Beta is the sensitivity of the expected excess asset returns to the expected excess market returns. As of today (2026-07-01), Riddhi Steel and Tube's Beta is -0.1385.
Riddhi Steel and Tube (BOM:540082) Beta Explanation
Beta is a measure of the volatility, or systematic risk, of a security or a portfolio in comparison to the market as a whole. We usually compare beta to 1. A beta of 1 indicates that the security's price will move with the market. A beta of less than 1 means that the security will be less volatile than the market. A beta of greater than 1 indicates that the security's price will be more volatile than the market.
Beta is primarily used in the Capital Asset Pricing Model (CAPM) to calculate the Cost of Equity, which can be used in the calculation of WACC %. The formula of Cost of Equity is:
Cost of Equity = Risk-Free Rate of Return + Beta of Asset * (Expected Return of the Market - Risk-Free Rate of Return)
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
For the Steel subindustry, Riddhi Steel and Tube's Beta, along with its competitors' market caps and Beta data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Riddhi Steel and Tube Beta vs Steel Industry
For the Steel industry and Basic Materials sector, Riddhi Steel and Tube's Beta distribution charts can be found below:
* The bar in red indicates where Riddhi Steel and Tube's Beta falls into.
Beta is the sensitivity of the expected excess asset returns to the expected excess market returns. A stock's beta can be calculated by dividing the product of the covariance of the individual stock's returns and the market's returns by the variance of the market's returns over a specified period. Basically, GuruFocus uses the returns calculated over three-year period.
Riddhi Steel and Tube (BOM:540082) has a Beta of -0.1385 as of Jul. 01, 2026. Beta is the sensitivity of the expected excess asset returns to the expected excess market returns. View historical data for Riddhi Steel and Tube and its competitors.
Is Riddhi Steel and Tube's Beta too high?
Riddhi Steel and Tube's current Beta is -0.1385. Overall, Riddhi Steel and Tube has a GF Score™ of 50/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Riddhi Steel and Tube's Beta compare to NUE and STLD?
Riddhi Steel and Tube's Beta of -0.1385 can be compared against companies in the Steel industry. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Beta for a Steel company?
A good Beta depends on the Steel industry context. However, Beta should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Beta mean?
A high Beta can signal that a stock is expensive relative to its fundamentals. Beta is the sensitivity of the expected excess asset returns to the expected excess market returns. View historical data for Riddhi Steel and Tube and its competitors. Riddhi Steel and Tube's current Beta is -0.1385. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Riddhi Steel and Tube stock overvalued right now?
Based on GuruFocus' analysis, Riddhi Steel and Tube (BOM:540082) is currently considered Significantly Overvalued. The stock's GF Value™ is ₹84.98, compared to a current price of ₹196.40 — trading 131.1% above its estimated fair value. The current Beta is -0.1385. Riddhi Steel and Tube's overall GF Score™ is 50/100 with 1 warning sign to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Beta calculated?
Beta is calculated from a company's financial statements. For Riddhi Steel and Tube (BOM:540082), the current Beta is -0.1385 as of Jul. 01, 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Riddhi Steel and Tube (BOM:540082) Overvalued in 2026?
Based on GuruFocus' analysis, Riddhi Steel and Tube stock appears to be overvalued.
The current stock price of ₹196.40 is trading 131.1% above its estimated GF Value™ of ₹84.98.
GuruFocus considers Riddhi Steel and Tube to be Significantly Overvalued.
Key valuation signals for BOM:540082:
Beta: -0.1385
GF Value™: ₹84.98 vs. price of ₹196.40 (131.1% above fair value)
No single metric tells the full story. See the BOM:540082 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Riddhi Steel and Tube Ltd is engaged in manufacturing and galvanised steel pipes in various sizes, tubes, and hollow profiles and of tube and pipe fittings of cast iron or cast steel. The product line of the company includes MS Black Pipes, Pre-Galvanised Pipes, and Galvanised Pipes, which are used in agriculture, industry, and construction activities like scaffolding and casing in bore wells; Square and Rectangular Hollow Sections used in engineering applications, Pre-Galvanised Pipes used by various manufacturers. The company generates all of its revenue from Domestic sales.
50GF Score
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