Ram Ratna Wires Ltd

Price story Before the numbers, the tape. A stock price moves through four repeating seasons: a flat base (stage 1), an advance (2), a top (3), a decline (4). Where the price sits in that cycle frames everything below.

Ram Ratna Wires Ltd trades at ₹475, in a confirmed uptrend and 19 weeks into that stage. That is +26.9% against its own 200-day average. It sits at 100% of a 52-week range of ₹286 to ₹475. On relative strength it has been ahead of the NIFTY 500 on a trailing-13-week view for 3 straight weeks.

Today the stock is in a confirmed uptrend — week 19 of stage 2, confirmed. At ₹475 it trades +26.9% versus its 200-day average and sits at 100% of its 52-week range (₹286–₹475).

Against the market, two honest reads. Cumulative: over the last 10.5 years the stock moved +5,994% while the NIFTY 500 moved +284% — ahead of the index over the full window. Recent form: on a trailing-13-week view the stock has been ahead for 3 straight weeks — the ribbon below is that same metric, week by week.

What would end the trend, mechanically: two Friday closes in a row below the 200-day line. That is the exit rule — no debates.

Story check

Ram Ratna Wires Ltd's story is not scored yet against the markers our research file set on 17 May 2026. Where it sits in its own cycle: PEAK_EXPANSION. Still open: OPM at 5-6% and pass-through pricing model means a sharp LME copper move directly hits working capital and PAT margin — ₹70 Cr PAT base has zero tolerance.

Our read, 17 May 2026. A commodity converter pivoting to value-added copper tubes — Bhiwadi ramp drives margin re-rating, but thin OPM and rising debt leave no margin for error.

From the numbers. PE at 41.65x is 2.3x the 10Y median of 18.15x and at the 90th percentile — well above either prior cycle peak (27.5x in Jun 2017, 29.8x in Dec 2020). This is speculative PE expansion ahead of earnings delivery, not…

From the price. Price stage 2, week 19 — above its 200-day line, relative strength rising.

From the research. A commodity converter pivoting to value-added copper tubes — Bhiwadi ramp drives margin re-rating, but thin OPM and rising debt leave no margin for error.

🚨 Where they disagree. PE at 41.65x is 2.3x the 10Y median of 18.15x and at the 90th percentile — well above either prior cycle peak (27.5x in Jun 2017, 29.8x in Dec 2020). This is speculative PE expansion ahead of earnings delivery, not earnings-led compression like RRKABEL. FII holding declined from 0.57% to 0.17% while DII entered at 0.24%. Promoter holding stable at 72.98% after bonus. The cycle is a risk, not a support — any earnings disappointment will mean severe de-rating.

What is proven. A commodity converter pivoting to value-added copper tubes — Bhiwadi ramp drives margin re-rating, but thin OPM and rising debt leave no margin for error.

What is not proven yet. OPM at 5-6% and pass-through pricing model means a sharp LME copper move directly hits working capital and PAT margin — ₹70 Cr PAT base has zero tolerance.

The test written in advance. Copper LME price spike — thin OPM means no absorption buffer — Copper LME price spike — thin OPM means no absorption buffer LME copper price vs quarterly OPM trajectory; management commentary on pass-through lag by the next result.

The test written in advance. Income Tax demand ₹70.96 Cr (AY 2021-22 / 2022-23) — Income Tax demand ₹70.96 Cr (AY 2021-22 / 2022-23) Appeal outcome; High Court stay on demand; provision in financials by the next result.

The test written in advance. Leverage escalation — D/E 1.24x and rising interest costs — Leverage escalation — D/E 1.24x and rising interest costs D/E ratio quarterly; interest coverage ratio vs 2.5x floor; cash from operations vs capex by the next result.

What the company does. Q3 FY26 delivered revenue +43.8% YoY and PAT +90.3% YoY as copper tube mix expanded from 17% to 27% of revenues, with Bhiwadi plant (24,000 MTPA) ramping from June 2025. Winding wire segment benefits from India's electrification push (87% capacity utilisation FY25), while copper tubes target HVAC OEMs with countervailing duty protection on Vietnamese/Thai/Malaysian imports. PE at 90th percentile of 10Y range while OPM is structurally thin at 4-6%; thesis requires sustained volume growth AND margin expansion — either failing validates exit.

Lever 2 · Value-added mix — BUILDING. Copper tubes mix rose from 17% of revenues in Q3 FY25 to 24% in Q2 FY26 to 27% in Q3 FY26 — Bhiwadi plant ramping from June 2025 is the engine. What proves it keeps working: Copper Tube Mix Shift (Bhiwadi 24,000 MTPA ramp). It stops working if LME copper price vs quarterly OPM trajectory; management commentary on pass-through lag.

Lever 1 · Operating leverage — BUILDING. Q3 FY26: revenue +43.8% YoY → EBITDA +84.9% YoY → PAT +72.5% — clear operating leverage with higher-margin copper tube volume scaling. What proves it keeps working: Operating Leverage Inflection (Revenue → EBITDA conversion improving). It stops working if LME copper price vs quarterly OPM trajectory; management commentary on pass-through lag.

Lever 14 · A bigger market to sell into — BUILDING. India's power T&D expansion and EV growth drive winding wire volume — copper wire sales volume grew 9% YoY in FY25 with 87% capacity utilisation. What proves it keeps working: TAM Expansion — Electrification Push (Winding Wires Segment). It stops working if LME copper price vs quarterly OPM trajectory; management commentary on pass-through lag.

Lever 10 · New geographies — BUILDING. GoI countervailing duty on copper tubes from Vietnam, Thailand, Malaysia shields Bhiwadi capacity from import competition — direct pricing and volume benefit. What proves it keeps working: Regulatory Tailwind — Countervailing Duty on Copper Tube Imports. It stops working if LME copper price vs quarterly OPM trajectory; management commentary on pass-through lag.

Sources: our stock research file (17 May 2026) · quarterly results through Jun 26. The story check is re-scored every results season; the record below never changes.

Revenue Revenue is the top line: everything the company billed its customers in the period.

Ram Ratna Wires Ltd reported ₹1,853 Cr of revenue in the Jun 26 quarter, +88.7% year on year. That is the 11th straight quarter of year-on-year growth. Over 10 years it has compounded at 21.7% a year. The last full year, FY26, came in at ₹5,177 Cr. The last four reported quarters add to ₹6,047 Cr.

Why this happened. MD commentary confirms copper winding wires benefit from India's electrification push and rapid expansion of power transmission and distribution infrastructure. Capacity utilisation healthy at 87% in FY25 (from 84% in FY24) on 41,400 MTPA installed. Silvassa expansion (₹86 Cr, +3,600 MT, by March 2027) addresses the remaining headroom. Winding wire is a structurally steady growth segment — ~9% volume CAGR — underpinning the base while tubes provide the margin upgrade.

FY26 revenue came in at ₹5,177 Cr (+40.8% on the year), capping 10 years at 21.7% compound. The latest quarter (Jun 26) printed ₹1,853 Cr, +88.7% year on year — the 11th consecutive quarter of year-over-year growth.

Pace check: the last four quarters averaged +59.8% growth against the decade's 21.7% — the current year is running faster than its own long-run rate.

Acceleration check: trailing-twelve-month revenue grew +60.5% over the last 4 quarters against +38.6%/yr over the last 8 — accelerating; TTM profit +82.9% vs +44.9%/yr — accelerating.

Operating margin Operating margin is what is left of every ₹100 of sales after running the business, before interest and tax. It is the cleanest read on pricing power and cost control.

Ram Ratna Wires Ltd's operating margin is 4.8% in the Jun 26 quarter, +0.4 percentage points against the same quarter a year ago. Across 12 fiscal years the operating margin has ranged 4.0% to 6.0%. The current quarter sits inside that band.

Why this happened. Bhiwadi plant (24,000 MTPA installed capacity, ₹300 Cr total capex) commenced commercial production in June 2025. Copper tubes earn ₹37,000-52,000 PBILDT/MT vs ₹30,000-35,000 for winding wires — a structural margin upgrade. By Q3 FY26 (Dec 2025), MD confirmed tube contribution reached 27% of revenues vs 17% a year prior, driving EBITDA up 85% YoY on 44% revenue growth. Countervailing duty imposed on Vietnamese/Thai/Malaysian copper tube imports provides import substitution tailwind for exactly this capacity. Inner Grooved Tube (IGT) manufacturing is in evaluation stage — could add further value if commissioned.

The latest quarter's operating margin is 4.8%, +0.4 pp against the same quarter a year ago. Across 12 fiscal years the operating margin has ranged 4.0%–6.0%.

Why the margin moved: operating margin went +0.4 pp year on year while gross margin went −0.9 pp — the gain came mostly from the gross line: input costs and pricing.

Net profit Net profit is what survives every cost, interest and tax — the number EPS, dividends and book value all grow from.

Ram Ratna Wires Ltd earned ₹35.0 Cr of net profit in the Jun 26 quarter, +118.8% year on year. It is the 4th consecutive quarter of growth. Full-year FY26 profit was ₹109 Cr. The 10-year compound rate is 27.0%. That is 1.9% of the quarter's revenue. The same quarter a year earlier earned ₹16.0 Cr.

Jun 26 profit was ₹35.0 Cr, +118.8% year on year — the 4th consecutive quarter of growth. On the full year, FY26 printed ₹109 Cr (+55.7%), and the 10-year compound rate is 27.0%.

Why profit moved: revenue contributed +88.7% and the margin +0.4 pp — the quarter was revenue-led, with the margin roughly flat.

Pace comparison, last four quarters: profit +82.8% vs revenue +59.8%. Profit is growing faster than sales — fixed costs are being spread over a bigger base, and each extra rupee of revenue drops more to the bottom line.

Cash flow — the router The P&L says what was earned; the cash-flow statement says what actually arrived. Operating cash flow (CFO) against profit is the cleanest lie detector in the accounts.

Over the last 3 fiscal years 116% of Ram Ratna Wires Ltd's reported profit arrived as operating cash — the cash follows the profit. In FY26 that was ₹−93.0 Cr of operating cash against ₹109 Cr of profit. After ₹194 Cr of capital spending, ₹−287 Cr was left as free cash.

FY26: operating cash of ₹−93.0 Cr against reported profit of ₹109 Cr, leaving free cash of ₹−287 Cr after ₹194 Cr of capital spending. Across the last 3 fiscal years the conversion rate is 116% of profit.

Cash-flow readings here are annual — that is the resolution our series carries, so this section moves once a year.

Why conversion sits at 116%: the cash cycle tightened 59 days between FY21 and FY26 — cash that used to wait in the cycle now reaches the bank sooner.

Router verdict: the bigger cash user is investment — capital spending ran 7.5× depreciation over three years, so the next section's job is to check what that build-out is buying.

Where the cash goes Working capital is the cash tied up between paying suppliers and getting paid: debtor days (customers owe), inventory days (stock waits), and the cash conversion cycle (the whole loop, in days of sales).

Ram Ratna Wires Ltd's cash conversion cycle runs 33 days in FY26, down from 92 days in FY21. Capital spending ran ₹602 Cr over the last 3 years. At FY26 sales of ₹5,177 Cr each day of that cycle holds about ₹14.2 Cr, so roughly ₹468 Cr sits inside the business at any moment.

FY26: debtors at 45 days, inventory at 38 days — roughly 1.3 months of stock waiting to sell; that is where the cash sits while it waits — for a full cycle of 33 days, tighter than FY21's 92.

The full loop: cash goes out to suppliers and production on day 0; stock waits 38 days to sell; customers pay about 45 days after that; and suppliers themselves are paid at 51 days — netting out to the 33-day cycle.

In money terms: at FY26 sales of ₹5,177 Cr, each day of the cycle holds about ₹14.2 Cr — so the 33-day loop keeps roughly ₹468 Cr sitting inside the business at any moment.

On the investment side: capital spending of ₹602 Cr over the last 3 fiscal years against ₹80.0 Cr of depreciation — the company is building well ahead of wear-and-tear. Capital work-in-progress stands at ₹34.0 Cr (FY26) — capacity paid for but not yet earning.

The synthesis: the cash is going into capacity, not disappearing into the cycle — the question becomes whether the new capacity earns.

Return on capital Return on capital employed (ROCE) is the profit the whole business earns on all the money in it — equity and debt together. It is the single best test of whether growth creates value or just size.

Ram Ratna Wires Ltd earns a ROCE of 24% in FY26. That is up from a trough of 9% in FY20. A return-on-invested-capital spread against the cost of capital is not computable from what is held here. The wiring behind it is 2.1% net margin on 2.60× asset turns.

FY26 ROCE is 24%, recovered from a FY20 trough of 9% — the full ladder below shows the fall and the climb, undoctored.

Why the return is what it is — the wiring (FY26): 2.1% net margin × 2.60× asset turns × 3.44× balance-sheet leverage ≈ 18.8% on equity. Margin does its share; leverage is a meaningful part of the equation.

The quarterly return curves and the return-on-invested-capital overlay, which only the second data source carries, are not drawn on this page: its two data sources disagree by up to 19% on reported income across 14 comparable periods. A figure two sources cannot agree on is not drawn — the gap is a decision, not missing data.

Debt Debt-to-equity says how much of the business is funded by borrowings; interest cover says how many times operating profit pays the interest bill. Low and high, respectively, is the safe corner.

Ram Ratna Wires Ltd carries ₹675 Cr of borrowings against ₹580 Cr of equity in FY26, a debt-to-equity of 1.16. Operating profit covers the interest bill 3×. Over 5 years borrowings went from ₹361 Cr to ₹675 Cr. Capital spending ran ₹602 Cr across the last 3 of those years.

FY26: borrowings of ₹675 Cr against equity of ₹580 Cr — a debt-to-equity of 1.16. Operating profit covers the interest bill 3×. Over 5 years borrowings went from ₹361 Cr to ₹675 Cr while capital spending ran ₹602 Cr in just the last 3 — part of the build-out is riding on borrowed money.

The total-debt and debt-to-equity series, which only the second data source carries, are not drawn on this page: its two data sources disagree by up to 19% on reported income across 14 comparable periods. A figure two sources cannot agree on is not drawn — the gap is a decision, not missing data.

Ownership Who owns the stock, quarter by quarter: promoters (the controlling owners), foreign and domestic institutions, and the public. Steady accumulation by people close to the numbers is a signal; a quiet register is also an answer.

Promoters cut 3.7 points of Ram Ratna Wires Ltd over 8 quarters, the biggest move on the register. That takes promoters to 69.3% of the company. Domestic institutions moved +0.6 points over the same window, to 0.6%. The register is read on the four disclosed classes only; nothing is inferred between filings.

The register over the last two years — Promoters: −3.7 points over 8 quarters to 69.3%; Domestic institutions: +0.6 points over 8 quarters to 0.6%; Foreign institutions: +0.3 points over 8 quarters to 0.5%.

🚨 Why the register moved: promoters drove it (−3.7 points), absorbed on the other side by domestic institutions (+0.6 points) — distribution into the market’s bid.

Safety line The Z-score estimates how far a company sits from balance-sheet distress — above roughly 3 is safe, below roughly 1.8 is the danger zone. It was built for manufacturers, so it is not applied to banks and lenders.

Ram Ratna Wires Ltd: the Z-score is not available for this stock, so we say so rather than invent one. It is a distance-to-distress estimate from the balance sheet, not a forecast of failure. The debt, cash-flow and return sections above carry the balance-sheet evidence this page does hold, and each of them states its own reporting date.

The safety line in one sentence: the Z-score is not available for this stock, so we say so rather than invent one.

Valuation P/E is the price of ₹1 of annual profit: how many rupees the market pays for each rupee the company earns in a year.

Ram Ratna Wires Ltd trades at 34.3× P/E, at the pricey end of its own range (79th percentile). Its long-run median P/E is 19.9×, measured across 9.9 years of weekly readings. This places the multiple against the stock’s own record, and says nothing about what the business is worth.

Today's P/E of 34.3× is at the pricey end of its own range (79th percentile), against a long-run median of 19.9× measured over 9.9 years of weekly readings. This is a comparison against the stock's own history — not a claim about what it is worth.

Why the multiple sits where it does: over the past year annual EPS moved +44.1% against a +39.1% price move — earnings outran the price, pushing the multiple DOWN its own range.

The price move, decomposed: over 5y, of the +68.7%/yr price move, ~+34.8%/yr came from earnings growth and ~+33.9 pp from the multiple (expanding); over 10y, of the +44.9%/yr price move, ~+29.0%/yr came from earnings growth and ~+15.9 pp from the multiple (expanding). The split is the honest approximate (price return minus earnings growth); it makes the rally itself visible instead of hiding it behind the percentile.

Put together: the multiple is full against its own past, so the story rests on the earnings line underneath it, not the multiple.

A quarterly PEG curve, which only the second data source carries, is not drawn on this page: its two data sources disagree by up to 19% on reported income across 14 comparable periods. A figure two sources cannot agree on is not drawn — the gap is a decision, not missing data.

What the price assumes This reading works the multiple backwards. It asks one question: what yearly rate of profit growth is a buyer at the market price already paying for? The number is the growth rate that makes eleven years of profit — six years growing, then five fading — add up to that day's market price, once each year is discounted at 11% a year.

At its price on 13 June 2026, Ram Ratna Wires Ltd was priced for profit growth of about 17.7% a year. Profit itself has compounded 27.0% a year over the past 10 years. The market pays that at 34.3× P/E, the 79th percentile of its own 10-year range.

What the two numbers say together. The multiple is full against its own past, and the growth the price is paying for is below what this company has actually delivered. Both readings sit on the same earnings, so they are one reading rather than two.

How to hold this number: it is a reading of one day's price, taken on 13 June 2026, not a running figure. A higher price is paying for more growth and a lower price for less, so it moves whenever the price does, and this page does not restate it between measurements. Every other number on this page is read off the live quote.

Stage: Consistent Every business sits somewhere on a fundamental arc, and this page names the spot before anything else. The last twelve quarters of revenue, profit and EPS growth — plus the return the business earns on its capital — are read as curves: Deteriorating (the curves are falling), Turning around (a trough has just formed and the last few quarters lift off it), Improving (the climb off the trough is sustained), Consistent (steadily positive with healthy returns), Topping out (still high but decelerating from the peak). When the curves genuinely disagree the read is Mixed; too little history is No read. CAGR (compound annual growth rate) is the smooth yearly pace that turns the starting value into the latest one — the fairest way to compare growth across different time spans. Read the columns together: if the 1-year number towers over the 10-year, recent growth is running hotter than the long-run trend. A dash means that window is not held, or the base year was a loss (where a growth rate is not meaningful).

Ram Ratna Wires Ltd reads as consistent on its fundamental arc. Consistent — revenue, profit and EPS growth have stayed positive through the window, with ROCE at 24.0% and holding. The read is built from 8 quarters across 4 curves, on partial evidence.

Why it matters: steady curves with healthy returns are the compounding setup — the risk is the price, not the business.

Return readings here are annual, not quarterly — read as level and direction only; they can confirm the growth curves but never drive the stage on their own.

A partial read: at least one curve is short, or the returns curve is not the computed quarterly series — hold the stage word a little more loosely.

4-Factor Sector Score

66.9/100 — rank 1 of 2 in Copper Wires · 79% evidence confidence

Ram Ratna Wires Ltd scores 66.9 out of 100 against the 2 companies it is compared with in Copper Wires, ranking 1. Balanced evidence: keep at normal research priority and require another comparable period before raising conviction.

The four contributions add to the total exactly: 30.7 + 18.2 + 8 + 10 = 66.9. This is the SAME number shown on the sector comparison — it is computed once, for the whole peer set, and read here.

What would change it: The read weakens if profit growth turns negative or margin improvement reverses while sector-relative strength deteriorates.

Frequently asked questions