Check Before You Invest : Kalyani Steels Ltd

Snapshot

Q.1 Which industry/sub-sector does Kalyani Steels Ltd belong to?

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

Q.2 Is Kalyani Steels Ltd a good quality company?

Kalyani Steels Ltd is a good quality company, based on a consistently good 10-year financial track record.

Q.3 Is Kalyani Steels Ltd undervalued or overvalued?

Kalyani Steels Ltd appears Overvalued, as its key valuation ratios are above with their past averages.

Q.4 Is Kalyani Steels Ltd a good buy now?

Kalyani Steels Ltd is a good buy now, based on strong price trend analysis suggesting prices may rise. However, you need to check its quality and valuation before making a decision

Performance Analysis

Q.1 Revenue growth of Kalyani Steels Ltd?

Kalyani Steels Ltd revenue growth is 1.1% for FY-2025, which is below its 5-year CAGR of 10.58%, indicating slower growth.

Q.2 Return on capital employed (ROCE) of Kalyani Steels Ltd?

Kalyani Steels Ltd Return on capital employed is 15.61% for FY-2025, which is below its 5-year historical median of 16.68%. The current ROCE is above its estimated weighted average cost of capital (WACC) of 14%, indicating value creation.

Q.3 Return on Asset of Kalyani Steels Ltd?

Kalyani Steels Ltd Return on Asset is 9.5%, which is below its 5-year historical median of 10.03%, indicating deteriorated asset utilization efficiency.

Q.4 Return on Equity (ROE) of Kalyani Steels Ltd?

Kalyani Steels Ltd Return on equity is 14.07% for FY-2025, which is below its 5-year historical median of 15.56%, indicating the business is making worse use of its shareholders capital.

Q.5 Cash conversion cycle of Kalyani Steels Ltd?

Kalyani Steels Ltd Cash conversion cycle is 82 days, in line with its 5-year historical median of 82 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	0.74	0.79
ROE	14.07	15.56
ROCE	15.61	16.68
Cash Conversion Cycle	82 days	82 days

Q.6 Gross Profit margin of Kalyani Steels Ltd?

Kalyani Steels Ltd Gross profit margin which is the profit after deduction of direct costs, is 20.5% for FY-2025, which is in line with its 5-year median of 20.5%, indicating stable margins.

Q.7 Operating Profit Margin of Kalyani Steels Ltd?

Kalyani Steels Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 18.85% for FY-2025, which is in line with its 5-year median of 18.94% indicating stable margins.

Q.8 Net Profit Margin of Kalyani Steels Ltd?

Kalyani Steels Ltd Net Profit Margin is 12.77% for FY-2025, is in line with with its 5-year median of 12.77%, indicating stable margins.

	Current Level	5-year Historic Median
Gross Profit Margin	20.5	20.5
Operating Profit Margin	18.85	18.94
Net Profit Margin	12.77	12.77

Q.9 Debt to Equity ratio of Kalyani Steels Ltd?

Kalyani Steels Ltd Debt-to-Equity ratio is 0.23, which is lower with the industry average of 0.35, indicating lower debt levels in the industry.

Q.10 Debt to cash flow from operations of Kalyani Steels Ltd?

Kalyani Steels Ltd Debt to cash flow from operations is 1.14, which is at a healthy level.

Ownership & governance

Q.1 Promoter shareholding and pledge status of Kalyani Steels Ltd?

Promoters hold 64.70% of the Kalyani Steels Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

Q.1 Revenue growth of Kalyani Steels Ltd vs industry peers?

Kalyani Steels Ltd revenue CAGR is 10.58%, 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	1.1	11.4
Gross Profit Growth	3.3	19.8
Operating Profit Growth	0.5	13.9
Net Profit Growth	2.4	25.2

Operating Efficiency

	Current Level	5-year Industry Median
Asset Turnover	0.74	1.33
ROE	14.07	9.64
ROCE	15.61	12.04
Cash Conversion Cycle (days)	81.65	80

Valuation & price assessment

Q.1 Stock return of Kalyani Steels Ltd over the last decade?

Over the last 9 year(s), the stock has delivered a CAGR of 18.7% based on the current price.

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

	9Y	5Y	3Y	1Y
Share Price CAGR	18.7%	18.1%	38%	20.6%

Q.3 Valuation ratios of Kalyani Steels Ltd vs historical?

The current P/E is higher 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	14.82	9.71	17.26
Price to Book	1.92	1.43	1.63
Price to Sales	2.05	1.24	0.74
EV to EBITDA	8.91	4.72	10.03

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