Check Before You Invest : MSP Steel & Power Ltd

Snapshot

Q.1 Which industry/sub-sector does MSP Steel & Power Ltd belong to?

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

Q.2 Is MSP Steel & Power Ltd a good quality company?

MSP Steel & Power Ltd is a average quality company, based on a somewhat consistent 10-year financial track record.

Q.3 Is MSP Steel & Power Ltd undervalued or overvalued?

MSP Steel & Power Ltd appears Somewhat overvalued, as its key valuation ratios are above with their past averages.

Q.4 Is MSP Steel & Power Ltd a good buy now?

MSP Steel & Power 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 MSP Steel & Power Ltd?

MSP Steel & Power Ltd revenue growth is 1.1% for FY-2025, which is below its 5-year CAGR of 13.64%, indicating slower growth.

Q.2 Return on capital employed (ROCE) of MSP Steel & Power Ltd?

MSP Steel & Power Ltd Return on capital employed is 6.42% for FY-2025, which is in line with its 5-year historical median of 6.42%. The current ROCE is below its estimated weighted average cost of capital (WACC) of 14%, indicating value preservation.

Q.3 Return on Asset of MSP Steel & Power Ltd?

MSP Steel & Power Ltd Return on Asset is -1.83%, which is below its 5-year historical median of 0.32%, indicating deteriorated asset utilization efficiency.

Q.4 Return on Equity (ROE) of MSP Steel & Power Ltd?

MSP Steel & Power Ltd Return on equity is -3.84% for FY-2025, which is below its 5-year historical median of 0.92%, indicating the business is making worse use of its shareholders capital.

Q.5 Cash conversion cycle of MSP Steel & Power Ltd?

MSP Steel & Power Ltd Cash conversion cycle is 40 days, below its 5-year historical median of 43 days, indicating improved working capital management. However, you need to compare this with its peers in the industry.

	Current Level	5-year Historic Median
Asset Turnover	1.86	1.53
ROE	-3.84	0.92
ROCE	6.42	6.42
Cash Conversion Cycle	40 days	43 days

Q.6 Gross Profit margin of MSP Steel & Power Ltd?

MSP Steel & Power Ltd Gross profit margin which is the profit after deduction of direct costs, is 1.9% for FY-2025, which is below its 5-year median of 2.6%, indicating decreasing margins.

Q.7 Operating Profit Margin of MSP Steel & Power Ltd?

MSP Steel & Power Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 4.61% for FY-2025, which is in line with its 5-year median of 4.61% indicating stable margins.

Q.8 Net Profit Margin of MSP Steel & Power Ltd?

MSP Steel & Power Ltd Net Profit Margin is -0.99% for FY-2025, is below with its 5-year median of 0.29%, indicating decreasing margins.

	Current Level	5-year Historic Median
Gross Profit Margin	1.9	2.6
Operating Profit Margin	4.61	4.61
Net Profit Margin	-0.99	0.29

Q.9 Debt to Equity ratio of MSP Steel & Power Ltd?

MSP Steel & Power Ltd Debt-to-Equity ratio is 0.27, which is lower with the industry average of 0.35, indicating lower debt levels in the industry.

Q.10 Debt to cash flow from operations of MSP Steel & Power Ltd?

MSP Steel & Power Ltd Debt to cash flow from operations is 1.38, which is at a healthy level.

Ownership & governance

Q.1 Promoter shareholding and pledge status of MSP Steel & Power Ltd?

Promoters hold 40.22% of the MSP Steel & Power Ltd, with 71.27% of their stake pledged, indicating high pledge risk.

Peer comparison (industry-wise, mcap)

Q.1 Revenue growth of MSP Steel & Power Ltd vs industry peers?

MSP Steel & Power Ltd revenue CAGR is 13.64%, compared to the industry median CAGR of 11.40%, indicating faster growth and gaining its market share.

Profit Metrics

	Current Level	5-year Industry Median
Revenue Growth	1.1	11.4
Gross Profit Growth	-26.3	19.8
Operating Profit Growth	6.4	13.9
Net Profit Growth	-307.1	25.2

Operating Efficiency

	Current Level	5-year Industry Median
Asset Turnover	1.86	1.33
ROE	-3.84	9.64
ROCE	6.42	12.04
Cash Conversion Cycle (days)	39.87	80

Valuation & price assessment

Q.1 Stock return of MSP Steel & Power Ltd over the last decade?

Over the last 9 year(s), the stock has delivered a CAGR of 12.7% based on the current price.

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

	9Y	5Y	3Y	1Y
Share Price CAGR	12.7%	27.5%	67%	55.8%

Q.3 Valuation ratios of MSP Steel & Power 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	-	44.75	17.26
Price to Book	2.37	1.23	1.63
Price to Sales	0.78	0.28	0.74
EV to EBITDA	16.23	13.02	10.03

Check more companies

1. Welspun Corp

2. Shyam Metalics&Ener

3. Sarda Energy&Min.

4. Godawari Power & Isp

5. Gallantt Ispat

6. Ratnamani Metals

7. Jindal Saw

8. Usha Martin

9. NMDC Steel

10. Jayaswal Neco Inds

Check trending companies

1. JSW Infrastructure Ltd.

2. Aditya Birla Fashion and Retail Ltd.

3. Zydus Lifesciences Ltd.

4. Techno Electric & Engineering Company Ltd.

5. Cello World Ltd.