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INVESTMENT INSIGHTS

Check Before You Invest : Aanchal Ispat Ltd

BSE: 538812 NSE: ISIN: INE322R01022
  |   Sector:  Metals & Mining   |   Industry:  Steel & Iron Products

Snapshot

Q.1 Which industry/sub-sector does Aanchal Ispat Ltd belong to?
Aanchal Ispat Ltd belongs to the Metals & Mining sector, operating specifically within the Steel & Iron Products segment.
Q.2 Is Aanchal Ispat Ltd a good quality company?
Aanchal Ispat Ltd is a quality company, based on a multi-year financial track record.

This assessment is based on company’s performance on Revenue growth, ROCE, Equity and Assets, key margin ratios, cash conversion cycle, and debt to cash flow from operations and how it compares with its long term averages.

Q.3 Is Aanchal Ispat Ltd undervalued or overvalued?
Aanchal Ispat Ltd appears Somewhat Undervalued, as its key valuation ratios are lower than their past averages.

Based on the industry it operates in, the relevant valuation ratios include one of the following, P/E, P/BV, P/Sales, EV/EBITDA or a combination of two or more.

Valuation Ratios Current 5-year
Historic Median
Price to Earnings 5.84 -
Price to Book 1.44 0.71
Price to Sales 0.12 0.12
EV to EBITDA 2.22 -1.85
Q.4 Is Aanchal Ispat Ltd a good buy now?
Aanchal Ispat Ltd is not a good buy now, based on weak price trend analysis suggesting prices may fall. However, you need to check its quality and valuation before making a decision

Performance Analysis

We have analysed the performance of the company on the following:

  • How has it performed on generating Profits?

    By checking its Revenue growth, Gross, Operating and Net Margins compared to its last 5-year median.

  • How efficiently has it utilized Capital?

    By checking its ROCE, ROA, ROE and its Cash Conversion Cycle.

  • How is it managing its Debt?

    By checking its Debt to Equity and Cash Flow from Operations.

A: What are the trends in revenue and profit margins?

Q.1 Revenue growth of Aanchal Ispat Ltd?
Aanchal Ispat Ltd revenue growth is 38.2% for FY-2025, which is above its 5-year CAGR of -2.38%, indicating faster growth.

Q.2 Gross Profit margin of Aanchal Ispat Ltd?
Aanchal Ispat Ltd Gross profit margin which is the profit after deduction of direct costs, is -3.1% for FY-2025, which is above its 5-year median of -4.8%, indicating increasing margins.

Q.3 Operating Profit Margin of Aanchal Ispat Ltd?
Aanchal Ispat Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is -3.22% for FY-2025, which is below its 5-year median of -2.98% indicating decreasing margins.

Q.4 Net Profit Margin of Aanchal Ispat Ltd?
Aanchal Ispat Ltd Net Profit Margin is -8.87% for FY-2025, is below its 5-year median of -5.71%, indicating decreasing margins.
Current Level 5-year
Historic Median
Gross Profit Margin (%) -3.1 -4.8
Operating Profit Margin (%) -3.22 -2.98
Net Profit Margin (%) -8.87 -5.71

B: Does the business utilize capital efficiently?

Q.5 Return on Asset of Aanchal Ispat Ltd?
Aanchal Ispat Ltd Return on Asset is -17.59%, which is below its 5-year historical median of -5.93%, indicating deteriorated asset utilization efficiency.

Q.6 Return on capital employed (ROCE) of Aanchal Ispat Ltd?
Aanchal Ispat Ltd Return on capital employed is -41.41% for FY-2025, which is below its 5-year historical median of -4.77%. The current ROCE is below its estimated weighted average cost of capital (WACC) of 14%, indicating value preservation.

Q.7 Return on Equity (ROE) of Aanchal Ispat Ltd?
Aanchal Ispat Ltd Return on equity is -1168.72% for FY-2025, which is below its 5-year historical median of -139.47%, indicating the business is making worse use of its shareholders capital.

Q.8 Cash conversion cycle of Aanchal Ispat Ltd?
Aanchal Ispat Ltd Cash conversion cycle is 95 days, below its 5-year historical median of 193 days, indicating improved working capital management. However, you need to compare this with its peers in the industry.
Current Level 5-year
Historic Median
Asset Turnover (x) 1.98 1.28
ROE (%) -1168.72 -139.47
ROCE (%) -41.41 -4.77
Cash Conversion Cycle 95 days 193 days

C: How much debt does the business have and is it at a sustainable level?

Q.9 Debt to Equity ratio of Aanchal Ispat Ltd?
Aanchal Ispat Ltd Debt-to-Equity ratio is 0.00, which is lower the industry average of 0.31, indicating lower debt levels in the industry.

Q.10 Debt to cash flow from operations of Aanchal Ispat Ltd?
Aanchal Ispat Ltd Debt to cash flow from operations is 0, which is at a healthy level.

Ownership & governance

D: Promoter shareholding and pledge status of Aanchal Ispat Ltd?

Q.1 Promoter shareholding and pledge status of Aanchal Ispat Ltd?
Promoters hold 75.00% of the Aanchal Ispat Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

E: How does Aanchal Ispat Ltd performance compare with that of its Peers?

Q.1 Revenue growth of Aanchal Ispat Ltd vs industry peers?
Aanchal Ispat Ltd revenue CAGR is -2.38%, compared to the industry median CAGR of 7.56%, indicating slower growth and losing its market share.
Profit Metrics
Current Level 5-year
Industry Median
Revenue Growth (%) 38.2 7.6
Gross Profit Growth (%) 0 19.3
Operating Profit Growth (%) 0 13.8
Net Profit Growth (%) 0 24.6
Operating Efficiency
Current Level 5-year
Industry Median
Asset Turnover (x) 1.98 1.27
ROE (%) -1168.72 8.04
ROCE (%) -41.41 11.28
Cash Conversion Cycle (days) 94.74 72

Valuation & price assessment

Q.1 Stock return of Aanchal Ispat Ltd over the last decade?
Over the last 9 year(s), the stock has delivered a CAGR of 21.3% based on the current price.
9Y 5Y 3Y 1Y
Share Price
CAGR		 21.3% 51.4% 44.3% 721.1%
Q.2 Valuation ratios of Aanchal Ispat Ltd vs historical?
The current P/E ratio of 5.84 is higher than its historical median of , indicating that the stock is trading above its historical average valuation.
Q.3 How do the current valuation ratios compare with 5-year historical median and industry numbers?
Valuation Ratios Current 5-year
Historic Median		 5-year
Industry Median
Price to Earnings 5.84 - 17.36
Price to Book 1.44 0.71 1.63
Price to Sales 0.12 0.12 0.74
EV to EBITDA 2.22 -1.85 10.05

Check more companies

1. Welspun Corp
2. Shyam Metalics&Ener
3. Sarda Energy & Min.
4. Ratnamani Metal&Tube
5. Godawari Power & Isp
6. Jindal Saw
7. Vedanta Iron & Steel
8. Gallantt Ispat
9. Usha Martin
10. NMDC Steel

Check trending companies

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2. Ipca Laboratories Ltd.
3. Jindal Stainless Ltd.
4. Poly Medicure Ltd.
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