Discover the potential of Ratnamani Metals through comprehensive technical analysis and candlestick pattern insights. Unlock investment opportunities with expert guidance.
Table of Contents
Ratnamani Metals and Tubes Limited, headquartered in India, specializes in the manufacturing of Stainless Steel and Welded Pipes and Tubes. With an extensive product line catering to approximately 20 different user sectors, the company offers vital tubing and piping solutions across various industries. Its clientele spans core sectors such as oil and gas, refinery and petrochemical, dairy, chemical and fertilizer, thermal, solar and nuclear power, liquefied natural gas (LNG), desalination, defence, aerospace, chillers and cooling systems, pulp and paper industry, automobile, and more situated in Gujarat, India.
Ratnamani’s manufacturing facilities boast advanced capabilities, producing a diverse range of products including nickel alloy/stainless steel seamless tubes and pipes, stainless steel welded tubes and pipes, titanium welded tubes, carbon steel welded pipes, and stainless steel/carbon steel pipes with coating.
Subsidiaries of Ratnamani Metals and Tubes Limited
- RATNAMANI INC
- RAVI TECHNOFORGE PRIVATE LIMITED
- RATNAMANI FINOW SPOOLING SOLUTIONS PRIVATE LIMITED
Share Holding Pattern of Ratnamani Metals and Tubes Limited
These figures represent significant actions taken by a company that directly influence shareholder value. They signify material changes within the company and have an impact on its stakeholders:
- Promoter Shareholding: 59.77%
- FII (Foreign Institutional Investor) Shareholding: 12.87%
- DII (Domestic Institutional Investor) Shareholding: 0.39%
- MF (Mutual Fund) Shareholding: 15.75%
- Public Shareholding: 11.23%
Ratnamani Metals and Tubes Limited, a key player in the metal and tube manufacturing industry, exhibits a robust financial profile, as evident from its fundamental ratios spanning from March 2020 to March 2023. Let’s delve into each metric to gain insights into the company’s performance.
Fundamental Analysis of Ratnamani Metals and Tubes Limited | ||||
Ratio | March 2023 | March 2022 | March 2021 | March 2020 |
Profitability Ratio | ||||
Gross Profit Margin | 34.17% | 32.97% | 33.10% | 29.90% |
Net Profit Margin | 11.76 | 10.27 | 12.00 | 11.89 |
Return on Equity (ROE) | 19.60% | 14.35% | 13.89% | 17.99% |
Liquidity Ratio | ||||
Current Ratio | 2.94 | 3.47 | 3.88 | 2.65 |
Quick Ratio (Acid-Test Ratio) | 1.48 | 1.51 | 2.62 | 1.26 |
Solvency Ratio | ||||
Debt to Equity Ratio | 0.087 | 0.066 | 0.099 | 0.129 |
Interest Coverage Ratio | 23.18 | 21.18 | 16.87 | 20.39 |
Efficient Ratio | ||||
Inventory Turnover Ratio | 2.48 | 2.55 | 2.20 | 2.50 |
Account Receivable Turnover Ratio | 5.56 | 5.22 | 4.58 | 5.32 |
Valuation Ratio | ||||
Price to earning Ratio (P/E) | 27.12 | 37.56 | 32.20 | 13.79 |
Price to Book Ratio (P/B) | 5.32 | 5.39 | 4.47 | 2.48 |
Growth Ratio | ||||
Earning per Share (EPS) Growth | 73.09 | 46.03 | 39.38 | 43.87 |
Revenue Growth | 4,401.24 | 3,176.32 | 2,341.54 | 2,644.98 |
Profitability Ratioe
Gross Profit Margin:
Ratnamani Metals and Tubes Limited has shown a consistent improvement in gross profit margin from 29.90% in March 2020 to 34.17% in March 2023. This indicates the company’s efficiency in managing production costs and generating profits from its operations.
Net Profit Margin:
The net profit margin has fluctuated slightly over the years, with a peak of 12.00% in March 2021 and a low of 10.27% in March 2022. However, overall, the company has maintained a healthy net profit margin, indicating effective cost management and profitability.
Return on Equity (ROE):
Ratnamani Metals and Tubes Limited has demonstrated a positive trend in return on equity, with an increase from 17.99% in March 2020 to 19.60% in March 2023. This suggests efficient utilization of shareholders’ equity to generate profits.
Liquidity Ratio
Current Ratio:
The current ratio has shown variations but has generally remained above 2, indicating Ratnamani Metals and Tubes Limited’s ability to meet its short-term obligations with its current assets.
Quick Ratio (Acid-Test Ratio):
While the quick ratio has fluctuated, it has generally maintained a satisfactory level, reflecting the company’s ability to cover immediate liabilities without relying heavily on inventory.
Solvency Ratio
Debt to Equity Ratio:
There has been a decreasing trend in the debt to equity ratio, indicating a reduction in reliance on debt financing and a strengthened financial structure.
Interest Coverage Ratio:
Ratnamani Metals and Tubes Limited has consistently maintained an interest coverage ratio above 20, indicating ample earnings to cover interest expenses.
Efficiency Ratio
Inventory Turnover Ratio:
The inventory turnover ratio has shown slight fluctuations but generally reflects effective inventory management practices.
Account Receivable Turnover Ratio:
The company has demonstrated a consistent performance in the account receivable turnover ratio, implying prompt collection of receivables and efficient credit management.
Valuation Ratio
Price to Earning Ratio (P/E):
The P/E ratio has varied significantly, influenced by market dynamics and investor sentiment. It peaked at 37.56 in March 2022 and decreased to 27.12 in March 2023.
Price to Book Ratio (P/B):
The P/B ratio has fluctuated over the years but generally reflects market perception and asset valuation trends.
Growth Ratio
Earning per Share (EPS) Growth:
Ratnamani Metals and Tubes Limited has exhibited substantial EPS growth, indicating profitability and potential for future earnings expansion.
Revenue Growth:
The company has experienced significant revenue growth over the years, reflecting increasing market demand for its products and services.
In conclusion, Ratnamani Metals and Tubes Limited’s financial ratios paint a picture of resilience, efficiency, and growth. The company’s unwavering commitment to excellence, coupled with astute financial management, positions it as a frontrunner in the competitive landscape of metal and tube manufacturing.
Technical Analysis of Ratnamani Metals and Tubes Limited
Technical analysis of Ratnamani Metals and Tubes Limited involves evaluating price movements and trading volumes to forecast future price movements. Technical analysis depends on charts and statistical indicators. analysts use various techniques, such as trend analysis, chart patterns, and technical indicators like moving averages or relative strength index (RSI), to identify potential buying or selling opportunities for Ratnamani Metals and Tubes Limited.
The main goal of technical analysis of Ratnamani Metals and Tubes Limited share price is to predict future price movements based on historical data and market psychology, helping investors make informed decisions about when to enter or exit trades. So, bellow we are explaining Various techniques as of 7th May 2024 for technical analysis of Ratnamani Metals and Tubes Limited.
Price action
Price action and price level of Ratnamani Metals and Tubes Limited (As of 7th May 2024) | |||
Price action | Daily Timeframe | Weekly Timeframe | Monthly Timeframe |
Candlestick | Hammer Candlestick | Strong Bullish Candlestick | Strong Bullish Candlestick |
Chart Pattern | Inverted Head and Shoulder Pattern | Bullish Flag Pattern | Bullish Flag Pattern |
Price Support Level | 3000-3038 | 2800-2850 | 2600-2700 |
Price Level | 3200 is Current price | 52 weeks High 3938.80 | 52 weeks low 2148.70 |
As of May 7th, 2024, Ratnamani Metals and Tubes Limited’s price action and price levels present a compelling narrative of its stock performance across various timeframes.
Candlestick Patterns:
In the daily timeframe, the candlestick pattern reveals a hammer candlestick, which indicates a potential reversal after a downtrend. Notably, on April 30th, the stock decisively broke the significant psychological level of 3100, followed by a retest of this level, indicating strong bullish momentum.
On the weekly timeframe, the presence of a robust bullish candlestick signifies bullish sentiment, accompanied by a breakout above 3000. Post-breakout, the stock retraced to retest the breakout level, reinforcing the strength of the bullish trend.
In the monthly timeframe, a strong bullish candlestick formation observed in April underscores sustained bullish sentiment prevailing in the stock.
Chart Patterns:
Across different timeframes, Ratnamani Metals and Tubes Limited exhibits consistent activation of bullish chart patterns, reflecting strong underlying market sentiment.
In the daily timeframe, the activation of an inverted head and shoulder pattern suggests a reversal of the previous downtrend, signalling a potential upward movement in the stock price.
Similarly, in the weekly timeframe, the activation of a bullish flag pattern reinforces the bullish bias, indicating a continuation of the prevailing uptrend in the stock price.
In the monthly timeframe, the presence of a bullish flag pattern in May further solidifies the bullish outlook, portraying a continuation of the upward momentum.
Price Support and Levels:
The price support levels provide crucial insights into key levels where buying interest is anticipated to emerge, potentially halting or reversing a downtrend.
In the daily timeframe, the price support level ranges between 3000-3038, indicating a significant area of support where buyers are likely to defend against further downside.
In the weekly timeframe, the price support level extends from 2800-2850, reinforcing the notion of a strong support zone capable of sustaining the bullish momentum.
Lastly, the price levels highlight key reference points in the stock’s price history.
The current price stands at 3200, reflecting the latest trading price of Ratnamani Metals and Tubes Limited.
The 52-week high of 3938.80 and the 52-week low of 2148.70 provide valuable context regarding the stock’s price range over the past year, offering insights into potential areas of resistance and support, respectively.
In conclusion, Ratnamani Metals and Tubes Limited’s price action, chart patterns, and price levels across different timeframes depict a compelling picture of bullish momentum and strong support, suggesting favourable prospects for investors.
Indicators Use for Technical Analysis
Bolinger Band (BB):
Bolinger Band Price level in Ratnamani Metals and Tubes Limited (As of 7th May 2024) | |||
Upper Band | Median | Lower Band | |
Bolinger Band | 3204 | 3021 | 2839 |
As of May 7th, 2024, Ratnamani Metals and Tubes Limited’s Bolinger Bands reflect key price levels and recent price movements.
The upper band stands at 3204, indicating a bullish signal as the stock crossed and closed above this level. This suggests potential upward momentum and may indicate a continuation of the bullish trend. At 3021, aligns closely with the daily candlestick’s exact support level. This suggests a significant level of support for the stock’s price action, potentially indicating a strong foundation for further upward movement. At 2839, the lower band represents support based on the weekly candlestick. This level suggests a key support zone for the stock’s price, potentially acting as a barrier against further downward movement.
Moving Average (MA):
Moving Average price level in daily candlestick of Ratnamani Metals and Tubes Limited (As of 7th May 2024) | ||
Moving Average | 100 Day | 200 Day |
Simple Moving Average (SMA) | 3127 | 2987 |
Exponential Moving Average (EMA) | 3026 | 2916 |
As of May 7th, 2024, Ratnamani Metals and Tubes Limited’s moving average price levels offer valuable insights into the stock’s price dynamics.
Simple Moving Average (SMA):
The 100-day SMA stands at 3127, aligning precisely with the breakout point of the inverted head and shoulder pattern in daily candlesticks. This suggests a significant level of support for the stock’s price action, potentially indicating a strong bullish sentiment.
The 200-day SMA, at 2987, provides additional support and indicates a longer-term bullish trend, although it is slightly below the 100-day SMA.
Exponential Moving Average (EMA):
The 100-day EMA, at 3026, also coincides with the breakout point of the inverted head and shoulder pattern in daily candlesticks. Similar to the SMA, this reinforces the significance of this price level as a support zone.
The 200-day EMA, at 2916, reflects a longer-term bullish trend, albeit at a slightly lower level compared to the 100-day EMA.
Conclusion
Ratnamani Metals and Tubes Limited exhibits a compelling blend of strong fundamental and technical indicators, positioning it favourably in the market. On the fundamental front, Ratnamani’s consistent profitability, reflected in robust gross and net profit margins, underscores its operational efficiency and revenue generation capabilities. The company’s solid liquidity and solvency ratios, coupled with efficient inventory and receivable management, depict a strong financial foundation and prudent fiscal management. Moreover, Ratnamani’s valuation and growth metrics indicate market confidence and potential for sustained expansion.
On the technical side, Ratnamani’s stock displays bullish momentum, supported by various technical indicators such as moving averages, Bollinger Bands, and chart patterns. The alignment of key price levels with breakout points in chart patterns and moving averages further reinforces the bullish sentiment. Ratnamani Metals and Tubes Limited’s combination of robust fundamentals and bullish technical signals suggests a promising outlook for investors seeking both stability and growth potential in the metal and tube manufacturing sector.
FAQs
- What is Ratnamani Metals and Tubes Limited?
Ratnamani Metals and Tubes Limited is a renowned company in the metal and tube manufacturing industry. It specializes in producing high-quality stainless steel tubes, pipes, and related products for various sectors including oil and gas, petrochemicals, and infrastructure.
- Where is Ratnamani Metals and Tubes Limited headquartered?
The headquarters of Ratnamani Metals and Tubes Limited is located in Ahmedabad, Gujarat, India.
- What products does Ratnamani Metals and Tubes Limited offer?
Ratnamani Metals and Tubes Limited offers a wide range of products including stainless steel seamless and welded tubes, pipes, and fittings for various industrial applications.
- Does Ratnamani Metals and Tubes Limited export its products?
Yes, Ratnamani Metals and Tubes Limited exports its products to over 50 countries worldwide, catering to the diverse needs of international markets.
- How can I invest in Ratnamani Metals and Tubes Limited?
To invest in Ratnamani Metals and Tubes Limited, you can buy its stocks listed on major stock exchanges such as the National Stock Exchange (NSE) and the Bombay Stock Exchange (BSE) in India.
- Is Ratnamani Metals and Tubes Limited environmentally conscious?
Yes, Ratnamani Metals and Tubes Limited is committed to environmental sustainability and adopts eco-friendly practices in its manufacturing processes. The company adheres to stringent environmental regulations and strives to minimize its carbon footprint.
- Does Ratnamani Metals and Tubes Limited offer customer support?
Yes, Ratnamani Metals and Tubes Limited provides excellent customer support services to address inquiries, product queries, and technical assistance. Customers can reach out to the company through its website, email, or phone for assistance.
- Where can I find more information about Ratnamani Metals and Tubes Limited’s financial performance?
For comprehensive information about Ratnamani Metals and Tubes Limited’s financial performance, including annual reports, financial statements, and investor presentations, you can visit the company’s official website or consult financial news sources and market research platforms.
