MoneyWorks4Me

Check Before You Invest : Panchmahal Steel Ltd

BSE: 513511 NSE: PANCHMAHQ 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 weak quality company, based on a inconsistent 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 0-year
Historic Median
Price to Earnings - 62.36
Price to Book - 11.33
Price to Sales - 12.27
EV to EBITDA - 43.11
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.

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

Q.1 Debt to Equity ratio of Panchmahal Steel Ltd?
Panchmahal Steel Ltd Debt-to-Equity ratio is 0.00, which is in line with the industry average of , indicating similar to debt levels in the industry.

Q.2 Debt to cash flow from operations of Panchmahal Steel Ltd?
Panchmahal Steel Ltd Debt to cash flow from operations is 0, which is at a healthy 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 %, compared to the industry median CAGR of 0.00%, indicating stable growth and maintaining its market share.
Profit Metrics
Current Level 0-year
Industry Median
Revenue Growth (%) - 0
Gross Profit Growth (%) - 20.7
Operating Profit Growth (%) - 20.2
Net Profit Growth (%) - 21.6
Operating Efficiency
Current Level 0-year
Industry Median
Asset Turnover (x) - 0.92
ROE (%) - 15.21
ROCE (%) - 18.68
Cash Conversion Cycle (days) - 93

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 30.5% based on the current price.
9Y 5Y 3Y 1Y
Share Price
CAGR
30.5% 27.4% 27.6% 0.7%
Q.2 Valuation ratios of Panchmahal Steel Ltd vs historical?
The current P/E ratio of 0 is lower than its historical median of 62.36, indicating that the stock is trading below its historical average valuation.
Q.3 How do the current valuation ratios compare with 0-year historical median and industry numbers?
Valuation Ratios Current 0-year
Historic Median
0-year
Industry Median
Price to Earnings - 62.36 -
Price to Book - 11.33 -
Price to Sales - 12.27 -
EV to EBITDA - 43.11 -

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