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Rama Steel Tubes has the Financial Strength Rank of 5.
GuruFocus Financial Strength Rank measures how strong a company's financial situation is. It is rated on a scale of 1 to 10 and is based on these factors:
1. The debt burden that the company has as measured by its Interest Coverage (current year). The higher, the better.
2. Debt to revenue ratio. The lower, the better.
3. Altman Z-Score.
4. Other debt related ratios.
A higher score indicates a stronger financial position, with companies rated 7 or above considered financially stable and unlikely to face distress. Conversely, a score of 3 or below suggests potential financial difficulties, indicating a higher risk of distress.
Rama Steel Tubes's Interest Coverage for the quarter that ended in Mar. 2026 was 0.83.
Rama Steel Tubes's debt to revenue ratio for the quarter that ended in Mar. 2026 was 0.13.
As of today, Rama Steel Tubes's Altman Z-Score is 2.78.
The rank is rated on a scale of 1 to 10. A higher score indicates a stronger financial position, with companies rated 7 or above considered financially stable and unlikely to face distress. Conversely, a score of 3 or below suggests potential financial difficulties, indicating a higher risk of distress.
Rama Steel Tubes has the Financial Strength Rank of 5.
Rama Steel Tubes Financial Strength Related Terms
NSE:RAMASTEEL vs NUE, STLD, RS: Financial Strength Comparison
For the Steel subindustry, Rama Steel Tubes's Financial Strength, along with its competitors' market caps and Financial Strength 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 Financial Strength vs Steel Industry
For the Steel industry and Basic Materials sector, Rama Steel Tubes's Financial Strength distribution charts can be found below:
* The bar in red indicates where Rama Steel Tubes's Financial Strength falls into.
Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's Operating Income (EBIT) by its Interest Expense:
Z-Score model is an accurate forecaster of failure up to two years prior to distress. It can be considered the assessment of the distress of industrial corporations.
The zones of discrimination were as such:
When Z-Score is less than 1.81, it is in Distress Zones.
When Z-Score is greater than 2.99, it is in Safe Zones.
When Z-Score is between 1.81 and 2.99, it is in Grey Zones.
Rama Steel Tubes has a Z-score of 2.78, indicating it is in Grey Zones. This implies that Rama Steel Tubes is in some kind of financial stress. If it is below 1.81, the company may faces bankrupcy risk.
Warning Sign:
Altman Z-score of 2.78 is in the grey area. This implies that the company is under some kind of financial stress. If it is below 1.8, the company may face bankruptcy risk.
* 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 Financial Strength of 5 as of Mar. 2026. The financial strength rank measures the strength of a company's balance sheet based on revenue and debt. View historical data on Rama Steel Tubes and its competitors. This is 17% below median its historical median of 6.00. Over the past decade, Rama Steel Tubes' Financial Strength has ranged from 4.00 to 7.00.
Is Rama Steel Tubes' Financial Strength too high?
Rama Steel Tubes' current Financial Strength of 5 is 17% below median its 10-year median of 6.00. Over the past 10 years, this metric has ranged from a low of 4.00 to a high of 7.00. 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' Financial Strength compare to NUE and STLD?
Rama Steel Tubes' Financial Strength of 5 can be compared against companies in the Steel industry. Historically, Rama Steel Tubes' own Financial Strength has ranged from 4.00 to 7.00 over the past decade. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Financial Strength for a Steel company?
A good Financial Strength depends on the Steel industry context. However, Financial Strength 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 Financial Strength mean?
A high Financial Strength can signal that a stock is expensive relative to its fundamentals. The financial strength rank measures the strength of a company's balance sheet based on revenue and debt. View historical data on Rama Steel Tubes and its competitors. Rama Steel Tubes's current Financial Strength is 5, which is 17% below median its own 10-year median of 6.00. 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 ₹6.15, compared to a current price of ₹4.13 — trading 32.8% below its estimated fair value. The current Financial Strength is 5, which is 17% below median its 10-year median of 6.00. 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 Financial Strength calculated?
Financial Strength is calculated from a company's financial statements. For Rama Steel Tubes (NSE:RAMASTEEL), the current Financial Strength is 5 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 ₹4.13 is trading 32.8% below its estimated GF Value™ of ₹6.15.
GuruFocus considers Rama Steel Tubes to be Possible Value Trap.
Key valuation signals for NSE:RAMASTEEL:
Financial Strength: 5 (17% below median its 10-year median of 6.00)
GF Value™: ₹6.15 vs. price of ₹4.13 (32.8% below fair value)
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.
69GF Score
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