/E ratio of Rathi Steel & Power as of 20-Dec-2024 16:59 is 11.69.
The latest P/B ratio of Rathi Steel & Power as of 20-Dec-2024 16:59 is 2.97.
The 52-week high of Rathi Steel & Power is ₹97.81 and the 52-week low is ₹28.36.
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 40’s. Since then the Group has grown continuously. Gordhan Das Rathi’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 Company’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 “Thermex” water quenching process makes the Steel earthquake resistant. We are one of the exclusive licencees for the use of “Thermex” 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 Government’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

  • CTD & TMT Steel High Strength Reinforcement Bars
  • Wire Rods

Achievements/ recognition:-

  • It is an ISO 9001 certified company

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