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Check Before You Invest : Beekay Steel Industries Ltd

BSE: 539018 NSE: BEEKAY ISIN: INE213D01015
  |   Sector:  Metals & Mining   |   Industry:  Steel & Iron Products

Snapshot

Q.1 Which industry/sub-sector does Beekay Steel Industries Ltd belong to?
Beekay Steel Industries Ltd belongs to the Metals & Mining sector, operating specifically within the Steel & Iron Products segment.
Q.2 Is Beekay Steel Industries Ltd a good quality company?
Beekay Steel Industries Ltd is a good quality company, based on a consistently good 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 Beekay Steel Industries Ltd undervalued or overvalued?
Beekay Steel Industries Ltd appears 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 19.93 9.05
Price to Book 0.72 1.14
Price to Sales 0.64 0.74
EV to EBITDA 9.31 7.26
Q.4 Is Beekay Steel Industries Ltd a good buy now?
Beekay Steel Industries 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 Beekay Steel Industries Ltd?
Beekay Steel Industries Ltd revenue growth is 7.6% for FY-2025, which is above its 5-year CAGR of 5.8%, indicating faster growth.

Q.2 Gross Profit margin of Beekay Steel Industries Ltd?
Beekay Steel Industries Ltd Gross profit margin which is the profit after deduction of direct costs, is 13.4% for FY-2025, which is below its 5-year median of 15.1%, indicating decreasing margins.

Q.3 Operating Profit Margin of Beekay Steel Industries Ltd?
Beekay Steel Industries Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 11.43% for FY-2025, which is below its 5-year median of 14.81% indicating decreasing margins.

Q.4 Net Profit Margin of Beekay Steel Industries Ltd?
Beekay Steel Industries Ltd Net Profit Margin is 8.43% for FY-2025, is below its 5-year median of 9.77%, indicating decreasing margins.
Current Level 5-year
Historic Median
Gross Profit Margin (%) 13.4 15.1
Operating Profit Margin (%) 11.43 14.81
Net Profit Margin (%) 8.43 9.77

B: Does the business utilize capital efficiently?

Q.5 Return on Asset of Beekay Steel Industries Ltd?
Beekay Steel Industries Ltd Return on Asset is 6.73%, which is below its 5-year historical median of 11.14%, indicating deteriorated asset utilization efficiency.

Q.6 Return on capital employed (ROCE) of Beekay Steel Industries Ltd?
Beekay Steel Industries Ltd Return on capital employed is 10.47% for FY-2025, which is below its 5-year historical median of 15.49%. 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 Beekay Steel Industries Ltd?
Beekay Steel Industries Ltd Return on equity is 9.26% for FY-2025, which is below its 5-year historical median of 15.14%, indicating the business is making worse use of its shareholders capital.

Q.8 Cash conversion cycle of Beekay Steel Industries Ltd?
Beekay Steel Industries Ltd Cash conversion cycle is 114 days, below its 5-year historical median of 123 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) 0.8 1.04
ROE (%) 9.26 15.14
ROCE (%) 10.47 15.49
Cash Conversion Cycle 114 days 123 days

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

Q.9 Debt to Equity ratio of Beekay Steel Industries Ltd?
Beekay Steel Industries Ltd Debt-to-Equity ratio is 0.29, 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 Beekay Steel Industries Ltd?
Beekay Steel Industries Ltd Debt to cash flow from operations is 2.02, which is at a moderate level.

Ownership & governance

D: Promoter shareholding and pledge status of Beekay Steel Industries Ltd?

Q.1 Promoter shareholding and pledge status of Beekay Steel Industries Ltd?
Promoters hold 71.75% of the Beekay Steel Industries Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

E: How does Beekay Steel Industries Ltd performance compare with that of its Peers?

Q.1 Revenue growth of Beekay Steel Industries Ltd vs industry peers?
Beekay Steel Industries Ltd revenue CAGR is 5.80%, 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 (%) 7.6 7.6
Gross Profit Growth (%) -17.2 19.3
Operating Profit Growth (%) -10.2 13.8
Net Profit Growth (%) -31.6 24.6
Operating Efficiency
Current Level 5-year
Industry Median
Asset Turnover (x) 0.8 1.27
ROE (%) 9.26 8.04
ROCE (%) 10.47 11.28
Cash Conversion Cycle (days) 114.08 72

Valuation & price assessment

Q.1 Stock return of Beekay Steel Industries Ltd over the last decade?
Over the last 9 year(s), the stock has delivered a CAGR of 18% based on the current price.
9Y 5Y 3Y 1Y
Share Price
CAGR
18% 1.4% -3.9% -32.7%
Q.2 Valuation ratios of Beekay Steel Industries Ltd vs historical?
The current P/E ratio of 19.93 is higher than its historical median of 9.05, 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 19.93 9.05 17.36
Price to Book 0.72 1.14 1.63
Price to Sales 0.64 0.74 0.74
EV to EBITDA 9.31 7.26 10.05

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