Rama Steel TubesNSE:RAMASTEEL -2.32%69 ROE % is 3.59% as of Mar. 2026, which is 69% below its 10-year median of 11.64. GuruFocus rates NSE:RAMASTEEL with a GF Score™ of 69/100 and a GF Value™ of ₹6.28 (Modestly Undervalued). The stock has 7 warning signs investors should review. Among 622 Steel companies, Rama Steel Tubes ranks worse than 53.05% on this metric.
ROE % measures the rate of return on the ownership interest (shareholder's equity) of the common stock owners. It measures a firm's efficiency at generating profits from every unit of shareholders' equity (also known as net assets or assets minus liabilities). ROE % shows how well a company uses investment funds to generate earnings growth. ROE %s between 15% and 20% are considered desirable.
The factors that affect a company's ROE % can be illustrated with the three-step DuPont Analysis:
Note:
The net income data used here is four times the quarterly (Mar. 2026) net income data. The Revenue data used here is four times the quarterly (Mar. 2026) revenue data. The same rule applies to Pre-Tax Income and Operating Income.
* In the five-step DuPont Analysis, Operating Income is only available for non-financial companies. Thus, for Insurance companies, we use EBIT as a substitution of Operating Income. For Banks, both Operating Income and EBIT is unavailable. Thus we combined Interest Burden and Operating Margin % into Pretax Margin %, and the DuPont Analysis is divided into four components instead.
* 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
Net Income is used.
Because a company can increase its ROE % by having more financial leverage, it is important to watch the equity multiplier when investing in high ROE % companies. Like ROA %, ROE % is calculated with only 12 months data. Fluctuations in company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective.
Asset light businesses require very few assets to generate very high earnings. Their ROE %s can be extremely high.
Rama Steel Tubes ROE % Related Terms
Rama Steel Tubes ROE % Historical Data
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The historical data trend for Rama Steel Tubes's ROE % 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.
For the Steel subindustry, Rama Steel Tubes's ROE %, along with its competitors' market caps and ROE % 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 ROE % vs Steel Industry
For the Steel industry and Basic Materials sector, Rama Steel Tubes's ROE % distribution charts can be found below:
* The bar in red indicates where Rama Steel Tubes's ROE % 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.
In the calculation of annual ROE %, the net income of the last fiscal year and the average total shareholder equity over the fiscal year are used. In calculating the quarterly data,
the net income data used here is four times the quarterly (Mar. 2026) net income data.
ROE % is displayed in the 30-year financial page.
Rama Steel Tubes (NSE:RAMASTEEL) has a ROE % of 3.59% as of Mar. 2026. Return on equity is the ratio of current-period net income to average two-period total equity. View historical data on Rama Steel Tubes and its competitors. This is 69% below median its historical median of 11.64. Over the past decade, Rama Steel Tubes' ROE % has ranged from 0.49 to 24.15. According to the industry distribution chart, Rama Steel Tubes ranks #330 out of 622 companies in the Steel industry, placing it in the top 53.1%.
Is Rama Steel Tubes' ROE % too high?
Rama Steel Tubes' current ROE % of 3.59% is 69% below median its 10-year median of 11.64. Over the past 10 years, this metric has ranged from a low of 0.49 to a high of 24.15. The Steel industry median ROE % is 3.69. Rama Steel Tubes' value of 3.59% is 2.7% below this industry median. Based on the distribution chart, Rama Steel Tubes ranks #330 out of 622 companies in the Steel industry, which is below the industry midpoint. Overall, Rama Steel Tubes has a GF Score™ of 69/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Rama Steel Tubes' ROE % compare to NUE and STLD?
According to the Steel industry distribution chart, Rama Steel Tubes ranks #330 out of 622 companies for ROE %. This places Rama Steel Tubes in the lower half of its industry. The industry median ROE % is 3.69. Rama Steel Tubes' value of 3.59% is 2.7% below this benchmark. Historically, Rama Steel Tubes' own ROE % has ranged from 0.49 to 24.15 over the past decade. While the company's 10-year median is 11.64 vs. the industry median of 3.69, 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 ROE % for a Steel company?
The median ROE % among Steel companies is 3.69, based on 622 companies in the industry. Companies in the top quartile (top 25%) have a ROE % significantly above this median, while those in the bottom quartile fall well below. However, ROE % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Rama Steel Tubes's current ROE % of 3.59% is 2.7% 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 ROE % mean?
A high ROE % can signal that a stock is expensive relative to its fundamentals. Return on equity is the ratio of current-period net income to average two-period total equity. View historical data on Rama Steel Tubes and its competitors. For the Steel industry, the median ROE % is 3.69 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Rama Steel Tubes's current ROE % is 3.59%, which is 69% below median its own 10-year median of 11.64. 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 ₹6.28, compared to a current price of ₹4.64 — trading 26.1% below its estimated fair value. The current ROE % is 3.59%, which is 69% below median its 10-year median of 11.64 and 2.7% below the Steel industry median of 3.69. 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 ROE % calculated?
ROE % is calculated from a company's financial statements. For Rama Steel Tubes (NSE:RAMASTEEL), the current ROE % is 3.59% 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 ₹4.64 is trading 26.1% below its estimated GF Value™ of ₹6.28.
GuruFocus considers Rama Steel Tubes to be Modestly Undervalued.
Key valuation signals for NSE:RAMASTEEL:
ROE %: 3.59% (69% below median its 10-year median of 11.64)
GF Value™: ₹6.28 vs. price of ₹4.64 (26.1% below fair value)
Industry Position: 2.7% below the Steel median (#330 of 622)
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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