Welcast Steels Ltd - Stock Valuation and Financial Performance

BSE: 504988 | NSE: | Castings/Forgings | Small Cap

Welcast Steels Share Price

1,520.55 -4.50 -0.30%
as on 28-Mar'24 16:01

DeciZen - make an informed investing decision on Welcast Steels

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Welcast Steels stock performance -

mw4me loader
P/E Ratio (SA):
53.80
Market Cap:
97.3 Cr.
52-wk low:
533
52-wk high:
1,700

Is Welcast Steels Ltd an attractive stock to invest in?

1. Is Welcast Steels Ltd a good quality company?

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

2. Is Welcast Steels Ltd undervalued or overvalued?

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

3. Is Welcast Steels Ltd a good buy now?

The Price Trend analysis by MoneyWorks4Me indicates it is Weak which suggest that the price of Welcast 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 Welcast 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.
Welcast 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 % 10.1%0.8%-0.7%5.7%5.5%5.7%-0.8%-4.2%-0.9%10.1%-
Value Creation
Index
-0.3-1.0-1.1-0.6-0.6-0.6-1.1-1.3-1.1-0.3-

Growth Parameters

Growth Parameters Colour Code Guide

Sales 238203120201234270150988693.987
Sales YoY Gr.--14.5%-41.2%68.3%16.2%15.3%-44.4%-34.7%-12.2%9.3%-
Adj EPS 46.7-2.5-7.126.32527.9-9.3-28.5-7.737.428.4
YoY Gr.--105.3%NANA-5.1%11.6%-133.3%NANANA-
BVPS (₹) 484.9480.4473.1499.7521.7548.6539.3513.3509.6553.3613.1
Adj Net
Profit
3-0.2-0.51.71.61.8-0.6-1.8-0.52.42
Cash Flow from Ops. -0.7-4.810.10.6-2.35.7-0.22.22.817.3-
Debt/CF from Ops. -4.6-1.900-2.20.2-20.11.610-

CAGR

CAGR Colour Code Guide

9 Years 5 Years 3 Years 1 Years
Sales -9.8%-16.7%-14.5%9.3%
Adj EPS -2.5%8.4%NANA
BVPS1.5%1.2%0.9%8.6%
Share Price 17.6% 22.1% 61.6% 160.8%

Key Financial Parameters

Performance Ratio Colour Code Guide

Mar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22Mar'23TTM
Return on
Equity %
10-0.5-1.55.44.95.2-1.7-5.4-1.574.9
Op. Profit
Mgn %
2.60.80.31.31.31.30.6-0.10.14.51.7
Net Profit
Mgn %
1.3-0.1-0.40.80.70.7-0.4-1.9-0.62.52.1
Debt to
Equity
0.10.3000.200.10.10.10-
Working Cap
Days
647210361696410713713710776
Cash Conv.
Cycle
1122512124305884946457

Recent Performance Summary

Return on Equity has increased versus last 3 years average to 4.90%

Sales growth is good in last 4 quarters at 29.14%

Sales growth has been subdued in last 3 years -14.45%

Net Profit has been subdued in last 3 years 0.00%

Latest Financials - Welcast Steels Ltd.

Standalone Consolidated
TTM EPS (₹) 28.4 -
TTM Sales (₹ Cr.) 86.7 -
BVPS (₹.) 613.1 -
Reserves (₹ Cr.) 38 -
P/BV 2.49 -
PE 53.80 -
From the Market
52 Week Low / High (₹) 533.00 / 1700.00
All Time Low / High (₹) 8.29 / 1700.00
Market Cap (₹ Cr.) 97.3
Equity (₹ Cr.) 0.6
Face Value (₹) 10
Industry PE 33.6

Management X-Ray of Welcast Steels:

Shareholding Pattern

Promoter's Holding & Share Pledging

Pledged *0.000.000.000.000.000.000.000.000.000.00
* Pledged shares as % of Promoter's holding (%)

Event Update

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Analyst's Notes

Key Ratios of Welcast 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
Sales237.91203.36119.63201.33233.85269.62150.0297.9585.9793.92
Operating Expenses 231.83201.64119.31198.66230.75266.01149.1198.0185.9289.66
Manufacturing Costs65.9056.1334.2857.1064.4975.5345.9727.5918.3021.89
Material Costs155.15135.1674.21130154.51178.3289.7057.6557.3656.21
Employee Cost 9.229.119.079.479.779.749.898.766.956.93
Other Costs 1.561.251.762.101.992.423.5543.304.63
Operating Profit 6.081.720.322.663.093.600.91-0.060.054.25
Operating Profit Margin (%) 2.6%0.8%0.3%1.3%1.3%1.3%0.6%-0.1%0.1%4.5%
Other Income 0.430.770.470.610.520.500.810.460.720.76
Interest 0.650.620.300.130.460.490.430.380.231.71
Depreciation 1.471.770.950.820.900.841.341.431.080.90
Exceptional Items 00.190.010000000
Profit Before Tax 4.390.28-0.452.322.262.78-0.05-1.40-0.542.40
Tax 1.410.31-0.010.640.670.940.210.42-0.05-0.24
Profit After Tax 2.98-0.03-0.441.681.591.84-0.26-1.82-0.492.64
PAT Margin (%) 1.3%0.0%-0.4%0.8%0.7%0.7%-0.2%-1.9%-0.6%2.8%
Adjusted EPS (₹)46.7-0.4-6.926.425.028.8-4.1-28.5-7.741.4
Dividend Payout Ratio (%)11%-511%0%8%8%9%0%0%0%6%

Balance Sheet

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

Equity and Liabilities

Shareholders Fund 31.0530.7530.1931.8933.2935.0134.4232.7632.5235.31
Share Capital 0.640.640.640.640.640.640.640.640.640.64
Reserves 30.4130.1129.5631.2532.6534.3833.7832.1231.8834.67
Minority Interest0000000000
Debt3.259.050051.2043.472.840
Long Term Debt000000001.270
Short Term Debt3.259.050051.2043.471.570
Trade Payables13.756.393.4512.3013.0610.796.192.055.347.19
Others Liabilities 3.642.102.202.733.347.145.083.021.943.24
Total Liabilities 51.6948.3035.8446.9254.6954.1449.6941.2942.6545.74

Fixed Assets

Gross Block42.7143.1543.3444.2244.8247.8846.0846.0947.9745.49
Accumulated Depreciation36.5437.9138.8339.6340.5341.2238.1739.5540.6340.90
Net Fixed Assets6.175.244.514.594.296.667.906.547.344.59
CWIP 0000.161.610.060000.09
Investments 00000000017.05
Inventories17.3020.3712.6717.2220.4221.9620.4110.0516.7813.14
Trade Receivables3.427.946.186.8013.1212.599.3713.9910.995.37
Cash Equivalents 1.120.200.670.180.610.590.622.353.031.04
Others Assets23.6814.5411.8117.9814.6412.2911.408.364.504.45
Total Assets 51.6948.3035.8446.9254.6954.1449.6941.2942.6545.74

Cash Flow

(All Figures are in Crores.)
PARTICULARSMar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22Mar'23
Cash Flow From Operating Activity -0.71-4.7910.080.59-2.305.65-0.202.202.7817.25
PBT 4.420.09-0.322.412.262.78-0.05-1.40-0.542.40
Adjustment 2.062.501.220.841.370.910.991.290.672.21
Changes in Working Capital -5.57-6.298.51-2.07-5.292.54-12.192.3712.82
Tax Paid -1.61-1.090.68-0.60-0.64-0.58-0.140.120.29-0.18
Cash Flow From Investing Activity -0.48-1.03-0.13-1.04-2.05-1.19-1.860.29-1.31-14.65
Capex -0.48-1.03-0.13-1.06-2.05-1.63-2.10-0.07-1.881.56
Net Investments 000000.04-0.03-0.04-0.03-16.70
Others 0000.0200.390.270.400.600.50
Cash Flow From Financing Activity 0.975.69-9.49-0.034.41-4.312.26-0.81-0.81-4.47
Net Proceeds from Shares 0000000000
Net Proceeds from Borrowing 1.966.60-9.05050001.27-1.27
Interest Paid -0.62-0.54-0.28-0.03-0.36-0.36-0.34-0.28-0.18-1.63
Dividend Paid -0.32-0.32-0.130-0.15-0.15-0.19000
Others -0.05-0.05-0.030-0.07-3.802.80-0.53-1.90-1.57
Net Cash Flow -0.22-0.120.47-0.480.070.150.201.680.67-1.86
PARTICULARSMar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22Mar'23
Ratios
ROE (%)10.05-0.08-1.455.424.895.38-0.76-5.42-1.517.78
ROCE (%)14.822.45-0.437.917.758.771.03-2.75-0.8611.63
Asset Turnover Ratio4.664.433.095.294.724.952.892.152.052.13
PAT to CFO Conversion(x)-0.24N/AN/A0.35-1.453.07N/AN/AN/A6.53
Working Capital Days
Receivable Days892011151727445332
Inventory Days27314625292952575758
Payable Days36272422302435262441

Welcast Steels Ltd Stock News

Welcast Steels Ltd FAQs

Company share prices are keep on changing according to the market conditions. The closing price of Welcast Steels on 28-Mar-2024 16:01 is ₹1,520.6.
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 28-Mar-2024 16:01 the market cap of Welcast Steels stood at ₹97.32.
The latest P/E ratio of Welcast Steels as of 28-Mar-2024 16:01 is 53.80.
The latest P/B ratio of Welcast Steels as of 28-Mar-2024 16:01 is 2.49.
The 52-week high of Welcast Steels is ₹1,700 and the 52-week low is ₹533.0.
The TTM revenue is Trailing Twelve Months sales. The TTM revenue/sales of Welcast Steels is ₹86.66 ( Cr.) .

About Welcast Steels Ltd

Welcast Steels is a public limited company incorporated in 1974 manufacturing Hykrom Grinding Media balls for the cement and mining industry.

The manufacturing unit is fully equipped with the state-of-the-art equipment for production, testing and quality control such as induction furnaces, continuous type heat treatment furnaces with automatic oil quenching system, vacuum spectrometer, metallurgical microscope with photographic arrangement, sand testing equipments and hardness testing machine.

The company has an In-house Research & Development section which constantly upgrades and updates the technology to offer original solutions to the problems of industry.

Having been grinding media specialists for nearly 25 years, Welcast has acquired vast experience in the grinding process in the cement, mining industry and thermal power plants. The company engineers keep track of the latest developments taking place worldwide and with their exceptional knowledge, are in a position to recommend to the industry the specific quality of grinding media to be used for various applications.

The quality of grinding media manufactured by the company has been well established and its products are being supplied practically too all the cement plants in India. The company exports its products to other countries like USA, U.A.E., Japan, Australia, Thailand, Sri Lanka, UK, Bangladesh, Indonesia, Omain, Qatar, Philippines, Slovakia, Hong Kong, Canada, Bulgaria and Vietnam.

Product range of the company includes:

High Chrome Grinding Media - Welcast HYKROM Grinding Media is a combination of high performance and durability. It strikes a perfect balance between hardness and toughness. Over 50,000 tonnes is currently employed in Indian and International industries without a single failure.

Clientele:

  • Larsen & Toubro Ltd. ,Awarpur Cement Works.
  • Larsen & Toubro Ltd., Jharsuguda Cement Works.
  • Associated Cement Cos. Ltd., Chanda Cement Works.
  • Chettinad Cements
  • Lakshmi Cements
  • Tamilnadu Cements
  • Priyadarshini Cements
  • Hindustan Zinc Ltd.
  • Hy-Grade Pellets Ltd.
  • Tamilnadu Electricity Board
  • Blue Circle Cement
  • Lafarge Canada
  • Longwear Products
  • Hanwa Co. Ltd.
  • Puttalam Cement Co., and many more

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