Kanishk Steel Industries Ltd - Stock Valuation and Financial Performance

BSE: 513456 | NSE: | Steel & Iron Products | Small Cap

Kanishk Steel Share Price

29.43 0.17 0.58%
as on 12-Jul'24 16:01

DeciZen - make an informed investing decision on Kanishk Steel

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Kanishk Steel Industries stock performance -

mw4me loader
P/E Ratio (SA):
32.19
Market Cap:
83.7 Cr.
52-wk low:
23.2
52-wk high:
43.7

Is Kanishk Steel Industries Ltd an attractive stock to invest in?

1. Is Kanishk Steel Industries Ltd a good quality company?

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

2. Is Kanishk Steel Industries Ltd undervalued or overvalued?

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

3. Is Kanishk Steel Industries Ltd a good buy now?

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

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.
Kanishk Steel Industries 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 % 11.1%7%7.1%2.8%8.2%10.1%3.7%8.6%28.9%6.3%-
Value Creation
Index
-0.2-0.5-0.5-0.8-0.4-0.3-0.7-0.41.1-0.6-

Growth Parameters

Growth Parameters Colour Code Guide

Sales 293304273229235330257245314402388
Sales YoY Gr.-3.7%-10.3%-16%2.5%40.7%-22.1%-4.6%28.1%28%-
Adj EPS 0.40.10.3-0.60.61.20.31.88.72.50.9
YoY Gr.--81%287.5%-303.2%NA94.9%-73.9%490%393.2%-71.9%-
BVPS (₹) 1212.314.213.914.516.11719.228.632.133
Adj Net
Profit
1.20.20.9-1.81.73.30.9524.873
Cash Flow from Ops. 17.812.9-11.916.6-2.6-6.72.5-3.81.4-3.3-
Debt/CF from Ops. 10.4-1.80.9-3.6-2.86.8-4.513.1-14.8-

CAGR

CAGR Colour Code Guide

9 Years 5 Years 3 Years 1 Years
Sales 3.6%11.4%16.1%28%
Adj EPS 21.7%32.9%101.4%-71.9%
BVPS11.6%17.2%23.5%12.4%
Share Price 14.9% 29.8% 6.7% 15.2%

Key Financial Parameters

Performance Ratio Colour Code Guide

Mar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22Mar'23TTM
Return on
Equity %
2.90.62-3.93.66.71.7934.47.72.8
Op. Profit
Mgn %
0.32.90.80.83.13.20.8-5.25.72.41.7
Net Profit
Mgn %
0.40.10.3-0.80.710.32.17.91.70.7
Debt to
Equity
0.50.20.50.40.20.40.40.30.20.50.2
Working Cap
Days
157129151173170121145121948937
Cash Conv.
Cycle
333941657148646051509

Recent Performance Summary

Sales growth is growing at healthy rate in last 3 years 16.08%

Net Profit is growing at healthy rate in last 3 years 101.38%

Return on Equity has declined versus last 3 years average to 2.80%

Sales growth is not so good in last 4 quarters at -2.83%

Latest Financials - Kanishk Steel Industries Ltd.

Standalone Consolidated
TTM EPS (₹) 0.9 1.8
TTM Sales (₹ Cr.) 388 273
BVPS (₹.) 33 0
Reserves (₹ Cr.) 66 12
P/BV 0.89 0.00
PE 32.19 16.69
From the Market
52 Week Low / High (₹) 23.20 / 43.69
All Time Low / High (₹) 1.00 / 102.50
Market Cap (₹ Cr.) 83.7
Equity (₹ Cr.) 28.4
Face Value (₹) 10
Industry PE 30.4

Management X-Ray of Kanishk Steel:

Shareholding Pattern

Promoter's Holding & Share Pledging

Pledged *5.355.365.365.365.365.365.430.000.000.00
* Pledged shares as % of Promoter's holding (%)

Event Update

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Analyst's Notes

Key Ratios of Kanishk Steel

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
Sales293.04303.80272.61229.04234.74330.29257.16245.30314.19402.21
Operating Expenses 292.21295.09270.47227.47227.81319.86255.04258.07296.16401.30
Manufacturing Costs35.3323.1426.0624.6728.6431.4626.0233.9345.6846.92
Material Costs252.30253.85233.53189.36191.11281.36217.53195.69236.65334.94
Employee Cost 0.790.800.891.531.481.522.973.954.224.73
Other Costs 3.7917.309.9911.916.585.538.5324.499.6014.72
Operating Profit 0.848.712.141.566.9310.422.12-12.7718.030.91
Operating Profit Margin (%) 0.3%2.9%0.8%0.7%3.0%3.2%0.8%-5.2%5.7%0.2%
Other Income 10.541.3710.526.571.182.112.8821.7416.8915.74
Interest 7.235.084.665.194.534.452.491.821.641.21
Depreciation 2.353.591.881.450.910.870.830.831.091.18
Exceptional Items 0000000000
Profit Before Tax 1.801.416.121.492.677.211.686.3232.1914.25
Tax 0.581.141.391.011.092.94-0.350.645.914.76
Profit After Tax 1.220.274.730.481.584.272.035.6826.299.50
PAT Margin (%) 0.4%0.1%1.7%0.2%0.7%1.3%0.8%2.3%8.4%2.4%
Adjusted EPS (₹)0.40.11.70.20.61.50.72.09.23.3
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 42.1742.5047.3045.9147.2051.3453.3959.0785.2694.84
Share Capital 28.4728.4728.4728.4728.4728.4728.4728.4728.4728.47
Reserves 13.7114.0318.8417.4518.7422.8824.9230.6156.8066.38
Minority Interest0000000000
Debt17.055.2921.4915.399.2218.6117.0417.0418.3145.12
Long Term Debt0.0300.0500000025.89
Short Term Debt17.025.2921.4415.399.2218.6117.0417.0418.3119.23
Trade Payables39.0962.1753.5448.2454.5139.7029.8418.1320.0314.06
Others Liabilities 49.4233.3235.7328.7723.5818.7717.369.0415.8818.04
Total Liabilities 147.74143.27158.07138.31134.52128.42117.63103.29139.49172.05

Fixed Assets

Gross Block48.5949.2249.7413.6214.2514.3014.3014.3217.4657.61
Accumulated Depreciation29.1732.9534.381.452.363.234.064.895.987.01
Net Fixed Assets19.4116.2715.3712.1711.8911.0710.249.4311.4850.60
CWIP 00003.203.563.563.513.516.49
Investments 5.245.365.133.172.592.303.0323.3725.7411.38
Inventories42.0346.8940.1744.8350.0348.3247.7437.0862.5344.45
Trade Receivables55.4243.3470.1749.9755.5530.632817.8811.9627.57
Cash Equivalents 6.344.766.3715.293.884.623.452.042.373.66
Others Assets19.2926.6520.8712.887.3827.9121.619.9921.9327.90
Total Assets 147.74143.27158.07138.31134.52128.42117.63103.29139.49172.05

Cash Flow

(All Figures are in Crores.)
PARTICULARSMar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22Mar'23
Cash Flow From Operating Activity 17.8312.87-11.8816.60-2.59-6.742.52-3.811.40-3.34
PBT 1.801.416.121.492.677.211.686.3232.1914.25
Adjustment 6.955.533.853.973.332.981.22-2.16-14.33-4.73
Changes in Working Capital 9.866.93-19.3311.89-6.98-13.993.8-7.98-16.45-5.59
Tax Paid -0.78-0.99-2.52-0.75-1.61-2.94-4.180.01-0.01-7.28
Cash Flow From Investing Activity -0.610.20-0.22-7.1710.58-0.991.471.79-1.30-26.30
Capex -1.25-0.64-0.50-0.09-0.63-0.050-0.01-3.14-40.31
Net Investments -2.90-0.110.230.920.15-0.360.020017.25
Others 3.540.950.06-7.9911.06-0.571.451.801.84-3.25
Cash Flow From Financing Activity -18.22-14.6613.71-9.51-8.397.81-4.102.05-0.1829.64
Net Proceeds from Shares 0000000000
Net Proceeds from Borrowing -0.56-0.030.05-0.05000000
Interest Paid -5.25-2.89-3.23-3.15-2.39-2.48-1.53-1.43-1.34-1.18
Dividend Paid 0000000000
Others -12.42-11.7416.89-6.31-610.29-2.583.481.1730.82
Net Cash Flow -1.01-1.581.61-0.08-0.410.09-0.120.03-0.080
PARTICULARSMar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22Mar'23
Ratios
ROE (%)3.670.7812.551.23.919.84.311.0338.7111.01
ROCE (%)18.814.0521.0811.4213.6520.266.4111.8839.5212.87
Asset Turnover Ratio1.92.271.991.71.742.512.092.222.592.58
PAT to CFO Conversion(x)14.6147.67-2.5134.58-1.64-1.581.24-0.670.05-0.35
Working Capital Days
Receivable Days73556987814842341718
Inventory Days56495362735468635849
Payable Days110739098986158452919

Kanishk Steel Industries Ltd Stock News

Kanishk Steel Industries Ltd FAQs

Company share prices are keep on changing according to the market conditions. The closing price of Kanishk Steel on 12-Jul-2024 16:01 is ₹29.43.
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 12-Jul-2024 16:01 the market cap of Kanishk Steel stood at ₹83.69.
The latest P/E ratio of Kanishk Steel as of 12-Jul-2024 16:01 is 32.19.
The latest P/B ratio of Kanishk Steel as of 12-Jul-2024 16:01 is 0.89.
The 52-week high of Kanishk Steel is ₹43.69 and the 52-week low is ₹23.20.
The TTM revenue is Trailing Twelve Months sales. The TTM revenue/sales of Kanishk Steel is ₹388.1 ( Cr.) .

About Kanishk Steel Industries Ltd

Kanishk Steel Industries Ltd. was incorporated on March 1, 1989 as Kanishk Steel Industries Pvt.Ltd. and was converted into a Public Limited Company on April 24,1992. It is a part of OPG Enterprises Group. Kanishk Steel was promoted by late O.P Gupta, who established steel related business in Chennai, Salem and Mayavaram in Tamilnadu. Kanishk Steel Industries is an ISO 9001:2000 certified company listed in BSE.

Kanishk Steel Industries has a turnover of Rs.273.93 crores and the group turnover is of Rs.500 Crore. Kanishk Steel employs around 450 people. The company manufactures steel products (finished goods) both Constructional steel and Structural steel conforming to the Bureau of Indian Standards BIS 1786 and IS 2062 (equivalent to ASTM, BS, DIN). .

Kanishk Steel’s corporate office is located at N0.26, Mooker Nallamuthu Street, Chennai with its TMT Bars and Structurals manufacturing unit and sponge iron plant at Gummidipoondi.

Kanishk Steel Industries has established facilities in Gummidipoondi, Thiruvallur district of Tamilnadu, which is about 40 kms from Chennai. The facility uses the latest technology machinery to manufacture top quality TMT bars, CTD bars; structural steel items like wire rods, joists, profiles, channels, rounds, angles, special profiles, wire rods, spring steel flats and carbon alloy construction steel.

The Gummidipoondi facility has received the ISO 9001:2000 certification for the manufacturing and supply of TMT Bars and Structural steel products. The certification recognises the high-quality manufacturing system and success in giving the best for Kanishk Steel's customers. It confirms the quality of the services and operations of the company and underscores the value created for the customers.

Kanishk Steel has the latest testing equipment - SpectroMAXx Spectrometer at its Gummidipoondi facility. With this, the testing equipment at the facility will be the best ensuring better, efficient, accurate and precise analysis in the quality of the products being manufactured. The SpectroMAXx will further enhance the existing stringent quality process at Kanishk Steel and provide competitive advantage in the entire process of manufacturing from selection of the raw material to the finished product. The SpectroMAXx has been specifically equipped for Kanishk Steel's requirements

A sponge iron plant has been set up in Gummidipoondi with an annual capacity of 60,000 tons. The sponge iron from the plant is used as raw material for the steel mill, which will in turn be used for manufacturing TMT bars. It has the flexibility of using indigenous 100 per cent iron ore lumps or any mix of lump ore and pellets.

Subsidiary of the company

OPG energy- OPG Energy, the subsidiary of Kanishk Steel Industries Ltd., has 11 windmills in Coimbatore district and 2 windmills in Tirunelveli district of Tamilnadu. The total capacity of energy produced is 3.535 MW. The natural gas-based power-generating plant is situated in Myladuthurai, about 275 kms south of Chennai in Tamilnadu with an installed capacity of 17.98 MW energy.

Product range of the company includes:

  • TMT Bars
  • Structurals
  • Sponge Iron
  • Trading of HMS and shredded scrap iron

Clientele:

The major clients of Kanishk Steel include BHEL, NLC, ICF, Department of Atomic Energy; State Government departments like TANSI, DRDA and others. Kanishk Steel also supplies to large private sector companies like ITD Cementation India, Singapore Realty and Shapoorji Pallonji,DLF and Khivraj Techpark amongst others .

Achievements/ recognition:

Kanishk Steel Industries is an ISO 9001:2000 certified company listed in BSE.

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