Check Before You Invest : Prakash Steelage Ltd

Q: Which industry/sub-sector does Prakash Steelage Ltd belong to?

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

Q: Is Prakash Steelage Ltd a good quality company?

Prakash Steelage 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 Prakash Steelage Ltd undervalued or overvalued?

Prakash Steelage Ltd appears Overvalued, as its key valuation ratios are higher 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: 71.22, Historic Median: 3.36. Price to Book, Current: 7.77, Historic Median: -0.49. Price to Sales, Current: 0.86, Historic Median: 1.39. EV to EBITDA, Current: 31.54, Historic Median: 10.28

Q: Is Prakash Steelage Ltd a good buy now?

Prakash Steelage 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 Prakash Steelage Ltd?

Prakash Steelage Ltd revenue growth is -27.6% for FY-2025, which is below its 5-year CAGR of 18.7%, indicating slower growth.

Q: Gross Profit margin of Prakash Steelage Ltd?

Prakash Steelage Ltd Gross profit margin which is the profit after deduction of direct costs, is 3.8% for FY-2025, which is below its 5-year median of 4.2%, indicating decreasing margins.

Q: Operating Profit Margin of Prakash Steelage Ltd?

Prakash Steelage Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 2.01% for FY-2025, which is below its 5-year median of 3.39% indicating decreasing margins.

Q: Net Profit Margin of Prakash Steelage Ltd?

Prakash Steelage Ltd Net Profit Margin is 1.69% for FY-2025, is below its 5-year median of 54.73%, indicating decreasing margins. Profitability Metrics. Gross Profit Margin (%), Current: 3.8, Historic Median: 4.2. Operating Profit Margin (%), Current: 2.01, Historic Median: 3.39. Net Profit Margin (%), Current: 1.69, Historic Median: 54.73

Q: Return on Asset of Prakash Steelage Ltd?

Prakash Steelage Ltd Return on Asset is 3.41%, which is below its 5-year historical median of 149.94%, indicating deteriorated asset utilization efficiency.

Q: Cash conversion cycle of Prakash Steelage Ltd?

Prakash Steelage Ltd Cash conversion cycle is 28 days, above its 5-year historical median of -111 days, indicating deteriorated working capital management. However, you need to compare this with its peers in the industry.

Check Before You Invest : Prakash Steelage Ltd

Snapshot

Q.1 Which industry/sub-sector does Prakash Steelage Ltd belong to?

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

Q.2 Is Prakash Steelage Ltd a good quality company?

Prakash Steelage 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 Prakash Steelage Ltd undervalued or overvalued?

Prakash Steelage Ltd appears Overvalued, as its key valuation ratios are higher 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	71.22	3.36
Price to Book	7.77	-0.49
Price to Sales	0.86	1.39
EV to EBITDA	31.54	10.28

Q.4 Is Prakash Steelage Ltd a good buy now?

Prakash Steelage 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 Prakash Steelage Ltd?

Prakash Steelage Ltd revenue growth is -27.6% for FY-2025, which is below its 5-year CAGR of 18.7%, indicating slower growth.

Q.2 Gross Profit margin of Prakash Steelage Ltd?

Prakash Steelage Ltd Gross profit margin which is the profit after deduction of direct costs, is 3.8% for FY-2025, which is below its 5-year median of 4.2%, indicating decreasing margins.

Q.3 Operating Profit Margin of Prakash Steelage Ltd?

Prakash Steelage Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 2.01% for FY-2025, which is below its 5-year median of 3.39% indicating decreasing margins.

Q.4 Net Profit Margin of Prakash Steelage Ltd?

Prakash Steelage Ltd Net Profit Margin is 1.69% for FY-2025, is below its 5-year median of 54.73%, indicating decreasing margins.

	Current Level	5-year Historic Median
Gross Profit Margin (%)	3.8	4.2
Operating Profit Margin (%)	2.01	3.39
Net Profit Margin (%)	1.69	54.73

B: Does the business utilize capital efficiently?

Q.5 Return on Asset of Prakash Steelage Ltd?

Prakash Steelage Ltd Return on Asset is 3.41%, which is below its 5-year historical median of 149.94%, indicating deteriorated asset utilization efficiency.

Q.6 Cash conversion cycle of Prakash Steelage Ltd?

Prakash Steelage Ltd Cash conversion cycle is 28 days, above its 5-year historical median of -111 days, indicating deteriorated working capital management. However, you need to compare this with its peers in the industry.

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

Q.7 Debt to Equity ratio of Prakash Steelage Ltd?

Prakash Steelage Ltd Debt-to-Equity ratio is 0.44, which is above the industry average of 0.31, indicating higher debt levels in the industry.

Q.8 Debt to cash flow from operations of Prakash Steelage Ltd?

Prakash Steelage Ltd Debt to cash flow from operations is -1.17, which is at a unhealthy level.

Ownership & governance

D: Promoter shareholding and pledge status of Prakash Steelage Ltd?

Q.1 Promoter shareholding and pledge status of Prakash Steelage Ltd?

Promoters hold 33.56% of the Prakash Steelage Ltd, with 0.10% of their stake pledged, indicating low pledge risk.

Peer comparison (industry-wise, mcap)

E: How does Prakash Steelage Ltd performance compare with that of its Peers?

Q.1 Revenue growth of Prakash Steelage Ltd vs industry peers?

Prakash Steelage Ltd revenue CAGR is 18.70%, 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 (%)	-27.6	7.6
Gross Profit Growth (%)	-88.2	19.3
Operating Profit Growth (%)	-56.7	13.8
Net Profit Growth (%)	-97.8	24.6

Operating Efficiency

	Current Level	5-year Industry Median
Asset Turnover (x)	2.02	1.27
ROE (%)	-	8.04
ROCE (%)	-	11.28
Cash Conversion Cycle (days)	28.49	72

Valuation & price assessment

Q.1 Stock return of Prakash Steelage Ltd over the last decade?

Over the last 9 year(s), the stock has delivered a CAGR of -1% based on the current price.

	9Y	5Y	3Y	1Y
Share Price CAGR	-1%	36.5%	0.9%	-35.2%

Q.2 Valuation ratios of Prakash Steelage Ltd vs historical?

The current P/E ratio of 71.22 is higher than its historical median of 3.36, 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	71.22	3.36	17.36
Price to Book	7.77	-0.49	1.63
Price to Sales	0.86	1.39	0.74
EV to EBITDA	31.54	10.28	10.05

Check more companies

1. Welspun Corp

2. Shyam Metalics&Ener

3. Sarda Energy&Min.

4. Godawari Power & Isp

5. Ratnamani Metals

6. Jindal Saw

7. Gallantt Ispat

8. Usha Martin

9. NMDC Steel

10. Jayaswal Neco Inds

Check trending companies

1. K.P.R. Mill Ltd.

2. Aditya Birla Sun Life AMC Ltd.

3. Aditya Birla Capital Ltd.

4. Jupiter Wagons Ltd.

5. Tata Motors Passenger Vehicles Ltd.

Check Before You Invest : Prakash Steelage Ltd

Snapshot

Performance Analysis

Ownership & governance

Peer comparison (industry-wise, mcap)

Profit Metrics

Operating Efficiency

Valuation & price assessment

Check more companies

Check trending companies

About MoneyWorks4Me

Our Vision

What Makes MoneyWorks4Me Different

Our Approach: Ensuring compounding work its magic on client portfolio.

Name of the IA registered with SEBI:	The Alchemists Ark Pvt. Ltd.
Logo:
Trade/Brand Name of IA:	MoneyWorks4Me Investment Advisers
Brand Logo:
SEBI Registration Number:	INA000013323 Validity – May 16, 2019 – Perpetual
Registration:	Non-Individual
BSE Enlistment No:	1187
Address:	B-101, Signet Corner Building, Balewadi Phata, Baner, Pune, Maharashtra 411045
Compliance officer Details:	Name: Shrikant Jagtap Email: shrikant.jagtap@moneyworks4me.com Telephone: +919860359463 Address: Same as IA
Grievance Officer Details:	Name: Mukta Vaze Email: mukta.vaze@moneyworks4me.com Telephone: +91 98609 19463 Address: Same as IA
Principal Officer Details:	Name: Atharva Bhide Email: atharva.bhide@moneyworks4me.com Telephone: +91 91758 99463 Address: Same as IA
Standard Warning:	Investment in securities market are subject to market risks. Read all the related documents carefully before investing.
Disclaimer:	Registration granted by SEBI, enlistment with exchange and certification from NISM in no way guarantee performance of the intermediary or provide any assurance of returns to investors.