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January 8, 2015

Initiation
Wealth Research

Ratnamani Metals & Tubes Ltd.
Niche pipe player

BUY

Ratnamani Metal and Tubes Ltd (Ratnamani) is the largest manufacturer
and exporter of customized industrial steel pipes, commanding a market
share of ~40% in the domestic stainless steel pipes market. We believe it
is best suited to benefit from the revival in industrial capex cycle.
Ratnamani’s structural growth story is expected to continue for the next
two to three years, given an increase in spends in key industries like
irrigation, oil & gas, nuclear and thermal power considering its expertise
in manufacturing customized pipes. We estimate revenue and PAT
CAGR of 24% and 27%, over FY2014-17E. We expect Ratnamani to
maintain high margins on the back of good order-inflows in the stainless
steel segment. At the current price, the stock trades at 10.8x FY2017E
EPS of Rs62.4. We recommend BUY with a target price of Rs874.
Niche pipe player in the stainless steel segment: Ratnamani has expertise
in manufacturing customized stainless steel pipes and commands a share of
~40% in the domestic market. These pipes are very critical as they are mostly
used in highly corrosive environment and carry a very high failure cost.
Ratnamani has been supplying these products since 1985 and has approvals
from all the leading industry majors. It focuses on manufacturing products
which are used for high end applications, while its peers are focused on
products for low end applications. This enables Ratnamani to command best
in industry margins of ~25-30% in this segment.
Revival in capex cycle to drive carbon steel segment: After a challenging
FY2013, Simdex report (industry report) suggests that the global pipe demand
from 2013-17 is expected to reach $357 billion. The global and domestic
carbon pipe demand for Indian manufacturers is expected to reach ~16 million
tonne from oil & gas sector alone. Further, the Government’s initiative on
improving the infrastructure could lead to increasing orders from water and
gas sectors. During Q2FY2015, carbon steel order book grew by 2x YoY at
Rs630 crore. Ratnamani has approvals from all the industry majors and is also
participating in government contracts. It won a contract worth Rs431 crore for
Gujarat Government’s ‘Saumi Yojna’. Following a likely revival in the overall
capex cycle, we expect Ratnamani to be a key beneficiary considering it has
been a preferred supplier for various companies over the years.
Robust financial performance: While the global pipe demand remained
under pressure between FY2010-14, Ratnamani’s revenue grew at 11.7%
CAGR. We estimate its revenue to grow at 24% over FY2014-17E on the back
of 16.5% and 34% growth in the stainless steel and carbon steel segments
respectively. We expect RoEs to improve to 23.5% in FY2017E from 20.2% in
FY2014.
Healthy balance sheet position despite planned capex: Unlike its peers,
the company gradually increased its capacity mostly out of internal accruals
between FY2008-14. This helped Ratnamani to reduce its debt to equity ratio
to 0.1x in FY2014 from 0.9x in FY2010. Going ahead, the company plans to
increase its stainless steel capacity by 20,000 tonne to 48,000 tonne p.a. with
a capex of ~Rs225-250 crore over the next two years. We expect Ratnamani
to fund the capex out of internal accruals and estimate its debt to equity to
reduce to further reduce to 0.03x in FY2017E.
Risk factors: 1) Delay in capex revival; 2) volatility in raw material prices;
Valuation: At the current price, the stock trades at 10.8x FY2017E EPS of
Rs62.4. Considering its leadership position in the domestic stainless steel pipe
segment, we believe Ratnamani is best suited to benefit from the impending
revival in the domestic capex cycle in oil refinery, petrochemicals, power and
fertilizer sectors. We initiate coverage on Ratnamani with a BUY rating and a
target price of Rs874, valuing it at 14x FY2017E EPS.
Financial Summary - Standalone
Y/E Mar (Rs Cr.)
Revenue
YoY (%)
EBITDA
FY2013A
1,201
-1.7
238
FY2014A
1,326
10.4
257
FY2015E
1,803
35.9
348
FY2016E
2,094
16.2
408
FY2017E
2,524
20.5
500
Source: Company, Centrum Wealth Research

EBITDA (%)
19.8
19.4
19.3
19.5
19.8

NPAT
136
143
195
233
291

Recommendation
Current Market Price (Rs)
Target Price (Rs)
Potential upside (%)
Sector Relative to Market
Stock Relative to Sector

675
874
29.5
In-Line
Outperform

Stock Information
BSE Code
NSE Code
Face Value (Rs/share)
No. of shares (Cr.)
Market Cap (Rs Cr.)
Free float (Rs Cr.)
52 Week H / L (Rs)
Avg. Daily turnover (12M, Rs Cr.)

520111
RATNAMANI
2.0
4.7
3,168
1,425
717/120
1.4

Shareholding Pattern (%)
Sept-14
59.9
13.1
0.1
26.9

Promoters
FII
DII
Others

Sept-13
60.2
12.0
1.0
26.8

Source: Bloomberg, Centrum Wealth Research

1 year Indexed Performance
560
510

460
410
360
310
260
210
160

110
60
Jan-14

Apr-14

Jul-14

Oct-14

Ratnamani

Jan-15

BSE Small Cap

Source: Bloomberg, Centrum Wealth Research

Price Performance (%)
Ratnamani
BSE Small Cap

1M
14.5
-2.0

3M
60.2
5.5

6M
63.1
10.0

12M
412.3
67.4

Source: Bloomberg, Centrum Wealth Research
Rijul Gandhi, Research Analyst
Siddhartha Khemka, VP Research

YoY (%)
37.0
5.0
36.8
19.2
25.1

EPS (Rs)
29.12
30.59
41.84
49.86
62.40

Please refer to important disclosures/disclaimers inside

P/E (x)
23.2
22.1
16.1
13.5
10.8

EV/EBITDA(x)
13.5
12.4
9.2
7.8
6.2

RoE(%)
23.1
20.2
23.0
22.7
23.5

Ash handling line 3) Water . About the Company Ratnamani Metal & Tubes Ltd. It has a wide range of products in stainless steel and carbon steel pipes & tubes mostly used in highly corrosive environment such as oil & gas refineries. Oil & Gas 33% Power . Ratnamani has approvals from all leading industry majors in the domestic as well as international markets.Centrum Wealth Research Ratnamani Metals & Tubes Ltd. Plumbing.Nuclear and Thermal 35% Source: Company. Structural Pipe.Electric Resistance Welded (HF-ERW) Stainless Steel pipes Mostly Oil & Gas Oil and Gas Pipeline. Centrum Wealth Research Exhibit 2: FY2014 Revenue breakup industry-wise Others 6% Infrastructure.000 tonne p. It has a stainless steel pipe capacity of 28. Exhibit 1: Product profile Product Lines Carbon Steel Stainless Steel Instrumentation Seamless Tubes Power .a and a carbon steel pipe capacity of 3. (Ratnamani) is a niche player in the domestic industrial steel pipes business. General Submerged Arc Welded (SAW) 1) Oil & Gas .Nuclear.Cooling water line. City gas distribution 2) Power . Thermal and solar. Water Supply Systems. 2 . Centrum Wealth Research Centrum Broking Ltd.Cross Country Oil & Gas Pipelines. 26% Refinaries. high mast pipes for wind mills Source: Company. Stainless steel pipes cater to industrial projects demand while carbon steel pipes mostly cater to water and oil & gas pipeline projects.50. dredging pipes. Pulp and Paper industry High Frequency . Ratnamani is the market leader in the high end stainless steel pipes business with ~40% market share. Petrochem. The products can be broadly divided into two parts – stainless steel pipes and carbon steel pipes.000 tonne p. across two plants in Gujarat.Mining pipes. thermal power and chemical & fertilizer plants.a.Distribution and drainage pipes 4) Other industrial . Defense. Oil & Gas. Chemicals. Heating.

During Q2FY2015. the government is focused on reviving the power sector.Raipur-Ranchi pipeline. Besides. Shell etc. while its peers are focused on products for low end applications. which are mostly used in highly corrosive environment such as oil & gas refineries. As per industry reports. few gas pipeline projects such as Mehsana-Bhatinda pipeline project. Indian Oil Corporation (IOCL) and Hindustan Petroleum Corporation (HPCL). Expected investments in the oil & gas sector for upgrading the current capacities and green field expansions could accelerate the order flows in the next few years. Ratnamani had secured a contract from the Gujarat Government . we expect it to benefit from the likely increase in order flows from oil refinery. Further. global and domestic carbon pipe demand (excluding replacement demand) for Indian manufactures is estimated at ~16 million tonne from Oil & Gas sector alone. according to Simdex (industry report) the global pipe demand from 2013-17 is expected to reach $357 billion. Further. In India water projects of Gujarat Water Infrastructure Ltd. Revival in capex cycle to drive carbon steel segment Globally FY2013 was a challenging year for the carbon steel pipe industry owing to the economic crisis and geopolitical tensions across countries which led to excess capacity and low utilizations. which is executable by May 2015. Centrum Broking Ltd. Indian carbon pipes players have ~8 million tonne pipe capacity. These pipes form a critical part of the plant and carry a very high failure cost. Over the next five years.‘Saumi Yojna’ worth Rs431 crore. On the domestic front. thermal power and chemical & fertilizer plants. Alstom. two more green-field refineries in Barmer (Rajasthan) and Konkan (Maharashtra) have been planned which could start procurement in FY2016E. demand from replacement market is also likely to be 10. power and fertilizer sectors going ahead. the Government’s initiative on improving the infrastructure could lead to increasing orders from the water and gas sectors.Centrum Wealth Research Ratnamani Metals & Tubes Ltd. Moreover with cost of exploration rising and scanty oil reserves in some parts of the world oil & gas transportation activity should increase going forward. Ratnamani has approvals from all the industry majors and also has a huge product range. Exhibit 3: Up-coming Oil & Gas sector projects over 2013-17 Region Nos of Projects Lenghth (Kms '000) Value ($ billion) North America 229 64 69 Latin America 48 33 52 Europe 119 36 65 Africa 62 25 31 Middle East 92 25 41 Asia 76 40 73 Australia Total 47 14 26 673 237 357 Source: Company Annual Report – 2014 Further. It has been supplying these products since 1985 and has approvals from all the leading industry majors which gives an edge over its competitors. power and fertilizer sectors is likely to create robust demand for pipe companies going ahead. petrochemicals. However. owing to the increasing urbanization and industrialization. Following a likely revival in the overall capex cycle. L&T Bharat Petroleum Corporation (BPCL). Ennore-Trichy-Madurai pipeline are expected to be awarded in FY2015E-16E.4 million tonne in the next five years. Mallavaram-Bhopal-Bhilwara-Vijaipur natural gas pipeline project and Bhatinda-Jammu pipeline project are expected to come on stream in the coming years. Niche pipe player in the stainless steel segment with best in industry margins Ratnamani has expertise in manufacturing customized stainless steel pipes. BASF. The impending revival in the capex cycle in the oil refinery. BHEL. carbon steel order book grew by 2x YoY at Rs630 crore. Considering the significance of the pipes which Ratnamani has been supplying since the past two decades. petrochemicals. Ratnamani’s customers include companies like Reliance Industries. Ratnamani focuses on manufacturing products which are used for high end applications. nuclear power. we expect Ratnamani to be a key beneficiary considering it has been a preferred supplier for various companies over the years. This enables it to command the best in industry margins of ~25-30% in this segment. It manufactures customized project pipes. 3 . (GWIL) and few projects from Indian Oil Corporation (IOC) such as Paradeep.

0 20. Centrum Wealth Research 37.0 FY17E 20.6 20.0 10.3 Source: Company. Exhibit 5: EBITDA and margins 50.0 18.5 1222 1201 FY11 FY12 FY13 -1. The company’s niche product offerings and robust market share enabled it to maintain EBITDA margins in the range of 17-20% during FY2010-14.4 1500 15 -4.0 22.0 (%) (Rs Crore) 250 500 16.8 0.0 150 100 15. We expect Ratnamani to maintain high EBITDA margins in the range of 19.0 21.7 19.0 5.2 600 45 500 35 2000 25 10.4 300 19.8 19. Ratnamani reported revenue CAGR of 11.8 400 (Rs Crore) 35.0 14.2 18.1 20.0 19.8% on the back of good order-inflows in the stainless steel segment between FY2014-17E.0 20.5 16.0 19.6 14.2% in FY2014. Ratnamani had incorporated its 100% subsidiary Ratnamani Inc.0 Net Profit (Rs crore) Source: Company.5 19.8 200 18.0 50 23.5 16.0 30.0 16. Centrum Wealth Research Centrum Broking Ltd.7 10. USA to focus on the increasing opportunities arising out of the North American and Latin American markets.5% in FY2017E from 20.0 (%) 20.9 1326 (Rs Crore) 2500 55 (%) 3000 (%) Exhibit 4: Revenue performance 12.0 25.9 20.Centrum Wealth Research Ratnamani Metals & Tubes Ltd. Improving demand environment to drive revenue growth Despite the global pipe demand remaining under pressure between FY2010-14.2 20.0 35.0 FY11 FY12 FY13 RoE (%) FY14 FY15E RoCE(%) FY16E FY17E Source: Company.0 148 205 FY11 FY12 238 257 348 FY13 FY14 EBITDA (Rs Crore) FY15E FY16E Margins (%) Exhibit 6: Net Profit Exhibit 7: RoE and RoCE 25.0 Growth(%) 36. We estimate revenue CAGR of 24% over FY2014-17E on the back of 16.2 10.0 16. In FY2014. Centrum Wealth Research 4 . Growth(%) 10.2 26. The RoE is expected to improve to 23.0 5.7 2524 814 500 2094 5 1803 1000 FY14 FY15E FY16E FY17E 0 -5 -15 Revenue (Rs crore) 22.7 19.0 100 17.7% during that period.0 19.0 82 99 136 143 195 233 291 FY11 FY12 FY13 FY14 FY15E FY16E FY17E 0 22..5 23.2 16. Centrum Wealth Research 350 21.8 408 0 Source: Company.1 300 19.4% -19.4 200 40.0 24.1 23.5% growth in the stainless steel pipe segment and 34% growth in carbon steel pipe segment.

5 16.0 11.1 5.a.55 0.8 5.3 10.9 PAT margin % 9.068 crore.30 0.03 240 275 119 73 71 60 35 FY11 FY12 FY13 FY14 FY15E FY16E FY17E 0 0 FY11 0. This helped Ratnamani to reduce its debt to equity ratio to 0.10 0.3 Effective tax rate % Net Profit 26 36 51 38 49 YoY Growth % (41.a.52 160 (Rs Crore) (Rs Crore) 140 120 100 178 80 0.0 52.6 21.05 FY15E 0.1x in FY2014 from 0.00 Debt (Rs Crore) Debt to Equity (x) Source: Company.50 200 0.4% YoY to Rs438 crore on the back of 81. mostly out of internal accruals. 5 .000 tonne p. Strong balance sheet position Unlike many of its peers.7% YoY growth in carbon steel segment and 48.6 28.900 tonne p.0 34. with a capex of ~Rs225-250 crore.1 88.a to 28.03x in FY2017E. Exhibit 8: Free Cash Flow trend Exhibit 9: Debt to equity trend 200 300 0. the company plans to increase its stainless steel capacity to 48.000 tonne p.8 34.1 33.9 25. We expect Ratnamani to fund the capex out of its internal accruals and estimate its debt to equity to further reduce to 0.6 in Q2FY2014. Going ahead.a to 3. the company gradually increased its stainless steel pipe capacity from 18. thereby enabling it to maintain a low debt profile and generate healthy cash-flows.4 Raw Material Expenses 173 233 257 227 281 % of sales 64. revenue grew by 52.7 Other Expenses % of Sales EBIDTA EBIDTA margin % Depreciation 46 29 38 33 44 15.1 64.1 64.1 20. Centrum Wealth Research (x) 180 0. Between FY2008-14. and its carbon pipe capacity from 3. Reported net profit grew by 89% YoY to Rs49 crore.7 35.10 112 40 20 250 19 37 20 FY12 FY13 FY14 0.6 9. Ratnamani refrained from undertaking aggressive capacity expansion.0 30.1 10. Centrum Wealth Research Quarterly Performance: Exhibit 10: Standalone Quarterly Performance Y/E Mar (Rs Cr.4) 13.1%.1 6.9 Employee Expenses 19 20 20 21 25 % of Sales 6.08 50 80 53 FY16E FY17E Source: Company.50. EBITDA grew by 76% YoY to Rs88 crore with the margins expanding by 270bps YoY to 20. Centrum Wealth Research For Q2FY2015 on a standalone basis. EPS for the quarter stood at Rs10.1 11 12 12 13 16 Interest 2 3 4 1 1 Other Income 3 4 4 4 4 PBT 40 54 73 58 75 Provision for tax 14 18 23 19.000 tonne p.4 18.a.5 as against Rs5.1 YoY Growth % 60.7) 27.00. The order book increased by 32% YoY to Rs1.40 150 0.5 9.2 Source: Company.60 0.7 20.Centrum Wealth Research Ratnamani Metals & Tubes Ltd.7 11.) Revenue Q2FY14 Q3FY14 Q4FY14 Q1FY15 Q2FY15 287 347 401 349 438 (4.1 50 64 85 69 88 17.5 5.9x in FY2010.000 tonne p.3 19.20 0.9 8.1 67.2% YoY growth in stainless steel segment.4 12.18 100 60 0. Centrum Broking Ltd.6 28.

4 JINDAL SAW LTD 0. etc. Risk Factors:  Delay in capex revival: Ratnamani’s growth depends upon capex in sectors like Oil Refinery.2 FY17E 6.0 151.2 42. We initiate coverage on Ratnamani with a BUY rating and a target price of Rs874.Centrum Wealth Research Ratnamani Metals & Tubes Ltd.1 120.3 - APL APOLLO TUBES 0.4 4.7 11.8 3. Exhibit 11: Business Comparison Revenue Growth (%) FY16E FY17E 16.9 14.4 P/E (x) EV/EBITDA (x) RoE (%) FY16E 13.0 X Apr-15 Oct-14 Jan-15 Jul-14 Apr-14 Jan-14 Jul-13 Oct-13 Apr-13 Jan-13 Jul-12 Oct-12 Apr-12 Oct-11 Jan-12 Jul-11 Apr-11 Jan-11 Jul-10 Oct-10 Apr-10 Jan-10 Jul-09 Oct-09 Apr-09 0 19.5 5. Centrum Wealth Research Exhibit 13: One year forward P/E trend 1000 900 800 700 600 500 400 300 200 100 Price (Rs) 3.1 6.4.9 FY16E 7.5 FY17E 10.2 - PAT Growth (%) FY16E FY17E 19. Centrum Wealth Research Exhibit 12: Relative Valuations M Cap to Company Sales FY14 RATNAMANI METALS 2.0 X 11.5 19.558 787 OPM (%) FY16E FY17E 19.8 13.6 - Source: Bloomberg. Any delay in revival of planned industrial capex would impact the growth of the company. we believe Ratnamani is best suited to benefit from the impending revival in the domestic capex cycle in oil refinery.0 4. Centrum Wealth Research Centrum Broking Ltd. power and fertilizer sectors.0 X 15.2 47.168 2.5 13.8x FY2017E EPS of Rs62. 6 . Bloomberg.2 1. valuing it at 14x FY2017E EPS.0 15.3 9.4 - 7.0 - Mkt Cap (Rs Cr) Company RATNAMANI METALS JINDAL SAW LTD WELSPUN CORP LTD MAHARASHTRA SEAM APL APOLLO TUBES 3.5 10.2 18.2 25. Considering its leadership position in the domestic stainless steel pipe segment.9 8.8 6.0 - 5.0 - Source: Bloomberg.2 7. the stock trades at 10.5 23.9 - 5.3 FY17E 23.8 9. Power.1 22.4 7.9 6.6 19.449 1.2 20.816 1. Chemicals & Fertilizers. Any major volatility in the raw material prices may impact its profitability.6 80.0 X Source: Company.7 9. plates & ignots and carbon steel coils & plates.2 4.2 12.7 WELSPUN CORP LTD MAHARASHTRA SEAM 0. Valuation At the current price.0 X 7.5 5.  Volatility in raw material prices: Ratnamani utilizes raw materials such as stainless steel coil.3 8. petrochemicals.9 FY16E 22.4 - 15.

 The scrip though is likely to find strong support in case of a correction towards 600-620 which is good accumulation range for fresh buys for a target of 850 in the coming 4-6 months. 550 is an ideal risk management level at the current juncture for the scrip. 7 . Technical View on Ratnamani Metals & Tubes Ltd. Centrum Wealth Research Centrum Broking Ltd.  While the overall structure of the scrip remains bullish.  Ratnamani has been on a strong leg up since the past few months and maintains a strong trading as well as positional trajectory.Centrum Wealth Research Ratnamani Metals & Tubes Ltd. Exhibit 14: Technical Chart Source: Company. its oscillators are indicating clear negative divergence and can thus lead to short term volatility in the scrip.

3 10.1 PAT Margin % 11.9 104.1 Change in working capital Employee Expenses 72 79 103 121 149 Tax expenses % of Sales 6.5 65.2 CEPS 38.6 11.9 30.3 33.4 42.2 4.4 55.1 290.0 Inventory 70.0 5.0 240.1 0.Standalone Cash Flow Income statement Y/E Mar (Rs Cr) FY2013 FY2014 FY2015E FY2016E FY2017E Y/E Mar (Rs Cr) FY2013 FY2014 FY2015E FY2016E FY2017E Revenue 1.355 Total Loan fund Deferred tax liability 119 40 73 47 202 214 293 349 Depreciation 42 46 62 69 77 Others (4) (3) (7) (9) (14) 51 (33) (194) (130) (142) (55) (65) (98) (116) (145) 236 160 57 162 212 (58) (80) (37) (125) (100) (5) (29) 14 15 18 (63) (109) (23) (110) (82) Borrowings/ (Repayments) Dividends paid Interest paid Cash flow from financing Net Cash Flow 2 - - - (59) (2) (11) (25) (16) (22) (33) (41) (57) (8) (6) (7) (6) (4) (184) (85) (41) (58) (86) (11) (34) (8) (6) 43 Key Ratios Y/E Mar FY2013 FY2014 FY2015E FY2016E FY2017E 71 47 60 47 35 47 RoE 23.3 9.345 Shareholder's fund 647 767 929 1.5 1.5 164.8 60.1 11.4 65.5 Source: Company.197 Current liab and prov 223 261 241 275 323 Net current assets 363 377 563 688 874 Total assets 806 886 1.5 12.5 19.3 76.372 1.3 19.0 70.6 78.2 16.2 Other investing activities EBIDTA 238 257 348 408 500 Cash flow from Invest EBIDTA margin % Proceeds from Eq capital 19.7 19.1 1. Centrum Wealth Research Total cap employed Investments 437 Return ratios (%) Balance Sheet Y/E Mar (Rs Cr) Net Profit Before Tax Debt-equity 0.7 69.0 Debtors 76.0 16.094 2.2 25.2 199. Centrum Wealth Research Dividend Ratios Dividend Payout (%) Valuation (x) P/E P/BV EV/EBIDTA EV/Sales 4.2 25.9 62.5 5.2 Turnover Ratios (days) Fixed asset (x) Solvency Ratio (x) 806 886 1.0 78.437 Net fixed assets 413 455 429 486 509 29 54 54 54 54 Interest coverage Per share (Rs) Cash and bank (159) Source: Company.3 31.6 0.8 Loans and advances 42 65 63 84 101 Total current assets 586 639 805 962 1.7 23. Financial Summary .4 65.6 19.0 17.8 34.0 6.8 11.0 78.1 0.2 23.8 10.3 Net Profit 136 143 195 233 291 Growth % 37.7 23.2 9.6 19.4 19.112 1.1 20.4 1.3 33.4 Debtors 251 278 370 448 539 BVPS 138.326 1.2 40.228 1.2 7.0 5.1 0.03 16.4 3.9 DPS (Rs) 4.4 2.643 % of sales 61.524 Growth % (1.5 27.1 13.6 41.3 13.2 0.0 22.3 68.0 7. Centrum Wealth Research Centrum Broking Ltd.2 RoIC 26.5 33.7 2.8 19.1 20.5 10.9 Cash flow from Ops Other Expenses 151 150 171 193 232 Capex % of Sales 12. 8 .9 16.4 9.5 Raw Material Expenses 740 841 1.8 1.Centrum Wealth Research Ratnamani Metals & Tubes Ltd.2 20.8 49.1 16.9 4.0 28.7 0.8 19.0 Creditors 29.2 Source: Company.803 2.1 3.5 6.9 21.6 63.047 1.2 22.8 6.0 4.3 33.0 70.6 16.0 36.437 Source: Company.5 9. Centrum Wealth Research FY2013 Share capital FY2014 FY2015E FY2016E FY2017E 9 9 9 9 9 Reserves & surplus 637 757 920 1.9 1.2 2.8 5.7 60 43 35 30 73 Inventories 233 252 336 402 484 EPS 29.228 1.5 10.5 Dividend Yield (%) 0.5 75.5 RoCE 16.180 1.4 35.3 28.9 27.8 17.2 64.8 Depreciation 42 46 62 69 77 Interest 12 10 7 6 4 Other Income 18 14 14 15 18 202 214 293 349 437 PBT Provision for tax 66 71 98 116 145 Effective tax rate % 32.1 3.121 1.7) 10.201 1.8 2.0 4.1 30.047 1.7 5.

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No (a) Whether the research analyst or his relatives has any other material conflict of interest No 8 (b) Whether CBL or its associates has any other material conflict of interest Yes (Ratnamani is part of CBL’s PMS portfolio) 9 Whether research analyst or CBL or its associates have received any compensation from the subject company in the past 12 months and nature of products / services for which such compensation is received No 10 Whether CBL or its associates have managed or co-managed public offering of securities for the subject company in the past 12 months No 11 Whether the subject company is or was a client of CBL during 12 months preceding the date of distribution of the Research Report and the types of services provided No Whether the Research Analyst or CBL or its associates have received 12 any compensation or any other benefits from the subject company or third party in connection with the research report No 13 Whether Research Analysts has served as an officer. MCX-SX (Currency Derivatives Segment) and BSE (Cash segment). director or employee of the subject company No 14 Whether the Research Analyst or CBL has been engaged in market making activity of the subject company. No 7 Whether CBL or its associates have actual / beneficial ownership of 1% or more in securities of the subject company as on the end of the month immediately preceding the date of publication of the document.Centrum Wealth Research Ratnamani Metals & Tubes Ltd. F&O and Currency Derivatives Segments). 3 Registration status of CBL CBL is in the process of preparing application for submission to SEBI 4 Whether Research analyst’s or relatives’ have any financial interest in the subject company and nature of such financial interest No 5 Whether CBL and its associates have any financial interest in the subject company and nature of such financial interest No 6 Whether Research analyst or relatives have actual / beneficial ownership of 1% or more in securities of the subject company at the end of the month immediately preceding the date of publication of the document. 2 Details of Disciplinary History of CBL CBL has not been debarred/ suspended by SEBI or any other regulatory authority from accessing /dealing in securities market. No Centrum Broking Ltd. Disclosures under the SEBI (Research Analysts) Regulations 2014 Disclosure of Interest Statement 1 Business activities of Centrum Broking Limited (CBL) Centrum Broking Limited (hereinafter referred to as “CBL”) is a registered member of NSE (Cash. Depository Participant of CDSL and a SEBI registered Portfolio Manager. 10 .

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