Check Before You Invest : MSP Steel & Power Ltd

Snapshot

Q.1 Which industry/sub-sector does MSP Steel & Power Ltd belong to?

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

Q.2 Is MSP Steel & Power Ltd a good quality company?

MSP Steel & Power Ltd is a average quality company, based on a somewhat consistent 10-year financial track record.

Q.3 Is MSP Steel & Power Ltd undervalued or overvalued?

MSP Steel & Power Ltd appears Somewhat overvalued, as its key valuation ratios are above with their past averages.

Q.4 Is MSP Steel & Power Ltd a good buy now?

MSP Steel & Power 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 MSP Steel & Power Ltd?

MSP Steel & Power Ltd revenue growth is 1.1% for FY-2025, which is below its 5-year CAGR of 13.64%, indicating slower growth.

Q.2 Return on capital employed (ROCE) of MSP Steel & Power Ltd?

MSP Steel & Power Ltd Return on capital employed is 6.42% for FY-2025, which is in line with its 5-year historical median of 6.42%. The current ROCE is below its estimated weighted average cost of capital (WACC) of 14%, indicating value preservation.

Q.3 Return on Asset of MSP Steel & Power Ltd?

MSP Steel & Power Ltd Return on Asset is -1.83%, which is below its 5-year historical median of 0.32%, indicating deteriorated asset utilization efficiency.

Q.4 Return on Equity (ROE) of MSP Steel & Power Ltd?

MSP Steel & Power Ltd Return on equity is -3.84% for FY-2025, which is below its 5-year historical median of 0.92%, indicating the business is making worse use of its shareholders capital.

Q.5 Cash conversion cycle of MSP Steel & Power Ltd?

MSP Steel & Power Ltd Cash conversion cycle is 40 days, below its 5-year historical median of 43 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	1.86	1.53
ROE	-3.84	0.92
ROCE	6.42	6.42
Cash Conversion Cycle	40 days	43 days

Q.6 Gross Profit margin of MSP Steel & Power Ltd?

MSP Steel & Power Ltd Gross profit margin which is the profit after deduction of direct costs, is 1.9% for FY-2025, which is below its 5-year median of 2.6%, indicating decreasing margins.

Q.7 Operating Profit Margin of MSP Steel & Power Ltd?

MSP Steel & Power Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 4.61% for FY-2025, which is in line with its 5-year median of 4.61% indicating stable margins.

Q.8 Net Profit Margin of MSP Steel & Power Ltd?

MSP Steel & Power Ltd Net Profit Margin is -0.99% for FY-2025, is below with its 5-year median of 0.29%, indicating decreasing margins.

	Current Level	5-year Historic Median
Gross Profit Margin	1.9	2.6
Operating Profit Margin	4.61	4.61
Net Profit Margin	-0.99	0.29

Q.9 Debt to Equity ratio of MSP Steel & Power Ltd?

MSP Steel & Power Ltd Debt-to-Equity ratio is 0.27, 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 MSP Steel & Power Ltd?

MSP Steel & Power Ltd Debt to cash flow from operations is 1.38, which is at a healthy level.

Ownership & governance

Q.1 Promoter shareholding and pledge status of MSP Steel & Power Ltd?

Promoters hold 40.22% of the MSP Steel & Power Ltd, with 71.27% of their stake pledged, indicating high pledge risk.

Peer comparison (industry-wise, mcap)

Q.1 Revenue growth of MSP Steel & Power Ltd vs industry peers?

MSP Steel & Power Ltd revenue CAGR is 13.64%, compared to the industry median CAGR of 11.40%, indicating faster growth and gaining its market share.

Profit Metrics

	Current Level	5-year Industry Median
Revenue Growth	1.1	11.4
Gross Profit Growth	-26.3	19.4
Operating Profit Growth	6.4	13.9
Net Profit Growth	-307.1	25.2

Operating Efficiency

	Current Level	5-year Industry Median
Asset Turnover	1.86	1.33
ROE	-3.84	9.64
ROCE	6.42	12.04
Cash Conversion Cycle (days)	39.87	80

Valuation & price assessment

Q.1 Stock return of MSP Steel & Power Ltd over the last decade?

Over the last 9 year(s), the stock has delivered a CAGR of 11.7% based on the current price.

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

	9Y	5Y	3Y	1Y
Share Price CAGR	11.7%	23.8%	61.7%	42.8%

Q.3 Valuation ratios of MSP Steel & Power 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	-	44.83	17.26
Price to Book	2.27	1.22	1.63
Price to Sales	0.75	0.28	0.74
EV to EBITDA	15.63	13.01	10.03

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