Check Before You Invest : Earthstahl & Alloys Ltd

Q: Which industry/sub-sector does Earthstahl & Alloys Ltd belong to?

Earthstahl & Alloys Ltd belongs to the Metals & Mining sector, operating specifically within the Steel & Iron Products segment.

Q: Is Earthstahl & Alloys Ltd a good quality company?

Earthstahl & Alloys Ltd is a quality company, based on a 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: Is Earthstahl & Alloys Ltd undervalued or overvalued?

Earthstahl & Alloys Ltd appears Undervalued, as its key valuation ratios are lower 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. Price to Earnings, Current: 43.55, Historic Median: 21.94. Price to Book, Current: 0.62, Historic Median: 1.41. Price to Sales, Current: 0.32, Historic Median: 0.59. EV to EBITDA, Current: 9.27, Historic Median: 8.37

Q: Is Earthstahl & Alloys Ltd a good buy now?

Earthstahl & Alloys 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

Q: Revenue growth of Earthstahl & Alloys Ltd?

Earthstahl & Alloys Ltd revenue growth is -17.8% for FY-2025, which is below its 5-year CAGR of 17.96%, indicating slower growth.

Q: Gross Profit margin of Earthstahl & Alloys Ltd?

Earthstahl & Alloys Ltd Gross profit margin which is the profit after deduction of direct costs, is 4.6% for FY-2025, which is below its 5-year median of 12.8%, indicating decreasing margins.

Q: Operating Profit Margin of Earthstahl & Alloys Ltd?

Earthstahl & Alloys Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 5.51% for FY-2025, which is below its 5-year median of 13.51% indicating decreasing margins.

Q: Net Profit Margin of Earthstahl & Alloys Ltd?

Earthstahl & Alloys Ltd Net Profit Margin is 0.74% for FY-2025, is below its 5-year median of 8.18%, indicating decreasing margins. Profitability Metrics. Gross Profit Margin (%), Current: 4.6, Historic Median: 12.8. Operating Profit Margin (%), Current: 5.51, Historic Median: 13.51. Net Profit Margin (%), Current: 0.74, Historic Median: 8.18

Q: Return on Asset of Earthstahl & Alloys Ltd?

Earthstahl & Alloys Ltd Return on Asset is 0.83%, which is below its 5-year historical median of 10.21%, indicating deteriorated asset utilization efficiency.

Q: Return on capital employed (ROCE) of Earthstahl & Alloys Ltd?

Earthstahl & Alloys Ltd Return on capital employed is 3.58% for FY-2025, which is below its 5-year historical median of 23.52%. The current ROCE is below its estimated weighted average cost of capital (WACC) of 14%, indicating value preservation.

Check Before You Invest : Earthstahl & Alloys Ltd

Snapshot

Q.1 Which industry/sub-sector does Earthstahl & Alloys Ltd belong to?

Earthstahl & Alloys Ltd belongs to the Metals & Mining sector, operating specifically within the Steel & Iron Products segment.

Q.2 Is Earthstahl & Alloys Ltd a good quality company?

Earthstahl & Alloys Ltd is a quality company, based on a 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 Earthstahl & Alloys Ltd undervalued or overvalued?

Earthstahl & Alloys Ltd appears Undervalued, as its key valuation ratios are lower 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	5-year Historic Median
Price to Earnings	43.55	21.94
Price to Book	0.62	1.41
Price to Sales	0.32	0.59
EV to EBITDA	9.27	8.37

Q.4 Is Earthstahl & Alloys Ltd a good buy now?

Earthstahl & Alloys 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.

A: What are the trends in revenue and profit margins?

Q.1 Revenue growth of Earthstahl & Alloys Ltd?

Earthstahl & Alloys Ltd revenue growth is -17.8% for FY-2025, which is below its 5-year CAGR of 17.96%, indicating slower growth.

Q.2 Gross Profit margin of Earthstahl & Alloys Ltd?

Earthstahl & Alloys Ltd Gross profit margin which is the profit after deduction of direct costs, is 4.6% for FY-2025, which is below its 5-year median of 12.8%, indicating decreasing margins.

Q.3 Operating Profit Margin of Earthstahl & Alloys Ltd?

Earthstahl & Alloys Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 5.51% for FY-2025, which is below its 5-year median of 13.51% indicating decreasing margins.

Q.4 Net Profit Margin of Earthstahl & Alloys Ltd?

Earthstahl & Alloys Ltd Net Profit Margin is 0.74% for FY-2025, is below its 5-year median of 8.18%, indicating decreasing margins.

	Current Level	5-year Historic Median
Gross Profit Margin (%)	4.6	12.8
Operating Profit Margin (%)	5.51	13.51
Net Profit Margin (%)	0.74	8.18

B: Does the business utilize capital efficiently?

Q.5 Return on Asset of Earthstahl & Alloys Ltd?

Earthstahl & Alloys Ltd Return on Asset is 0.83%, which is below its 5-year historical median of 10.21%, indicating deteriorated asset utilization efficiency.

Q.6 Return on capital employed (ROCE) of Earthstahl & Alloys Ltd?

Earthstahl & Alloys Ltd Return on capital employed is 3.58% for FY-2025, which is below its 5-year historical median of 23.52%. The current ROCE is below its estimated weighted average cost of capital (WACC) of 14%, indicating value preservation.

Q.7 Return on Equity (ROE) of Earthstahl & Alloys Ltd?

Earthstahl & Alloys Ltd Return on equity is 1.44% for FY-2025, which is below its 5-year historical median of 29.56%, indicating the business is making worse use of its shareholders capital.

Q.8 Cash conversion cycle of Earthstahl & Alloys Ltd?

Earthstahl & Alloys Ltd Cash conversion cycle is 41 days, above its 5-year historical median of 27 days, indicating deteriorated working capital management. However, you need to compare this with its peers in the industry.

	Current Level	5-year Historic Median
Asset Turnover (x)	1.13	1.49
ROE (%)	1.44	29.56
ROCE (%)	3.58	23.52
Cash Conversion Cycle	41 days	27 days

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

Q.9 Debt to Equity ratio of Earthstahl & Alloys Ltd?

Earthstahl & Alloys Ltd Debt-to-Equity ratio is 0.49, which is above the industry average of 0.31, indicating higher debt levels in the industry.

Q.10 Debt to cash flow from operations of Earthstahl & Alloys Ltd?

Earthstahl & Alloys Ltd Debt to cash flow from operations is -27.83, which is at a unhealthy level.

Ownership & governance

D: Promoter shareholding and pledge status of Earthstahl & Alloys Ltd?

Q.1 Promoter shareholding and pledge status of Earthstahl & Alloys Ltd?

Promoters hold 73.53% of the Earthstahl & Alloys Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

E: How does Earthstahl & Alloys Ltd performance compare with that of its Peers?

Q.1 Revenue growth of Earthstahl & Alloys Ltd vs industry peers?

Earthstahl & Alloys Ltd revenue CAGR is 17.96%, compared to the industry median CAGR of 7.56%, indicating faster growth and gaining its market share.

Profit Metrics

	Current Level	5-year Industry Median
Revenue Growth (%)	-17.8	7.6
Gross Profit Growth (%)	-36.5	19.2
Operating Profit Growth (%)	-23.5	13.8
Net Profit Growth (%)	-72	24.6

Operating Efficiency

	Current Level	5-year Industry Median
Asset Turnover (x)	1.13	1.27
ROE (%)	1.44	8.04
ROCE (%)	3.58	11.28
Cash Conversion Cycle (days)	41.37	72

Valuation & price assessment

Q.1 Stock return of Earthstahl & Alloys Ltd over the last decade?

Over the last 3 year(s), the stock has delivered a CAGR of -30.66% based on the current price.

	9Y	5Y	3Y	1Y
Share Price CAGR	-	-	-30.7%	-29.9%

Q.2 Valuation ratios of Earthstahl & Alloys Ltd vs historical?

The current P/E ratio of 43.55 is higher than its historical median of 21.94, indicating that the stock is trading above its historical average valuation.

Q.3 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	43.55	21.94	17.36
Price to Book	0.62	1.41	1.63
Price to Sales	0.32	0.59	0.74
EV to EBITDA	9.27	8.37	10.05

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Check Before You Invest : Earthstahl & Alloys Ltd

Snapshot

Performance Analysis

Ownership & governance

Peer comparison (industry-wise, mcap)

Profit Metrics

Operating Efficiency

Valuation & price assessment

Check more companies

Check trending companies

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