India Steel Works Ltd Stock Analysis

BSE: 513361 | NSE: ISIBARS | Steel & Iron Products | Small Cap

BSE Share Price Aug 08, 18:01
2.66 -0.01 (-0.37%)

DeciZen - Make an Informed Decision on India Steel Works

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

1. Quality

2. Valuation

Overvalued

3. Price Trend

India Steel Works Price Chart

P/E Ratio (SA) :
0.00
Market Cap :
106.3 Cr.
52-wk low :
1.2
52-wk high :
6.9
Bole Toh?

1. Is India Steel Works Ltd a good quality company?

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

2. Is India Steel Works Ltd undervalued or overvalued?

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

3. Is India Steel Works Ltd a good buy now?

The Price Trend analysis by MoneyWorks4Me indicates it is Weak which suggest that the price of India Steel Works 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 India Steel Works:

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.
India Steel Works 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 % 1.6%-0.3%-4.2%3%3.2%3.9%7%2.3%-3.5%-5.7%-
Value Creation Index -0.9NA-1.3-0.8-0.8-0.7-0.5-0.8-1.3NA-

Growth Parameters

Growth Parameters Colour Code Guide

Sales 6017256135135841,08694953214014424
YoY Gr. Rt. %-20.5%-15.4%-16.4%13.8%86%-12.6%-44%-73.8%3.1%-
Adj EPS -0.3-0.5-0.500.1-0.10.2-0.1-0.4-0.5-1.3
YoY Gr. Rt. %-NANANANA-171.4%NA-140%NANA-
BVPS (₹) 0.2-0.22.34.24.34.44.54.43.93.42.2
Adj Net Profit -7.1-10.8-19.50.22.7-1.88.1-3.1-16.1-21.3-51
Cash Flow from Ops. 27.823.5-28.8233719.322.1-3.7-42.4-40-
Debt/CF from Ops. 4.65.9-2.33.21.864.4-25.1-2.6-3.1-

CAGR

CAGR Colour Code Guide

9 Years 5 Years 3 Years 1 Years
Sales -14.7%-24.4%-46.7%3.1%
Adj EPS NA-249.9%-238.4%NA
BVPS 36.3-4.8-9.1-12.4
Share Price -5.7% -4.2% 60.8% 40%

Key Financial Parameters

Performance Ratio Colour Code Guide

Mar'12Mar'13Mar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21TTM
Return on Equity % -10-16.9-18.10.11.2-0.94.6-1.8-9.8-14.7-45.8
Op. Profit Mgn % 3.41.714.53.42.20.6-0.7-22.5-26.2-257.7
Net Profit Mgn % -1.2-1.5-3.200.5-0.20.9-0.6-11.5-14.8-212.3
Debt to Equity 1.92.30.40.30.30.70.50.50.70.90.2
Working Cap Days 9681109139153951162268818042,430
Cash Conv. Cycle -5-2-32-3-40-58-130

Recent Performance Summary

Debt to equity has declined versus last 3 years average to 0.93

Return on Equity is Poor

Sales growth has been subdued in last 3 years 0.00%

Sales growth is not so good in last 4 quarters at -61.13%

Latest Financials - India Steel Works Ltd.

Standalone Consolidated
TTM EPS (₹) -1.3 -1.3
TTM Sales (₹ Cr.) 23.8 23.8
BVPS (₹.) 2.2 2.2
Reserves (₹ Cr.) 46 46
P/BV 1.24 1.26
PE 0.00 0.00
From the Market
52 Week Low / High (₹) 1.15 / 6.88
All Time Low / High (₹) 0.16 / 35.45
Market Cap (₹ Cr.) 106
Equity (₹ Cr.) 39.8
Face Value (₹) 1
Industry PE 6.7

Management X-Ray of India Steel Works :

Shareholding Pattern

Promoter's Holding & Share Pledging

Pledged *22.8022.8022.8022.8022.8122.8022.8022.8022.8022.80
* Pledged shares as % of Promoter's holding (%)

Event Update

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Analyst's Notes

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Key Ratios of India Steel Works

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

News

About India Steel Works Ltd

India Steel Industries, previously called Isibars, has been producing bright bars since 1957. In addition to its bright bar plant in Central Mumbai, in 1990 it set up another plant in Turbhe, Navi Mumbai for the manufacture of stainless steel bright bars. Soon thereafter, the company was listed on the Bombay Stock Exchange with an initial public offer of Rs.16.7 million, which was heavily oversubscribed.

The company integrated backwards into steel melting and hot-rolling by acquiring a plant in Khopoli, and expanded capacity, upgraded technology and increased product range. It then started a wire division by setting up a wire-drawing plant at Savroli under the name Isinox Steels. In 1998 it acquired a state-of-the-art bar & rod rolling mill from Pomini S.p.A. of Italy.

Through continuous process and product improvement, and a commitment to customer satisfaction, India Steel is well on its way to becoming a leading global player in stainless steel long products

Products:

1. Grades Of Steel-• Austenitic Stainless Steels• Ferritic and Martensitic Stainless Steels• Carbon Alloy Steels

2. Hot Rolled Products-• Wire Rods• Round Bars• Cast Billets• Rolled Billets

3. Bright Bar Products

4. Wires

Divisions:

1. STEEL MELT SHOP

The steel melt shop at Khopoli has two melting furnaces, an Induction Furnace and an Electric Arc Furnace. After melting, the steel is refined in the Ladle Furnace or AOD Converter and sent forward to the Continuous Casting Machine which casts the liquid metal into billets of required dimensions.

2. ROLLING MILLS

The company runs two mills – a Continuous Bar & Rod Mill and a Cross-country Bar Mill. A wide range of hot-rolled long products is available to its customers from these two mills. The Continuous Bar and Rod Rolling Mill, supplied by M/s. Pomini S.P.A of Italy (now VAI), was commissioned in the year 1998. One of the most technologically advanced Bar and Rod Mills in India, it is equipped with sophisticated ABB automation systems and is capable of making wire rods and rounds to precise specifications.  The Cross-country Bar Mill has been fully renovated and produces round bars and utensil-grade wide-flats. 

3. BRIGHT BAR DIVISION

The Bright Bar Division manufactures a wide range of bright bars, specialising in stainless steel, through different processes like heat treatment, quenching and tempering, pickling, cold drawing, peeling, smooth turning, centreless grinding and polishing.

4. WIRE FACILITY

Its wire drawing facility is capable of manufacturing stainless steel wires of different sizes, finishes, conditions and coil weights.  It makes wires from diameter 1mm to 8mm with coil-diameters, weights and packing as per the customer’s requirements.

 Awards and achievements:

• India Steel’s facilities and machinery are ISO 9001 certified by IRQS.

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