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Check Before You Invest : Electrosteel Castings Ltd

BSE: 500128 NSE: ELECTCAST ISIN: INE086A01029
  |   Sector:  Metals & Mining   |   Industry:  Steel & Iron Products

Snapshot

Q.1 Which industry/sub-sector does Electrosteel Castings Ltd belong to?
Electrosteel Castings Ltd belongs to the Metals & Mining sector, operating specifically within the Steel & Iron Products segment.
Q.2 Is Electrosteel Castings Ltd a good quality company?
Electrosteel Castings Ltd is a average quality company, based on a somewhat consistent 10 year financial track record.
Q.3 Is Electrosteel Castings Ltd undervalued or overvalued?
Electrosteel Castings Ltd appears Fair, as its key valuation ratios are in line with their past averages.
Q.4 Is Electrosteel Castings Ltd a good buy now?
Electrosteel Castings 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 Electrosteel Castings Ltd?
Electrosteel Castings Ltd revenue growth is -2.8% for FY-2025 , which is below its 5 year CAGR of 22.2% , indicating slower growth.
Q.2 Gross Profit margin of Electrosteel Castings Ltd?
Electrosteel Castings Ltd Gross profit margin which is the profit after deduction of direct costs, is 14.4% for FY-2025 , which is above its 5 year median of 10.6% , indicating increasing margins.
Q.3 Operating Profit Margin of Electrosteel Castings Ltd?
Electrosteel Castings Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 15.19% for FY-2025 , which is above its 5 year median of 12.69% indicating increasing margins.
Q.4 Net Profit Margin of Electrosteel Castings Ltd?
Electrosteel Castings Ltd Net Profit Margin is 10.56% for FY-2025 , is above with its 5 year median of 6.49%, indicating increasing margins.
Current Level Historic Median
Gross Profit Margin 14.4 10.6
Operating Profit Margin 15.19 12.69
Net Profit Margin 10.56 6.49
Q.5 Return on Asset of Electrosteel Castings Ltd?
Electrosteel Castings Ltd Return on Asset is 8.02%, which is above its 5 year historical median of 4.36%, indicating improved asset utilization efficiency.
Q.6 Return on Equity (ROE) of Electrosteel Castings Ltd?
Electrosteel Castings Ltd Return on equity is 13.4% for FY-2025 , which is above its historical median of 8.56%, indicating the business is making better use of its shareholders capital.
Q.7 Return on capital employed (ROCE) of Electrosteel Castings Ltd?
Electrosteel Castings Ltd Return on capital employed is 13.69% for FY-2025 , which is above its estimated weighted average cost of capital(WACC) 13.5%, indicating value creation.
Q.8 Cash conversion cycle of Electrosteel Castings Ltd?
Electrosteel Castings Ltd Cash conversion cycle is 157 days, above its historical median of 134 days, indicating deteriorated working capital management. However, you need to compare this with its peers in the industry.
Current Level Historic Median
Asset Turnover 0.76 0.76
ROE 13.4 8.56
ROCE 13.69 10.52
Cash Conversion Cycle 157 days 134 days
Q.9 Debt to Equity ratio of Electrosteel Castings Ltd?
Electrosteel Castings Ltd Debt-to-Equity ratio is 0.32 , which is in line with the industry average of 0.32 , indicating similar to debt levels in the industry.
Q.10 Debt to cash flow from operations of Electrosteel Castings Ltd?
Electrosteel Castings Ltd Debt to cash flow from operations is 4.21 , which is at a unhealthy level.

Ownership & governance

Q.1 Promoter shareholding and pledge status of Electrosteel Castings Ltd?
Promoters hold 50.13% of the Electrosteel Castings Ltd, with 10.54% of their stake pledged, indicating high pledge risk.

Peer comparison (industry-wise, mcap)

Q.1 Revenue growth of Electrosteel Castings Ltd vs industry peers?
Electrosteel Castings Ltd revenue CAGR is 22.16% , compared to the industry median CAGR of 7.41% , indicating faster growth and gaining its market share.
Profit Metrics
Current Level Industry Median
Revenue 6,745.9 364.5
Gross Profit 971.4 11.6
Operating Profit 1,006 15
Net Profit 712 6
Operating Efficiency
Current Level Industry Median
Asset Turnover 0.76 1.27
ROE 13.4 8.12
ROCE 13.69 11.38
Cash Conversion Cycle (days) 157.15 72

Valuation & price assessment

Q.1 Stock return of Electrosteel Castings Ltd over the last decade?
Over the last 9 year(s), the stock has delivered a CAGR of 15.9% based on the current price.
Q.2 What return has the stock given over the last decade?
9Y 5Y 3Y 1Y
Share Price 15.9% 22% 33.3% -19.4%
Q.3 Valuation ratios of Electrosteel Castings 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 15.74 0.00 23.93
Price to Book 0.92 0.28 1.46
Price to Sales 0.97 0.34 0.74
EV to EBITDA 10.17 8.15 9.89

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