1. At a Glance
Rajratan Global makes bead wire—the unsung hero holding your tires to the rim. A low-key, high-carbon play on auto components, the company posted ₹14 Cr Q1 profit on ₹247 Cr revenue. Margins? OPM shrunk to 13%. Once a margin machine, now more like a well-oiled scooter.
2. Introduction with Hook
What’s round, steely, and keeps billion-dollar auto giants rolling? No, not CEOs—it’s bead wire. And Rajratan is the desi master of it. Think of it as the “shoe lace” of a tire—vital, invisible, and ignored by analysts until Q3 results.
- Q1 FY26 Net Profit: ₹14 Cr (down 11% YoY)
- Stock down 25% in 1 year
- Dividend payout? Less than the tip you gave your valet
3. Business Model (WTF Do They Even Do?)
- Bead Wire (Main Dish): Used in all types of tires—2W, 4W, trucks, planes
- Black Wire (Side Salad): Drawn steel used in engineering and construction
- Clients: Tyre giants—MRF, CEAT, Apollo, and OEMs
- Markets: India + Thailand + global exports (expanding in SE Asia)
High entry barrier + no global low-cost Indian peers = mini-moat.
4. Financials Overview
| FY | Revenue | EBITDA | PAT | OPM % | EPS (₹) |
|---|---|---|---|---|---|
| FY22 | ₹893 Cr | ₹182 Cr | ₹124 Cr | 20% | ₹24.49 |
| FY23 | ₹895 Cr | ₹162 Cr | ₹100 Cr | 18% | ₹19.72 |
| FY24 | ₹890 Cr | ₹128 Cr | ₹72 Cr | 14% | ₹14.15 |
| FY25 | ₹935 Cr | ₹127 Cr | ₹59 Cr | 14% | ₹11.58 |
| TTM | ₹962 Cr | ₹128 Cr | ₹57 Cr | 13% | ₹11.23 |
Trend: Revenue stable. Margins melting. Profits downhill. Like a Maruti 800 in Ladakh.
5. Valuation
- EPS (TTM): ₹11.23
- Current P/E: 38.8x
- Sector Median P/E: ~28x
Fair Value Range:
- Bear Case: ₹11 × 25 = ₹275
- Bull Case: ₹11 × 35 = ₹385
→ FV Range: ₹275 – ₹385
At CMP ₹436… maybe wait for it to deflate a little.
6. What’s Cooking – News, Triggers, Drama
- Q1 FY26: Revenue ₹247 Cr, Profit ₹14 Cr
- Margin Pressure: Raw material costs + forex swings
- Director Retirements & Appointments: Boardroom reboot
- Thailand Ops: Expansion strategy post-COVID continues
- Dividend? 13.8% payout over 3 years = investor pocket lint
7. Balance Sheet
| Item | FY23 | FY24 | FY25 |
|---|---|---|---|
| Equity | ₹10 Cr | ₹10 Cr | ₹10 Cr |
| Reserves | ₹429 Cr | ₹482 Cr | ₹549 Cr |
| Borrowings | ₹171 Cr | ₹191 Cr | ₹237 Cr |
| CWIP | ₹140 Cr | ₹191 Cr | ₹72 Cr |
| Total Assets | ₹739 Cr | ₹826 Cr | ₹960 Cr |
Solid, conservative. But borrowings creeping up = capex-driven or survival mode?
8. Cash Flow – Sab Number Game Hai
| Year | CFO | CFI | CFF | Net Flow |
|---|---|---|---|---|
| FY23 | ₹159 Cr | ₹-167 Cr | ₹10 Cr | ₹2 Cr |
| FY24 | ₹106 Cr | ₹-96 Cr | ₹-10 Cr | ₹0 Cr |
| FY25 | ₹57 Cr | ₹-57 Cr | ₹-8 Cr | ₹-7 Cr |
Free cash flow? Decent. Liquidity crunch? Not yet. Growth capex? Most likely.
9. Ratios – Sexy or Stressy?
| Metric | FY23 | FY24 | FY25 |
|---|---|---|---|
| ROCE | 27% | 18% | 14% |
| ROE | 20% | 14% | 11% |
| OPM | 18% | 14% | 13% |
| EPS (₹) | 19.72 | 14.15 | 11.58 |
| D/E | ~0.4 | ~0.4 | ~0.43 |
Story: Declining profitability. Still efficient, just not hot.
10. P&L Breakdown – Show Me the Money
| Year | Revenue | EBITDA | PAT | EPS | OPM |
|---|---|---|---|---|---|
| FY22 | ₹893 Cr | ₹182 Cr | ₹124 Cr | ₹24.5 | 20% |
| FY23 | ₹895 Cr | ₹162 Cr | ₹100 Cr | ₹19.7 | 18% |
| FY24 | ₹890 Cr | ₹128 Cr | ₹72 Cr | ₹14.2 | 14% |
| FY25 | ₹935 Cr | ₹127 Cr | ₹59 Cr | ₹11.6 | 14% |
Profits doing a smooth wheelie… downhill.
11. Peer Comparison
| Company | CMP | P/E | ROCE | Sales (₹ Cr) | PAT (₹ Cr) | OPM |
|---|---|---|---|---|---|---|
| Bosch | ₹38,320 | 56.2 | 21.1% | 18,087 | 2,012 | 12.8% |
| Uno Minda | ₹1,078 | 66.3 | 18.8% | 16,774 | 934 | 11.2% |
| Schaeffler | ₹4,282 | 65.9 | 25.7% | 8,337 | 1,015 | 18.4% |
| Rajratan | ₹436 | 38.8 | 14.3% | 962 | 57 | 13.4% |
Conclusion: Still a small fish with margin stress in a big-profit ocean.
12. Miscellaneous – Shareholding, Promoters
| Category | Mar 2024 | Jun 2025 |
|---|---|---|
| Promoters | 65.13% | 65.13% |
| FIIs | 0.21% | 0.14% |
| DIIs | 8.19% | 8.26% |
| Public | 26.47% | 26.47% |
- Retail army is stable.
- Institutions seem mildly allergic.
13. EduInvesting Verdict™
Rajratan used to be a momentum tyre play—riding the EV wave, India infra boom, and export-friendly cycles. Now? Margins deflated. Growth muted. Still a niche player with few competitors, but not immune to steel prices and auto slowdown.
If you’re looking for a deep cyclical value play with a moat made of copper-plated steel—this might still be worth a test drive. But don’t expect turbo performance.
Metadata
– Written by EduInvesting Team | 21 July 2025
– Tags: Rajratan Global Wire, Bead Wire, Q1 FY26, Auto Ancillary, Margin Pressure, Export Manufacturing
