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INVESTMENT INSIGHTS

Check Before You Invest : Steel Authority Of India Ltd

BSE: 500113 NSE: SAIL ISIN: INE114A01011
  |   Sector:  Metals & Mining   |   Industry:  Steel & Iron Products

Snapshot

Q.1 Which industry/sub-sector does Steel Authority Of India Ltd belong to?
Steel Authority Of India Ltd belongs to the Metals & Mining sector, operating specifically within the Steel & Iron Products segment.
Q.2 Is Steel Authority Of India Ltd a good quality company?
Steel Authority Of India Ltd is a weak quality company, based on a inconsistent 10 year financial track record.
Q.3 Is Steel Authority Of India Ltd undervalued or overvalued?
Steel Authority Of India Ltd appears Fair, as its key valuation ratios are in line with their past averages.
Q.4 Is Steel Authority Of India Ltd a good buy now?
Steel Authority Of India 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 Steel Authority Of India Ltd?
Steel Authority Of India Ltd revenue growth is -2.8% for FY-2025 , which is below its 5 year CAGR of 10.7% , indicating slower growth.
Q.2 Gross Profit margin of Steel Authority Of India Ltd?
Steel Authority Of India Ltd Gross profit margin which is the profit after deduction of direct costs, is 8.6% for FY-2025 , which is below its 5 year median of 9.1% , indicating decreasing margins.
Q.3 Operating Profit Margin of Steel Authority Of India Ltd?
Steel Authority Of India Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 10.63% for FY-2025 , which is below its 5 year median of 10.79% indicating decreasing margins.
Q.4 Net Profit Margin of Steel Authority Of India Ltd?
Steel Authority Of India Ltd Net Profit Margin is 2.1% for FY-2025 , is below with its 5 year median of 2.59%, indicating decreasing margins.
Current Level Historic Median
Gross Profit Margin 8.6 9.1
Operating Profit Margin 10.63 10.79
Net Profit Margin 2.1 2.59
Q.5 Return on Asset of Steel Authority Of India Ltd?
Steel Authority Of India Ltd Return on Asset is 1.58%, which is below its 5 year historical median of 2.06%, indicating deteriorated asset utilization efficiency.
Q.6 Return on Equity (ROE) of Steel Authority Of India Ltd?
Steel Authority Of India Ltd Return on equity is 3.91% for FY-2025 , which is below its historical median of 5.14%, indicating the business is making worse use of its shareholders capital.
Q.7 Return on capital employed (ROCE) of Steel Authority Of India Ltd?
Steel Authority Of India Ltd Return on capital employed is 6.34% for FY-2025 , which is below its estimated weighted average cost of capital(WACC) 11.25%, indicating value preservation.
Q.8 Cash conversion cycle of Steel Authority Of India Ltd?
Steel Authority Of India Ltd Cash conversion cycle is 84 days, above its historical median of 71 days, indicating deteriorated working capital management. However, you need to compare this with its peers in the industry.
Current Level Historic Median
Asset Turnover 0.77 0.81
ROE 3.91 5.14
ROCE 6.34 7.11
Cash Conversion Cycle 84 days 71 days
Q.9 Debt to Equity ratio of Steel Authority Of India Ltd?
Steel Authority Of India Ltd Debt-to-Equity ratio is 0.66 , which is above with the industry average of 0.41 , indicating higher debt levels in the industry.
Q.10 Debt to cash flow from operations of Steel Authority Of India Ltd?
Steel Authority Of India Ltd Debt to cash flow from operations is 3.74 , which is at a unhealthy level.

Ownership & governance

Q.1 Promoter shareholding and pledge status of Steel Authority Of India Ltd?
Promoters hold 65.00% of the Steel Authority Of India Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

Q.1 Revenue growth of Steel Authority Of India Ltd vs industry peers?
Steel Authority Of India Ltd revenue CAGR is 10.69% , compared to the industry median CAGR of 21.78% , indicating slower growth and losing its market share.
Profit Metrics
Current Level Industry Median
Revenue 1,02,478.2 35,697
Gross Profit 8,813.1 4,206.4
Operating Profit 10,629 4,511
Net Profit 2,148 2,500
Operating Efficiency
Current Level Industry Median
Asset Turnover 0.77 1.35
ROE 3.91 20.5
ROCE 6.34 20.97
Cash Conversion Cycle (days) 84.32 26

Valuation & price assessment

Q.1 Stock return of Steel Authority Of India Ltd over the last decade?
Over the last 9 year(s), the stock has delivered a CAGR of 14.6% based on the current price.
Q.2 What return has the stock given over the last decade?
9Y 5Y 3Y 1Y
Share Price 14.6% 13.5% 27.8% 50.9%
Q.3 Valuation ratios of Steel Authority Of India Ltd vs historical?
The current P/E is higher 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 25.94 24.93 23.93
Price to Book 1.26 0.44 1.46
Price to Sales 0.65 0.31 0.74
EV to EBITDA 7.92 7.61 9.89

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