Rhetan TMT 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.

Rhetan TMT Ltd trades at ₹21.1, in a confirmed uptrend and 65 weeks into that stage. That is −19.0% against its own 200-day average. It sits at 0% of a 52-week range of ₹21 to ₹33. On relative strength it is currently behind the NIFTY 500 on a trailing-13-week view (1 week and counting).

Today the stock is in a confirmed uptrend — week 65 of stage 2, confirmed. At ₹21.1 it trades −19.0% versus its 200-day average and sits at 0% of its 52-week range (₹21–₹33).

Against the market, two honest reads. Cumulative: over the last 3.9 years the stock moved +1,305% while the NIFTY 500 moved +51% — ahead of the index over the full window. Recent form: on a trailing-13-week view the stock is currently behind (1 week and counting; last ahead the week of 2026-08-07) — 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.

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.

Rhetan TMT Ltd trades at 132.0× P/E, near the bottom of its own range — cheaper only 14% of the time. Its long-run median P/E is 237.3×, measured across 3.9 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 132.0× is near the bottom of its own range — cheaper only 14% of the time, against a long-run median of 237.3× measured over 3.9 years of weekly readings. This is a comparison against the stock's own history — not a claim about what it is worth.

One caveat before moving on: margins are the best this company has ever printed — cheap against its own history on record margins is not the same thing as cheap. If profitability mean-reverts, today's multiple is higher than it looks.

Why the multiple sits where it does: over the past year annual EPS moved +225.0% against a +25.3% price move — earnings outran the price, pushing the multiple DOWN its own range.

The price move, decomposed: over 3y, of the +33.3%/yr price move, ~+47.4%/yr came from earnings growth and ~−14.1 pp from the multiple (compressing). 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 low against its own past, so the story rests on the earnings line underneath it, not the multiple.

Stage: Turning around 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).

Rhetan TMT Ltd reads as turning around on its fundamental arc. Turning around — profit growth swung from −6.2% at the trough to +315.8% off a 4-quarter-old trough (single-quarter readings), ROCE holding at 6.8%. The read is built from 9 quarters across 3 curves, on partial evidence.

Why it matters: growth inflections are where re-ratings start — the curves say a turn is forming, so the question becomes whether the next quarters confirm it.

One or more growth curves carry a base-effect spike — a large year-on-year move off a near-zero or loss-making comparable quarter. Those spikes are capped before the classifier reads the trajectory, and shown pinned on the chart, so a single distorted quarter does not drive the stage call.

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

32.1/100 — rank 14 of 17 in Steel Products · 93% evidence confidence

Rhetan TMT Ltd scores 32.1 out of 100 against the 17 companies it is compared with in Steel Products, ranking 14. Balanced evidence: keep at normal research priority and require another comparable period before raising conviction.

The four contributions add to the total exactly: 18.7 + 8 + 3.9 + 1.5 = 32.1. 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.

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

Rhetan TMT Ltd reported ₹4.1 Cr of revenue in the Jun 26 quarter, −19.4% year on year. The last full year, FY26, came in at ₹24.0 Cr. The last four reported quarters add to ₹23.5 Cr. A multi-year compound rate is not shown because the annual history behind it is too short to compute one honestly.

FY26 revenue came in at ₹24.0 Cr (−35.1% on the year). The latest quarter (Jun 26) printed ₹4.1 Cr, −19.4% year on year.

Acceleration check: trailing-twelve-month revenue grew +2.6% over the last 4 quarters against −37.4%/yr over the last 8 — accelerating; TTM profit +159.2% vs +91.0%/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.

Rhetan TMT Ltd's operating margin is −16.3% in the Jun 26 quarter, −28.4 percentage points against the same quarter a year ago. That is the widest this company has ever printed on a full-year basis. Across 7 fiscal years the operating margin has ranged 2.9% to 27.0%. The current quarter is running below every full year in that window.

The latest quarter's operating margin is −16.3%, −28.4 pp against the same quarter a year ago. Across 7 fiscal years the operating margin has ranged 2.9%–27.0%, and FY26's 27.0% is the top of that band — a record year.

🚨 Why the margin moved: operating margin went −28.4 pp year on year while gross margin went −43.3 pp — the loss came mostly from the gross line: input costs and pricing.

Worth repeating from the valuation section: cheap against its own history on record margins is not the same thing as cheap — a record margin flatters every ratio built on top of it.

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

Rhetan TMT Ltd earned ₹3.2 Cr of net profit in the Jun 26 quarter, +315.8% year on year. It is the 4th consecutive quarter of growth. Full-year FY26 profit was ₹10.0 Cr. That is 77.8% of the quarter's revenue. The same quarter a year earlier earned ₹0.8 Cr.

Jun 26 profit was ₹3.2 Cr, +315.8% year on year — the 4th consecutive quarter of growth. On the full year, FY26 printed ₹10.0 Cr (+233.3%).

Why profit moved: revenue contributed −19.4% and the margin −28.4 pp — the quarter was revenue-led despite a thinner margin.

Pace comparison, last four quarters: profit +231.2% vs revenue +1.0%. 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 118% of Rhetan TMT Ltd's reported profit arrived as operating cash — the cash follows the profit. In FY26 that was ₹1.0 Cr of operating cash against ₹10.0 Cr of profit. After ₹5.0 Cr of capital spending, ₹−4.0 Cr was left as free cash.

FY26: operating cash of ₹1.0 Cr against reported profit of ₹10.0 Cr, leaving free cash of ₹−4.0 Cr after ₹5.0 Cr of capital spending. Across the last 3 fiscal years the conversion rate is 118% 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 118%: the cash cycle stretched 1,459 days between FY21 and FY26 — more of each rupee of profit waits inside the cycle before arriving.

Router verdict: the bigger cash user is investment — capital spending ran 5.3× 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).

Rhetan TMT Ltd's cash conversion cycle runs 1,617 days in FY26, up from 158 days in FY21. Capital spending ran ₹16.0 Cr over the last 3 years. At FY26 sales of ₹24.0 Cr each day of that cycle holds about ₹0.1 Cr, so roughly ₹106 Cr sits inside the business at any moment.

FY26: debtors at 365 days, inventory at 1,432 days — roughly 47.1 months of stock waiting to sell; that is where the cash sits while it waits — for a full cycle of 1,617 days, looser than FY21's 158.

The full loop: cash goes out to suppliers and production on day 0; stock waits 1,432 days to sell; customers pay about 365 days after that; and suppliers themselves are paid at 180 days — netting out to the 1,617-day cycle.

In money terms: at FY26 sales of ₹24.0 Cr, each day of the cycle holds about ₹0.1 Cr — so the 1,617-day loop keeps roughly ₹106 Cr sitting inside the business at any moment.

On the investment side: capital spending of ₹16.0 Cr over the last 3 fiscal years against ₹3.0 Cr of depreciation — the company is building well ahead of wear-and-tear. Capital work-in-progress stands at ₹6.0 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.

Rhetan TMT Ltd earns a ROCE of 11% in FY26. That is up from a trough of −26% in FY12. Return on invested capital clears the cost of that capital by −7.4 percentage points, so growth here is not yet paying for the capital it uses. The wiring behind it is 41.7% net margin on 0.15× asset turns.

FY26 ROCE is 11%, recovered from a FY12 trough of −26% — the full ladder below shows the fall and the climb, undoctored.

🚨 Why the return is what it is — the wiring (FY26): 41.7% net margin × 0.15× asset turns × 1.51× balance-sheet leverage ≈ 9.4% on equity. Margin is doing the heavy lifting; leverage is modest — this is an earned return, not a borrowed one.

The capstone test — ROIC − WACC: 4.6% − 12.0% = a −7.4 pp spread. The 12.0% is a standing assumption for the cost of capital in India, not a per-stock estimate — read the sign and the size of the spread, not the decimals. Negative — growth at these returns destroys value until the returns recover.

Debt Debt-to-equity says how much of the business is funded by borrowings. Low is the safe corner; the trend matters as much as the level.

Rhetan TMT Ltd carries total debt of ₹42.0 Cr against shareholder equity of ₹109 Cr as of Mar 26, a debt-to-equity of 0.39. On the annual view that ratio went from 1.08 in FY22 to 0.39 in FY26. Read the returns elsewhere on this page with that leverage in mind.

Mar 26: total debt of ₹42.0 Cr against shareholder equity of ₹109 Cr — a debt-to-equity of 0.39. On the annual view, debt-to-equity went from 1.08 (FY22) to 0.39 (FY26). Read the returns on this page with that leverage in mind.

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.

No holder of Rhetan TMT Ltd moved a full percentage point over the last two years — the register is quiet. Promoters moved +0.0 points over the same window, to 62.1%. The register is read on the four disclosed classes only; nothing is inferred between filings.

The register over the last two years — Foreign institutions: +0.3 points over 8 quarters to 0.3%; Promoters: +0.0 points over 8 quarters to 62.1%.

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.

Rhetan TMT 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.

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