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Splendid Metal Products Ltd Stock Analysis

Small Cap
Evaluated by 196 users | BSE: 513414 | NSE: SMPL |
Steel & Iron Products
Sujana Metal Products Limited (SMPL) was incorporated in May 1988 under the name of Sujana Steel Re-Rolling Industries Private Limited. The company was incorporated with an object to manufacture Steel Re-rolled products. The company was promoted by Y S Chowdary his associates and relatives....

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'11Mar'12Mar'13Mar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20
Return on Capital Employed 12.62%7.71%5.37%3.3%6.38%1.92%-5.71%-29.38%-39.25%-3.38%
Growth Parameters
Growth Parameters Colour Code Guide
Net Sales (Rs. Cr.) 2,8363,5383,6502,8443,4523,4831,30050945831.4
Y-o-Y Gr. Rt.-24.8%3.2%-22.1%21.4%0.9%-62.7%-60.8%-10%-93.2%
Adjusted EPS (Rs.) 1.280.51-1.34-2.47-0.1-3.63-11.31-22.93-21.39-1.43
Y-o-Y Gr. Rt.--60.2%-362.8%NANANANANANANA
Book Value per Share (Rs.) 23.3937.5636.5234.5633.8520.859.49-14.81-37.7-39.14
Adjusted Net Profit 25.210.1-26.4-48.6-2.1-109-340-690-644-43
Net Op. Cash Flow (Rs. Cr.) 57.7271-277-118244-34511.6-3.1-9.6-2
Debt to Cash Flow from Ops 11.563.44-4.76-13.796.74-6.3208.57-785.09-254.01-1,239.65
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.
Splendid Metal Products Ltd. should be analysed on a Standalone basis
CAGR
CAGR Colour Code Guide
  9 yrs 5 yrs 3 yrs 1 yr
Net Sales -39.4%-60.9%-71.1%-93.2%
Adjusted EPS -201.2%NANANA
Book Value per Share -205.9-203-260.40
Share Price -26.3% -35.4% -39.1% 36.8%
Key Financial Parameter
Performance Ratio Colour Code Guide
 Mar'11Mar'12Mar'13Mar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20
Return on Equity (%) 6.851.39-3.56-6.82-0.3-16.49-74.56863.1181.473.72
Operating Profit Margin (%) 7.566.255.115.547.253.15-10.48-142.03-172.63-56.48
Net Profit Margin (%) 0.890.29-0.72-1.71-0.06-3.14-26.19-135.54-140.52-137.06
Debt to Equity 1.421.241.82.352.363.478.48-5.44-2.14-2.06
Working Capital Days 1141721682492362426221,2847895,990
Cash Conversion Cycle 48931121801751844739736274,976
Entity Percentage Holding
Promoters 57.57%
Institutions 4.57%
Non-Institutions 37.85%
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 Splendid Metal Products Ltd's performance infers:

Splendid Metal Products Ltd earnings have grown by 0%, whereas share price has depreciated -35.4% 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 Splendid Metal Products Ltd share prices over the last 10 years. Here is what we found out:

Splendid Metal Products Ltd share price has depreciated -32.2% annually over the past ten years.

Sujana Metal Products Limited (SMPL) was incorporated in May 1988 under the name of Sujana Steel Re-Rolling Industries Private Limited. The company was incorporated with an object to manufacture Steel Re-rolled products.

The company was promoted by Y S Chowdary his associates and relatives. The name of the company was changed to “Sujana Steels Private Limited” on March 30, 1992. The company was converted into public limited company on April 20, 1992. The company further

Sujana Metal Products Limited (SMPL) was incorporated in May 1988 under the name of Sujana Steel Re-Rolling Industries Private Limited. The company was incorporated with an object to manufacture Steel Re-rolled products.

The company was promoted by Y S Chowdary his associates and relatives. The name of the company was changed to “Sujana Steels Private Limited” on March 30, 1992. The company was converted into public limited company on April 20, 1992. The company further changed its name as “Sujana Metal Products Limited” with effect from November 9, 2001.

Sujana Metal Products Limited (SMPL) is a company engaged in the business of manufacturing and marketing value added steel products. SMPL is categorized as a secondary steel producer in the industry. The company caters to product requirements of some of the most reputed players in the construction & infrastructure sectors. Over the years, the group has carved a niche for itself in the value added product segment of the Indian steel market.

The company is the part of Sujana Group. Other group companies are Sujana Universal Industries, Sujana Towers and Sujana Projects Limited.

SMPL supplies high quality TMT bars of various sizes with varying material properties depending upon the requirements of the clients. It also manufactures structural steel of varying shapes and dimensions for the construction & infrastructure sector. 

The clientele of the company include Raheja IT Park, Samrakshana Electricals, Shapoorji Paloonji & Company, Srinivasa Hatcheries, Subhash Projects, Suncrest Industries, Transstroy (India), Vasavadatta Cement,  Wipro, Zuari Cement, A.P. Heavy Machinery & Engineering, Aditya Builders, Bangalore, Birla Institute of Technology & Sciences, DLF Universal, etc.

Its units are located at IDA Bollaram Industrial Estate, Hyderabad and are equipped with the latest machinery and the personnel who exhibit high engineering skills. Its structural steel manufacturing unit is ISO 9001:2000 certified, among few of its kind in the country. The Bureau of Indian Standards has also granted it the license to use their mark of quality assurance, 'ISI'.

Fully equipped and sophisticated laboratories have been set up at each manufacturing unit to test the incoming material and monitor it online at every processing stage. Quality Control is a rigorous discipline and the finished product is checked meticulously before shipment. Customer satisfaction and adherence to specified quality standards is key.

Product range of the company includes:

SMPL is primarily into the business of manufacturing various steel products/applications such as the following: 

  • Thermo Mechanically Treated (TMT) bars- specialty of Sujana’s TMT lies in Higher strength, Higher UTS / Yield ratio (enhanced elongation), Higher fatigue strength, Higher resistance to heat, Higher resistance to corrosion, Excellent weldability, Excellent ductility, Saves 14-19% steel compared to CTD bars, Better safety of structures owing to higher strength and durability, Pre-fabrication of meshes possible, Good bond between bar and concrete, Ease in working on-site. Available in Fe-415, Fe-500, Fe-550 grades.
  • Structural steel- The product mix of Sujana Metal Products Limited comprises of rounds reinforcement Bars, Angles, Channels, Flats, and I. Beams etc.

Future plans

To capture a significant share of the tower market, it proposes to increase the capacities of its tower making division at Hyderabad from 28,400 TPA to over 1,00,000 TPA. Currently, it has the capacity to manufacture 55,000 MT of Structural steel. With increasing demand for it, it is proposed to modify the mill and also increase the capacities to 70,000 MT. After this exercise, the structural mill will be in a position to manufacture larger sizes of channels and angles required by the Towers Division. Presently the structural mill is meeting 40% of the steel requirement of the Towers Division; after the expansion/ modification, the structural mill will be in a position to meet 80% of the steel requirement of the expanded capacity of the Towers Division.

In keeping with its explosive growth, it is exploring options with a view to enter export markets like Sri Lanka and other South East Asian countries.

Puchho Befikar
SEBI Registered: Investment Adviser - INA000013323

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