Check Before You Invest : Sunflag Iron And Steel Company Ltd

Snapshot

Q.1 Which industry/sub-sector does Sunflag Iron And Steel Company Ltd belong to?

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

Q.2 Is Sunflag Iron And Steel Company Ltd a good quality company?

Sunflag Iron And Steel Company Ltd is a average quality company, based on a somewhat consistent 10-year financial track record.

Q.3 Is Sunflag Iron And Steel Company Ltd undervalued or overvalued?

Sunflag Iron And Steel Company Ltd appears Somewhat overvalued, as its key valuation ratios are above with their past averages.

Q.4 Is Sunflag Iron And Steel Company Ltd a good buy now?

Sunflag Iron And Steel Company 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 Sunflag Iron And Steel Company Ltd?

Sunflag Iron And Steel Company Ltd revenue growth is 3.5% for FY-2025, which is below its 5-year CAGR of 15%, indicating slower growth.

Q.2 Return on capital employed (ROCE) of Sunflag Iron And Steel Company Ltd?

Sunflag Iron And Steel Company Ltd Return on capital employed is 4.17% for FY-2025, which is below its 5-year historical median of 13.83%. The current ROCE is below its estimated weighted average cost of capital (WACC) of 14%, indicating value preservation.

Q.3 Return on Asset of Sunflag Iron And Steel Company Ltd?

Sunflag Iron And Steel Company Ltd Return on Asset is 1.78%, which is below its 5-year historical median of 5.59%, indicating deteriorated asset utilization efficiency.

Q.4 Return on Equity (ROE) of Sunflag Iron And Steel Company Ltd?

Sunflag Iron And Steel Company Ltd Return on equity is 2.45% for FY-2025, which is below its 5-year historical median of 12.17%, indicating the business is making worse use of its shareholders capital.

Q.5 Cash conversion cycle of Sunflag Iron And Steel Company Ltd?

Sunflag Iron And Steel Company Ltd Cash conversion cycle is 96 days, in line with its 5-year historical median of 92 days, indicating stable working capital management. However, you need to compare this with its peers in the industry.

	Current Level	5-year Historic Median
Asset Turnover	0.4	0.81
ROE	2.45	12.17
ROCE	4.17	13.83
Cash Conversion Cycle	96 days	92 days

Q.6 Gross Profit margin of Sunflag Iron And Steel Company Ltd?

Sunflag Iron And Steel Company Ltd Gross profit margin which is the profit after deduction of direct costs, is 8.7% for FY-2025, which is below its 5-year median of 10.4%, indicating decreasing margins.

Q.7 Operating Profit Margin of Sunflag Iron And Steel Company Ltd?

Sunflag Iron And Steel Company Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 11.17% for FY-2025, which is below its 5-year median of 13.06% indicating decreasing margins.

Q.8 Net Profit Margin of Sunflag Iron And Steel Company Ltd?

Sunflag Iron And Steel Company Ltd Net Profit Margin is 4.57% for FY-2025, is below with its 5-year median of 7.06%, indicating decreasing margins.

	Current Level	5-year Historic Median
Gross Profit Margin	8.7	10.4
Operating Profit Margin	11.17	13.06
Net Profit Margin	4.57	7.06

Q.9 Debt to Equity ratio of Sunflag Iron And Steel Company Ltd?

Sunflag Iron And Steel Company Ltd Debt-to-Equity ratio is 0.07, 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 Sunflag Iron And Steel Company Ltd?

Sunflag Iron And Steel Company Ltd Debt to cash flow from operations is 3.02, which is at a unhealthy level.

Ownership & governance

Q.1 Promoter shareholding and pledge status of Sunflag Iron And Steel Company Ltd?

Promoters hold 51.16% of the Sunflag Iron And Steel Company Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

Q.1 Revenue growth of Sunflag Iron And Steel Company Ltd vs industry peers?

Sunflag Iron And Steel Company Ltd revenue CAGR is 15.00%, 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	3.5	11.4
Gross Profit Growth	11.3	19.8
Operating Profit Growth	3.7	13.9
Net Profit Growth	14.1	25.2

Operating Efficiency

	Current Level	5-year Industry Median
Asset Turnover	0.4	1.33
ROE	2.45	9.64
ROCE	4.17	12.04
Cash Conversion Cycle (days)	96.42	80

Valuation & price assessment

Q.1 Stock return of Sunflag Iron And Steel Company Ltd over the last decade?

Over the last 9 year(s), the stock has delivered a CAGR of 29.3% based on the current price.

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

	9Y	5Y	3Y	1Y
Share Price CAGR	29.3%	30.3%	23.1%	24.3%

Q.3 Valuation ratios of Sunflag Iron And Steel Company Ltd vs historical?

The current P/E is higher 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	25.12	16.48	17.26
Price to Book	0.64	0.84	1.63
Price to Sales	1.38	1.05	0.74
EV to EBITDA	11.94	8.98	10.03

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