Rama Steel Tubes (NSE:RAMASTEEL) Debt-to-EBITDA : 3.82 (As of Mar. 2026) — 24% Above Median

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NSE:RAMASTEEL Rama Steel Tubes Ltd NSE:RAMASTEEL
70 GF Score
Price ₹4.50
GF Value ₹6.21
Valuation Modestly Undervalued
! 7 Warning Signs
View Full Analysis

What is Rama Steel Tubes Debt-to-EBITDA?

Rama Steel Tubes NSE:RAMASTEEL -0.44% 70 Debt-to-EBITDA is 3.82 as of Mar. 2026, which is 24% above its 10-year median of 3.09. 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 493 Steel companies, Rama Steel Tubes ranks worse than 57.2% on this metric.

Debt-to-EBITDA measures a company's ability to pay off its debt.

Rama Steel Tubes's Short-Term Debt & Capital Lease Obligation for the quarter that ended in Mar. 2026 was ₹784 Mil. Rama Steel Tubes's Long-Term Debt & Capital Lease Obligation for the quarter that ended in Mar. 2026 was ₹513 Mil. Rama Steel Tubes's annualized EBITDA for the quarter that ended in Mar. 2026 was ₹340 Mil. Rama Steel Tubes's annualized Debt-to-EBITDA for the quarter that ended in Mar. 2026 was 3.81.

A high Debt-to-EBITDA ratio generally means that a company may spend more time to paying off its debt. According to Joel Tillinghast's BIG MONEY THINKS SMALL: Biases, Blind Spots, and Smarter Investing, a ratio of Debt-to-EBITDA exceeding four is usually considered scary unless tangible assets cover the debt.

The historical rank and industry rank for Rama Steel Tubes's Debt-to-EBITDA or its related term are showing as below:

NSE:RAMASTEEL' s Debt-to-EBITDA Range Over the Past 10 Years
Min: 1.93   Med: 3.09   Max: 5.72
Current: 3.63

During the past 12 years, the highest Debt-to-EBITDA Ratio of Rama Steel Tubes was 5.72. The lowest was 1.93. And the median was 3.09.

NSE:RAMASTEEL's Debt-to-EBITDA is ranked worse than
57.2% of 493 companies
in the Steel industry
Industry Median: 2.86 vs NSE:RAMASTEEL: 3.63

Rama Steel Tubes  (NSE:RAMASTEEL) Debt-to-EBITDA Explanation

In the calculation of Debt-to-EBITDA, we use the total of Short-Term Debt & Capital Lease Obligation and Long-Term Debt & Capital Lease Obligation divided by EBITDA. In some calculations, Total Liabilities is used to for calculation.


Be Aware

A high Debt-to-EBITDA ratio generally means that a company may spend more time to paying off its debt.

According to Joel Tillinghast's BIG MONEY THINKS SMALL: Biases, Blind Spots, and Smarter Investing, a ratio of Debt-to-EBITDA exceeding four is usually considered scary unless tangible assets cover the debt.


Rama Steel Tubes Debt-to-EBITDA Related Terms


Rama Steel Tubes Debt-to-EBITDA Historical Data

* Premium members only.

The historical data trend for Rama Steel Tubes's Debt-to-EBITDA 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.

Rama Steel Tubes Debt-to-EBITDA Chart

Rama Steel Tubes Annual Data
Trend Mar17 Mar18 Mar19 Mar20 Mar21 Mar22 Mar23 Mar24 Mar25 Mar26
Debt-to-EBITDA
Get a 7-Day Free Trial Premium Member Only Premium Member Only 2.81 3.37 2.31 1.93 3.63

Rama Steel Tubes Quarterly Data
Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24 Dec24 Mar25 Jun25 Sep25 Dec25 Mar26
Debt-to-EBITDA Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 1.64 0.00 4.48 0.00 3.82

NSE:RAMASTEEL vs NUE, STLD, RS: Debt-to-EBITDA Comparison

For the Steel subindustry, Rama Steel Tubes's Debt-to-EBITDA, along with its competitors' market caps and Debt-to-EBITDA 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 Debt-to-EBITDA vs Steel Industry

For the Steel industry and Basic Materials sector, Rama Steel Tubes's Debt-to-EBITDA distribution charts can be found below:

* The bar in red indicates where Rama Steel Tubes's Debt-to-EBITDA falls into.


NSE:RAMASTEEL
70GF Score
Rama Steel Tubes Ltd NSE:RAMASTEEL
Debt-to-EBITDA is just one metric. See GF Score™, valuation, warning signs, and more.
View Full Analysis

Rama Steel Tubes Debt-to-EBITDA Calculation

Debt-to-EBITDA measures a company's ability to pay off its debt.

Rama Steel Tubes's Debt-to-EBITDA for the fiscal year that ended in Mar. 2026 is calculated as

Debt-to-EBITDA=Total Debt / EBITDA
=(Short-Term Debt & Capital Lease Obligation + Long-Term Debt & Capital Lease Obligation) / EBITDA
=(783.966 + 513.084) / 357.227
=3.63

Rama Steel Tubes's annualized Debt-to-EBITDA for the quarter that ended in Mar. 2026 is calculated as

Debt-to-EBITDA=Total Debt / EBITDA
=(Short-Term Debt & Capital Lease Obligation + Long-Term Debt & Capital Lease Obligation) / EBITDA
=(783.966 + 513.084) / 340.028
=3.81

* 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.

In the calculation of annual Debt-to-EBITDA, the EBITDA of the last fiscal year is used. In calculating the annualized quarterly data, the EBITDA data used here is four times the quarterly (Mar. 2026) EBITDA data.

Frequently Asked Questions Learn more about Debt-to-EBITDA →
What does a Debt-to-EBITDA of 3.82 mean?
Rama Steel Tubes (NSE:RAMASTEEL) has a Debt-to-EBITDA of 3.82 as of Mar. 2026. Debt-to-EBITDA ratio represents the ratio of total debt to total earnings before interest, taxes, depreciation and amortization. View historical data on Rama Steel Tubes. This is 24% above median its historical median of 3.09. Over the past decade, Rama Steel Tubes' Debt-to-EBITDA has ranged from 1.93 to 5.72. According to the industry distribution chart, Rama Steel Tubes ranks #282 out of 493 companies in the Steel industry, placing it in the top 57.2%.
Is Rama Steel Tubes' Debt-to-EBITDA too high?
Rama Steel Tubes' current Debt-to-EBITDA of 3.82 is 24% above median its 10-year median of 3.09. Over the past 10 years, this metric has ranged from a low of 1.93 to a high of 5.72. The Steel industry median Debt-to-EBITDA is 2.86. Rama Steel Tubes' value of 3.82 is 33.6% above this industry median. Based on the distribution chart, Rama Steel Tubes ranks #282 out of 493 companies in the Steel industry, which is below the industry midpoint. 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' Debt-to-EBITDA compare to NUE and STLD?
According to the Steel industry distribution chart, Rama Steel Tubes ranks #282 out of 493 companies for Debt-to-EBITDA. This places Rama Steel Tubes in the lower half of its industry. The industry median Debt-to-EBITDA is 2.86. Rama Steel Tubes' value of 3.82 is 33.6% above this benchmark. Historically, Rama Steel Tubes' own Debt-to-EBITDA has ranged from 1.93 to 5.72 over the past decade. While the company's 10-year median is 3.09 vs. the industry median of 2.86, Rama Steel Tubes has consistently been above 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 Debt-to-EBITDA for a Steel company?
The median Debt-to-EBITDA among Steel companies is 2.86, based on 493 companies in the industry. Companies in the top quartile (top 25%) have a Debt-to-EBITDA significantly above this median, while those in the bottom quartile fall well below. However, Debt-to-EBITDA should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Rama Steel Tubes's current Debt-to-EBITDA of 3.82 is 33.6% above 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 Debt-to-EBITDA mean?
A high Debt-to-EBITDA can signal that a stock is expensive relative to its fundamentals. Debt-to-EBITDA ratio represents the ratio of total debt to total earnings before interest, taxes, depreciation and amortization. View historical data on Rama Steel Tubes. For the Steel industry, the median Debt-to-EBITDA is 2.86 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Rama Steel Tubes's current Debt-to-EBITDA is 3.82, which is 24% above median its own 10-year median of 3.09. 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 ₹4.50 — trading 27.5% below its estimated fair value. The current Debt-to-EBITDA is 3.82, which is 24% above median its 10-year median of 3.09 and 33.6% above the Steel industry median of 2.86. 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 Debt-to-EBITDA calculated?
Debt-to-EBITDA is calculated from a company's financial statements. For Rama Steel Tubes (NSE:RAMASTEEL), the current Debt-to-EBITDA is 3.82 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 ₹4.50 is trading 27.5% below its estimated GF Value™ of ₹6.21. GuruFocus considers Rama Steel Tubes to be Modestly Undervalued.

Key valuation signals for NSE:RAMASTEEL:

  • Debt-to-EBITDA: 3.82 (24% above median its 10-year median of 3.09)
  • GF Value™: ₹6.21 vs. price of ₹4.50 (27.5% below fair value)
  • GF Score™: 70/100 with 7 warning signs
  • Industry Position: 33.6% above the Steel median (#282 of 493)

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 Business Description

Other Exchanges 539309:India
Address Main Road, B-5, 3rd Floor, Ghazipur, New Delhi, IND, 110096
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

Get the complete analysis for NSE:RAMASTEEL

Debt-to-EBITDA is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.

₹4.50
Price
₹6.21
GF Value