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Check Before You Invest : Vraj Iron & Steel Ltd

BSE: 544204 NSE: VRAJ ISIN: INE0S2V01010
  |   Sector:  Metals & Mining   |   Industry:  Steel/Sponge Iron/Pig Iron

Snapshot

Q.1 Which industry/sub-sector does Vraj Iron & Steel Ltd belong to?
Vraj Iron & Steel Ltd belongs to the Metals & Mining sector, operating specifically within the Steel/Sponge Iron/Pig Iron segment.
Q.2 Is Vraj Iron & Steel Ltd a good quality company?
Vraj Iron & Steel Ltd is a good quality company, based on a consistently good 10 year financial track record.
Q.3 Is Vraj Iron & Steel Ltd undervalued or overvalued?
Vraj Iron & Steel Ltd appears Undervalued, as its key valuation ratios are below with their past averages.
Q.4 Is Vraj Iron & Steel Ltd a good buy now?
Vraj Iron & Steel 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 Vraj Iron & Steel Ltd?
Vraj Iron & Steel Ltd revenue growth is 13.1% for FY-2025 , which is above its 5 year CAGR of 0% , indicating faster growth.
Q.2 Gross Profit margin of Vraj Iron & Steel Ltd?
Vraj Iron & Steel Ltd Gross profit margin which is the profit after deduction of direct costs, is 13.6% for FY-2025 , which is in line with its 5 year median of 13.6% , indicating stable margins.
Q.3 Operating Profit Margin of Vraj Iron & Steel Ltd?
Vraj Iron & Steel Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 13.2% for FY-2025 , which is in line with its 5 year median of 13.2% indicating stable margins.
Q.4 Net Profit Margin of Vraj Iron & Steel Ltd?
Vraj Iron & Steel Ltd Net Profit Margin is 8.81% for FY-2025 , is in line with with its 5 year median of 8.81%, indicating stable margins.
Current Level Historic Median
Gross Profit Margin 13.6 13.6
Operating Profit Margin 13.2 13.2
Net Profit Margin 8.81 8.81
Q.5 Return on Asset of Vraj Iron & Steel Ltd?
Vraj Iron & Steel Ltd Return on Asset is 11.91%, which is below its 5 year historical median of 20.45%, indicating deteriorated asset utilization efficiency.
Q.6 Return on Equity (ROE) of Vraj Iron & Steel Ltd?
Vraj Iron & Steel Ltd Return on equity is 14.61% for FY-2025 , which is below its historical median of 33.51%, indicating the business is making worse use of its shareholders capital.
Q.7 Return on capital employed (ROCE) of Vraj Iron & Steel Ltd?
Vraj Iron & Steel Ltd Return on capital employed is 18.46% for FY-2025 , which is above its estimated weighted average cost of capital(WACC) 14%, indicating value creation.
Q.8 Cash conversion cycle of Vraj Iron & Steel Ltd?
Vraj Iron & Steel Ltd Cash conversion cycle is 40 days, above its historical median of 23 days, indicating deteriorated working capital management. However, you need to compare this with its peers in the industry.
Current Level Historic Median
Asset Turnover 1.35 2.3
ROE 14.61 33.51
ROCE 18.46 36.68
Cash Conversion Cycle 40 days 23 days
Q.9 Debt to Equity ratio of Vraj Iron & Steel Ltd?
Vraj Iron & Steel Ltd Debt-to-Equity ratio is 0.00 , which is lower with the industry average of 0.44 , indicating lower debt levels in the industry.
Q.10 Debt to cash flow from operations of Vraj Iron & Steel Ltd?
Vraj Iron & Steel Ltd Debt to cash flow from operations is 0.05 , which is at a healthy level.

Ownership & governance

Q.1 Promoter shareholding and pledge status of Vraj Iron & Steel Ltd?
Promoters hold 74.95% of the Vraj Iron & Steel Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

Q.1 Revenue growth of Vraj Iron & Steel Ltd vs industry peers?
Vraj Iron & Steel Ltd revenue CAGR is 0.00% , compared to the industry median CAGR of 7.65% , indicating slower growth and losing its market share.
Profit Metrics
Current Level Industry Median
Revenue 475 419.9
Gross Profit 64.6 15.5
Operating Profit 63 21
Net Profit 42 10
Operating Efficiency
Current Level Industry Median
Asset Turnover 1.35 1.81
ROE 14.61 8.94
ROCE 18.46 13.27
Cash Conversion Cycle (days) 40.15 36

Valuation & price assessment

Q.1 Stock return of Vraj Iron & Steel Ltd over the last decade?
Over the last 1 year(s), the stock has delivered a CAGR of -17.33% based on the current price.
Q.2 What return has the stock given over the last decade?
9Y 5Y 3Y 1Y
Share Price - - - -17.3%
Q.3 Valuation ratios of Vraj Iron & Steel 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 17.16 5.92 34.00
Price to Book 1.09 1.39 1.83
Price to Sales 0.76 1.18 0.91
EV to EBITDA 7.73 6.86 10.07

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