MSP Steel & Power Ltd Stock Analysis

BSE: 532650 | NSE: MSPL | Steel & Iron Products | Small Cap

BSE Share Price 06-Dec-2022 18:01
9.85 -0.11 (-1.10%)

DeciZen - Make an Informed Decision on MSP Steel & Power

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

1. Quality

2. Valuation

Somewhat Undervalued

3. Price Trend

MSP Steel & Power Price Chart

P/E Ratio (SA) :
0.00
Market Cap :
379.6 Cr.
52-wk low :
8.6
52-wk high :
18.9
Bole Toh?

1. Is MSP Steel & Power Ltd a good quality company?

Past 10 year's financial track record analysis by Moneyworks4me indicates that MSP Steel & Power Ltd is a average quality company.

2. Is MSP Steel & Power Ltd undervalued or overvalued?

The key valuation ratios of MSP Steel & Power Ltd's currently when compared to its past seem to suggest it is in the Somewhat Undervalued zone.

3. Is MSP Steel & Power Ltd a good buy now?

The Price Trend analysis by MoneyWorks4Me indicates it is Weak which suggest that the price of MSP Steel & Power 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 MSP Steel & Power:

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.
MSP Steel & Power Ltd has performed well in some of the past ten years indicating its past ten year financial track record is somewhat good

Value Creation

Value Creation Index Colour Code Guide

Mar'13Mar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22TTM
ROCE % 5.7%5.9%-1.5%-5.7%-0.4%2%2.4%-0.4%4.4%6%-
Value Creation Index -0.6-0.6-1.1-1.4-1.0-0.9-0.8-1.0-0.7-0.6-

Growth Parameters

Growth Parameters Colour Code Guide

Sales 9221,1931,0929058491,1601,6701,5331,7232,3402,453
YoY Gr. Rt. %-29.4%-8.4%-17.2%-6.1%36.6%43.9%-8.2%12.4%35.8%-
Adj EPS 2.52.8-11.6-20.5-10.6-1.5-0.5-1.70.20.8-1.6
YoY Gr. Rt. %-15.9%-507.4%NANANANANANA460%-
BVPS (₹) 62.877.465.757.747.217.316.71515.216.114.1
Adj Net Profit 21.625-102-181-93.5-58.8-19.4-65.65.632.3-60
Cash Flow from Ops. -14522220.64072.814793.873.9181110-
Debt/CF from Ops. -6.94.75628.616.569.111.74.27.5-

CAGR

CAGR Colour Code Guide

9 Years 5 Years 3 Years 1 Years
Sales 10.9%22.5%11.9%35.8%
Adj EPS -11.2%NANA460%
BVPS -14.1-19.4-1.45.9
Share Price -9.8% -13.6% 18.6% 9%

Key Financial Parameters

Performance Ratio Colour Code Guide

Mar'13Mar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22TTM
Return on Equity % 43.6-15.7-32.6-20.2-10.9-3-10.715.4-10.3
Op. Profit Mgn % 17.613.80.6-0.98.810.27.95.58.36.62.2
Net Profit Mgn % 2.32.1-9.3-20-11-5.1-1.2-4.30.31.4-2.4
Debt to Equity 1.81.51.92.32.91.31.31.51.31.31
Working Cap Days 242240238237230188135160135103101
Cash Conv. Cycle 787594110115856286734222

Recent Performance Summary

Sales growth is growing at healthy rate in last 3 years 11.90%

Sales growth is good in last 4 quarters at 15.37%

Return on Equity is Poor

Debt to equity has increased versus last 3 years average to 1.33

Latest Financials - MSP Steel & Power Ltd.

Standalone Consolidated
TTM EPS (₹) -1.6 -1.7
TTM Sales (₹ Cr.) 2,453 2,453
BVPS (₹.) 14.1 14.2
Reserves (₹ Cr.) 158 160
P/BV 0.70 0.70
PE 0.00 0.00
From the Market
52 Week Low / High (₹) 8.63 / 18.90
All Time Low / High (₹) 3.66 / 88.90
Market Cap (₹ Cr.) 380
Equity (₹ Cr.) 385.4
Face Value (₹) 10
Industry PE 10.1

Management X-Ray of MSP Steel & Power :

Shareholding Pattern

Promoter's Holding & Share Pledging

Pledged *100.00100.00100.00100.00100.00100.00100.00100.00100.00100.00
* Pledged shares as % of Promoter's holding (%)

Event Update

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Analyst's Notes

Key Ratios of MSP Steel & Power

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

News

MSP Steel & Power Ltd FAQs

Company share prices are keep on changing according to the market conditions. The closing price of MSP Steel & Power on 06-Dec-2022 18:01 is : 9.85.
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 06-Dec-2022 18:01 the market cap of MSP Steel & Power stood at ₹ 379.6.
The latest PE ratio of MSP Steel & Power as of 06-Dec-2022 18:01 is 0.00.
The latest PB ratio of MSP Steel & Power as of 06-Dec-2022 18:01 is 0.70
The 52-week high of MSP Steel & Power is ₹ 18.90 and the 52-week low is ₹ 8.63.
The TTM revenue is Trailing Twelve Months sales. The TTM revenue / sales of MSP Steel & Power is ₹ 2,453 ( Cr.) .

About MSP Steel & Power Ltd

The company was incorporated in India on November 18, 1968 as Adhunik Rollers Private Limited in West Bengal. The name of the company was changed to MSP Steel & Power Private Limited on March 7, 2003. The company subsequently became a public company under the name of MSP Steel & Power Limited with effect from September 9, 2003. The company is currently involved in manufacturing of sponge iron and trading of steel products.

The company is the part of MSP Group. The Group embarked on its journey in the steel industry in a modest manner in the year 1996. An 18000 TPA MS Ingot plant was set up in West Bengal to utilize the waste scrap available in the market.

The industry faced a downturn in the next few years. A lesson was learnt -- the key to survival lay in integration along the value chain of production. As a part of this drive a Re - Rolling mill was established in 1998 for production of high quality construction bars. Looking into the huge potential that lay in making its own raw material for steel melting, the company was among the pioneers in setting up a mini sponge iron plant in the year 1999.

Following its principle of integration and capacity expansion, the group has risen to one of the leading secondary steel manufacturers in Eastern India. Today the group has manufacturing facilities in the states of West Bengal, Orissa, Jharkhand, Andhra Pradesh, Chhattisgarh and Maharashtra.

The company’s production facility is situated in Jangaon village of Chattisgarh. It has the capacity to produce 2000000 TPA of Sponge Iron, 36 MW of power, 150000 tpa of MS Billet, 90000 TPA of Construction Bars. In addition to that it also had the facility of Railway Shading and had Coal Washery of 350000mt/pa.

Some of the clients of the company are Bhushan Steel & Strip Limited, Bhushan Power & Steel Limited, Tata Motors, Hari Machines Private Limited, Lyods Steel Limited, Rajgarh Jute & Textiles Limited, Nalwa Sponge Iron Limited, OCL India Limited, Aarti Steels Limited, Maheswari Ispat Limited, etc.

The group’s largest project so far is being set up at Raigarh, Chattisgarh at a cost of Rs 124 crore. This is a completely integrated steel project, which in due course will also have its captive coal and iron ore mines. The company is in an advanced stage of obtaining lease for iron ore mines in Orissa and Chhattisgarh and has been earmarked for captive coal blocks as per the norms of ministry of coal. Once operational, the unit will become totally self sufficient and one of the least cost producers of steel.

The company is the part of MSP Group. Other companies of the group are Howrah Gases Limited, MSP Rolling Mills Private Limited, MSP Sponge Iron Limited, MSP Steels Private Limited, MSP Metallics Limited, Chaman Metallics Limited, Ashirwad Steels & Inds Limited.

In 2010 the company started operation of its 115500 MTPA of Sponge Iron Plant and 18 MW Power Plant

Product range of the company includes:

  • Sponge Iron- Sponge Iron has become the preferred raw material for secondary steel production in India. The company has consolidated its position to meet the growing demand and is one of the leading coal based DRI manufacturer in India as on date.
  • Billets/Ingots- The Company produces high quality mild steel billets/ingots for its re-rolling mills. This ensures high quality standards.Power.
  • Construction Bars (TMT)- MSP is a fully integrated steel manufacturer producing high grade TMT construction rods. MSP uses fully killed steel manufactured from virgin raw materials. The mill is technologically advanced and uses automatic rolling to ensure the quality. All raw material used is tested to ensure the high MSP quality standards.

Awards/Achievements

The company is ISO9001: 2000 certified.

Over the years it had received certificate for Industrial research from Shriram Institute.

In 2012 MSP STEEL & POWER LTD won the TIMES OF INDIA Award for Innovative Talent Management & Succession Planning for the year 2012.

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