Check Before You Invest : Steelman Telecom Ltd

Snapshot

Q.1 Which industry/sub-sector does Steelman Telecom Ltd belong to?

Steelman Telecom Ltd belongs to the Telecom sector, operating specifically within the Telecommunication - Service Provider segment.

Q.2 Is Steelman Telecom Ltd a good quality company?

Steelman Telecom Ltd is a quality company, based on a 8-year financial track record.

Q.3 Is Steelman Telecom Ltd undervalued or overvalued?

Steelman Telecom Ltd appears Undervalued, as its key valuation ratios are below with their past averages.

Q.4 Is Steelman Telecom Ltd a good buy now?

Steelman Telecom 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 Steelman Telecom Ltd?

Steelman Telecom Ltd revenue growth is -7.4% for FY-2025, which is below its 5-year CAGR of 15.23%, indicating slower growth.

Q.2 Return on capital employed (ROCE) of Steelman Telecom Ltd?

Steelman Telecom Ltd Return on capital employed is 15% for FY-2025, which is below its 5-year historical median of 16.53%. The current ROCE is above its estimated weighted average cost of capital (WACC) of 14%, indicating value creation.

Q.3 Return on Asset of Steelman Telecom Ltd?

Steelman Telecom Ltd Return on Asset is 7.22%, which is in line with its 5-year historical median of 7.22%, indicating stable asset utilization efficiency.

Q.4 Return on Equity (ROE) of Steelman Telecom Ltd?

Steelman Telecom Ltd Return on equity is 15.71% for FY-2025, which is below its 5-year historical median of 16.83%, indicating the business is making worse use of its shareholders capital.

Q.5 Cash conversion cycle of Steelman Telecom Ltd?

Steelman Telecom Ltd Cash conversion cycle is 50 days, in line with its 5-year historical median of 48 days, indicating stable working capital management. However, you need to compare this with its peers in the industry.

	Current Level	5-year Historic Median
Asset Turnover	1.6	2.38
ROE	15.71	16.83
ROCE	15	16.53
Cash Conversion Cycle	50 days	48 days

Q.6 Gross Profit margin of Steelman Telecom Ltd?

Steelman Telecom Ltd Gross profit margin which is the profit after deduction of direct costs, is 7.1% for FY-2025, which is above its 5-year median of 6.1%, indicating increasing margins.

Q.7 Operating Profit Margin of Steelman Telecom Ltd?

Steelman Telecom Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 7.46% for FY-2025, which is above its 5-year median of 5.77% indicating increasing margins.

Q.8 Net Profit Margin of Steelman Telecom Ltd?

Steelman Telecom Ltd Net Profit Margin is 4.59% for FY-2025, is above with its 5-year median of 3.87%, indicating increasing margins.

	Current Level	5-year Historic Median
Gross Profit Margin	7.1	6.1
Operating Profit Margin	7.46	5.77
Net Profit Margin	4.59	3.87

Q.9 Debt to Equity ratio of Steelman Telecom Ltd?

Steelman Telecom Ltd Debt-to-Equity ratio is 0.98, which is above with the industry average of -0.74, indicating higher debt levels in the industry.

Q.10 Debt to cash flow from operations of Steelman Telecom Ltd?

Steelman Telecom Ltd Debt to cash flow from operations is -2.88, which is at a unhealthy level.

Ownership & governance

Q.1 Promoter shareholding and pledge status of Steelman Telecom Ltd?

Promoters hold 71.98% of the Steelman Telecom Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

Q.1 Revenue growth of Steelman Telecom Ltd vs industry peers?

Steelman Telecom Ltd revenue CAGR is 15.23%, compared to the industry median CAGR of 1.18%, indicating faster growth and gaining its market share.

Profit Metrics

	Current Level	5-year Industry Median
Revenue Growth	-7.4	1.2
Gross Profit Growth	15.6	6.6
Operating Profit Growth	19.8	7.5
Net Profit Growth	10.1	26.4

Operating Efficiency

	Current Level	5-year Industry Median
Asset Turnover	1.6	0.86
ROE	15.71	2.09
ROCE	15	9.4
Cash Conversion Cycle (days)	50.12	-5

Valuation & price assessment

Q.1 Stock return of Steelman Telecom Ltd over the last decade?

Over the last 3 year(s), the stock has delivered a CAGR of -23.99% based on the current price.

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

	9Y	5Y	3Y	1Y
Share Price CAGR	-	-	-24%	-58.1%

Q.3 Valuation ratios of Steelman Telecom 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	8.29	22.75	19.31
Price to Book	1.21	3.25	0.68
Price to Sales	0.38	0.92	2.17
EV to EBITDA	7.15	13.74	12.27

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