Scan Steels Ltd - Stock Valuation and Financial Performance

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

Scan Steels Share Price

66.50 -3.09 -4.44%
as on 19-Mar'24 14:36

DeciZen - make an informed investing decision on Scan Steels

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

1. Quality

2. Valuation

Fair

3. Price Trend

Scan Steels stock performance -

mw4me loader
P/E Ratio (SA):
30.44
Market Cap:
364.3 Cr.
52-wk low:
27.5
52-wk high:
94.9

Is Scan Steels Ltd an attractive stock to invest in?

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'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22Mar'23TTM
ROCE % 1%6.3%4.3%-0.5%5%3.8%2.6%9%13.4%5.6%-
Value Creation
Index
-0.9-0.6-0.7-1.0-0.6-0.7-0.8-0.40.0-0.6-

Growth Parameters

Growth Parameters Colour Code Guide

Sales 4234483533785076956687321,0001,091983
Sales YoY Gr.-5.8%-21.1%7%34.2%37.2%-4%9.7%36.6%9.1%-
Adj EPS -5.10.7-0.4-2.3-0.41.30.15.59.72.32.3
YoY Gr.-NA-148.7%NANANA-95.3%9000%76.7%-76%-
BVPS (₹) 41.842.253.150.650.251.351.457.36769.971.9
Adj Net
Profit
-19.22.8-1.8-11.8-26.70.328.650.512.112
Cash Flow from Ops. 62.869.870.33.2-69.54.130.335.348.853.3-
Debt/CF from Ops. 3.53.63.266.1-2.937.34.82.72.22.1-

CAGR

CAGR Colour Code Guide

9 Years 5 Years 3 Years 1 Years
Sales 11.1%16.6%17.8%9.1%
Adj EPS NANA238.2%-76%
BVPS5.9%6.8%10.8%4.3%
Share Price 2.5% 9.6% 56.1% 109.3%

Key Financial Parameters

Performance Ratio Colour Code Guide

Mar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22Mar'23TTM
Return on
Equity %
-8.41.4-0.8-4.6-0.82.50.11015.53.43.2
Op. Profit
Mgn %
7.411.52.34.311.56.269.48.64.54.8
Net Profit
Mgn %
-4.50.6-0.5-3.1-0.410.13.95.11.11.2
Debt to
Equity
1.41.60.90.80.80.60.50.30.30.3-
Working Cap
Days
248215269224157101103100818440
Cash Conv.
Cycle
1241161245866666866555817

Recent Performance Summary

Sales growth is growing at healthy rate in last 3 years 17.78%

Net Profit is growing at healthy rate in last 3 years 238.15%

Return on Equity has declined versus last 3 years average to 3.20%

Sales growth is not so good in last 4 quarters at -11.90%

Latest Financials - Scan Steels Ltd.

Standalone Consolidated
TTM EPS (₹) 2.3 -
TTM Sales (₹ Cr.) 983 -
BVPS (₹.) 71.9 -
Reserves (₹ Cr.) 324 -
P/BV 0.97 -
PE 30.44 -
From the Market
52 Week Low / High (₹) 27.50 / 94.90
All Time Low / High (₹) 1.50 / 260.00
Market Cap (₹ Cr.) 364
Equity (₹ Cr.) 52.4
Face Value (₹) 10
Industry PE 24.3

Management X-Ray of Scan Steels:

Shareholding Pattern

Promoter's Holding & Share Pledging

Pledged *13.0919.5513.0913.0913.0913.0913.0913.090.000.00
* 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 (%)

Profit And Loss

(All Figures are in Crores.)
PARTICULARSMar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22Mar'23
Sales4234483533785076956687321,0001,091
Operating Expenses 3923963453614496526276639141,042
Manufacturing Costs5065546879107122122122131
Material Costs332318277278350513470508754867
Employee Cost 8101112142026262730
Other Costs 24346121071012
Operating Profit 3151816584340698649
Operating Profit Margin (%) 7.4%11.4%2.3%4.3%11.5%6.2%6.0%9.4%8.6%4.5%
Other Income 1222111426
Interest 34363113361515111020
Depreciation 17121220171313141313
Exceptional Items 0000000000
Profit Before Tax -185-33-1551713486622
Tax 13-31-37101318157
Profit After Tax -193-2-12-270315115
PAT Margin (%) -4.5%0.6%-0.5%-3.1%-0.4%1.0%0.0%4.2%5.1%1.4%
Adjusted EPS (₹)-5.10.7-0.4-2.3-0.41.30.15.99.72.9
Dividend Payout Ratio (%)0%0%0%0%0%0%0%0%0%0%

Balance Sheet

(All Figures are in Crores.)
PARTICULARSMar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22Mar'23

Equity and Liabilities

Shareholders Fund 158159259261263269269300351366
Share Capital 38384952525252525252
Reserves 120122210210211216217248298314
Minority Interest0000000000
Debt204233205195187145134849495
Long Term Debt50723737948172495440
Short Term Debt154161169158936462354155
Trade Payables84995759321429151716
Others Liabilities 1411056028483546757689
Total Liabilities 587597582543530463478474539566

Fixed Assets

Gross Block355377419420441444445451455489
Accumulated Depreciation98112124136148160173183195208
Net Fixed Assets256264295284293284272269260281
CWIP 292909012052
Investments 00221110813
Inventories1561529569103103126129124159
Trade Receivables97865354603330285543
Cash Equivalents 1311613263232210
Others Assets3754131112473945446559
Total Assets 587597582543530463478474539566

Cash Flow

(All Figures are in Crores.)
PARTICULARSMar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22Mar'23
Cash Flow From Operating Activity 6370703-69430354953
PBT -193-33-1551713486622
Adjustment 51484328502627202027
Changes in Working Capital 311961-10-124-35-10-34-3210
Tax Paid 0-100-1-400-5-5
Cash Flow From Investing Activity -25-25-933570-70-26-32
Capex -26-23-14-10-12-4-2-4-8-27
Net Investments 00000003-7-5
Others 1-2-7913694-51-111
Cash Flow From Financing Activity -41-4628126-27-24-34-4-33
Net Proceeds from Shares 10-349414400000
Net Proceeds from Borrowing 00000-13-9-235-14
Interest Paid -34-35-30-13-36-14-15-11-9-19
Dividend Paid 0000000000
Others -1623-3605800000
Net Cash Flow -3-15713-23-1119-12
PARTICULARSMar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22Mar'23
Ratios
ROE (%)-11.461.69-0.87-4.54-0.752.50.1210.815.64.27
ROCE (%)3.439.26-0.47-0.368.987.26.8114.717.698.92
Asset Turnover Ratio0.760.830.660.740.971.41.421.541.981.98
PAT to CFO Conversion(x)N/A23.33N/AN/AN/A0.57INF1.130.963.53
Working Capital Days
Receivable Days70686647402517151516
Inventory Days14311311672615463644647
Payable Days1028579764716171687

Scan Steels Ltd Stock News

Scan Steels Ltd FAQs

Company share prices are keep on changing according to the market conditions. The closing price of Scan Steels on 19-Mar-2024 14:36 is ₹66.50.
Market capitalization or market cap is determined by multiplying the current market price of a company's shares with the total number of shares outstanding. As of 19-Mar-2024 14:36 the market cap of Scan Steels stood at ₹364.3.
The latest P/E ratio of Scan Steels as of 19-Mar-2024 14:36 is 30.44.
The latest P/B ratio of Scan Steels as of 19-Mar-2024 14:36 is 0.97.
The 52-week high of Scan Steels is ₹94.90 and the 52-week low is ₹27.50.
The TTM revenue is Trailing Twelve Months sales. The TTM revenue/sales of Scan Steels is ₹983.1 ( Cr.) .

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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