Check Before You Invest : Eastcoast Steel Ltd

Snapshot

Q.1 Which industry/sub-sector does Eastcoast Steel Ltd belong to?

Eastcoast Steel Ltd belongs to the Metals & Mining sector, operating specifically within the Steel & Iron Products segment.

Q.2 Is Eastcoast Steel Ltd a good quality company?

Eastcoast Steel Ltd is a quality company, based on a 5-year financial track record.

Q.3 Is Eastcoast Steel Ltd undervalued or overvalued?

Eastcoast Steel Ltd appears Fair, as its key valuation ratios are in line with their past averages.

Q.4 Is Eastcoast Steel Ltd a good buy now?

Eastcoast Steel 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

Q.1 Return on capital employed (ROCE) of Eastcoast Steel Ltd?

Eastcoast Steel Ltd Return on capital employed is -1.68% for FY-2025, which is below its 5-year historical median of 1.54%. The current ROCE is below its estimated weighted average cost of capital (WACC) of 14%, indicating value preservation.

Q.2 Return on Asset of Eastcoast Steel Ltd?

Eastcoast Steel Ltd Return on Asset is -0.6%, which is below its 5-year historical median of -0.11%, indicating deteriorated asset utilization efficiency.

Q.3 Return on Equity (ROE) of Eastcoast Steel Ltd?

Eastcoast Steel Ltd Return on equity is -0.79% for FY-2025, which is below its 5-year historical median of -0.15%, indicating the business is making worse use of its shareholders capital.

Q.4 Cash conversion cycle of Eastcoast Steel Ltd?

Eastcoast Steel Ltd Cash conversion cycle is 73 days, in line with its 5-year historical median of 73 days, indicating stable working capital management. However, you need to compare this with its peers in the industry.

	Current Level	5-year Historic Median
Asset Turnover	0.61	0.61
ROE	-0.79	-0.15
ROCE	-1.68	1.54
Cash Conversion Cycle	73 days	73 days

Q.5 Gross Profit margin of Eastcoast Steel Ltd?

Eastcoast Steel Ltd Gross profit margin which is the profit after deduction of direct costs, is -2.8% for FY-2025, which is below its 5-year median of 3.1%, indicating decreasing margins.

Q.6 Operating Profit Margin of Eastcoast Steel Ltd?

Eastcoast Steel Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is -6.06% for FY-2025, which is in line with its 5-year median of -6.06% indicating stable margins.

Q.7 Net Profit Margin of Eastcoast Steel Ltd?

Eastcoast Steel Ltd Net Profit Margin is -0.99% for FY-2025, is below with its 5-year median of -0.15%, indicating decreasing margins.

	Current Level	5-year Historic Median
Gross Profit Margin	-2.8	3.1
Operating Profit Margin	-6.06	-6.06
Net Profit Margin	-0.99	-0.15

Q.8 Debt to Equity ratio of Eastcoast Steel Ltd?

Eastcoast Steel Ltd Debt-to-Equity ratio is 0.13, which is lower with the industry average of 0.35, indicating lower debt levels in the industry.

Q.9 Debt to cash flow from operations of Eastcoast Steel Ltd?

Eastcoast Steel Ltd Debt to cash flow from operations is -1.99, which is at a unhealthy level.

Ownership & governance

Q.1 Promoter shareholding and pledge status of Eastcoast Steel Ltd?

Promoters hold 20.00% of the Eastcoast Steel Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

Q.1 Revenue growth of Eastcoast Steel Ltd vs industry peers?

Eastcoast Steel Ltd revenue CAGR is 0.00%, compared to the industry median CAGR of 11.40%, indicating slower growth and losing its market share.

Profit Metrics

	Current Level	5-year Industry Median
Revenue Growth	-	11.4
Gross Profit Growth	0	19.4
Operating Profit Growth	0	13.9
Net Profit Growth	0	25.2

Operating Efficiency

	Current Level	5-year Industry Median
Asset Turnover	0.61	1.33
ROE	-0.79	9.64
ROCE	-1.68	12.04
Cash Conversion Cycle (days)	72.69	80

Valuation & price assessment

Q.1 Stock return of Eastcoast Steel Ltd over the last decade?

Over the last 9 year(s), the stock has delivered a CAGR of -12.7% based on the current price.

Q.2 What return has the stock given over the last decade?

	9Y	5Y	3Y	1Y
Share Price CAGR	-12.7%	-23.8%	-21.5%	2.2%

Q.3 Valuation ratios of Eastcoast Steel Ltd vs historical?

The current P/E is lower that its historical median.

Q.4 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	23.46	61.79	17.26
Price to Book	0.47	0.77	1.63
Price to Sales	2.8	2.03	0.74
EV to EBITDA	27.13	19.78	10.03

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