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Rama Steel TubesNSE:RAMASTEEL -0.89%70 Cash Ratio is 0.02 as of Mar. 2026, which is 60% below its 10-year median of 0.05. GuruFocus rates NSE:RAMASTEEL with a GF Score™ of 70/100 and a GF Value™ of ₹6.21 (Modestly Undervalued). The stock has 7 warning signs investors should review. Among 615 Steel companies, Rama Steel Tubes ranks worse than 93.82% on this metric.
Rama Steel Tubes has a Cash Ratio of 0.02. It indicates that there are more current liabilities than Cash, Cash Equivalents, Marketable Securities, and the company does not have sufficient cash on hand to pay off its short-term debt.
The historical rank and industry rank for Rama Steel Tubes's Cash Ratio or its related term are showing as below:
NSE:RAMASTEEL'
s Cash Ratio Range Over the Past 10 Years
Min: 0.01 Med: 0.05 Max: 0.17
Current: 0.02
During the past 12 years, Rama Steel Tubes's highest Cash Ratio was 0.17. The lowest was 0.01. And the median was 0.05.
NSE:RAMASTEEL's Cash Ratio is ranked worse than 93.82% of 615
companies
in the Steel industry
Industry Median: 0.28
vs NSE:RAMASTEEL: 0.02
Rama Steel Tubes (NSE:RAMASTEEL) Cash Ratio Explanation
The cash ratio is more conservative than other liquidity ratios, such as Quick Ratio and Current Ratio, because it only considers a company's most liquid resources. The numerator of cash ratio only considers Cash, Cash Equivalents and marketable securities. Other current assets, such as accounts receivable and inventories, are not included. The rationale is that these assets may require time to be transformed into cash, and the amount of money received is also uncertain.
The cash ratio shows a company’s ability to pay all current liabilities immediately without selling or liquidating other assets. Generally speaking, a higher cash ratio suggests the company has a stronger ability to cover its short-term debt. However, a high cash ratio could also indicate inefficient management: the company is inefficient in making full utilization of cash to invest protential profitable project. It may also suggest that the company is not confident about future profitability.
In general, the higher the cash ratio, the better the company's liquidity position.
Rama Steel Tubes Cash Ratio Related Terms
Rama Steel Tubes Cash Ratio Historical Data
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The historical data trend for Rama Steel Tubes's Cash Ratio can be seen below:
* 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.
NSE:RAMASTEEL vs NUE, STLD, RS: Cash Ratio Comparison
For the Steel subindustry, Rama Steel Tubes's Cash Ratio, along with its competitors' market caps and Cash Ratio 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.
Rama Steel Tubes Cash Ratio vs Steel Industry
For the Steel industry and Basic Materials sector, Rama Steel Tubes's Cash Ratio distribution charts can be found below:
* The bar in red indicates where Rama Steel Tubes's Cash Ratio falls into.
* 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.
Rama Steel Tubes (NSE:RAMASTEEL) has a Cash Ratio of 0.02 as of Mar. 2026. Cashflow ratio is the ratio of Cash, Cash Equivalents, Marketable Securities to current liabilities. View historical data on Rama Steel Tubes and its competitors. This is 60% below median its historical median of 0.05. Over the past decade, Rama Steel Tubes' Cash Ratio has ranged from 0.01 to 0.17. According to the industry distribution chart, Rama Steel Tubes ranks #577 out of 615 companies in the Steel industry, placing it in the top 93.8%.
Is Rama Steel Tubes' Cash Ratio too high?
Rama Steel Tubes' current Cash Ratio of 0.02 is 60% below median its 10-year median of 0.05. Over the past 10 years, this metric has ranged from a low of 0.01 to a high of 0.17. The Steel industry median Cash Ratio is 0.28. Rama Steel Tubes' value of 0.02 is 92.9% below this industry median. Based on the distribution chart, Rama Steel Tubes ranks #577 out of 615 companies in the Steel industry, which is in the bottom quartile relative to peers. Overall, Rama Steel Tubes has a GF Score™ of 70/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Rama Steel Tubes' Cash Ratio compare to NUE and STLD?
According to the Steel industry distribution chart, Rama Steel Tubes ranks #577 out of 615 companies for Cash Ratio. This places Rama Steel Tubes in the lower half of its industry. The industry median Cash Ratio is 0.28. Rama Steel Tubes' value of 0.02 is 92.9% below this benchmark. Historically, Rama Steel Tubes' own Cash Ratio has ranged from 0.01 to 0.17 over the past decade. While the company's 10-year median is 0.05 vs. the industry median of 0.28, Rama Steel Tubes has consistently been below the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Cash Ratio for a Steel company?
The median Cash Ratio among Steel companies is 0.28, based on 615 companies in the industry. Companies in the top quartile (top 25%) have a Cash Ratio significantly above this median, while those in the bottom quartile fall well below. However, Cash Ratio should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Rama Steel Tubes's current Cash Ratio of 0.02 is 92.9% below the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Cash Ratio mean?
A high Cash Ratio can signal that a stock is expensive relative to its fundamentals. Cashflow ratio is the ratio of Cash, Cash Equivalents, Marketable Securities to current liabilities. View historical data on Rama Steel Tubes and its competitors. For the Steel industry, the median Cash Ratio is 0.28 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Rama Steel Tubes's current Cash Ratio is 0.02, which is 60% below median its own 10-year median of 0.05. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Rama Steel Tubes stock overvalued right now?
Based on GuruFocus' analysis, Rama Steel Tubes (NSE:RAMASTEEL) is currently considered Modestly Undervalued. The stock's GF Value™ is ₹6.21, compared to a current price of ₹4.46 — trading 28.2% below its estimated fair value. The current Cash Ratio is 0.02, which is 60% below median its 10-year median of 0.05 and 92.9% below the Steel industry median of 0.28. Rama Steel Tubes' overall GF Score™ is 70/100 with 7 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Cash Ratio calculated?
Cash Ratio is calculated from a company's financial statements. For Rama Steel Tubes (NSE:RAMASTEEL), the current Cash Ratio is 0.02 as of Mar. 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 Rama Steel Tubes (NSE:RAMASTEEL) Overvalued in 2026?
Based on GuruFocus' analysis, Rama Steel Tubes stock appears to be undervalued.
The current stock price of ₹4.46 is trading 28.2% below its estimated GF Value™ of ₹6.21.
GuruFocus considers Rama Steel Tubes to be Modestly Undervalued.
Key valuation signals for NSE:RAMASTEEL:
Cash Ratio: 0.02 (60% below median its 10-year median of 0.05)
GF Value™: ₹6.21 vs. price of ₹4.46 (28.2% below fair value)
Industry Position: 92.9% below the Steel median (#577 of 615)
No single metric tells the full story. See the NSE:RAMASTEEL stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Rama Steel Tubes Ltd is a manufacturer and exporter of steel pipes, steel tubes, galvanized pipes, fence pipes, electrical conduit pipes, scaffolding fittings, hollow sections, square steel pipes, and square steel tubes. It also manufactures and exports hollow sections for the automobile industry, including highway and street lighting poles, as well as traffic signal poles. Its segments include; Manufacturing of Steel Pipes which derives maximum revenue, and Trading of Building Material and Steel Products. Geographically, the company caters to both, the Indian and the international markets, and derives a majority of its revenue from its business in India.
70GF Score
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