Sunflag Iron And Steel Company Ltd - Stock Valuation and Financial Performance

BSE: 500404 | NSE: SUNFLAG | Steel & Iron Products | Small Cap

Sunflag Iron And Steel Company Ltd Share Price

209.15 -0.25 -0.12%
as on 22-Feb'24 10:11

DeciZen - make an informed investing decision on Sunflag Iron & Steel

Overall Rating
Bole Toh

1. Quality

2. Valuation

Somewhat overvalued

3. Price Trend

Semi Strong

Sunflag Iron And Steel Company stock performance -

mw4me loader
P/E Ratio (SA):
27.06
Market Cap:
3,773.8 Cr.
52-wk low:
128
52-wk high:
249

Is Sunflag Iron And Steel Company Ltd an attractive stock to invest in?

1. Is Sunflag Iron And Steel Company Ltd a good quality company?

Past 10 year’s financial track record analysis by Moneyworks4me indicates that Sunflag Iron And Steel Company Ltd is a below average quality company.

2. Is Sunflag Iron And Steel Company Ltd undervalued or overvalued?

The key valuation ratios of Sunflag Iron And Steel Company Ltd's currently when compared to its past seem to suggest it is in the Somewhat overvalued zone.

3. Is Sunflag Iron And Steel Company Ltd a good buy now?

The Price Trend analysis by MoneyWorks4Me indicates it is Semi Strong which suggest that the price of Sunflag Iron And Steel Company Ltd is likely to Rise-somewhat in the short term. However, please check the rating on Quality and Valuation before investing.

10 Year X-Ray of Sunflag Iron & 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.
Sunflag Iron And Steel Company 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 % 7.4%7.6%11.7%9.4%13.8%11%8%9.2%12.6%11.1%-
Value Creation
Index
-0.5-0.5-0.2-0.30.0-0.2-0.4-0.4-0.1-0.2-

Growth Parameters

Growth Parameters Colour Code Guide

Sales 1,5851,7571,5901,5162,0742,1861,7581,8922,6983,4883,333
Sales YoY Gr.-10.8%-9.5%-4.6%36.8%5.4%-19.6%7.6%42.7%29.3%-
Adj EPS 1.31.43.63.67.165.17.612.215.87.7
YoY Gr.-3.7%160.4%0.6%95.1%-15.8%-15.6%50.3%61.1%29.3%-
BVPS (₹) 3132.435.739.346.452.256.864.996.3184.7264.2
Adj Net
Profit
21.72565.365.612810891.1137220285139
Cash Flow from Ops. 10777.7236-21.494.817720822343.2278-
Debt/CF from Ops. 4.45.41-15.23.621.60.912.12-

CAGR

CAGR Colour Code Guide

9 Years 5 Years 3 Years 1 Years
Sales 9.2%11%25.7%29.3%
Adj EPS 31.6%17.4%46.3%29.3%
BVPS21.9%31.8%48.2%91.7%
Share Price 25.9% 34.6% 49.1% 50.9%

Key Financial Parameters

Performance Ratio Colour Code Guide

Mar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22Mar'23TTM
Return on
Equity %
4.44.610.79.716.612.17.89.413.511.33.5
Op. Profit
Mgn %
9.39.612.19.711.410.99.713.51513.111.1
Net Profit
Mgn %
1.41.44.14.36.24.95.27.28.28.24.2
Debt to
Equity
0.90.70.40.50.40.40.30.20.30.2-
Working Cap
Days
13412613514413815219618415713973
Cash Conv.
Cycle
6980881019310011892848126

Recent Performance Summary

Sales growth is growing at healthy rate in last 3 years 25.66%

Net Profit is growing at healthy rate in last 3 years 46.29%

Return on Equity has declined versus last 3 years average to 3.40%

Sales growth is not so good in last 4 quarters at 2.89%

Latest Financials - Sunflag Iron And Steel Company Ltd.

Standalone Consolidated
TTM EPS (₹) 7.7 7.8
TTM Sales (₹ Cr.) 3,333 3,333
BVPS (₹.) 264.2 265.1
Reserves (₹ Cr.) 4,582 4,597
P/BV 0.79 0.79
PE 27.06 26.90
From the Market
52 Week Low / High (₹) 128.00 / 248.95
All Time Low / High (₹) 1.60 / 248.95
Market Cap (₹ Cr.) 3,774
Equity (₹ Cr.) 180.2
Face Value (₹) 10
Industry PE 24.9

Management X-Ray of Sunflag Iron & Steel:

Shareholding Pattern

Promoter's Holding & Share Pledging

Pledged *0.000.000.000.000.000.000.000.000.000.00
* Pledged shares as % of Promoter's holding (%)

Event Update

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Analyst's Notes

Key Ratios of Sunflag Iron & Steel

Adj EPS (Rs.)

Sales (Cr.)

ROE (%)

ROCE (%)

Balance Sheet

(All Figures are in Crores.)

Profit And Loss

(All Figures in Cr. Adjusted EPS in Rs.)

Cash Flow

(All Figures are in Crores.)

Sunflag Iron And Steel Company Ltd Stock News

Sunflag Iron And Steel Company Ltd FAQs

Company share prices are keep on changing according to the market conditions. The closing price of Sunflag Iron & Steel on 22-Feb-2024 10:11 is ₹209.2.
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 22-Feb-2024 10:11 the market cap of Sunflag Iron & Steel stood at ₹3,773.8.
The latest P/E ratio of Sunflag Iron & Steel as of 22-Feb-2024 10:11 is 27.06.
The latest P/B ratio of Sunflag Iron & Steel as of 22-Feb-2024 10:11 is 0.79.
The 52-week high of Sunflag Iron & Steel is ₹248.9 and the 52-week low is ₹128.0.
The TTM revenue is Trailing Twelve Months sales. The TTM revenue/sales of Sunflag Iron & Steel is ₹3,333 ( Cr.) .

About Sunflag Iron And Steel Company Ltd

Sunflag Iron and Steel Company is a prestigious unit of the Sun Flag Group incepted in 1989. It has set up a state-of-art integrated plant at Bhandara, India. The plant has a capacity to produce 200,000 tonnes per annum of high quality special steel using iron ore and non coking coal as basic inputs.

The plant comprises a 1,50,000 tonnes per annum Direct Reduction Plant, to produce sponge iron for captive consumption in the Steel Melting Shop. This shop comprises a 50/60 tonnes ultra high power Electric Are Furnace with Eccentric bottom arrangement; a Ladle auto mould level controller and electromagnetic stirrer. The billets produced at the steel melting shop are rolled at the Mannesmann Demag Designed ultra modern 18 stand Continous mill.This mill has a walking hearth reheating furnace, quick roll-changing facilities, a 65 metres long walk and wait type modern cooling bed and above all computerised process control linking and controlling the various stages.

Within a short period of its inception, Sunflag Steel has established itself as a major global force. This modern complex pulsating with world-class technology, expert human resources and a commitment to excellence, has created a distinct niche in spring steel and attained the position of market leader in the segment. Today Sunflag Steel has also embarked on an export thrust and is regularly receiving prestigious orders from Japan and many other Far East, Afro-Asian and Middle-East countries.

The ASM commenced production in the year 1997, enabling Sunflag to expand its product range upto 90 mm dia Rounds; 75 mm RCS and upto 120x25 mm Flats. Production capacity of rolled product is also enchanced by 60, 000 MT. per annum. In order to save energy, a captive power plant of 15 MW capacity has already been comissioned using waste gases.

In 2010 Company  entered into a technological pact with Japanese steel firm Daido Steel.

Product range of the company:

Sunflag Steel is accredited with the ISO-9002 Quality mark, backed up with sound management practices and a highly motivated team. It is a small wonder the Sunflag products are exported to a number of countries.

  • Flats - Spring steel that goes into the automobile and railway suspension. The grades include Silico Manganese, Chrome, Vanadium steel. In   specifications like: DIN, SAE/AISI, BS The sizes from 44 mm wide to 120 mm wide; and 5mm  to 25mm thick.
  • Rounds- In carbon, free-cutting, spring and alloy steels. In specifications like: DIN, SAE/AISI, BS et cetera. In sizes from 15 mm to 90 mm in diameter. For the forging, automobile, spring industries.
  • Round Cornered Squares (RCS)- In carbon, free-cutting and alloy steels. In specifications like: DIN, SAE/AISI, BS et cetera. In sizes from 45x45 mm to 90x90 mm. For the forging, automobile industries.

Production Units:

Sunflag Steel uses the (Sponge iron + Liquid Pig Iron)--Electric arc furnace--Ladle heating furnace--New Continuous casting machine--Rolling mills route, backed up by the state-of-the-art technology and computerized process control.

  • Sintering Plant (SINTER)-  A 33 M2 sinter plant, designed by Beijing Sino-Steel industry & trade Group Corp.(SSIT) and Jiangsu Province Metallurgical Designing Institute (JSMDI) Co. Ltd. The technology of it is based on principle of economical, applicable safe and operational. The annual production is expected to be 4,70,000 Tonnes.  
  • Mini Blast Furnace (MBF)- A Blast furnace of working volume 350 M3 designed by MECON Ltd. to produce 2,30,000 MT / annum of basic grade hot metal has been installed and sucessfully commissioned. The hot metal is mainly used in the steel melting shop as a raw material and surplus hot metal poured in pig casting machine. The Pig casting machine is designed by KBS Paramount & capacity 800 Tonnes per day (TPD). The Blast furnace gas is used for stoves heating, heating of preheating furnace of bar and section mill, heating of boiler, sinter plant. Slag which is a byproduct is mainly sold to cement plants.  
  • Direct Reduction Plant (DRP)- Based on Krupp's Codir process. The DRP can produce 150,000 tones per year of Sponge iron from iron ore and coal. Additionally, the flue gases help generate 30 MW of electric power.
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