Rama Steel Tubes (NSE:RAMASTEEL) Inventory Turnover: 1.77 (As of Mar. 2026)


NSE:RAMASTEEL Rama Steel Tubes Ltd NSE:RAMASTEEL
69 GF Score
Price ₹4.42
GF Value ₹6.28
Valuation Possible Value Trap
! 7 Warning Signs
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What is Rama Steel Tubes Inventory Turnover?

Rama Steel Tubes NSE:RAMASTEEL -4.74% 69 Inventory Turnover is 1.77 as of Mar. 2026. GuruFocus rates NSE:RAMASTEEL with a GF Score™ of 69/100 and a GF Value™ of ₹6.28 (Possible Value Trap). The stock has 7 warning signs investors should review.

Inventory Turnover measures how fast the company turns over its inventory within a year. It is calculated as Cost of Goods Sold divided by Total Inventories. Rama Steel Tubes's Cost of Goods Sold for the three months ended in Mar. 2026 was ₹2,320 Mil. Rama Steel Tubes's Average Total Inventories for the quarter that ended in Mar. 2026 was ₹1,311 Mil. Rama Steel Tubes's Inventory Turnover for the quarter that ended in Mar. 2026 was 1.77.

Days Inventory indicates the number of days of goods in sales that a company has in the inventory. Rama Steel Tubes's Days Inventory for the three months ended in Mar. 2026 was 51.57.

Inventory-to-Revenue determines the ability of a company to manage their inventory levels. It measures the percentage of Inventories the company currently has on hand to support the current amount of Revenue. Rama Steel Tubes's Inventory-to-Revenue for the quarter that ended in Mar. 2026 was 0.53.

Rama Steel Tubes  (NSE:RAMASTEEL) Inventory Turnover Explanation

Inventory Turnover measures how fast the company turns over its inventory within a year. A higher Inventory Turnover means the company has light inventory. Therefore the company spends less money on storage, write downs, and obsolete inventory. If the inventory is too light, it may affect sales because the company may not have enough to meet demand.

1. Days Inventory indicates the number of days of goods in sales that a company has in the inventory.

Rama Steel Tubes's Days Inventory for the three months ended in Mar. 2026 is calculated as:

Days Inventory =Average Total Inventories (Q: Mar. 2026 )/Cost of Goods Sold (Q: Mar. 2026 )*Days in Period
=1311.168/2320.161*365 / 4
=51.57

2. Inventory-to-Revenue determines the ability of a company to manage their inventory levels. It measures the percentage of Inventories the company currently has on hand to support the current amount of Revenue.

Rama Steel Tubes's Inventory to Revenue for the quarter that ended in Mar. 2026 is calculated as

Inventory-to-Revenue=Average Total Inventories (Q: Mar. 2026 ) / Revenue (Q: Mar. 2026 )
=1311.168 / 2461.527
=0.53

* 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.

Be Aware

Usually retailers pile up their inventories at holiday seasons to meet the stronger demand. Therefore, the inventory of a particular quarter of a year should not be used to calculate Inventory Turnover. An average inventory is a better indication.

Rama Steel Tubes Inventory Turnover Related Terms

Rama Steel Tubes Inventory Turnover Historical Data

* Premium members only.

The historical data trend for Rama Steel Tubes's Inventory Turnover 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 Inventory Turnover Chart

Rama Steel Tubes Annual Data
Trend Mar17 Mar18 Mar19 Mar20 Mar21 Mar22 Mar23 Mar24 Mar25 Mar26
Inventory Turnover
Get a 7-Day Free Trial Premium Member Only Premium Member Only 7.95 8.34 5.79 7.58 8.29

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
Inventory Turnover 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 2.11 2.03 2.42 2.17 1.77
NSE:RAMASTEEL
69GF Score
Rama Steel Tubes Ltd NSE:RAMASTEEL
Inventory Turnover is just one metric. See GF Score™, valuation, warning signs, and more.
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Rama Steel Tubes Inventory Turnover Calculation

Rama Steel Tubes's Inventory Turnover for the fiscal year that ended in Mar. 2026 is calculated as

Inventory Turnover (A: Mar. 2026 )
=Cost of Goods Sold / Average Total Inventories
=Cost of Goods Sold (A: Mar. 2026 ) / ((Total Inventories (A: Mar. 2025 ) + Total Inventories (A: Mar. 2026 )) / count )
=10713.329 / ((1274.152 + 1311.168) / 2 )
=10713.329 / 1292.66
=8.29

Rama Steel Tubes's Inventory Turnover for the quarter that ended in Mar. 2026 is calculated as

Inventory Turnover (Q: Mar. 2026 )
=Cost of Goods Sold / Average Total Inventories
=Cost of Goods Sold (Q: Mar. 2026 ) / ((Total Inventories (Q: Dec. 2025 ) + Total Inventories (Q: Mar. 2026 )) / count )
=2320.161 / ((0 + 1311.168) / 1 )
=2320.161 / 1311.168
=1.77

* 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.

Frequently Asked Questions Learn more about Inventory Turnover →
What does a Inventory Turnover of 1.77 mean?
Rama Steel Tubes (NSE:RAMASTEEL) has a Inventory Turnover of 1.77 as of Mar. 2026. Inventory turnover equals current-period cost of goods sold divided by average two-period total inventories. View historical data on Rama Steel Tubes and its competitors.
Is Rama Steel Tubes' Inventory Turnover too high?
Rama Steel Tubes' current Inventory Turnover is 1.77. Overall, Rama Steel Tubes has a GF Score™ of 69/100 and is considered Possible Value Trap, reflecting its overall financial health beyond just this single metric.
How does Rama Steel Tubes' Inventory Turnover compare to NUE and STLD?
Rama Steel Tubes' Inventory Turnover of 1.77 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 Inventory Turnover for a Steel company?
A good Inventory Turnover depends on the Steel industry context. However, Inventory Turnover 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 Inventory Turnover mean?
A high Inventory Turnover can signal that a stock is expensive relative to its fundamentals. Inventory turnover equals current-period cost of goods sold divided by average two-period total inventories. View historical data on Rama Steel Tubes and its competitors. Rama Steel Tubes's current Inventory Turnover is 1.77. 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 Possible Value Trap. The stock's GF Value™ is ₹6.28, compared to a current price of ₹4.42 — trading 29.6% below its estimated fair value. The current Inventory Turnover is 1.77. Rama Steel Tubes' overall GF Score™ is 69/100 with 7 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Inventory Turnover calculated?
Inventory Turnover is calculated from a company's financial statements. For Rama Steel Tubes (NSE:RAMASTEEL), the current Inventory Turnover is 1.77 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 ₹4.42 is trading 29.6% below its estimated GF Value™ of ₹6.28. GuruFocus considers Rama Steel Tubes to be Possible Value Trap.

Key valuation signals for NSE:RAMASTEEL:

  • Inventory Turnover: 1.77
  • GF Value™: ₹6.28 vs. price of ₹4.42 (29.6% below fair value)
  • GF Score™: 69/100 with 7 warning signs

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.
69GF Score

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

₹4.42
Price
₹6.28
GF Value