Rama Steel Tubes Limited (RAMASTEEL) Fair Value & Analysis
Basic Materials · IN · Market cap ₹6.6B
Risks
Fair value as of: Aug 23, 2026
From 17 valuation models · updated today
Share price −6.5% over the past month.
Below-average quality, and screening another 67% overvalued on our models.
What runs behind every stock
69 individual criteria per stock, every one traceable See the method →
What matters now
- The price sits above even our optimistic bull case (₹1.63). The favourable scenario is already priced in.
- Weak quality (28/100) and above fair value at the same time, the margin of safety is missing on both counts.
Price vs Fair Value (5 years)
White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Aug 23, 2026.
How to read this chart
60‑month range ₹0.9478 – ₹16.60 · fair‑value band ₹0.9800 – ₹1.63 · the ₹4.00 price screens above the ₹1.31 fair value. Dashed = 300-day average. As of Aug 23, 2026.
Analysis
Rama Steel Tubes Limited (RAMASTEEL) currently trades at ₹4.00, while our model-based Fair Value estimate is ₹1.31, implying the stock looks roughly 67.3% overvalued today. The Quality Score stands at 28/100 (below-average quality), in the Basic Materials sector. Bear case: priced above our estimate, the market already discounts strong expectations. Bull case: above-average quality can justify a premium, the entry price still matters most (evidence: high).
Over the trailing twelve months, Rama Steel Tubes Limited generated revenue of ₹11.2B at a net margin of 1.1%. Revenue declined 16.0% year over year. It earns a return on equity of 2.6%. Net debt stands at ₹1.2B. Fundamentals as of Aug 23, 2026
Our scenario range runs from ₹0.9800 (bear case) to ₹1.63 (bull case); at ₹4.00, the current price sits above that range. Bear and bull are the same models run on conservative and optimistic assumptions (margins, growth, valuation multiples), so a plausible valuation range, not a price target. The share trades about 65% below its 52-week high and 16% above its 52-week low, currently below its 200-day average. For context, the median of 10 Basic Materials peers we cover trades at -22% fair-value upside, at -67%, RAMASTEEL screens richer than that median.
Fair Value models
Each model estimates fair value its own way; the Fair Value above is the evidence-weighted blend. Evidence (0–100) measures how completely this model’s inputs are available: well-fed models carry more weight in the blend. The spread across models is intentional, each one stresses a different value driver; dividend models, for instance, come out structurally low when payout is small.
All 17 models by family
Widest divergence: Asset-Based (₹1.96) versus Dividend Discount (₹0.0800). Highest evidence: Residual Income (76).
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Key figures & financial health
More key figures
Figures from reported company fundamentals · as of Aug 23, 2026. TTM = trailing twelve months.
Quality Score breakdown
Of which business quality 30 · Market factors (momentum, volatility) 15
Non-valuation factor families (profitability, growth, cashflow, financial strength, momentum …), each academically grounded. Valuation itself sits in the Fair Value and is deliberately excluded here to avoid double-counting.
About the company
Rama Steel Tubes Limited engages in the manufacture and trading of steel pipes and tubes, and rigid poly vinyl chloride and galvanized iron pipes in India and internationally.
Full company description
Rama Steel Tubes Limited engages in the manufacture and trading of steel pipes and tubes, and rigid poly vinyl chloride and galvanized iron pipes in India and internationally. The company offers electric resistance welded (ERW) galvanized steel pipes and tubes, mild steel ERW black steel pipes and tubes, scaffolding pipes and tubes, casing swaged poles, structural steel products, and hollow sections. It also exports its products to the United Kingdom, the United Arab Emirates, Sri Lanka, Ethiopia, Kenya, Uganda, Somalia, Ghana, Sudan, Kuwait, the Republic of Congo, Yemen, Guyana, Germany, the United States, South Africa, Zambia, Malta, and internationally. The company was incorporated in 1974 and is based in New Delhi, India.
Company description, as reported by the company or data provider.
Revenue & earnings trend
FY2022 – FY2026 · reported fiscal years
Rama Steel Tubes Limited reported revenue of ₹11.2B in FY2026 versus ₹7.6B in FY2022, a compound +10.3%/yr. Reported net income was ₹126M in FY2026, compounding −17.6%/yr from FY2022.
RAMASTEEL screens 67% overvalued. Compare with JSW Steel Limited →
Peer Group
Steel · 387 stocks
How this stock ranks against its industry: the green marker is this stock, the band is the typical 25–75% peer range, and the tick is the median.
Valuation Multiples vs Steel median · lower = cheaper
Values & ESG
Does this company touch areas you may want to avoid? The classification is inferred from sector and industry.
Similar stocks
10 more Steel stocks, each showing price versus our Fair Value estimate (as of Aug 23, 2026).
| Stock | Price | Fair Value | vs Fair Value |
|---|---|---|---|
| JSW Steel Limited JSWSTEEL | ₹1,296 | ₹1,119 | -14% |
| Tata Steel Limited TATASTEEL | ₹186.20 | ₹145.39 | -22% |
| POSCO Holdings 005490 | 310,000 KRW | 155,270 KRW | -50% |
| Companhia Siderúrgica Nacional, SID | 11,230 ARS | 16,076 ARS | +43% |
| Jindal Steel & Power Limited JINDALSTEL | ₹1,114 | ₹429.44 | -61% |
| Lloyds Metals and Energy Limited LLOYDSME | ₹1,891 | ₹793.69 | -58% |
| Gerdau S.A GGBN | 83.50 MXN | 39.22 MXN | -53% |
| Ternium S.A TXR | 17,780 ARS | 27,472 ARS | +55% |
| NMDC Limited NMDC | ₹84.35 | ₹116.23 | +38% |
| Jindal Stainless Limited JSL | ₹735.40 | ₹552.30 | -25% |
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Frequently asked questions
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How we calculate Fair Value
Each company is valued through a stack of independent intrinsic-value models (DCF variants, residual-income, multiples and more), blended into one family-balanced consensus and weighted by how much trustworthy data backs it. A separate quality layer scores the fundamentals. Every input is real reported data, nothing guessed.
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