RATNAVEER PRECISION ENG LTD (RATNAVEER)
Stainless-steel products manufacturer with Q1 FY27 revenue growth, a Copper Clad Laminate expansion project, and a technically strong but extended Stage 2 setup.
Investment Read
A profitable stainless-steel platform is funding a higher-value CCL option; the investment case depends on commissioning, returns, and disciplined financing.
The CCL project can change the earnings mix, but it is still an execution promise—not delivered capacity.
RATNAVEER PRECISION ENG LTD manufactures and sells a diverse range of stainless-steel products from Gujarat. The latest quarter delivered 315 Cr revenue, 32 Cr operating profit at 10% OPM, and 18 Cr PAT — a useful operating base, but not evidence that the new CCL business is already contributing.
FY26 closed at 1,069 Cr sales, 112 Cr operating profit, and 64 Cr PAT in the available Screener table. The balance sheet shows borrowings of 335 Cr; FY26 CFO was -48 Cr and free cash flow was -155 Cr, so expansion funding and working-capital discipline deserve equal weight with growth.
The CCL project, proposed rights issue, and Infomerics upgrade are the main catalysts. The key question is whether commissioning, customer qualification, and post-capex returns justify the valuation. Technically, price is above its moving averages, but RSI is elevated and Supertrend is SELL: confirmation or a pullback is preferable to chasing strength.
Decision Frame
- Business: stainless-steel products manufacturer with a CCL expansion option.
- Latest quarter: revenue 315 Cr; PAT 18 Cr; OPM 10%.
- Technical: Stage 2, RSI 75.2, ADX 66.7.
- Action bias: wait for a constructive retest; avoid treating the project as delivered earnings.
- Invalidation: project delays, rights-issue slippage, leverage deterioration, or trend breakdown.
Fundamental Scores
Agent Adda scores from snapshot (stage_snapshot). Useful ranking signals — not standalone buy/sell rules.
Score Interpretation
EFS 74.4 is the composite fundamental score: it indicates a reasonably strong combination of earnings quality (77.5), sales growth (85.0), financial strength (65.0), and institutional bias (61.0). The weaker financial-strength/institutional components are why the score is not a clean quality signal. Investment Score 89.8 is higher because it blends the fundamental stack with the current technical setup, where the technical score is 86.5. In plain English: the tape is stronger than the balance-sheet evidence, so the stock can screen well for momentum without removing execution, leverage, or valuation risk. Validate the scores against audited cash flow, debt, margins, dilution, and the next two quarters before treating them as conviction.
Company Overview
Primary-source profile from the FY25 annual report and current exchange disclosures.
What they do
Manufactures and sells stainless-steel products, with facilities in Gujarat and a diverse SS product range.
Expansion
Copper Clad Laminate project targeted at advanced electronic materials; reported approximately 60% complete in the Q1 FY27 update.
Key watch
Rights-issue funding, project commissioning, cash conversion, borrowings, and the subsidiary/consolidation impact.
Historical P&L
Revenue increased from ₹595 Cr in FY24 to ₹1,069 Cr in FY26, while PAT rose from ₹31 Cr to ₹64 Cr. OPM stayed near 10%, so the growth case is primarily scale and mix—not a demonstrated margin expansion. EPS moved from ₹7.61 to ₹8.05 and payout stayed at zero; monitor whether CCL capex changes this profile.
| Period | Revenue | Op. Profit | OPM | PAT | EPS | Payout |
|---|---|---|---|---|---|---|
| Mar 2024 | 595 | 57 | 10% | 31 | 7.61 | 0% |
| Mar 2025 | 892 | 86 | 10% | 47 | 7.52 | 0% |
| Mar 2026 | 1,069 | 112 | 10% | 64 | 8.05 | 0% |
Quarterly Results
5 quarterly periods are available. Jun 2026 revenue was 315 Cr and PAT 18 Cr; the latest sequential change was revenue +26.5% and PAT +5.9%. Use the next filing to test whether the latest growth rate is recurring and whether operating margin and cash conversion are moving with earnings.
| Quarter | Revenue | Op. Profit | OPM | PAT | EPS |
|---|---|---|---|---|---|
| Mar 2025 | 203 | 17 | 8% | 11 | 1.72 |
| Jun 2025 | 265 | 27 | 10% | 15 | 2.40 |
| Dec 2025 | 269 | 29 | 11% | 17 | 2.12 |
| Mar 2026 | 249 | 28 | 11% | 17 | 2.13 |
| Jun 2026 | 315 | 32 | 10% | 18 | 2.17 |
Balance Sheet And Cash Flow
2 balance-sheet/cash-flow periods are available. Latest reported borrowings are 335 Cr, CFO is -48 Cr, and FCF is -155 Cr. Read these alongside PAT, working-capital movements, capex, and financing flows: profit growth is higher quality when it converts to operating cash without repeated debt or equity funding.
| Balance sheet item | Mar 2025 | Mar 2026 |
|---|---|---|
| Equity Capital | 68 | |
| Reserves | 601 | |
| Borrowings+ | 335 | |
| Total Liabilities | 1,262 | |
| Fixed Assets+ | 242 | |
| Total Assets | 1,262 |
| Cash flow item | Mar 2025 | Mar 2026 |
|---|---|---|
| CFO | 95 | -48 |
| CFI | -136 | -103 |
| CFF | 47 | 354 |
| FCF | -43 | -155 |
| Net Cash | 6 | 203 |
Concall, Filings And News
Evidence reviewed: 4 concall artifacts and 6 exchange/company announcements. The read-through below distinguishes reported numbers, management claims, and checks required before relying on the catalyst.
Annual report and management read-through
- Reported financial read-through: FY25 revenue rose 49.8% to ₹891.87 Cr and PAT was ₹46.81 Cr. FY25 OPM was approximately 10%; growth has not yet translated into a clear margin expansion story.
- Business quality: the FY25 report describes 2,500+ washer SKUs, integrated scrap reprocessing, in-house R&D, and ISO 9001/14001/45001 systems. These support product breadth and process control, but the report also says the top 10 customers contributed approximately 72% of FY25 revenue.
- Management outlook: management highlighted ₹67.80 Cr of Phase II capex, automation, inventory management, export expansion, and adjacent product niches. These are management claims, not forecasts validated by the workflow.
- Investor takeaway: the core business is profitable and growing, but the evidence is mixed: stable margins, negative FY26 CFO/FCF, customer concentration, and a new CCL project make cash returns and execution more important than headline revenue growth.
BSE / NSE filing read-through
- NSE prior intimation: board meeting for June 2026 unaudited standalone and consolidated results.
- BSE announcements: June 2026 results, revised results, monitoring-agency reports, and rights-issue disclosures are available in the filing trail.
- Reconciliation point: reported FY26 financing cash flow of +354 Cr and the proposed rights issue should be read with the use-of-proceeds and post-issue capital disclosures, not treated as operating cash generation.
- Q1 FY27 investor presentation — reported metrics: 46,668 MT processed in FY26, 219 clients, 89 distribution partners, and five integrated facilities. These are company-reported operating metrics, not independently verified by this workflow.
- Financial quality check: the presentation reports Q1 FY27 revenue of ₹314.64 Cr, EBITDA margin of 11.43%, and PAT margin of 5.80%; EBITDA includes other income. Read this alongside the Screener cash-flow table, where FY26 CFO and FCF are negative.
- CCL scope check: the presentation cites both a ₹338 Cr ECMS-approved CCL project and a proposed ₹472.34 Cr project. These may represent different approval/project scopes; reconcile the technical scope, total capex, funding source, and expected ownership before forecasting returns.
- CCL milestone check: management targets November 2026 commissioning and describes technical support for 18–24 months after commissioning. Verify machinery installation, customer qualification, commercial dispatches, utilisation, and return on capital in subsequent filings.
Concall evidence and what to test
- Jul 2026 investor presentation: operating metrics, Q1 FY27 performance, CCL milestones, and rights-issue context — open PPT.
- May 2026 earnings materials: use the transcript/PPT links to test FY26 cash conversion, leverage, capex, and management guidance rather than relying only on the headline presentation.
- Nov 2025 earnings materials: compare earlier CCL, capacity, and funding expectations with the July 2026 status to identify slippage or delivery.
Recent announcements and implications
- Management change: Seema Sanghavi was proposed/appointed as Whole-Time Director for five years. Check the final appointment terms, remuneration, role responsibilities, and related-party disclosures.
- Rights issue: the record date was fixed for 26 August 2026. Review entitlement ratio, issue price, subscription outcome, and use of proceeds; the event creates potential dilution but may fund the CCL project.
- Fund raising: board and shareholder disclosures relate to the proposed fund raise. Treat the CCL expansion case as conditional on actual funds raised and deployment, not on in-principle approval alone.
- Monitoring-agency reports: these should be used to reconcile deployment of earlier issue proceeds and project progress against stated objects.
- Results hygiene: a revised June 2026 result was filed after a typographical correction. Use the revised exchange filing as the controlling version when reconciling quarterly figures.
Sector And Competitive Context
Industrial stainless-steel products are the core market; CCL is an electronics-materials adjacency. No peer benchmark is asserted without a comparable same-date dataset.
| Lens | Read-through |
|---|---|
| Core market | Washers, fasteners, tubes, pipes, sheets, and flanges. |
| Demand exposure | Automotive, railways, defence, solar, oil and gas, water treatment, food processing, pharma, and energy. |
| Operating edge | Integrated scrap reprocessing, broad SKU range, process automation, and export distribution. |
| Adjacency | FR-4 Copper Clad Laminate; execution and customer qualification remain unproven. |
Peer ranking omitted: no comparable same-date peer dataset was available, so the report does not manufacture a relative-strength or valuation comparison.
Equity Chart V1
EOD chart from local cache (130 bars). Range: 2026-02-10 → 2026-08-17.
Technical Analysis
Technical setup from cached snapshot (if available).
| Indicator | Value | Note |
|---|---|---|
| Stage | Stage 2 | Weinstein stage |
| Signal | — | Snapshot |
| RSI | 75.2 | Momentum |
| ADX | 66.7 | Trend strength |
| SMA20/50/200 | 223.75 / 197.9 / 166.02 | Trend context |
| Supertrend | SELL | Trend filter |
| Ratio | Value |
|---|---|
| Market cap | INR 2,343 Cr |
| P/E | 34.7x |
| ROCE | Not available% |
| ROE | 9.61% |
| Book value | INR 83.8 |
| High / Low | 282.98 / 130.5 |
| Dividend yield | 0.00% |
Weinstein And O'Neil Read
Stan Weinstein Stage Analysis
The snapshot classifies Ratnaveer as Stage 2: price is above the 20-, 50-, and 200-day moving averages (223.75 / 197.9 / 166.02). This is the trend phase in which a prior base has resolved upward and institutional demand may be becoming visible. It is not a forecast and does not mean every price is a good entry.
Trend quality: ADX 66.7 indicates a very strong directional move, while RSI 75.2 is at/above the conventional overbought zone. The stock is about -6.9% from its 52-week high, so momentum is strong but the immediate reward-to-risk is less attractive after a sharp run. The Supertrend reading is SELL, which conflicts with the moving-average trend and is an explicit reason to wait for confirmation.
William O’Neil / CAN SLIM Lens
C — Current earnings: the latest quarter shows PAT 18 Cr and revenue 315 Cr; confirm the next two quarters sustain growth rather than relying on one comparison. A — Annual earnings: available FY24–FY26 PAT rises from 31 Cr to 64 Cr, but margins remain around 10%, so quality of growth matters. N — New: the Copper Clad Laminate project is the new-product catalyst, but it remains an execution milestone. S — Supply/demand: monitor volume on advances and declines, share issuance from the proposed rights issue, and whether new supply dilutes per-share economics. L — Leader: price leadership is useful only if it persists against the benchmark. I/M — Institutions/market: current score data is supportive but institutional ownership and broad-market conditions can change. The practical CAN SLIM conclusion is: strong candidate for a watchlist, but demand a defined pullback or a clean, volume-backed retest before treating the setup as actionable.
Broker And Market View
No independent analyst target was returned; exchange and company disclosures are linked instead.
Valuation Scenarios
Illustrative valuation from TTM EPS and P/E multiples (not a recommendation).
| Scenario | TTM EPS | P/E | Implied value | vs current | Condition required |
|---|---|---|---|---|---|
| Bear (multiple compression) | 8.05 | 24x | 196 | -30% | Risk-off, slower growth, lower multiple. |
| Base (current multiple) | 8.05 | 35x | 279 | +0% | Steady execution; multiple holds. |
| Bull (multiple expansion) | 8.05 | 42x | 335 | +20% | Sustained growth + quality premium. |
Issues And Risks
Key risks are execution, funding, working capital, and valuation sensitivity.
| Risk | Why it matters | Severity | What to monitor |
|---|---|---|---|
| CCL project execution | The growth narrative depends on commissioning, customer qualification, and ramp-up of a new product line. | High | Milestones, capex, commissioning date, first commercial sales. |
| Funding / dilution | The proposed rights issue can fund expansion but changes the capital structure and per-share economics. | High | Issue terms, subscription, use of proceeds, post-issue debt. |
| Working capital | Manufacturing growth can absorb cash through inventory and receivables even while reported profit rises. | Medium | CFO/PAT, inventory days, borrowings, free cash flow. |
| Technical extension | RSI is elevated and Supertrend is SELL despite price remaining above moving averages. | Medium | Weekly close, pullback support, volume, and trend reversal. |
| Valuation | A high trailing multiple leaves less room for execution misses or margin compression. | Medium | EPS delivery, OPM, and multiple versus peers. |
Manual Verification Before Posting
No deploy or email command should be run before this gate is complete.
Required Checks
- Verify financial tables vs Screener cache URL (if present) for RATNAVEER.
- Cross-check FY and quarter labels against filings/annual report.
- Confirm technical snapshot date and whether it is EOD or intraday.
- If posting: add dated, source-attributed broker targets from the current source refresh.
Publishing Gate
- Research-only disclaimer present.
- No definitive buy/sell language.
- All key numbers backed by a primary source link.
Evidence Trail
Source-first trail for review.
- Local cache: reports/portfolio/ric_sherlock_cache/RATNAVEER.json
- Screener consolidated page.
- NSE quote and filings.
- BSE quote and filings.
- Ratnaveer FY25 annual report.
- NSE quote and filings.
- Q1 FY27 project and credit-rating update.
- Q1 FY27 investor presentation — management operating metrics and CCL project claims.