Check Before You Invest : NewMalayalam Steel Ltd

Snapshot

Q.1 Which industry/sub-sector does NewMalayalam Steel Ltd belong to?

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

Q.2 Is NewMalayalam Steel Ltd a good quality company?

NewMalayalam Steel Ltd is a quality company, based on a 5-year financial track record.

Q.3 Is NewMalayalam Steel Ltd undervalued or overvalued?

NewMalayalam Steel Ltd appears Somewhat Undervalued, as its key valuation ratios are below with their past averages.

Q.4 Is NewMalayalam Steel Ltd a good buy now?

NewMalayalam Steel 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 Return on capital employed (ROCE) of NewMalayalam Steel Ltd?

NewMalayalam Steel Ltd Return on capital employed is 9.64% for FY-2025, which is below its 5-year historical median of 15.45%. The current ROCE is below its estimated weighted average cost of capital (WACC) of 14%, indicating value preservation.

Q.2 Return on Asset of NewMalayalam Steel Ltd?

NewMalayalam Steel Ltd Return on Asset is 3.92%, which is below its 5-year historical median of 6.77%, indicating deteriorated asset utilization efficiency.

Q.3 Return on Equity (ROE) of NewMalayalam Steel Ltd?

NewMalayalam Steel Ltd Return on equity is 7.42% for FY-2025, which is below its 5-year historical median of 18.09%, indicating the business is making worse use of its shareholders capital.

Q.4 Gross Profit margin of NewMalayalam Steel Ltd?

NewMalayalam Steel Ltd Gross profit margin which is the profit after deduction of direct costs, is 2.5% for FY-2025, which is below its 5-year median of 2.7%, indicating decreasing margins.

Q.5 Operating Profit Margin of NewMalayalam Steel Ltd?

NewMalayalam Steel Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 2.27% for FY-2025, which is in line with its 5-year median of 2.31% indicating stable margins.

Q.6 Net Profit Margin of NewMalayalam Steel Ltd?

NewMalayalam Steel Ltd Net Profit Margin is 1.45% for FY-2025, is below with its 5-year median of 1.69%, indicating decreasing margins.

	Current Level	5-year Historic Median
Gross Profit Margin	2.5	2.7
Operating Profit Margin	2.27	2.31
Net Profit Margin	1.45	1.69

Q.7 Debt to Equity ratio of NewMalayalam Steel Ltd?

NewMalayalam Steel Ltd Debt-to-Equity ratio is 0.23, which is lower with the industry average of 0.35, indicating lower debt levels in the industry.

Q.8 Debt to cash flow from operations of NewMalayalam Steel Ltd?

NewMalayalam Steel Ltd Debt to cash flow from operations is 0.72, which is at a healthy level.

Ownership & governance

Q.1 Promoter shareholding and pledge status of NewMalayalam Steel Ltd?

Promoters hold 73.02% of the NewMalayalam Steel Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

Q.1 Revenue growth of NewMalayalam Steel Ltd vs industry peers?

NewMalayalam Steel Ltd revenue CAGR is 0.00%, compared to the industry median CAGR of 11.40%, indicating slower growth and losing its market share.

Profit Metrics

	Current Level	5-year Industry Median
Revenue Growth	-	11.4
Gross Profit Growth	6	19.4
Operating Profit Growth	-8.5	13.9
Net Profit Growth	3.3	25.2

Operating Efficiency

	Current Level	5-year Industry Median
Asset Turnover	2.72	1.33
ROE	7.42	9.64
ROCE	9.64	12.04
Cash Conversion Cycle (days)	61.34	80

Valuation & price assessment

Q.1 Stock return of NewMalayalam Steel Ltd over the last decade?

Over the last 1 year(s), the stock has delivered a CAGR of -12.94% based on the current price.

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

	9Y	5Y	3Y	1Y
Share Price CAGR	-	-	-	-12.9%

Q.3 Valuation ratios of NewMalayalam Steel 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	9.76	11.70	17.26
Price to Book	0.55	0.66	1.63
Price to Sales	0.14	0.17	0.74
EV to EBITDA	3.7	8.57	10.03

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