SAL Steel Ltd - Stock Valuation and Financial Performance

BSE: 532604 | NSE: SALSTEEL | Steel/Sponge Iron/Pig Iron | Small Cap

SAL Steels Share Price

20.71 -1.09 -5.00%
as on 28-Mar'24 16:01

DeciZen - make an informed investing decision on SAL Steels

Overall Rating
M-Cap below 500cr. High Risk from low Liquidity Bole Toh

1. Quality

2. Valuation

Overvalued

3. Price Trend

SAL Steel stock performance -

mw4me loader
P/E Ratio (SA):
0.00
Market Cap:
176 Cr.
52-wk low:
12.9
52-wk high:
30.6

Is SAL Steel Ltd an attractive stock to invest in?

1. Is SAL Steel Ltd a good quality company?

Past 10 year’s financial track record analysis by Moneyworks4me indicates that SAL Steel Ltd is a below average quality company.

2. Is SAL Steel Ltd undervalued or overvalued?

The key valuation ratios of SAL Steel Ltd's currently when compared to its past seem to suggest it is in the Overvalued zone.

3. Is SAL Steel Ltd a good buy now?

The Price Trend analysis by MoneyWorks4Me indicates it is Weak which suggest that the price of SAL Steel Ltd is likely to Fall in the short term. However, please check the rating on Quality and Valuation before investing.

10 Year X-Ray of SAL Steels:

Analysis of Financial Track Record

Data adjusted to bonus, split, extra-ordinary income, rights issue and change in financial year end
Data adjusted to bonus, split, extra-ordinary income, rights issue and change in financial year end

Data adjusted to bonus, split, extra-ordinary income, rights issue and change in financial year end.

Financial track record gives insight into the company's performance on key parameters over the past ten years. MoneyWorks4me’s proprietary colour codes make it easy for retail investors to gauge the company’s past performance.
SAL Steel Ltd has not performed well majority of the past ten years indicating its past ten year financial track record is not good

Value Creation

Value Creation Index Colour Code Guide

Mar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22Mar'23TTM
ROCE % -4.6%-12%2.3%0.6%-1.7%-4%-8.1%4.2%0%0.6%-
Value Creation
Index
-1.3NANA-1.0-1.1NA-1.6-0.7-1.0-1.0-

Growth Parameters

Growth Parameters Colour Code Guide

Sales 328365338361446574408301505496544
Sales YoY Gr.-11.4%-7.6%6.8%23.7%28.8%-29%-26.2%67.9%-1.9%-
Adj EPS -4-5-0.80-0.4-1-1.80.9-0-0.5-0.3
YoY Gr.-NANANANANANANA-101.2%NA-
BVPS (₹) 8.2-0.7-4.1-4.62.4-0.21.73.14.54.94.6
Adj Net
Profit
-34.1-42.7-6.80-3.6-8.4-157.2-0.1-4.6-2
Cash Flow from Ops. -16.821.91.9-5.86.9-4.153.723.522.48.4-
Debt/CF from Ops. -10.55.646-29.525.4-41.236.25.615-

CAGR

CAGR Colour Code Guide

9 Years 5 Years 3 Years 1 Years
Sales 4.7%2.1%6.7%-1.9%
Adj EPS NANANANA
BVPS-5.6%15.4%41.9%9.9%
Share Price 29.1% 33% 87.1% 52.4%

Key Financial Parameters

Performance Ratio Colour Code Guide

Mar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22Mar'23TTM
Return on
Equity %
-38.9-133.932.7-039.3-88.4-226.135.3-0.4-11.5-5.9
Op. Profit
Mgn %
0.47.16.92.71.41.6-4.5-0.1-0.71.73.6
Net Profit
Mgn %
-10.4-11.7-20-0.8-1.5-3.72.4-0-0.9-0.4
Debt to
Equity
2.5-19.2-2.5-4.58.6-135.1115.63.33-
Working Cap
Days
1459881991068713217410110352
Cash Conv.
Cycle
4833285468486880415716

Recent Performance Summary

Debt to equity has declined versus last 3 years average to 3.01

Return on Equity is Poor

Sales growth has been subdued in last 3 years 6.72%

Sales growth is not so good in last 4 quarters at -0.81%

Latest Financials - SAL Steel Ltd.

Standalone Consolidated
TTM EPS (₹) -0.3 -
TTM Sales (₹ Cr.) 544 -
BVPS (₹.) 4.6 -
Reserves (₹ Cr.) -46 -
P/BV 4.48 -
PE 0.00 -
From the Market
52 Week Low / High (₹) 12.89 / 30.57
All Time Low / High (₹) 1.00 / 33.35
Market Cap (₹ Cr.) 176
Equity (₹ Cr.) 85
Face Value (₹) 10
Industry PE 20

Management X-Ray of SAL Steels:

Shareholding Pattern

Promoter's Holding & Share Pledging

Pledged *100.00100.00100.00100.00100.0074.9674.9674.9645.3945.39
* Pledged shares as % of Promoter's holding (%)

Event Update

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Analyst's Notes

Key Ratios of SAL Steels

Adj EPS (Rs.)

Sales (Cr.)

ROE (%)

ROCE (%)

Profit And Loss

(All Figures are in Crores.)
PARTICULARSMar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22Mar'23
Sales328365338361446574408301505496
Operating Expenses 328339314351440565426301509487
Manufacturing Costs5350596779105766811090
Material Costs248269224238327416326209375372
Employee Cost 10101113141610151719
Other Costs 18112033202713966
Operating Profit 026231069-180-48
Operating Profit Margin (%) -0.1%7.1%6.9%2.7%1.4%1.6%-4.5%-0.1%-0.7%1.7%
Other Income 21123144222914
Interest 3030121122008
Depreciation 179888889910
Exceptional Items 0-47-32064-200000
Profit Before Tax -47-59-29464-191712166
Tax -1116032231152
Profit After Tax -35-76-29142-221612124
PAT Margin (%) -10.8%-20.8%-8.5%0.2%9.5%-3.8%3.9%3.8%2.3%0.7%
Adjusted EPS (₹)-4.2-8.9-3.40.15.0-2.51.91.41.40.4
Dividend Payout Ratio (%)0%0%0%0%0%0%0%0%0%0%

Balance Sheet

(All Figures are in Crores.)
PARTICULARSMar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22Mar'23

Equity and Liabilities

Shareholders Fund 70-6-35-3920-115263842
Share Capital 85858585858585858585
Reserves -15-91-120-124-65-86-70-59-47-43
Minority Interest0000000000
Debt12992751691671621461240125
Long Term Debt541541691671601461240125
Short Term Debt7577710020000
Trade Payables24252329274967634729
Others Liabilities 1741761871316773878220681
Total Liabilities 397287250290282283314295291277

Fixed Assets

Gross Block311311312313315320320366365365
Accumulated Depreciation154164172180188194202211220229
Net Fixed Assets156147140133128126118155146136
CWIP 104562525251146113
Investments 0000000000
Inventories39322960763220324959
Trade Receivables481340503591120865570
Cash Equivalents 1111201121
Others Assets4937152016231020398
Total Assets 397287250290282283314295291277

Cash Flow

(All Figures are in Crores.)
PARTICULARSMar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22Mar'23
Cash Flow From Operating Activity -17222-67-45423228
PBT -46-59-29464-191712166
Adjustment 49392189999917
Changes in Working Capital -19-5-23-17-6652841-12
Tax Paid 0000000-2-4-2
Cash Flow From Investing Activity 10-1-1-38-35-10-2
Capex 00-1-1-3-60-10-2
Net Investments 0000000000
Others 1000014-35000
Cash Flow From Financing Activity 11-22-17-3-6-18-22-22-7
Net Proceeds from Shares 0000000000
Net Proceeds from Borrowing 27000000000
Interest Paid -32-30-12-1-1-2-200-8
Dividend Paid 0000000000
Others 168127-2-5-17-22-221
Net Cash Flow -40001-2010-1
PARTICULARSMar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22Mar'23
Ratios
ROE (%)-42.29N/AN/AN/A0N/A238.7356.7536.078.94
ROCE (%)-5.88N/AN/AN/A39.62N/A10.817.299.838.12
Asset Turnover Ratio0.871.191.41.471.562.031.370.991.721.75
PAT to CFO Conversion(x)N/AN/AN/A-60.17N/A3.381.921.832
Working Capital Days
Receivable Days442726423540941255146
Inventory Days47323041563423322940
Payable Days563339403133651145437

SAL Steel Ltd Stock News

SAL Steel Ltd FAQs

Company share prices are keep on changing according to the market conditions. The closing price of SAL Steels on 28-Mar-2024 16:01 is ₹20.71.
Market capitalization or market cap is determined by multiplying the current market price of a company's shares with the total number of shares outstanding. As of 28-Mar-2024 16:01 the market cap of SAL Steels stood at ₹176.0.
The latest P/E ratio of SAL Steels as of 28-Mar-2024 16:01 is 0.00.
The latest P/B ratio of SAL Steels as of 28-Mar-2024 16:01 is 4.48.
The 52-week high of SAL Steels is ₹30.57 and the 52-week low is ₹12.89.
The TTM revenue is Trailing Twelve Months sales. The TTM revenue/sales of SAL Steels is ₹543.7 ( Cr.) .

About SAL Steel Ltd

S A L Steel was incorporated on November 6, 2003 under the Companies Act, 1956 as a private limited company and as such did not require any certificate of commencement of business. Pursuant to its conversion from a private limited company to a public limited company, a fresh Certificate of Incorporation was issued on December 17, 2003 and its name was changed from S A L Steel Private Limited to S A L Steel Limited.

SAL achieved assessment standard of ISO 9001:2000 in April 2002 from SGS Yarsley International Certification Services for manufacture and supply of mild steel, stainless steel and other alloy steel plates and coils.

In 2011 S A L Steel entered into a Memorandum of Understanding with the Government of Gujarat for establishment of the Cement project at Kachchh.

Business areas of the company: 

SAL is engaged in manufacture of stainless steel (SS) products. The main products of the company include stainless steel, hot rolled (HR) sheets, coils, plates, slabs, flats, rounds, bars, etc. The stainless steel products are used for manufacture/preparation of utensils, railway coaches, wagons, electrical appliances, food processing equipment, pharmaceutical equipment, telecommunication equipment, household kitchenware, petroleum refining equipment, pressure vessels, large mufflers for engines, silencers, pipes and emission control units, bulk solid handling areas, surgical instruments, vegetable choppers, tableware, cutlery, washing machine parts, automobile components, etc.

Group companies:

  • Shah Steel and Rolling Industries (SSRI)

SSRI is a partnership firm managed by Rajendra V. Shah and Ragini R. Shah. The firm commenced operations in 1997-98 to manufacture M S angles, CTD bars, sections and melting scrap. The firm has stopped its manufacturing activity. Its main source of income is labour charges and rent income.

  • Shah Industries Unit - I (SIU-I)

SIU-I is a proprietorship firm managed by Rajendra V Shah. The firm commenced operations in 1986-87. It has stopped its manufacturing activity. Its main source of income is rent, commission, etc.

  • Shah Steel Udyog (SSU)

SSU is a proprietorship firm managed by Rajendra V Shah HUF. The firm commenced operations in 1998-99 and is in business of manufacturing of M S angles, CTD bars, sections and melting scrap.

  • Shah Steel Craft and Rolling Industries (SSCRI)

SSCRI is a proprietorship firm managed by Ragini R Shah. The firm commenced operations in 1987-88 and is in the business of manufacture M S angles, CTD bars, sections, channels, etc. The concern has stopped its manufacturing activity. The main source of income is rent.

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