In this article, we will explore the future share price targets of Rama Steel for the years 2025, 2026, 2028, 2030, 2040, and 2050. Additionally, we will discuss Rama Steel’s fundamentals, market sentiment, financial performance, and quarterly reports to assist investors in making informed decisions.
About Rama Steel
Rama Steel Tubes Limited stands as a prominent name in the Indian steel industry, specializing in the manufacture and export of steel tubes, pipes, and galvanized steel products. Established in 1974 by Shri Harbanslal Bansal, the company has carved a niche in producing ERW (Electric Resistance Welded) pipes, galvanized steel pipes, and structural steel components. These products find extensive applications across industries such as construction, infrastructure, automotive, and agriculture.
With a commitment to quality, Rama Steel adheres to international standards and has built a strong domestic and global footprint. Its exports span over 20 countries, including the UK, USA, Sri Lanka, Ethiopia, Kenya, Kuwait, Germany, South Africa, Congo, Guyana, and Yemen.
Rama Steel Fundamentals
| Description | Value |
|---|---|
| Company Name | Rama Steel Tube Ltd. |
| Sector | Automobile and Ancillary |
| Established | 1974 |
| Website | ramasteel.com |
| Listing At | BSE, NSE |
| BSE Code | 539309 |
| NSE Code | RAMASTEEL |
| Mkt Cap | ₹1910Cr |
| Reserves and Surplus | ₹135.24Cr |
| ROE | 9.96% |
| ROCE | 12.4% |
| 52 Week High | ₹17.55 |
| 52 Week Low | ₹9.90 |
| P/E Ratio (TTM) | 72.29 |
| Industry P/E | 24.75 |
| P/B Ratio | 5.43 |
| Face Value | 1 |
| Book Value Per Share | ₹2.26 |
| EPS (TTM) | ₹017 |
| Dividend Yield | 0.00% |
| Debt to Equity | 0.27 |
| Total Revenue | ₹1051Cr |
| Revenue Growth | -21.80% |
| Net Profit (Anual) | ₹30Cr |
| Profit Growth | 9.33% |
Returns in Past Year
| Year | Returns (%) |
|---|---|
| 2024 | 0.33% |
| 2023 | 8.30% |
| 2022 | 145.13% |
| 2021 | 606.28% |
| 2020 | 1.59% |
| 2019 | -49.60% |
| 2020 | -56.29% |
| 2021 | 90.67% |
| 2022 | 20% |
Rama Steel Share Price Target 2025
Current market sentiment around Rama Steel is highly bullish. The expected share price target for 2025 is estimated to be between ₹8.9 to ₹13.6.
| Year | Price Target (Min) | Price Target (Max) |
|---|---|---|
| 2025 | ₹8.9 | ₹13.6 |
Rama Steel Share Price Target 2026
According to market analysts, Rama Steel’s share price in 2026 is projected to range between ₹11.3 to ₹16.6.
| Year | Price Target (Min) | Price Target (Max) |
|---|---|---|
| 2026 | ₹11.3 | ₹16.6 |
Rama Steel Share Price Target 2028
By 2028, the share price target for Rama Steel is anticipated to be between ₹15.8 to ₹23.5, considering the company’s steady growth and expansion in defense contracts.
| Year | Price Target (Min) | Price Target (Max) |
|---|---|---|
| 2028 | ₹15.8 | ₹23.5 |
Rama Steel Share Price Target 2030
Based on the company’s historical performance and ongoing projects, Rama Steel’s share price in 2030 is expected to be between ₹21.4 to ₹30.
| Year | Price Target (Min) | Price Target (Max) |
|---|---|---|
| 2030 | ₹21.4 | ₹30 |
Rama Steel Share Price Target 2040
Following the long-term trend, Rama Steel’s share price in 2040 is likely to fall between ₹38.9 to ₹55.3.
| Year | Price Target (Min) | Price Target (Max) |
|---|---|---|
| 2040 | ₹38.9 | ₹55.3 |
Rama Steel Share Price Target 2050
Considering the consistent growth trajectory and the company’s prominent role in defense manufacturing, Rama Steel’s share price target for 2050 is expected to range from ₹56 to ₹89.
| Year | Price Target (Min) | Price Target (Max) |
|---|---|---|
| 2050 | ₹56 | ₹89 |
Strengths
- Steady Profit Growth: The company’s profits have shown consistent growth, rising from ₹12.38 crore in 2021 to ₹30 crore in 2024.
- Low Debt Levels: A debt-to-equity ratio of 0.27 underscores financial stability and minimizes risk.
- Strong Profitability Metrics: Return on Equity (ROE) and Return on Capital Employed (ROCE) highlight attractive returns for shareholders.
- Improved Cash Flow: Cash flow from operating activities has improved in recent quarters, showcasing operational efficiency.
- Promoter Confidence: Promoters hold a significant 47.96% stake, reflecting their trust in the company’s future growth.
- Rising Sector Demand: Operating in the automobile and ancillary sector, Rama Steel benefits from growing demand in these industries.
- Consistent Profit Growth: Annual profit increased by 9.33% in the last financial year, indicating a steady performance.
Risks
- High Valuation: The company’s P/E ratio of 72.29 is significantly above the industry average of 24.75, making it a potentially overvalued stock.
- Revenue Decline: A revenue growth rate of -21.80% reflects a sharp decrease in sales, signaling reduced demand or inefficiencies.
- No Dividends: With a dividend payout ratio of 0.00%, the company may not appeal to dividend-seeking investors.
- Negative Cash Flow: Operating cash flow was negative (-₹96.16 crore) in FY23, indicating challenges in generating cash from core operations.
- High Capital Expenditure: Negative cash flow from investing activities points to substantial investments in capital assets.
- Promoter Stake Reduction: A decline in promoter shareholding raises questions about their confidence in the company.
- Low Margins: Operating profit margin (6.19%) and net profit margin (2.87%) are relatively low, exposing the company to risks from fluctuating raw material prices and economic slowdowns.
- Retail Shareholding: Retail investors hold 51.87% of the company’s shares, potentially leading to higher stock price volatility.
- Profit Volatility: Quarterly net profit exhibits significant fluctuations, impacting investor confidence.
Rama Steel Share Price History
Rama Steel Quarterly Income Report
| Description | Sep 24 | Jun 24 | Mar 24 | Dec23 |
| Revenue + | ₹229.76Cr. | ₹159.84Cr. | ₹212.90Cr. | ₹213.48Cr. |
| Expenses + | ₹225.36Cr | ₹156.62Cr. | ₹203.71Cr. | ₹205.95Cr. |
| EBITDA | ₹6.91Cr | ₹6.33Cr. | ₹13.47Cr. | ₹13.62Cr. |
| EBIT | ₹5.81Cr | ₹4.91Cr. | ₹12.24Cr. | ₹12.50Cr. |
| Net Profit | ₹2.92Cr | ₹2.58Cr. | ₹7.29Cr. | ₹5.70Cr. |
| Operating Profit Margin | 3.15% | 4% | 6.49% | 6.45% |
| Net Profit Margin | 1.33% | 1.63% | 3.51% | 2.70% |
| Earning Per Share | ₹0.02 | ₹0.02 | ₹0.14 | ₹0.08 |
| Dividends Per Share | 0.00 | 0.00 | 0.00 | 0.00 |
Rama Steel Annual Income Report
| Description | Mar 24 | Mar 23 | Mar 22 | Mar 21 |
|---|---|---|---|---|
| Total Revenue | ₹1051Cr | ₹1344Cr | ₹777.37Cr | ₹476.58Cr |
| Total Expenses | ₹1014Cr | ₹1310Cr | ₹740.78Cr | ₹463.28Cr |
| Profit/Loss | ₹30Cr | ₹27.44Cr | ₹27.32Cr | ₹12.38Cr |
| Net Profit Margin | 2.87% | 2.05% | 3.56% | 2.63% |
| Earning Per Share | ₹0.54 | ₹1.10 | ₹16.41 | ₹7.21 |
| EBITDA | ₹64.42 | ₹59.90 | ₹51.11 | ₹25.87 |
| EBIT | ₹58.77 | ₹55.17 | ₹46.84 | ₹22.40 |
| Operating Profit Margin | 6.19% | 4.48% | 6.65% | 5.50% |
| Dividends Per share | 0.00 | 0.00 | 0.50 | 0.00 |
Rama Steel Cash Flow
| Particulars | 2023 | 2022 | 2021 | 2020 |
|---|---|---|---|---|
| Opening Cash Balance | ₹18.71Cr. | ₹22.08Cr. | ₹13.12Cr. | ₹6.76Cr. |
| Cash Flow From Operating Activities | ₹-96.16Cr | ₹-34.98Cr. | ₹24.72Cr. | ₹29.80Cr. |
| Cash Flow From Investing Activities | ₹-53.20Cr | ₹-9.23Cr. | ₹-10.17Cr. | ₹-6.83Cr. |
| Cash Flow From Financing Activities | ₹143.26Cr | ₹40.85Cr. | ₹-5.59Cr. | ₹-16.61Cr. |
| Closing Cash Balance | ₹12.61Cr | ₹18.71Cr. | ₹22.08Cr. | ₹13.12Cr. |
| Net Change In Cash | ₹-6.10 | ₹-3.39 | ₹8.96 | ₹6.39 |
Rama Steel Share Price Target 2025, 2026, 2028, 2030, 2040 to 2050
| Year | Price Target (Min) | Price Target (Max) |
|---|---|---|
| 2025 | ₹8.9 | ₹13.6 |
| 2026 | ₹11.3 | ₹16.6 |
| 2028 | ₹15.8 | ₹23.5 |
| 2030 | ₹21.4 | ₹30 |
| 2040 | ₹38.9 | ₹55.3 |
| 2050 | ₹56 | ₹89 |
Rama Steel Shareholding Pattern
| Shareholder | Share % |
|---|---|
| Promoter | 47.96% |
| Retail and Others | 51.87% |
| Foreign Institution | 0.17% |
| Total | 100.00% |
How to Buy Rama Steel Shares?
Buying and selling of Rama Steel can be done by a stock broker registered with SEBI. Here are the names of some popular brokers.
- Zerodha
- groww
- Angel One
- upstox
Rama Steel Similar Stocks
| Company Name | Mkt Cap | Profit (1Year) | 52W L | 52W H |
|---|---|---|---|---|
| Jio Finance Services | ₹1.94 LCr. | 30.10% | ₹232 | ₹394.70 |
| Elcid Investment | ₹3742 KCr. | 5393667% | ₹3.53 | ₹332399.94 |
| Blue Chip India | ₹46.95 KCr. | 269.13% | ₹2.25 | ₹9.80 |
| LIC Housing Finance | ₹32.36KCr | 14.51% | ₹511.85 | ₹826.75 |
| Aadhar Housing Finance | ₹18.31 KCr | 29.05% | ₹292 | ₹516 |
| Can Fin Homes | ₹9.64 KCr. | -6% | ₹680 | ₹951.75 |
| Repco Home Finance | ₹2.61 KCr | 5.34% | ₹366.50 | ₹595 |
Rama Steel Share Price Target: Export Opinion
Profitable Stocks
| Stocks | Mkt cap | Profit (1Year) | 52W L | 52W H |
|---|---|---|---|---|
| Adani ports | ₹3.11 LCr | 94.78% | ₹703.00 | ₹1,457.05 |
| Adani Enterprises | ₹3.89 LCr | 40.35% | ₹2142.00 | ₹3457.85 |
| Suzlon Energy | ₹90.75 KCr | 85.69% | ₹33.90 | ₹86.04 |
| Tata Power Company | ₹1.44 LCr | 101.76% | ₹215.70 | ₹464.20 |
| Adani Power | ₹2.92 LCr | 192.93% | ₹231.00 | ₹797.00 |
| Havells India | ₹1.20 LCr | 41.69% | ₹1232.85 | ₹1950.05 |
| Tata Motors | ₹3.57 LCr | 72.86% | ₹557.70 | ₹1065.60 |
| Tata Power | ₹1.44 LCr | 75.52% | ₹230.80 | ₹494.85 |
Conclusion
Rama Steel Tubes Ltd. boasts a robust market presence and sound financial management, backed by low debt levels and consistent profitability growth. However, high valuations, declining revenues, and negative cash flows highlight critical challenges.
While the company offers potential for long-term growth, especially if it can address these issues, investors should carefully weigh the associated risks before making any decisions. This makes Rama Steel a medium-risk investment with opportunities for improvement.
Disclaimer: The information provided here is for general informational purposes only and should not be considered as financial advice. Before making any investment, it is advisable to consult with a certified financial advisor. The author is not responsible for any investment decisions made based on this article.
FAQs
Q1. What is the Rama Steel share price target for 2025?
Ans: The expected share price target for Rama Steel in 2025 is between ₹8.9 to ₹13.6.
Q2. What is the Rama Steel share price target for 2030?
Ans: Rama Steel’s share price target for 2030 is projected to be between ₹21.4 to ₹30.
Q3. What is the Rama Steel share price target for 2040?
Ans: The share price target for Rama Steel in 2040 is expected to be between ₹38.9 to ₹55.3.
Q4. What is the Rama Steel share price target for 2050?
Ans: Rama Steel’s share price target for 2050 is likely to range between ₹56 to ₹89.