Analysis: Ratnaveer Precision Engineering Limited

Growth thesis

Ratnaveer Precision Engineering is a vertically integrated stainless steel manufacturer producing fasteners, tubes/pipes, and copper-clad laminates (CCL) for railways, defense, and automotive sectors. Key segments include precision fasteners (India’s largest washer producer), backward-integrated stainless steel production, and a new CCL project targeting ₹750 crore revenue in 2-3 years. Growth will accelerate through ₹330 crore QIP/rights issue funding for CCL capex (20% EBITDA margin per line), 25% CAGR stainless steel expansion (₹1,800 crore by FY28), and a pending European precision components acquisition (66% gross margin). Consolidated revenue is projected to reach ₹2,500 crore by FY28 with 13.5% EBITDA and 10.5% PAT margins. Key execution risks include monsoon delays in CCL production (November 2026 start) and regulatory hurdles in the European acquisition.

Why is Ratnaveer Precision Engineering Limited stock rising?

• First line of copper-clad laminate (CCL) production to commence by November 2026, with a total of five lines planned to capture the import substitution opportunity
• Consolidated top-line target of ₹2,500 crore in 2-3 years, with ₹1,800 crore from existing stainless steel business (growing at 25% CAGR) and ₹750 crore from CCL business
• CCL project to be established with a Chinese technology partner; no royalty, only machine purchase, with full support for installation, commissioning, and quality for 1.5-2 years
• Fundraising of ₹330 crore through QIP or rights issue planned for CCL capex (~₹400 crore) and additional working capital
• Promoter warrant conversion of remaining 46% (₹115 crore) to be completed by September 2027, with promoter holding expected at 42-43% post dilution

Research report

companyname: Ratnaveer Precision Engineering Limited ticker: RATNAVEER sector: Stainless Steel Products / Fasteners Ratnaveer Precision Engineering Limited, established in 2002 and headquartered in Gujarat, is a manufacturer of stainless steel components. Over 25 years, it has built a fully integrated production model spanning scrap reprocessing to precision finished goods. The company operates five manufacturing units across Savli, Waghodia, Ahmedabad, and Samlay in Gujarat, employing nearly 2...

Catalysts

capex, margin expansion, regulatory approval, new product segment

Growth guidance

FY27-28 top line guided at 2,500 crores driven by 25% CAGR in stainless steel business and 750 crores from CCL project