1. At a Glance – The ₹6 Crore Quarter Wearing a ₹2,000 Crore Suit
₹25.8 per share.
Market cap: ₹2,064 crore.
Quarterly sales: ₹6.15 crore.
Quarterly PAT: ₹4.45 crore.
Stock P/E: 241.
Price-to-Sales: 92 times.
Book Value: ₹1.23.
Price-to-Book: 21.1 times.
ROCE: 4.47%.
ROE: 3.39%.
3-month return: 11.6%.
1-year return: 55.3%.
Let that sink in.
We are looking at a company doing ₹6.15 crore in quarterly revenue being valued like it owns half of Bhilai Steel Plant. Profit jumped 220% YoY in Q3 FY26. Operating margin exploded to 38.86%. And suddenly, everyone wants a piece of this TMT action.
But here’s the fun part: earnings include other income of ₹9.72 crore (TTM). Working capital days? 717 days. Debtor days? 224 days.
So the question is simple:
Are we looking at a turnaround steel mini-mill… or a balance sheet magician?
Welcome to the Rhetan TMT show.
2. Introduction – From Rolling Mill to Market Darling
Rhetan TMT Ltd was incorporated in 1984. For decades, it quietly rolled steel bars in Gujarat. Then in recent years, things started getting… dramatic.
It migrated from BSE SME to the BSE Main Board in May 2024. NSE listing followed in September 2025. Capital structure changed dramatically in FY23:
- Authorized capital increased from ₹21.50 crore to ₹80 crore
- Shares split from ₹10 to Re.1
- Bonus issue in ratio 11:4
- Borrowing limits increased to ₹200 crore
If corporate actions were cricket shots, this was a T20 innings.
Meanwhile, the core business? Manufacturing TMT bars and round bars used in construction.
Now pause.
The company’s TTM sales are ₹22.44 crore. Market cap ₹2,064 crore. Price-to-Sales 92 times.
Even luxury brands don’t trade at 92 times sales.
So what exactly is the market pricing in? Massive expansion? Commodity trading? Solar ambitions?
Or just vibes?
Let’s open the furnace.
3. Business Model – WTF Do They Even Do?
Rhetan manufactures:
- TMT Bars (used in homes, bridges, flyovers, dams)
- Round Bars (used in engineering components, shafts, bolts)
They operate a steel rolling mill with installed capacity of ~45,000 MTPA. Certified under IS 1786: 2008.
Revenue breakup FY23:
- Sale of products: 99%
- Other income: 1%
So, core steel business.
But
