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Modern Steels Ltd. Stock Analysis

Small Cap
Evaluated by 34 users | BSE: 513303 | NSE: |
Steel & Iron Products
Modern Steels (MSL) was was incorporated on November 19, 1973 as a private limited company registered with the Registrar of Companies, Punjab, Himachal Pradesh and Chandigarh at Jalandhar, promoted by Amarjit Goyal. It was converted into a public limited company on July 11, 1974. Modern...

Analysis of Financial Track Record

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.
Value Creation
 Mar'10Mar'11Mar'12Mar'13Mar'14Mar'15Mar'16Mar'17Mar'18Mar'19
Return on Capital Employed 13.53%11.76%2.69%-0.79%2.41%1.6%-7.81%0.32%-17.93%-18.1%
Growth Parameters
Growth Parameters Colour Code Guide
Net Sales (Rs. Cr.) 290347338261263318269315376322
Y-o-Y Gr. Rt.-19.8%-2.6%-22.7%0.7%20.7%-15.2%17%19.4%-14.5%
Adjusted EPS (Rs.) 5.036.5-7.23-10.28-7.76-10.45-24.39-2.07-21.97-18.32
Y-o-Y Gr. Rt.-29.2%-211.2%NANANANANANANA
Book Value per Share (Rs.) 39.1245.3637.5726.6718.216.78-7.62-8.04-31.69-50.07
Adjusted Net Profit 68.2-9.1-13-9.8-14.4-33.6-2.9-30.2-25.2
Net Op. Cash Flow (Rs. Cr.) -3.8-8.219.810.9-13.59.316.6-12.5-113.5
Debt to Cash Flow from Ops -23.21-12.95.6710.36-11.8518.7911.16-15.01-17.2253.71
Standalone financials take only the parent company into account while consolidated financials take into account financials of the parent company as well as of all its subsidiaries. In most companies consolidated financials should be used for analysis.
Modern Steels Ltd. should be analysed on a Standalone basis
CAGR
CAGR Colour Code Guide
  9 yrs 5 yrs 3 yrs 1 yr
Net Sales 1.2%4.1%6.1%-14.5%
Adjusted EPS -215.4%NANANA
Book Value per Share -202.8-222.400
Share Price -14.7% -12.9% -34.4% -61.7%
Key Financial Parameter
Performance Ratio Colour Code Guide
 Mar'10Mar'11Mar'12Mar'13Mar'14Mar'15Mar'16Mar'17Mar'18Mar'19
Return on Equity (%) 13.7715.65-17.24-31.52-28.55-49.64-483.2728.09113.345.34
Operating Profit Margin (%) 9.18.072-0.862.491.854.881.62-6.57-6.26
Net Profit Margin (%) 2.082.36-2.7-4.95-3.71-4.53-12.47-0.9-8.04-7.84
Debt to Equity 1.861.852.373.376.997.53-18.83-18-4.4-2.74
Working Capital Days 110120135152152149178152132133
Cash Conversion Cycle 658189919188105928889
Entity Percentage Holding
Promoters 65.53%
Institutions 0.05%
Non-Institutions 34.42%
Pledged *100.00100.00100.00100.00100.00100.00100.00100.00100.00100.00
* Pledged shares as % of Promoter's holding (%)
Data is not available for this company.

The 5-year analysis of Modern Steels's performance infers:

Modern Steels earnings have grown by 0%, whereas share price has depreciated -12.9% CAGR over the past five years, indicating the company's share price is likely undervalued. However, for specific investment actions please connect with your investment advisor.

We analysed the performance of Modern Steels share prices over the last 10 years. Here is what we found out:

Modern Steels share price has depreciated -19.1% annually over the past ten years.

Modern Steels (MSL) was was incorporated on November 19, 1973 as a private limited company registered with the Registrar of Companies, Punjab, Himachal Pradesh and Chandigarh at Jalandhar, promoted by Amarjit Goyal. It was converted into a public limited company on July 11, 1974. Modern Steel is the flagship company of the progressive Modern Group.

MSL is equipped with 25 ton Arc Furnaces, with secondary refining continuous casting facilities, modern rolling mills and captive oxygen

Modern Steels (MSL) was was incorporated on November 19, 1973 as a private limited company registered with the Registrar of Companies, Punjab, Himachal Pradesh and Chandigarh at Jalandhar, promoted by Amarjit Goyal. It was converted into a public limited company on July 11, 1974. Modern Steel is the flagship company of the progressive Modern Group.

MSL is equipped with 25 ton Arc Furnaces, with secondary refining continuous casting facilities, modern rolling mills and captive oxygen plant. It has an annual capacity of 0.1 million ton. MSL is an ISO 9002 certified company by DNV, Netherlands.

Its composite steel plant has a proven track record for more than three decades, Modern Steels caters to the requirements of special & alloy steel, hot rolled bars for engineering, automotive, bearing & allied industries.

The plant is committed to maintain world class quality standards, efficient delivery schedules, competitive pricing & immaculate after sales service. Total customer satisfaction is the fuel that drives the growth engine at Modern Steels.

It caters to OE customers which include Ashok Leyland, Escorts, Eicher, Punjab Tractors, HMT, MICO, Lucas-TVS, Sundaram Fastners, Railways, etc. and their ancillaries.

Product range of the company includes:

  • Special & Alloy Steel
  • Stainless Steel
  • Bright Bars

Clientele

  • Ashok Leyland
  • Bharat Gears
  • Carraro
  • Eicher Tractors
  • Lucas TVS
  • M&M
  • Punjab Tractors and many more

Achievements/ recognition:

  • Recipient of ISO / TS – 16949:2002 certification.
  • Recipient of QS- 9000- 1998 certification.
  • Recipient of ISO -9002-1994 certification.
  • Systems are accredited by DNV, Netherlands.

Puchho Befikar
SEBI Registered: Investment Adviser - INA000013323
Research Analyst - INH000000719

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