Riddhi Steel & Tube Stock Price Analysis and Quick Research Report. Is Riddhi Steel & Tube an attractive stock to invest in?

Stock investing requires careful analysis of financial data to determine a company's true net worth. This is generally done by examining the company's profit and loss account, balance sheet and cash flow statement, which can be time-consuming and cumbersome.

Examining a company's financial ratios is an easier way to determine its performance, which can help to make sense of the overwhelming amount of information in its financial statements. 

Here are a few indispensable ratios that should be a part of every investor’s research process, or, in simpler words, how to analyse Riddhi Steel & Tube. 

• PE ratio: Price to Earnings ratio, which indicates how much an investor is willing to pay for a share for every rupee of earnings. A general rule of thumb is that shares trading at a low P/E are undervalued (it depends on other factors too). Riddhi Steel & Tube has a PE ratio of 9.5076771761106 which is low and comparatively undervalued.

• Return on Assets (ROA): Return on Assets measures how effectively a company can earn a return on its investment in assets. In other words, ROA shows how efficiently a company can convert the money used to purchase assets into net income or profits. Riddhi Steel & Tube has ROA of 2.5267% which is a bad sign for future performance. (Higher values are always desirable.)

• Current ratio: The current ratio measures a company's ability to pay its short-term liabilities with its short-term assets. A higher current ratio is desirable so that the company could be stable to unexpected bumps in business and economy. Riddhi Steel & Tube has a Current ratio of 1.7585.

• Return on equity: ROE measures the ability of a firm to generate profits from its shareholders' investments in the company. In other words, the return on equity ratio shows how much profit each rupee of common stockholders’ equity generates. Riddhi Steel & Tube has a ROE of 8.7463%. (Higher is better)

• Debt to equity ratio: It is a good metric to check out the capital structure along with its performance. Riddhi Steel & Tube has a Debt to Equity ratio of 2.3089 which means that the company has high proportion of debt in its capital.

• Sales growth: Riddhi Steel & Tube has reported revenue growth of 8.2297% which is poor in relation to its growth and performance. 

• Operating Margin: This will tell you about the operational efficiency of the company. The operating margin of Riddhi Steel & Tube for the current financial year is 5.74447475821485%.

• Dividend Yield: It tells us how much dividend we will receive in relation to the price of the stock. The current year dividend for Riddhi Steel & Tube is Rs 0 and the yield is 0%.

• Earnings Per Share: It tells us how much profit is allocated to to each outstanding share of a common stock. The latest EPS of Riddhi Steel & Tube is Rs 9.1505. The higher the EPS, the better it is for investors. 

One can find all the Financial Ratios of Riddhi Steel & Tube in Ticker for free. Also, one can get the intrinsic value of Riddhi Steel & Tube by using Valuation Calculators, which are available with a Finology ONE subscription. 

Riddhi Steel & Tube FAQs

Q1. What is Riddhi Steel & Tube share price today?
Ans: The current share price of Riddhi Steel & Tube is Rs 87.

Q2. What is the market capitalisation of Riddhi Steel & Tube?
Ans: Riddhi Steel & Tube has a market capitalisation of Rs 72.1251924 Cr., calculated based on its latest share price.

Q3. What are the P/E and P/B ratios of Riddhi Steel & Tube?
Ans: The PE ratio of Riddhi Steel & Tube is 9.5076771761106 and the P/B ratio of Riddhi Steel & Tube is 1.2598671491813, showing how the stock is valued against its earnings and book value.

Q4. What is the 52-week high and low of Riddhi Steel & Tube share?
Ans: The 52-week high share price of Riddhi Steel & Tube is Rs 168.3, and the 52-week low share price of Riddhi Steel & Tube is Rs 75.05.

Q5. Does Riddhi Steel & Tube pay dividends?
Ans: Currently, Riddhi Steel & Tube does not pay dividends. Dividend yield of Riddhi Steel & Tube is around 0%.

Q6. What are the face value and book value of Riddhi Steel & Tube shares?
Ans: The face value of Riddhi Steel & Tube shares is Rs 10, while the book value per share of Riddhi Steel & Tube is around Rs 69.0549. Face value is the nominal value set by the company, whereas book value reflects its accounting worth.

Q7. What is the debt of Riddhi Steel & Tube?
Ans: Riddhi Steel & Tube has a total debt of Rs 132.1794 Cr., which affects investor sentiment and financial stability. 

Q8. What are the ROE and ROCE of Riddhi Steel & Tube?
Ans: The ROE of Riddhi Steel & Tube is 8.7463% and ROCE of Riddhi Steel & Tube is 10.0031%. ROE shows how efficiently the company is generating profit from shareholders’ equity, while the ROCE is reflects how efficiently the company uses its capital to generate returns.

Q9. Is Riddhi Steel & Tube a good buy for the long term?
Ans: The Riddhi Steel & Tube long-term outlook depends on debt levels, earnings growth, and sector trends. If it sustains profits and manages debt well, it may be considered for long-term investment.

Q10. Is Riddhi Steel & Tube undervalued or overvalued?
Ans: Based on valuation ratios like P/E, P/B, and EV/EBITDA, one can analyse whether the Riddhi Steel & Tube appears undervalued or overvalued at current levels. You can check detailed valuation metrics and peer comparisons on Finology Ticker.

Q11. How to check Riddhi Steel & Tube’s financials?
Ans: You can review Riddhi Steel & Tube’s financial statements - including balance sheet, income statement, and quarterly results - on Finology Ticker.