Scan Steels Ltd Stock Analysis

BSE: 511672 | NSE: | Steel & Iron Products | Small Cap

BSE Share Price 23-Sep-2022 18:01
40.30 0.85 (2.15%)

DeciZen - Make an Informed Decision on Scan Steels

Overall Rating
M-Cap below 500cr. High Risk from low Liquidity

1. Quality

2. Valuation

Fair

3. Price Trend

Scan Steels Price Chart

P/E Ratio (SA) :
4.26
Market Cap :
211 Cr.
52-wk low :
27.2
52-wk high :
55
Bole Toh?

1. Is Scan Steels Ltd a good quality company?

Past 10 year’s financial track record analysis by Moneyworks4me indicates that Scan Steels Ltd is a below average quality company.

2. Is Scan Steels Ltd undervalued or overvalued?

The key valuation ratios of Scan Steels Ltd's currently when compared to its past seem to suggest it is in the Fair zone.

3. Is Scan Steels Ltd a good buy now?

The Price Trend analysis by MoneyWorks4Me indicates it is Weak which suggest that the price of Scan Steels Ltd is likely to Fall in the short term. However, please check the rating on Quality and Valuation before investing.

10 Year X-Ray of Scan Steels:

Analysis of Financial Track Record

Data adjusted to bonus, split, extra-ordinary income, rights issue and change in financial year end
Data adjusted to bonus, split, extra-ordinary income, rights issue and change in financial year end

Data adjusted to bonus, split, extra-ordinary income, rights issue and change in financial year end.

Financial track record gives insight into the company's performance on key parameters over the past ten years. MoneyWorks4me’s proprietary colour codes make it easy for retail investors to gauge the company’s past performance.
Scan Steels Ltd has not performed well majority of the past ten years indicating its past ten year financial track record is not good

Value Creation

Value Creation Index Colour Code Guide

Mar'12Mar'13Mar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21TTM
ROCE % -19%-12.2%1%6.3%4.3%-0.5%5%3.8%2.6%9%-
Value Creation Index -2.4-1.9-0.9-0.6-0.7-1.0-0.6-0.7-0.8-0.4-

Growth Parameters

Growth Parameters Colour Code Guide

Sales 73.64254234483533785076956687321,069
YoY Gr. Rt. %-477.7%-0.5%5.8%-21.1%7%34.2%37.2%-4%9.7%-
Adj EPS -2.2-14.4-5.10.7-0.4-2.3-0.41.30.15.59.5
YoY Gr. Rt. %-NANANA-148.7%NANANA-95.3%9000%-
BVPS (₹) 5.346.841.842.253.150.650.251.351.457.370.9
Adj Net Profit -3.8-54.3-19.22.8-1.8-11.8-26.70.328.650
Cash Flow from Ops. -4.140.162.869.870.33.2-69.54.130.335.3-
Debt/CF from Ops. -1.36.13.53.63.266.1-2.937.34.82.7-

CAGR

CAGR Colour Code Guide

9 Years 5 Years 3 Years 1 Years
Sales 29.1%15.7%13.1%9.7%
Adj EPS NANANA9000%
BVPS 30.41.64.511.6
Share Price -1.5% 22.2% 20.6% -12.4%

Key Financial Parameters

Performance Ratio Colour Code Guide

Mar'12Mar'13Mar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21TTM
Return on Equity % -33.9-44.7-8.41.4-0.8-4.6-0.82.50.11014.8
Op. Profit Mgn % -3.1-0.97.411.52.34.311.56.269.48
Net Profit Mgn % -5.2-12.8-4.50.6-0.5-3.1-0.410.13.94.6
Debt to Equity 0.61.41.41.60.90.80.80.60.50.3-
Working Cap Days 1391422482152692241571011031000
Cash Conv. Cycle 07212411612458666668660

Recent Performance Summary

Return on Equity has increased versus last 3 years average to 14.80%

Sales growth is growing at healthy rate in last 3 years 13.05%

Sales growth is good in last 4 quarters at 29.27%

Net Profit has been subdued in last 3 years 0.00%

Latest Financials - Scan Steels Ltd.

Standalone Consolidated
TTM EPS (₹) 9.5 -
TTM Sales (₹ Cr.) 1,069 -
BVPS (₹.) 70.9 -
Reserves (₹ Cr.) 319 -
P/BV 0.57 -
PE 4.26 -
From the Market
52 Week Low / High (₹) 27.20 / 55.00
All Time Low / High (₹) 1.50 / 260.00
Market Cap (₹ Cr.) 211
Equity (₹ Cr.) 52.4
Face Value (₹) 10
Industry PE 7

Management X-Ray of Scan Steels :

Shareholding Pattern

Promoter's Holding & Share Pledging

Pledged *13.0913.0913.0913.0913.0913.0913.0919.5513.0913.09
* Pledged shares as % of Promoter's holding (%)

Event Update

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Analyst's Notes

Key Ratios of Scan Steels

Adj EPS (Rs.)
Sales (Cr.)
ROE (%)
ROCE (%)

News

About Scan Steels Ltd

Scan Steels Ltd is self-sufficient in almost all aspects of steel making mainly producing TMT rods used for construction activities across different sectors. It was incorporated on December 11, 1990 as a private limited company and subsequently converted to a public limited company on March 18, 1996 and its commercial operation started on April 1. 1997. The company was a pioneer in starting DRI unit of smaller capacity in the state of Odisha in the year 1999 and has grown to be the largest TMT manufacturing company in Odisha through secondary route of steel making.

The company is listed on the BSE and has its manufacturing facilities in three places in and around the industrial town of Rajgangpur, Odisha which is an integrated steel plant having its own captive power plant with all other facilities like SMS & DRI units, required for steel making. The unit was started in the year 1996 in Ramabhal village with one rolling mill and was subsequently developed into an integrated steel plant by backward and forward integration within next 23 years. Scan Steels Limited’s registered office is located at Mumbai and the corporate office is located at Bhubaneswar and the works office is located in Rajgangpur, Odisha.

The company has changed its name from Clarus Finance & Securities Ltd to Clarus Infrastructure Realties Ltd. In March 2012. Further, the name has been changed to Scan Steel in September 2014.

Business area of the company

The company is primarily engaged in manufacturing of Iron & Steel products like MS Billets & TMT rods through secondary steel manufacturing route and over the years has improvised by using new technologies and processes to minimize the production cost and increase efficiencies. The company has worked for wider market penetration by installing manufacturing facilities in four places in the state of Odisha & Karnataka and minimizing energy dependence on the state grid by installing a captive power plant in Odisha.

Products

  • MS Billets
  • Shrishtii TMT
  • Shrishtii Structural
  • Shrishtii Roofing
  • Fly Ash Bricks
  • Quality
  • Product Pricing

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