EduInvesting.in | May 15, 2025
Ratnaveer Precision Engineering Limited (yes, the artist formerly known as Ratnaveer Metals) just declared its Q4 and full-year results — and boy, this small-cap stainless steel warrior is shining brighter than a freshly polished kitchen sink.
With net profit surging by 51% YoY, the company is screaming, “We’re not just metal. We’re margin.”
Let’s break it down — without getting rusted in jargon.
📊 Headline Numbers (₹ in Million)
| Metric | Q4 FY25 (Mar’25) | Q4 FY24 (Mar’24) | FY25 | FY24 |
|---|---|---|---|---|
| Revenue from Operations | 2,031.08 | 1,420.37 | 8,918.72 | 6,953.79 |
| Total Income | 2,048.20 | 1,438.45 | 8,980.94 | 7,014.57 |
| EBITDA (approx.) | ~236.92* | ~133.56* | NA | NA |
| Profit Before Tax (PBT) | 110.24 | 58.17 | 624.40 | 430.04 |
| Net Profit (PAT) | 107.14 | 56.10 | 468.15 | 310.50 |
| EPS (₹) | 2.13 | 1.37 | 9.31 | 7.61 |
*Derived roughly after adjusting depreciation and finance cost.
🔩 So What Does Ratnaveer Actually Do?
They’re into stainless steel precision products — think:
- Razor strips (not for shaving egos)
- Tubes, sheets, washers
- Used in pharma, solar, defense, and more
Basically, they’re the silent backbone behind the shiny steel things you never think about — but absolutely need.
And with India on a manufacturing boom, Ratnaveer is cleverly positioned where capex meets steel demand.
🚀 FY25 Highlights: From Utility to Profitability
- Revenue jumped 28% YoY
- PAT rose 51% YoY (From ₹310.5M to ₹468.15M)
- Margins improved despite raw material cost pressures
- No major debt shocks or one-time write-offs
- EPS grew to ₹9.31 from ₹7.61 last year — an investor’s favourite kind of diet: lean, clean, and compounding
⚙️ Q4 in Focus: Solid Finish
Q4FY25 saw revenue up 43% YoY and profit up 91% YoY. That’s not growth — that’s a sprint.
Even sequentially (vs Dec ’24 quarter), profit was steady, showing that Ratnaveer isn’t just having one good quarter — it’s building a track record.
🧠 EduAnalysis: What’s Cooking Under the Hood?
Ratnaveer’s edge lies in:
- High margin niche products in steel
- Low working capital cycles
- Export potential amid “China+1” strategies
- Benefiting from the PLI buzz + infra boom
But it’s not all roses:
- Steel is cyclical
- Input costs (like nickel) are volatile
- Scaling may require more capex and thin margins
Still, they’ve shown operational discipline — no bloated expenses or debt fireworks here.
💰 Valuation: Still Some Juice Left?
With FY25 EPS of ₹9.31 and CMP (let’s say) around ₹140–₹160, the P/E is roughly 15x–17x.
Compare that to peers in precision steel/metal space:
- Venus Pipes trades at ~25x
- JTL Infra even higher
- Apl Apollo off the charts
So yes — Ratnaveer still has room for rerating, especially if earnings keep compounding.
🧾 EduVerdict: Small-Cap With Steel Grit
Ratnaveer isn’t chasing headlines or making wild bets. It’s simply doing the boring thing well — producing niche steel products with efficiency, profit, and low drama.
It might not be the next multibagger. But it could be a quiet compounder hiding in plain sight.
EduScore:
- 🟢 Earnings Growth: Strong
- 🟡 Risk: Sector cyclicality
- 🟢 Management: Conservative & efficient
- 🟢 Valuation: Still reasonable
Final Word: This is one of those businesses where you don’t need fireworks — just steady firepower.
