Check Before You Invest : Panchmahal Steel Ltd

Q: Which industry/sub-sector does Panchmahal Steel Ltd belong to?

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

Q: Is Panchmahal Steel Ltd a good quality company?

Panchmahal Steel Ltd is a average quality company, based on a somewhat consistent 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: Is Panchmahal Steel Ltd undervalued or overvalued?

Panchmahal Steel Ltd appears Somewhat overvalued, as its key valuation ratios are higher 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. Price to Earnings, Current: -, Historic Median: 7.04. Price to Book, Current: 3.9, Historic Median: 1.84. Price to Sales, Current: 1.63, Historic Median: 0.60. EV to EBITDA, Current: 61.85, Historic Median: 17.05

Q: Is Panchmahal Steel Ltd a good buy now?

Panchmahal 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

Q: Revenue growth of Panchmahal Steel Ltd?

Panchmahal Steel Ltd revenue growth is -10.4% for FY-2025, which is below its 5-year CAGR of 3%, indicating slower growth.

Q: Gross Profit margin of Panchmahal Steel Ltd?

Panchmahal Steel Ltd Gross profit margin which is the profit after deduction of direct costs, is 3.3% for FY-2025, which is in line with its 5-year median of 3.3%, indicating stable margins.

Q: Operating Profit Margin of Panchmahal Steel Ltd?

Panchmahal Steel Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 4.05% for FY-2025, which is in line with its 5-year median of 4.05% indicating stable margins.

Q: Net Profit Margin of Panchmahal Steel Ltd?

Panchmahal Steel Ltd Net Profit Margin is 0.87% for FY-2025, is in line with its 5-year median of 0.87%, indicating stable margins. Profitability Metrics. Gross Profit Margin (%), Current: 3.3, Historic Median: 3.3. Operating Profit Margin (%), Current: 4.05, Historic Median: 4.05. Net Profit Margin (%), Current: 0.87, Historic Median: 0.87

Q: Return on Asset of Panchmahal Steel Ltd?

Panchmahal Steel Ltd Return on Asset is 1.4%, which is in line with its 5-year historical median of 1.4%, indicating stable asset utilization efficiency.

Q: Return on capital employed (ROCE) of Panchmahal Steel Ltd?

Panchmahal Steel Ltd Return on capital employed is 5% for FY-2025, which is below its 5-year historical median of 5.56%. The current ROCE is below its estimated weighted average cost of capital (WACC) of 14%, indicating value preservation.

Check Before You Invest : Panchmahal Steel Ltd

Snapshot

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

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

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

Panchmahal Steel Ltd is a average quality company, based on a somewhat consistent 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 Panchmahal Steel Ltd undervalued or overvalued?

Panchmahal Steel Ltd appears Somewhat overvalued, as its key valuation ratios are higher 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	-	7.04
Price to Book	3.9	1.84
Price to Sales	1.63	0.60
EV to EBITDA	61.85	17.05

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

Panchmahal 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

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 Panchmahal Steel Ltd?

Panchmahal Steel Ltd revenue growth is -10.4% for FY-2025, which is below its 5-year CAGR of 3%, indicating slower growth.

Q.2 Gross Profit margin of Panchmahal Steel Ltd?

Panchmahal Steel Ltd Gross profit margin which is the profit after deduction of direct costs, is 3.3% for FY-2025, which is in line with its 5-year median of 3.3%, indicating stable margins.

Q.3 Operating Profit Margin of Panchmahal Steel Ltd?

Panchmahal Steel Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 4.05% for FY-2025, which is in line with its 5-year median of 4.05% indicating stable margins.

Q.4 Net Profit Margin of Panchmahal Steel Ltd?

Panchmahal Steel Ltd Net Profit Margin is 0.87% for FY-2025, is in line with its 5-year median of 0.87%, indicating stable margins.

	Current Level	5-year Historic Median
Gross Profit Margin (%)	3.3	3.3
Operating Profit Margin (%)	4.05	4.05
Net Profit Margin (%)	0.87	0.87

B: Does the business utilize capital efficiently?

Q.5 Return on Asset of Panchmahal Steel Ltd?

Panchmahal Steel Ltd Return on Asset is 1.4%, which is in line with its 5-year historical median of 1.4%, indicating stable asset utilization efficiency.

Q.6 Return on capital employed (ROCE) of Panchmahal Steel Ltd?

Panchmahal Steel Ltd Return on capital employed is 5% for FY-2025, which is below its 5-year historical median of 5.56%. 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 Panchmahal Steel Ltd?

Panchmahal Steel Ltd Return on equity is 2.1% for FY-2025, which is in line with its 5-year historical median of 2.1%, indicating the business is making similar use of its shareholders capital.

Q.8 Cash conversion cycle of Panchmahal Steel Ltd?

Panchmahal Steel Ltd Cash conversion cycle is 139 days, above its 5-year historical median of 94 days, indicating deteriorated working capital management. However, you need to compare this with its peers in the industry.

	Current Level	5-year Historic Median
Asset Turnover (x)	1.61	1.61
ROE (%)	2.1	2.1
ROCE (%)	5	5.56
Cash Conversion Cycle	139 days	94 days

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

Q.9 Debt to Equity ratio of Panchmahal Steel Ltd?

Panchmahal Steel Ltd Debt-to-Equity ratio is 0.31, 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 Panchmahal Steel Ltd?

Panchmahal Steel Ltd Debt to cash flow from operations is -9.84, which is at a unhealthy level.

Ownership & governance

D: Promoter shareholding and pledge status of Panchmahal Steel Ltd?

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

Promoters hold 73.81% of the Panchmahal Steel Ltd, with 5.79% of their stake pledged, indicating low pledge risk.

Peer comparison (industry-wise, mcap)

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

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

Panchmahal Steel Ltd revenue CAGR is 3.00%, 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 (%)	-10.4	7.6
Gross Profit Growth (%)	8.3	19.3
Operating Profit Growth (%)	-	13.8
Net Profit Growth (%)	-	24.6

Operating Efficiency

	Current Level	5-year Industry Median
Asset Turnover (x)	1.61	1.27
ROE (%)	2.1	8.04
ROCE (%)	5	11.28
Cash Conversion Cycle (days)	139.28	72

Valuation & price assessment

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

Over the last 9 year(s), the stock has delivered a CAGR of 29.4% based on the current price.

	9Y	5Y	3Y	1Y
Share Price CAGR	29.4%	34.9%	36.1%	106.2%

Q.2 Valuation ratios of Panchmahal Steel Ltd vs historical?

The current P/E ratio of 0 is lower than its historical median of 7.04, indicating that the stock is trading below 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	-	7.04	17.36
Price to Book	3.9	1.84	1.63
Price to Sales	1.63	0.60	0.74
EV to EBITDA	61.85	17.05	10.05

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Check Before You Invest : Panchmahal Steel Ltd

Snapshot

Performance Analysis

Ownership & governance

Peer comparison (industry-wise, mcap)

Profit Metrics

Operating Efficiency

Valuation & price assessment

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