1. At a Glance
Ratnamani Metals is the kid in class who always topped maths but still got bullied for his haircut. The company makes stainless steel and carbon steel pipes, exports to 30+ countries, has a squeaky-clean balance sheet, and even flexes zero debt. Yet, the stock tanked32% in one year. Why? Maybe because investors finally realised “pipe-making” doesn’t sound sexy unless Elon Musk is boring tunnels under LA.
2. Introduction
Let’s be honest. Pipes and tubes don’t sound like a glamorous business. You don’t see Bollywood heroes flexing, “Main tumhe stainless steel seamless tubes banake dikhata hoon.” But in the real world, nothing flows without them — oil, gas, chemicals, even the tears of investors who bought at ₹3,978 last year and are now down 1/3rd of their money.
Ratnamani, with its₹16,642 Cr market cap, is one of the biggest stainless steel seamless players in India. It sells to oil refineries, nuclear power plants, and petrochemical majors — basically the people who don’t care if the stock price falls, as long as the pipe doesn’t leak.
The company has quietly scaled from₹1,688 Cr sales in FY15to₹5,154 Cr in FY25, while keeping debt at chillar levels. Profits grew from ₹173 Cr in FY15 to ₹563 Cr in FY25. That’s not flashy startup hockey-stick growth — it’s old-school compounding, the type of stuff that gives Warren Buffett goosebumps.
But markets are moody. Ratnamani’s problem isn’t numbers; it’s perception. Investors expect steel companies to be boring, not expensive at29x P/E. And when a stock is priced like it’s selling Gucci handbags but actually makes pipes, reality checks hurt.
3. Business Model (WTF Do They Even Do?)
Ratnamani runs three main segments:
- Steel Tubes & Pipes (93% of revenue):The bread, butter, and paneer tikka. Products include stainless steel welded/seamless pipes, titanium welded tubes, and carbon steel pipes. If it can carry oil, gas, or chemicals, Ratnamani has a version of it. Revenue here grew 53% between FY22–FY24.
- Bearing Rings (6%):They bought Ravi Technoforge in 2022. Fancy words aside, these are precision rings for bearings — basically the jewelry industry of industrial machines.
- Pipe Spools & Aux Systems (1%):A JV with a Swiss company in 2023. The name sounds like IKEA furniture, but it’s just customised pipe systems and fittings.
They serve oil & gas, power plants, chemicals, petrochemicals, and even nuclear projects. If India wants to keep its “Viksit Bharat” dreams alive, you’ll need pipes — and Ratnamani
will be there, charging a margin.
Exports are 24% now (up from 14% in FY22). Clients are global — USA, Germany, Japan, even Russia (probably for vodka pipelines). Domestic still dominates at 76%.
4. Financials Overview
Quarterly Snapshot (Q1 FY26 vs Q1 FY25 & Q4 FY25)
| Metric | Latest Qtr (Jun’25) | YoY Qtr (Jun’24) | Prev Qtr (Mar’25) | YoY % | QoQ % |
|---|---|---|---|---|---|
| Revenue | ₹1,152 Cr | ₹1,184 Cr | ₹1,715 Cr | -2.7% | -32.8% |
| EBITDA | ₹188 Cr | ₹164 Cr | ₹302 Cr | +14.6% | -37.7% |
| PAT | ₹127 Cr | ₹106 Cr | ₹203 Cr | +19.8% | -37.4% |
| EPS (₹) | 18.8 | 15.0 | 29.6 | +25.3% | -36.5% |
Commentary:YoY looks decent — sales are flat but margins expanded. QoQ? Brutal. Revenue crashed 33%, profits down 37%. Either orders got delayed, or management was busy polishing spools instead of chasing contracts. At₹81 EPS (TTM), P/E is29.2. For context, that’s costlier than some IT companies — except here, the “cloud” is literal factory smoke.
5. Valuation (Fair Value Range Only)
- P/E Method:EPS (₹81.4) × industry PE (23–25) → ₹1,870 – ₹2,035
- EV/EBITDA:EV ₹16,574 Cr / EBITDA ₹848 Cr = 19.5x. Sector average ~12–14x → FV range ₹1,400 – ₹1,600
- DCF:Assume ₹563 Cr PAT, 12% growth, 12% discount, 20x terminal → FV ~₹1,900
📌 Fair Value Range:₹1,500 – ₹2,000(Educational only. Not investment advice. Don’t sue us if you YOLO and it tanks further.)
6. What’s Cooking – News, Triggers, Drama
- Saudi JV (Apr’25):Ratnamani tied up with Saudi Electric Supply Co. for a stainless steel plant. Translation: They’re exporting pipesandmanagement stress to the Middle East.
