Check Before You Invest : Steelco Gujarat Ltd

Snapshot

Q.1 Which industry/sub-sector does Steelco Gujarat Ltd belong to?

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

Q.2 Is Steelco Gujarat Ltd a good quality company?

Steelco Gujarat Ltd is a quality company, based on a 9-year financial track record.

Q.3 Is Steelco Gujarat Ltd undervalued or overvalued?

Steelco Gujarat Ltd appears Undervalued, as its key valuation ratios are below with their past averages.

Q.4 Is Steelco Gujarat Ltd a good buy now?

Steelco Gujarat 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 Revenue growth of Steelco Gujarat Ltd?

Steelco Gujarat Ltd revenue growth is 1,248.4% for FY-2025, which is above its 5-year CAGR of -62.05%, indicating faster growth.

Q.2 Return on capital employed (ROCE) of Steelco Gujarat Ltd?

Steelco Gujarat Ltd Return on capital employed is -23.57% for FY-2025, which is below its 5-year historical median of -15.93%. The current ROCE is below its estimated weighted average cost of capital (WACC) of 14%, indicating value preservation.

Q.3 Return on Asset of Steelco Gujarat Ltd?

Steelco Gujarat Ltd Return on Asset is -12.69%, which is in line with its 5-year historical median of -12.69%, indicating stable asset utilization efficiency.

Q.4 Gross Profit margin of Steelco Gujarat Ltd?

Steelco Gujarat Ltd Gross profit margin which is the profit after deduction of direct costs, is -394.7% for FY-2025, which is below its 5-year median of -111.2%, indicating decreasing margins.

Q.5 Operating Profit Margin of Steelco Gujarat Ltd?

Steelco Gujarat Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is -225.17% for FY-2025, which is below its 5-year median of -67.01% indicating decreasing margins.

Q.6 Net Profit Margin of Steelco Gujarat Ltd?

Steelco Gujarat Ltd Net Profit Margin is -491.65% for FY-2025, is below with its 5-year median of -12.28%, indicating decreasing margins.

	Current Level	5-year Historic Median
Gross Profit Margin	-394.7	-111.2
Operating Profit Margin	-225.17	-67.01
Net Profit Margin	-491.65	-12.28

Q.7 Debt to Equity ratio of Steelco Gujarat Ltd?

Steelco Gujarat Ltd Debt-to-Equity ratio is -2.24, 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 Steelco Gujarat Ltd?

Steelco Gujarat Ltd Debt to cash flow from operations is 17.42, which is at a unhealthy level.

Ownership & governance

Q.1 Promoter shareholding and pledge status of Steelco Gujarat Ltd?

Promoters hold 94.64% of the Steelco Gujarat Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

Q.1 Revenue growth of Steelco Gujarat Ltd vs industry peers?

Steelco Gujarat Ltd revenue CAGR is -62.05%, compared to the industry median CAGR of 11.40%, indicating stable growth and maintaining its market share.

Profit Metrics

	Current Level	5-year Industry Median
Revenue Growth	1	11.4
Gross Profit Growth	0	19.8
Operating Profit Growth	0	13.9
Net Profit Growth	-112.4	25.2

Operating Efficiency

	Current Level	5-year Industry Median
Asset Turnover	0.03	1.33
ROE	-	9.64
ROCE	-23.57	12.04
Cash Conversion Cycle (days)	859.51	80

Valuation & price assessment

Q.1 Stock return of Steelco Gujarat Ltd over the last decade?

Over the last 9 year(s), the stock has delivered a CAGR of 41.9% based on the current price.

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

	9Y	5Y	3Y	1Y
Share Price CAGR	41.9%	142.5%	337.7%	8283.5%

Q.3 Valuation ratios of Steelco Gujarat Ltd vs historical?

The current P/E is similar 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	-	-	17.26
Price to Book	-1.18	-0.02	1.63
Price to Sales	2.72	0.22	0.74
EV to EBITDA	-13.1	-2.97	10.03

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