1. At a Glance
Ram Ratna Wires Ltd (RRWL) — India’s winding wire wizard. With ₹3,677 Cr revenue, 4% OPM, and a copper monopoly vibe, it’s the second-largest in South Asia. The company’s latest moves, like merging with Global Copper, signal they’re not here to stay small.
2. Introduction with Hook
If copper were the bloodline of electrical infrastructure, Ram Ratna Wires is India’s cardiac surgeon. This company has wound its way through every electric motor, transformer, and appliance in your house faster than your neighborhood electrician.
- FY25 Revenue: ₹3,677 Cr
- 10-Year PAT CAGR: 20%
- 5-Year Stock CAGR: 81%
So, is this wire tight enough to hold long-term wealth or will it short-circuit on margins?
3. Business Model (WTF Do They Even Do?)
RRWL manufactures enamelled copper wires — vital for motors, fans, pumps, EVs, appliances, and basically anything with a coil. The core offering includes:
- Enamelled Copper Wires (18 microns to 4.8mm — thinnest to beefiest)
- Sub-brand: “RR Shramik”
- Now vertically integrating via Global Copper merger to control raw material
Basically, they’re selling electricity’s veins, and now they’re eyeing to mine the copper themselves (well, almost).
4. Financials Overview
Profit & Loss (₹ Cr)
| FY | Sales | PAT | OPM | EPS (₹) |
|---|---|---|---|---|
| 2021 | 1,527 | 16 | 4% | 3.39 |
| 2022 | 2,289 | 54 | 5% | 11.86 |
| 2023 | 2,650 | 47 | 4% | 10.2 |
| 2024 | 2,983 | 55 | 4% | 11.88 |
| 2025 | 3,677 | 70 | 4% | 14.28 |
Highlights:
- Consistent 4-5% OPM — they’re not in the business of luxury margins.
- FY25 PAT grew ~27% YoY, which is neat considering copper volatility.
- Dividend payout: 18% — okayish, not a dividend aristocrat, but not stingy either.
5. Valuation
Current Price: ₹657
Market Cap: ₹2,898 Cr
Trailing PE: 46x
Book Value: ₹105
PB Ratio: ~6.3x
Fair Value Range (Blended DCF + PE): ₹480 – ₹720
At current valuations, it’s not screaming cheap. But given copper wire market growth, Global Copper merger, and infra push, it’s not entirely overvalued either.
6. What’s Cooking – News, Triggers, Drama
- Merger with Global Copper: Allotment of 25.84 lakh shares. Aims for vertical integration.
- Stake increased in subsidiary Tefabo from 60% to 64%
- Capex Alert: ₹150+ Cr capacity expansion for copper and aluminium wire
- Demand tailwinds: EVs, renewable transformers, B2B infra demand
But… copper price swings = constant margin gymnastics.
7. Balance Sheet
Key Figures (₹ Cr)
| Year | Equity | Reserves | Borrowings | Total Assets |
|---|---|---|---|---|
| FY21 | 11 | 189 | 361 | 646 |
| FY24 | 22 | 388 | 249 | 954 |
| FY25 | 22 | 438 | 305 | 1,302 |
Takeaway:
- Borrowings creeping up post-merger.
- But net worth also rising steadily.
- Capex funded partially via debt — leverage still reasonable.
8. Cash Flow – Sab Number Game Hai
(₹ Cr)
| Year | CFO | CFI | CFF | Net Flow |
|---|---|---|---|---|
| FY22 | 151 | -19 | -121 | 11 |
| FY24 | 138 | -6 | -107 | 26 |
| FY25 | 227 | -268 | 3 | -38 |
Takeaway:
- Massive negative investment cash flow in FY25 shows capex in action.
- Healthy CFO supports the expansion.
- Net cash turned negative = typical for growth companies.
9. Ratios – Sexy or Stressy?
| Metric | FY25 |
|---|---|
| ROE | 14.4% |
| ROCE | 20.4% |
| OPM | 4% |
| Debtor Days | 39 |
| CCC | 18 days |
| Working Capital Days | 20 |
| PE Ratio | 46.1x |
Verdict:
Nothing scandalous here. This is a factory operating like your over-efficient uncle’s wiring shop — just at ₹3,600 crore scale.
10. P&L Breakdown – Show Me the Money
| Year | Sales | OPM | PAT | EPS | Dividend % |
|---|---|---|---|---|---|
| FY21 | 1,527 | 4% | 16 | 3.39 | 15% |
| FY24 | 2,983 | 4% | 55 | 11.88 | 42% |
| FY25 | 3,677 | 4% | 70 | 14.28 | 18% |
Growth is solid. Margins flat, but operational excellence is the story.
11. Peer Comparison
| Company | Sales (₹ Cr) | PAT (₹ Cr) | ROE | PE |
|---|---|---|---|---|
| Apar Ind | 18,581 | 821 | 19.6% | 42.7 |
| Genus Power | 2,442 | 293 | 17.2% | 38.9 |
| Ram Ratna | 3,677 | 70 | 14.4% | 46.1 |
TL;DR: It’s a leaner machine than Apar, but cheaper on revenue multiples. Good second fiddle.
12. Miscellaneous – Shareholding, Promoters
| Holder | % (Jul 2025) |
|---|---|
| Promoters | 68.93% |
| FIIs | 0.16% |
| DIIs | 0.33% |
| Public | 30.58% |
- Promoter holding stable but dipped slightly post-merger
- No FII party yet
- Increasing shareholder base = retail interest climbing
13. EduInvesting Verdict™
Ram Ratna is no glamorous tech unicorn. It’s a copper horse — slow, steady, and solid. With a tight grip on market share, clean balance sheet, vertical expansion, and stable cash flows, it looks like a long-term compounder play… if you don’t mind thin margins and copper pricing drama.
Would we bet the house? No. But would we gift it a Diwali LED string contract? Hell yes.
Metadata
– Written by EduInvesting Analyst | 15 July 2025
– Tags: Ram Ratna Wires, Copper Stocks, Enamelled Wire, Infra, EVs, Global Copper Merger, Smallcap Studs, Electrical Equipment
