In 2022, the economy at worldwide level was affected by consistent geopolitical pressure, consistent inflation, central banks increased interest rates, and China’s economy was declined due to which requirement of steel was reduced. As per report presented by World Steel Study, demand of finished steel at global level was reduced by 3.2% from 1842 million tonnes to 1782 million tonnes.
The demand of steel pipes is constantly rising due to its uses in many industries and it is applied in development of infrastructure as steel tubes with cylindrical in shape at worldwide level. The major use is product development and installing equipment with main purpose of transporting gas, oil, water, and liquid. The steel pipes made of carbon is utilized in industrial sector which includes severe cold, very heat or transporting gases such as steam, crude oil, ethanol. There are many factors on which demand and supply of steel pipe is applicable such as economic conditions, growth in infrastructure, and requirement of steel consuming sector. The demand of oil and gas is consistently increasing, transportation industry is rapidly growing, increasing construction business has led to growth in demand of steel pipes after pandemic.
The steel pipes has many uses in industrial and domestic purpose due to its various benefits such as fire proof, long life, huge strength, corrosion proof. The investment in R&D is increasing for huge development of facilities is one of the key factor to encourage market growth. In January 2022, steel prices in Russia hiked due to geo-political issues. The main suppliers of steel and its raw material are Russia and Ukraine, observed reduction in sales affecting global market. In 2022, the market value of steel pipes at global level was $146.87 billion.
Growth of industries, shifting to urban areas, growth of population, amazing policies of government to encourage automobiles industry and increasing manufacturing sector. The steel and pipes market faced slow growth due to issues ineconomic conditions. The major consumtion of steel pipes is North America as they are producer of oil and gas and they are main consumers of steel pipes. The steel pipes are used in processing crudeoil with 3 main steps: upsteam, mainstream, and downstream. It is forecasted that global steel pipe market is anticipated to reach $315.65 billion at 8.24% CAGR from 2022 to 2027. One such steel and pipes manufacturing company is Rama Steel Tubes Ltd. In this article, you will learn interesting information about share price target, market cap, revenue, net profit, founder of company, promoter holding, share holding pattern, ROCE, ROE, loan taken by company. All important ionformation will be covered in this article.
Rama Steel Tubes Ltd – Key Points
Market cap
1583 crores
Headquarters
New Delhi
Promoter of company
Mr. Naresh Kumar Bansal
Return on capital employed
12.7%
Return on equity
10.4%
Debto-equity ratio
0.74 times
Manufacturing Plants
Sahibabad, Khopoli, Anantpur
Rama Steel Tubes Ltd – Statistics
Stock keeping units (SKUs)
1300+
Contribution of export
5%
Distribution in states
17+
Distribution in cities
300+
Export in countries
17
Projects complated in past 7 years
Rs 500+ crores
About Rama Steel Tubes Ltd
The Rama Steel Tubes is one of the top leader in steel tube sector, which leads to innovation in its products and amazing excellence. The company was established in 1974 was top leader and manufacturer of steel tubes and pipes. The company has deep expertise and knowledge, genuine practices, cost efficiency and generation of best quality steel tubes. The company is working over past 50 years is one of the best producer in steel tubes and pipes with its presence in whole India. The company was founded by late Shri. HarbansLal Bansal, the business operating at global level is currently operated by his son Mr. Naresh Kumar Bansal and his grandson Mr. Richi Bansal. With the passage of tiome, Rama Steel has gained deep knowledge an experience, managing best quality high and light towers such as Legged Square lattice Steel Towers and Three Legged Tubular Steel Towers. Other steel products manufactured are used in Radar Towers and Railway Electrification Structure.
The main business of the company is manufacturing and trading of steel tubes and pipes and GI pipes. The company is working to make its performance better by growing its revenue, creating unique products, and cost control. The company is operating its business not only in India but also in international markets with its presence in 16+ countries and among 4 continents including UK, Africa, Middle East, South America. The products are sold under the brand name “TTT Rama” have gained strong reputation at global level. The company is also expanding its business in easter region by setting factory in Raipur, Chattishgarh.
With passage of time, Rama Steel is performing better, increasing sales, the creativty of invention and huge dedication in redcuing its cost. The portfolio of Rama steel includes wide variety of products such as MS ERW black pipes with length of 15 to 200 mm in diameter, GI pipes developed with accuracy ranging from 15 to 150 mm light in size, heavy, and medium. There is no restriction in supply of Rama steel pipes as its exports are increasing with 20% of its revenue and its presence in 16 countries. The sun shines by its victory in UAE and the sun sets in Nigeria, the company has painted its success in varous continents.
The Rama Steel journey is build by integrating technology into business, where latest machinery and equipments create balance of genuine quality in its 4 manufacturing plants located in Sahibabad (UP), Khopoli ( Maharashtra), and Anantpur (Andhra Pradesh). The company has acheived excellence not only in manufacturing but it has wide network of distributors. The company has achieved huge growth in growing its business in East of India by acquiring Land in Raipur has been registered properly. In this area about 50,000 MTPA will be produced.
In the Western part, Khopoli plant has the production capacity of 30,000 MTPA during FY-23. The company has strategically purchased 51% stake in Ashok Infrasteel (Partnership Firm) and a 50% stake in Hagar Mega Mart Pvt. Ltd. The company has diversified by acquiring 25% stake in Peer Panchal construction (JV).
Rama Steel Tubes Ltd – Product Portfolio
Products
Uses
ERW Galvanized steel pipes & Tubes
gas & oil pipelines, water pipelines, tubewells, Cross couuntry pipelines
In Indian steel industry, Rama Steel is top leader and remains unbeatable. During the year, the production capacity of 30,000 metric tonnes for products which are huge in demand in Indian as well as international markets. The application has been filed in NCLT by company for merger of Lepakshi tubes in Delhi branch to increase its production and savings. In FY 23, the company achieved huge sales growth depsite of macro economic issues, building strong presence. There is heavy demand for products in the market and the purpose of company is to fulfill customer requirements with its wide variety of portfolio. The current production capacity of company is 2,94,000 MTPA to meet the demands of consumer
The purpose of company is to raise from 10 SKUs to over 1300 and expand its installed capacity to 3,94,000 metric tonnes by FY-25. This will build strong relation with distributors by providing huge variety of products and make Rama Steel one of the pioneer in Steel Pipes and Tubes. The company is trying to tap into specific sectors such as supply of steel pipes and tubes to City Gas distribution and Solar Energy Power generation plants. The purpose is to give full production capacity of 3,94,000 MTPA of at least 25% to fulfill the requirement of government sector with a margin of 10% EBIDTA.
Shareholding pattern
Promoters
56.70%
FIIs
0.08%
DIIs
0.00%
Public
43.24
Chairman and promoter of company
The Chairman and MD of the company is Mr. Naresh Kumar Bansal qualifed in law and has 42 years of deep experience. Mr Bansal has deep experienced with shar mind and unique strategy, he has deep understanding of steel tubes and pipes. The journey of Rama Steel has gone through many ups and downs, the values and ethics are integrated by Bansal himself. The principles are to provide best products, performing business with Fairness, strong passion to fulfill the needs of consumers.
Mr Bansal has played key role in shaping company’s future. Due to his strong vision the company has shown huge growth and achieved success.
Rama Steel Tubes Ltd – Revenue and net profit
Particulars
FY-24 (In Crores)
FY-23 (In Crores)
Sales
1047
1337
Expenses
987
1285
EBIDTA
59
51
Interest
21
20
Depreciation
6
5
Profit before tax
38
35
-Tax
(20%)
(22%)
Net profit
30
27
EPS in Rs.
0.19
0.19
Rama Steel Tubes Ltd – Watch Full video
Disclaimer – Stock market is a highly volatile market and unstable. Do your proper research and study before investing. Our website aims to provide information regarding the stock market. We are not responsible if you suffer any loss. Spend enough time on research. We are not providing investment or financial advice.
If market faces bearish sentiments, the minimum projected price is expected to reach Rs 10.45. The average trading price is projected to hit Rs 11.38 at the end of the year. If market observes bullish signals, the maximum forecasted price is estimated to reach Rs 12.31. The Rama Steel is properly working in niche based sectors such as City Gas Distribution and solar energy power plants. The company has received order of electric poles from UPPCL. The supply of steel tubes and pipes in projected to contribute future growth. The Rama Steel encourages modern technology as foundation of competition. The tube mill based on modern technology is developed by collaborating with Japanese market leader M/S Kusakabe.
Rama Steel Tubes Ltd Share Price Target – 2025
If market observes downward trends, the minimum projected price is estimated to reach Rs 12.57. The average trading price is projected to reach Rs 13.01 at the end of the year. If market observes bullish signals, the maximum projected price is anticipated to reach Rs 13.45. On July, 2023, huge transformation was faced by Rama Steel as it had collaborated with Steel leader JSW Steel. In MoU, diffrent types of deals were mentioned. Moreover, the MoU clearly mentions that Rama steel will purchase Hot Rolled Coils (HRC) from JSW Steel. Additionally, Rama Steel will operate as official distribution partner of JSW steel and operate in western region.
Rama Steel Tubes Ltd Share Price Target – 2026
If market observes bullish sentiments, the minimum forecasted price is expected to reach Rs. 14.91. The average trading price is projected to hit Rs 16.28 at the end of the year. If market observes bullish signals, the maximum projected price is estimated to surpass Rs 17.64. The company has developed robust distribution network of dealers in North, West, and South Asia. The best quality products and services has created genuine faith among its clients such as Airtel, SAIL, GAIL, Gujarat gas Ltd, J&K Rural electrification, Adani, TATA, Ashok Leyland.
Rama Steel Tubes Ltd Share Price Target – 2027
If market observes bearish sentiments, the minimum projected price is forecasted to reach Rs 18.55. The average trading price is predicted to hit Rs 20.52 at the end of the year. If market observes bullish sentiments, the maximum projected price is estimated to reach Rs 22.49. In India, the major allocation of steel industry is 2% of GDP and direct or indirectly providing job opportunites to 450,000 Indians. The main raw materials used for developing steel are iron ore and coal. These raw materials are purchased from foreign sources. The residential industry is projected to grow supported by housing projects which are easily affordable. Rural areas are going through development process with houses and roads being developed which will lead to consumption of more steel.
Rama Steel Tubes Ltd Share Price Target – 2028
If market observes bearish sentiments, the minimum predicted price is anticipated to reach Rs 23.80. The average trading price is projected to hit Rs 27.02 at the end of the year. If market observes bullish sentiments, the maximum projected price is estimated to reach Rs 30.24. The government has followed certain steps to push steel industry by presenting National Steel Policy 2017 and encouraging 100% FDI in this industry. In future due to development of airports will lead to consumtion of steel and this will ultimately generate revenue of Rama steel and this will increase share prices.
Rama Steel Tubes Ltd Share Price Target – 2029
If market follows bearish sentiments, the minimum projected price is estimated to reach Rs 31.03. The average trading price is expected to reach Rs 32.80 at the end of the year. If market observes bullish sentiments, the maximum projected price is forecasted to reach Rs 34.56. In 2017, the India was 3rd largest producer of steel. During FY 2018 to 2022, the India was 2nd largest producer of steel due to its huge demand, fast urbanization, development of airports, Towers has led to increase in sales of company.
Rama Steel Tubes Ltd Share Price Target – 2030
If market experiences downward trends, the minimum projected price is expected to reach Rs 95.22. The average trading price is projected to reach Rs 96.24 at the end of year. If market observes bullish sentiments, the maximum projected price is estimated to reach Rs 97.26. The India is top 3 manufacturer in producing steel pipes at worldwide after Europe and Japan due to its production cost very cheap, best quality. The consumption of steel pipes is main factor in Indian steel industry which allocates about 8% of domestic market. The main demand of steel pipes is arising from medical colleges, government colleges, hotels, hospitals.
Rama Steel Tubes Ltd Share Price Target – 2040
If market observes downward trends, the minimum projected price is estimated to reach Rs 954.32. The average trading price is projected to hit Rs 970.29 at the end of the year. If market faces bullish sentiments, the maximum projected price is estimated to hit Rs 986.25. The Steel pipes are becoming famous due to its tensile strength, rust proof, ductability and its applications in various industries. The steel pipes are divided in two types: Submerged ACR welded and Seamless (S&S) and Electric Resistant welded (ERW). The Indian market is divided in 70:30. The company has Long term borrowing of Rs 27 crores and short term loan of Rs 117 crores. If company repays loan within 5 to 10 years, the share will become multibagger and provide huge returns.
FAQs
Q1) Who is owner of Rama Steel Tubes Ltd?
Ans – The owner of Rama Steel Tubes is Mr. Naresh Kumar Bansal. He is MD and chairman of the company.
Q2) Is Rama Steel Tubes Ltd a profitable company?
Ans –Yes,Rama Steel Tubes Ltd is a profitable company with net profit of Rs 30 crores in FY-24 which was 10% higher compared to FY-23 where net profit was Rs 27 crores.
Q3) What is dividend of Rama Steel Tubes Ltd?
Ans – In FY -23 and 24, no dividend was paid by companyRama Steel Tubes. Once the company clears of loan in future. It may declared dividend.
Q4) What is turnover of Rama Steel Tubes Ltd?
Ans – The turover of Rama Steel Tubes in FY-24 was Rs 1047 crores which was 20% less compared to FY-23 where turnover was Rs 1337 crores.
Q5) Who are the customers of Rama Steel Tubes Ltd?
Ans – The customers of Rama Steel Tubes are giant corporates such as Airtel, GAIL, SAIL, Adani, TATA, Ashok Leyland, Gujarat Gas Ltd.
Q6) What is the capacity of Rama Steel tubes Ltd?
Ans – The current production capcity of Rama Steel tubes Ltd is 294,000 MTPA.
Q7) Is it good to invest in Rama Steel tubes Ltd?
Ans –Yes, it is good to invest in Rama Steel Tubes Ltd. The company has provided 1300% returns in past 5 years. In 2019, the share price of the compaby wad Rs 0.19 whhich has increased to Rs 10. In 2015, the turnover of the company was Rs 152 crores which has increased to Rs 1047 crores in 2024. the company has hsown consistent growth from 2015 to 2024. The company manufactures and produces steel tubes which has huge demand.
Q8) What is PE ratio of Rama Steel tubes Ltd?
Ans – The PE ratio of Rama Steel tubes Ltd is 55.4.
