Ratnaveer Precision Engineering’s CCL pipeline adds growth runway to resilient stainless-steel execution

Investment View and Valuation

ICICI Securities Retail Equity Research’s July 27, 2026 result update highlights sustained execution in Ratnaveer Precision Engineering’s core stainless-steel business and a potentially important new growth avenue in Copper Clad Laminate (CCL). The broker maintains a BUY recommendation with a fair value of Rs 255, compared with the current market price of Rs 197.

ICICI Securities values Ratnaveer Precision Engineering at 16 times FY28E EPS to derive its fair value. The broker forecasts revenue and PAT CAGRs of about 17.5 per cent and 14.5 per cent, respectively, over FY26 to FY28E, with EBITDA margin sustained at about 10 to 11 per cent. These estimates do not include CCL revenue until execution visibility improves.

Core Stainless-Steel Business

Ratnaveer Precision Engineering is a Gujarat-based manufacturer of finished stainless-steel sheets, washers, solar roofing hooks, pipes and tubes. The company operates five integrated manufacturing facilities, uses 90 per cent renewable power and has full forward and backward integration.

In FY26, stainless-steel finishing-line sheets accounted for about 53 per cent of revenue. Other key contributors were stainless-steel washers at about 15 per cent, sheet-metal components at about 11 per cent, scrap sales at about 9 per cent, tubes and pipes at about 6.5 per cent, and nuts and bolts at about 5.5 per cent.

Healthy Q1FY27 Performance

Reported Q1FY27 performance was healthy, with demand remaining supportive across the stainless-steel product portfolio. Revenue rose 18.9 per cent year-on-year to Rs 315 crore, while EBITDA increased 19.1 per cent year-on-year to Rs 32.2 crore. EBITDA margin was broadly stable at 10.2 per cent, which ICICI Securities attributes to a balanced product mix despite ongoing expansion.

CCL: New Diversification and Growth Avenue

The broker views CCL as Ratnaveer Precision Engineering’s key diversification initiative, moving the company beyond stainless-steel products towards electronics materials serving the printed circuit board (PCB) ecosystem. The CCL project was about 60 per cent complete at the time of the report.

Machinery for Line 1 had been ordered and inspected and was under shipment or installation. Commissioning remained on track for November 2026, while the remaining four production lines are intended to be commissioned in phases.

Phase 1 investment of Rs 338 crore has received ECMS approval. The wider Rs 472.34 crore project has received in-principle approval under the Gujarat Electronics Policy.

CCL Market Opportunity

The report identifies a substantial import-substitution opportunity. The domestic CCL market exceeds Rs 5,000 crore, with more than 90 per cent of demand currently imported. Management estimates that the Indian PCB market could reach Rs 1.77 lakh crore by 2032, implying a 16.4 per cent CAGR, while the Indian CCL market could reach Rs 29,880 crore by 2031.

The opportunity is supported by Make in India, semiconductor, electric vehicle and defence-manufacturing tailwinds.

Management’s FY31 CCL Case

Management’s full-scale FY31 financial case for CCL envisages revenue above Rs 750 crore, EBITDA of Rs 150 crore at a 20 per cent margin, PAT of Rs 83 crore and a 29 per cent return on investment.

Capacity, Funding and Growth Aspirations

Management has articulated an aspiration to achieve about Rs 2,500 crore of consolidated revenue over the next three to five years, including about Rs 1,800 crore from the existing stainless-steel businesses.

Recent credit-rating upgrades, enhanced banking limits and an NSE- and BSE-approved Rs 330 crore rights issue are expected to support future growth funding.

Key Risks

• A slowdown in industrial capital expenditure.
• High working-capital requirements.