01 — At a Glance
When a Steel Manufacturer’s P/E Becomes a Cosmic Joke
- 52-Week High / Low₹27.7 / ₹14.5
- Q3 FY26 Revenue₹6.15 Cr
- Q3 FY26 PAT₹4.45 Cr
- Annualised EPS (Q3)₹0.24
- CMP₹25
- Book Value / Share₹1.23
- Price to Book20.4x
- TTM PAT₹8.56 Cr
- TTM EPS₹0.12
- 3-Year Stock Return20.0%
⚠️ The Shocking Truth: Rhetan just posted a Q3 profit margin of 72.36% (₹4.45 Cr profit on ₹6.15 Cr revenue). The stock jumped 220% YoY in profit. Meanwhile, the market decided to price this steel bar manufacturer at the valuation of a cybersecurity unicorn. This is not investing. This is roulette with a tilt.
02 — Introduction
A Steel Bar Factory That’s Somehow More Expensive Than Infosys
Rhetan TMT Ltd manufactures TMT bars — the humble steel reinforcement used to build apartment buildings, flyovers, and the occasional corrupt politician’s beach mansion. The company was incorporated in 1984, migrated to the BSE Main Board in May 2024 (a big deal), and has been quietly making steel in Gujarat ever since.
The business is straightforward to the point of boring: they have a rolling mill with 45,000 MTPA installed capacity. They sell to construction companies. They make money. But something went wrong — or very right — in the valuation department.
In Q3 FY26, Rhetan reported ₹6.15 crore in revenue and ₹4.45 crore in profit. The profit margin hit 72.36%. To put this in perspective, Apple’s operating margin is 29%. Amazon’s is 6%. Rhetan’s is 72%. Something is either very good or very wrong. The stock is trading at ₹25, giving it a market cap of ₹1,995 crore — 323 times its quarterly profit. This is the kind of valuation that makes even FOMO investors pause and check their portfolio for signs of a hasty click.
Context Check: TTM (trailing twelve months) sales are ₹22.4 crore. TTM profit is ₹8.56 crore. The company has never paid a dividend. It has 62.11% promoter holding via Ashoka Metcast Limited and a handful of family members. It barely anyone owns it except insiders and some retail traders who thought they found the next multibagger.
03 — Business Model: WTF Do They Even Do?
They Make Bars. Steel Bars. That You Use to Build Houses. That’s It.
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