Check Before You Invest : Surani Steel Tubes Ltd

Snapshot

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

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

Q.2 Is Surani Steel Tubes Ltd a good quality company?

Surani Steel Tubes Ltd is a average quality company, based on a somewhat consistent 10-year financial track record.

Q.3 Is Surani Steel Tubes Ltd undervalued or overvalued?

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

Q.4 Is Surani Steel Tubes Ltd a good buy now?

Surani Steel Tubes 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 Surani Steel Tubes Ltd?

Surani Steel Tubes Ltd revenue growth is 45% for FY-2025, which is above its 5-year CAGR of 18.11%, indicating faster growth.

Q.2 Return on capital employed (ROCE) of Surani Steel Tubes Ltd?

Surani Steel Tubes Ltd Return on capital employed is 0.13% for FY-2025, which is below its 5-year historical median of 0.86%. The current ROCE is below its estimated weighted average cost of capital (WACC) of 14%, indicating value preservation.

Q.3 Return on Asset of Surani Steel Tubes Ltd?

Surani Steel Tubes Ltd Return on Asset is 0.33%, which is below its 5-year historical median of 0.57%, indicating deteriorated asset utilization efficiency.

Q.4 Return on Equity (ROE) of Surani Steel Tubes Ltd?

Surani Steel Tubes Ltd Return on equity is 0.55% for FY-2025, which is below its 5-year historical median of 1.29%, indicating the business is making worse use of its shareholders capital.

Q.5 Cash conversion cycle of Surani Steel Tubes Ltd?

Surani Steel Tubes Ltd Cash conversion cycle is 98 days, above its 5-year historical median of 77 days, indicating deteriorated working capital management. However, you need to compare this with its peers in the industry.

	Current Level	5-year Historic Median
Asset Turnover	1.54	2.29
ROE	0.55	1.29
ROCE	0.13	0.86
Cash Conversion Cycle	98 days	77 days

Q.6 Gross Profit margin of Surani Steel Tubes Ltd?

Surani Steel Tubes Ltd Gross profit margin which is the profit after deduction of direct costs, is 1.7% for FY-2025, which is in line with its 5-year median of 1.7%, indicating stable margins.

Q.7 Operating Profit Margin of Surani Steel Tubes Ltd?

Surani Steel Tubes Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 0.61% for FY-2025, which is in line with its 5-year median of 0.61% indicating stable margins.

Q.8 Net Profit Margin of Surani Steel Tubes Ltd?

Surani Steel Tubes Ltd Net Profit Margin is 0.22% for FY-2025, is below with its 5-year median of 0.32%, indicating decreasing margins.

	Current Level	5-year Historic Median
Gross Profit Margin	1.7	1.7
Operating Profit Margin	0.61	0.61
Net Profit Margin	0.22	0.32

Q.9 Debt to Equity ratio of Surani Steel Tubes Ltd?

Surani Steel Tubes Ltd Debt-to-Equity ratio is 0.28, 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 Surani Steel Tubes Ltd?

Surani Steel Tubes Ltd Debt to cash flow from operations is 3.9, which is at a unhealthy level.

Ownership & governance

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

Promoters hold 30.84% of the Surani Steel Tubes Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

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

Surani Steel Tubes Ltd revenue CAGR is 18.11%, 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	45	11.4
Gross Profit Growth	300	19.8
Operating Profit Growth	0	13.9
Net Profit Growth	-100	25.2

Operating Efficiency

	Current Level	5-year Industry Median
Asset Turnover	1.54	1.33
ROE	0.55	9.64
ROCE	0.13	12.04
Cash Conversion Cycle (days)	98.05	80

Valuation & price assessment

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

Over the last 5 year(s), the stock has delivered a CAGR of 47.77% based on the current price.

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

	9Y	5Y	3Y	1Y
Share Price CAGR	-	47.8%	-1.8%	-1.8%

Q.3 Valuation ratios of Surani Steel Tubes 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	409.51	189.55	17.26
Price to Book	1.63	1.73	1.63
Price to Sales	0.88	0.85	0.74
EV to EBITDA	60.92	50.47	10.03

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