Rhetan TMT Ltd (RHETAN) — share price & stock analysis

Market cap

₹2,097 Cr

P/E

204×

ROE

10.2%

vs own history (since 2022)

28th pctile

Book value / share

₹1.4

EPS (TTM)

₹0.13

10-yr median P/E

243×

Revenue (FY26)

₹24 Cr

Profit after tax (FY26)

₹10 Cr

Weinstein stage

Stage 2 (59 weeks)

Data as of

1 July 2026

4 of the 6 things we track are currently moving the right way — nearly everything is pulling in the same direction.

Where the levels actually stand: ROCE 11% — weak; debt moderate (0.39× equity); margins at an all-time high. Momentum says which way things are moving; these say where they are.

Read this number for what it is: it measures the DIRECTION of change, not the quality of the business. A mediocre business getting better scores high here; a great one having a soft quarter scores low. Profit, sales and margins count double.

Most of this rally is re-rating, not earnings

Since Nov 2022, the stock is up 558% while earnings per share grew 160%. The difference is re-rating — investors paying more for the same rupee of profit.pricettm_eps

That works until it doesn’t: from here, earnings have to do the lifting, because the multiple has already done its part.

Today’s P/E of 204× sits near the bottom of its own range — it has been cheaper than this only 28% of the time against its own history since 2022.pe_ratio

A caveat on every valuation comparison here: the stock has only traded since 2022, and in that time its P/E has ranged 74–448× — it has never been cheap. “Middle of its range” means the middle of an expensive range.pe_ratio

And the sharper caveat: today’s margins are the best this company has ever printed. The cheap multiple is only real if they hold — earnings at record profitability flatter every valuation ratio.operating_profit

Price is the weekly close (₹). EPS is trailing-twelve-month profit per share, anchored on Screener's own snapshots; between snapshots it is filled from price ÷ P/E (an exact identity), and any fill straying more than 18% from the neighbouring snapshots is dropped rather than shown. The lower panel is the P/E — what the market pays per rupee of profit; the dotted line is its long-run median (242.6×).

Stage 2: the trend is up, and has been for 59 weeks

Price trends have a life cycle: they base (1), advance (2), top out (3) and decline (4). This chart is in Stage 2: advancing — 59 weeks so far, confirmed.stage

The price sits above its rising 200-day average (₹25 today) — trends like this persist more often than they reverse, which is why the system rides them instead of guessing the top.dma_200

Beating NIFTY 500 for 47 weeks — relative strength is the market’s live opinion, and right now it is on this stock’s side.rs_mansfield

What would end it: two Friday closes in a row below the 200-day line. That is the house exit rule — mechanical, no debates.dma_200

Losses, then a rebuild: profits are at an all-time high

Over 11 years, sales went from ₹0.0 Cr to ₹24.0 Cr, and profit from ₹0.0 Cr to ₹10.0 Cr.revenuenet_profit

The books show real losses in FY12 and FY20 (worst: ₹−2.0 Cr). Everything about today’s cheap-looking numbers must be read against that history — the recovery is what you are buying.net_profit

Sales jumped 31% last quarter

Mar 26 sales were ₹8.5 Cr, up 31% on the same quarter last year.revenue

Margins are widening — −47% → 30% in a year

Of every ₹100 of sales, the company keeps ₹29.9 as operating profit (a year ago it kept ₹−46.5).opm_pct

Zoom out and this is the page's quiet hero: annual operating margin bottomed at 3.8% in FY21 and has been rebuilt to 29.2% — that recovery, not sales alone, is what powers the profit growth elsewhere on this page.operating_profit

The gross margin moved the same way (−33% → 47%), so this is about input costs and pricing power — the raw-material equation improved.gpm_pctopm_pct

Profit exploded 363% — mostly from the tax bill

Mar 26 profit after tax was ₹2.2 Cr, up 363% year on year.net_profit

Profits on paper, cash lagging behind

Over the last 5 profitable years, the business reported ₹24.0 Cr of profit and collected ₹−38.0 Cr of operating cash — about -158% conversion.operating_cash_flownet_profit

The wrinkle is the latest year: FY26 collected ₹1.0 Cr against ₹10.0 Cr of reported profit — about 10%. One year isn’t a trend, but it is the line to watch.operating_cash_flownet_profit

The gap sits in receivables: customers now take 365 days to pay, up from 224. Profit booked, cash pending.debtor_days

The cash cycle is stretching — more money stuck in the pipeline

One rupee now takes about 1617 days to go out the door as materials and come back as collected cash — up from 656 days the year before.cash_conversion_cycle

The biggest mover: inventory sitting longer in the warehouse (488 → 1432 days).inventory_days

Building hard — new capacity is under construction

The productive asset base has gone from ₹4.0 Cr (FY11) to ₹16.0 Cr, with another ₹6.0 Cr of capacity under construction right now.fixed_assetscwip

Work-in-progress is 38% of the existing asset base — that is a serious bet on future demand. Capacity like this shows up in sales with a lag; it is tomorrow’s growth being paid for today.cwip

The build is bigger than the cash engine: investing outflows (₹22.0 Cr) exceeded operating cash (₹20.0 Cr) over the last 3 years — the difference comes from debt or shareholders.investing_cash_flowoperating_cash_flow

Debt is present but comfortable

For every ₹100 shareholders have put in (and left in), the company has borrowed ₹39 — total borrowings have grown from ₹4.0 Cr to ₹42.0 Cr over the window.borrowings

Every ₹100 kept in the business earns just ₹11

Return on capital employed is 11.0% (a year ago: 4.0%). This is the single best test of business quality: what the company earns on the money it keeps.roce_pct

Rising returns on capital while growing is the rarest combination in investing — it means the new projects earn more than the old ones.roce_pct

The owners aren’t moving

Promoters hold 62.1%, essentially unchanged. Foreign funds own 0.9%, domestic funds null%.promoters_pctfiis_pctdiis_pct

A turnaround that stuck — the question is what’s left to re-rate

The numbers are genuinely mixed, and the price already assumes the good news continues.

Best thing in the data: profit rising (₹0.5 Cr → ₹2.2 Cr).net_profit

Biggest worry: free cash flow falling (₹1.0 Cr → ₹−8.0 Cr).operating_cash_flow

Machine-written research from Screener data — every number traces to its source column. Sector Alpha is not a SEBI-registered investment adviser; nothing here is a recommendation to buy or sell. Not investment advice.

Straight answers from the data