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INVESTMENT INSIGHTS

Check Before You Invest : Panchmahal Steel Ltd

BSE: 513511 NSE: PANCHMSTEL ISIN: INE798F01010
  |   Sector:  Metals & Mining   |   Industry:  Steel & Iron Products

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 10 year financial track record.
Q.3 Is Panchmahal Steel Ltd undervalued or overvalued?
Panchmahal Steel Ltd appears Somewhat overvalued, as its key valuation ratios are above with their past averages.
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

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 with its 5 year median of 0.87%, indicating stable margins.
Current Level Historic Median
Gross Profit Margin 3.3 3.3
Operating Profit Margin 4.05 4.05
Net Profit Margin 0.87 0.87
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 Equity (ROE) of Panchmahal Steel Ltd?
Panchmahal Steel Ltd Return on equity is 2.1% for FY-2025 , which is in line with its historical median of 2.1%, indicating the business is making similar use of its shareholders capital.
Q.7 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 estimated weighted average cost of capital(WACC) 14%, indicating value preservation.
Q.8 Cash conversion cycle of Panchmahal Steel Ltd?
Panchmahal Steel Ltd Cash conversion cycle is 139 days, above its historical median of 94 days, indicating deteriorated working capital management. However, you need to compare this with its peers in the industry.
Current Level Historic Median
Asset Turnover 1.61 1.61
ROE 2.1 2.1
ROCE 5 5.56
Cash Conversion Cycle 139 days 94 days
Q.9 Debt to Equity ratio of Panchmahal Steel Ltd?
Panchmahal Steel Ltd Debt-to-Equity ratio is 0.31 , which is lower with the industry average of 0.32 , 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

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)

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 7.41% , indicating slower growth and losing its market share.
Profit Metrics
Current Level Industry Median
Revenue 383.1 364.5
Gross Profit 12.6 11.6
Operating Profit 16 15
Net Profit 3 6
Operating Efficiency
Current Level Industry Median
Asset Turnover 1.61 1.27
ROE 2.1 8.12
ROCE 5 11.38
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 30.7% based on the current price.
Q.2 What return has the stock given over the last decade?
9Y 5Y 3Y 1Y
Share Price 30.7% 46.5% 25.8% 75.9%
Q.3 Valuation ratios of Panchmahal Steel Ltd vs historical?
The current P/E is similar that its historical median.
Q.4 How do the current valuation ratios measure up against the historic numbers and the current industry numbers?
Valuation Ratios Current Historic Median Industry Median
Price to Earnings - 0.00 23.93
Price to Book 3.71 0.70 1.46
Price to Sales 1.55 0.22 0.74
EV to EBITDA 59.15 0.00 9.89

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3. Sarda Energy&Min.
4. Godawari Power & Isp
5. Gallantt Ispat
6. Ratnamani Metals
7. Jindal Saw
8. Usha Martin
9. NMDC Steel
10. Jayaswal Neco Inds
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