At a Glance
Remi Edelstahl Tubulars Ltd, the small-cap warrior of stainless steel pipes, reported Q1 FY26 revenue of ₹26.6 Cr (+15.9% YoY) but a net profit of just ₹0.21 Cr. Operating margins slipped to 2.7%, proving that even after reducing debt, profitability is as thin as their boiler tubes. Stock trades at ₹125, a sizzling 3x book, making value investors sweat.
Introduction
If you thought stainless steel was tough, meet Remi Edelstahl: a company that has survived decades with razor-thin margins, erratic profits, and a P/E that would make even Tesla blush. While peers scale globally, Remi still struggles to scale its bottom line. Yet, it’s quietly expanding, signing tech tie-ups, and raising capital — as if to say, “Don’t count me out just yet.”
Business Model (WTF Do They Even Do?)
Remi manufactures stainless steel seamless and welded pipes. Customers?
- Oil & Gas,
- Petrochemicals,
- Water Treatment,
- Power Plants.
Specialty grades like super duplex stainless steel and tech collaboration with WSG Korea show they’re trying to move up the value chain. But competition from APL Apollo, Ratnamani, and others keeps pricing power weak.
Financials Overview
- Revenue: ₹26.6 Cr (+15.9% YoY)
- EBITDA: ₹0.72 Cr (OPM 2.7%)
- Net Profit: ₹0.21 Cr (-50% QoQ)
- EPS: ₹0.19
Commentary: Growth is there, but profits are thinner than a surgical tube.
Valuation
- CMP: ₹125
- P/E: 50.6 (sky-high for micro-profits)
- Book Value: ₹41.9
- ROE: 6%
Fair Value Range: ₹90 – ₹130. The brand is niche, but current valuations are piping hot.
What’s Cooking – News, Triggers, Drama
- Strategic tie-up with WSG Korea for ultra-high pressure tubes.
- Preferential allotment of ₹24 Cr to fund expansions.
- Capacity expansion underway to tap high-margin segments.
- Q1 Results show growth but profits lag due to cost pressure.
Balance Sheet
| (₹ Cr) | Mar 2025 |
|---|---|
| Total Assets | 77 |
| Total Liabilities | 77 |
| Net Worth | 46 |
| Borrowings | 15 |
Remarks: Debt has come down, balance sheet looks cleaner.
Cash Flow – Sab Number Game Hai
| (₹ Cr) | FY23 | FY24 | FY25 |
|---|---|---|---|
| Operating | 8 | -4 | 24 |
| Investing | -0 | -1 | -6 |
| Financing | -11 | 4 | -18 |
Remarks: FY25 saw a rare positive operating cash flow — keep an eye if it sustains.
Ratios – Sexy or Stressy?
| Metric | Value |
|---|---|
| ROE | 5.97% |
| ROCE | 7.26% |
| P/E | 50.6 |
| PAT Margin | 1% |
| D/E | 0.2 |
Remarks: Margins and returns are low, valuation is spicy.
P&L Breakdown – Show Me the Money
| (₹ Cr) | FY23 | FY24 | FY25 |
|---|---|---|---|
| Revenue | 135 | 117 | 139 |
| Operating Profit | 5 | 6 | 8 |
| Net Profit | 0 | 1 | 3 |
Remarks: After years of red, profits have barely turned black.
Peer Comparison
| Company | Revenue (₹ Cr) | PAT (₹ Cr) | P/E |
|---|---|---|---|
| Remi Edelstahl | 142 | 3 | 50.6 |
| Ratnamani Metals | 5,186 | 542 | 34.3 |
| Welspun Corp | 14,392 | 1,622 | 15.0 |
| APL Apollo | 20,885 | 801 | 52.5 |
Remarks: Peers have scale and margins; Remi is still in survival mode.
Miscellaneous – Shareholding, Promoters
- Promoter: 74.7%
- Public: 25.2%
- DIIs/FIIs: negligible
Comment: High promoter holding gives confidence, but market interest is limited.
EduInvesting Verdict™
Past Performance
Decades of low growth, fluctuating margins, and underwhelming returns. Yet, FY25 showed signs of recovery.
SWOT Analysis
- Strengths: Debt reduction, specialty products, tech tie-ups.
- Weaknesses: Tiny scale, low profitability, high valuation.
- Opportunities: Growing demand for high-grade pipes in oil/gas and power.
- Threats: Price wars, raw material volatility, global competition.
Final Word
Remi Edelstahl is the underdog of the steel tubes market. While expansions and partnerships hint at a turnaround, the current valuation already prices in optimism. For now, it’s a niche player with a fragile margin story.
Written by EduInvesting Team | 29 July 2025SEO Tags: Remi Edelstahl, Stainless Steel Pipes, Q1 FY26 Results, Small Cap Stocks
