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Surana Industries Ltd. Stock Analysis

Small Cap
Evaluated by 89 users | BSE: 513597 | NSE: SURANAIND |
Steel & Iron Products
Surana Industries was incorporated in the year 1991, as Surana Metals & Steels (India), the name was changed to Surana Industries in 2002. The company is the flagship of Surana Group. Other company in the group is Surana Corparation that is involved in jewellery business.Surana Industries...

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'08Mar'09Mar'10Mar'11Mar'12Mar'13Mar'14Mar'15Mar'16Mar'17
Return on Capital Employed 9.16%6.55%2.76%8.05%6.45%4.77%-2.45%-8.04%-16.41%-28.86%
Growth Parameters
Growth Parameters Colour Code Guide
Net Sales (Rs. Cr.) 8008719451,2231,3511,42555564258563.2
Y-o-Y Gr. Rt.-8.9%8.5%29.4%10.5%5.5%-61%15.7%-8.9%-89.2%
Adjusted EPS (Rs.) 19.1815.76-3.4319.9210.362.3-34.92-59.02-92.18-111.15
Y-o-Y Gr. Rt.--17.8%-121.8%NA-48%-77.8%-1618.3%NANANA
Book Value per Share (Rs.) 95.54118.11176.39198.54204.36244.59210.49150.0131.92-82.42
Adjusted Net Profit 32.931.8-9.354.130.110.3-155-263-410-566
Net Op. Cash Flow (Rs. Cr.) -38.832.3-10114518198-140-29.8-135-91.5
Debt to Cash Flow from Ops -13.3722.58-7.116.848.414.82-8.82-43.85-11.08-15.43
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.
Surana Industries Ltd. should be analysed on a Standalone basis
CAGR
CAGR Colour Code Guide
  9 yrs 5 yrs 3 yrs 1 yr
Net Sales -24.6%-45.8%-51.5%-89.2%
Adjusted EPS -221.6%-260.7%NANA
Book Value per Share -198.4-183.4-173.2-358.2
Share Price -46.3% -32.1% -18.6% -
Key Financial Parameter
Performance Ratio Colour Code Guide
 Mar'08Mar'09Mar'10Mar'11Mar'12Mar'13Mar'14Mar'15Mar'16Mar'17
Return on Equity (%) 18.0713.32-2.3410.094.311.05-15.26-32.51-99.9416.6
Operating Profit Margin (%) 10.0710.923.2912.8412.5412.28-10.25-6.89-31.79-297.08
Net Profit Margin (%) 4.113.64-0.994.422.230.72-28-40.92-70.17-894.8
Debt to Equity 3.163.061.491.831.460.881.321.9610.51-3.36
Working Capital Days 2011901911691822236005004382,735
Cash Conversion Cycle 605094991091173132742761,937
Entity Percentage Holding
Promoters 45.62%
Institutions 1.70%
Non-Institutions 52.68%
Pledged *76.0676.06100.00100.00100.00100.00100.00100.00100.00100.00
* Pledged shares as % of Promoter's holding (%)
Data is not available for this company.

The 5-year analysis of Surana Industries's performance infers:

Surana Industries earnings have declined by -260.7%, whereas share price has depreciated -32.1% CAGR over the past five years, indicating the company's share price is likely overvalued. However, for specific investment actions please connect with your investment advisor.

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

Surana Industries share price has depreciated -40.7% annually over the past ten years.

Surana Industries was incorporated in the year 1991, as Surana Metals & Steels (India), the name was changed to Surana Industries in 2002. The company is the flagship of Surana Group. Other company in the group is Surana Corparation that is involved in jewellery business.

Surana Industries Limited possesses a fully integrated state-of-the-art steel manufacturing plant at Gummidipoondi, Chennai. The unit is complete with the following facilities: Induction Furnace for the manufacturing

Surana Industries was incorporated in the year 1991, as Surana Metals & Steels (India), the name was changed to Surana Industries in 2002. The company is the flagship of Surana Group. Other company in the group is Surana Corparation that is involved in jewellery business.

Surana Industries Limited possesses a fully integrated state-of-the-art steel manufacturing plant at Gummidipoondi, Chennai. The unit is complete with the following facilities: Induction Furnace for the manufacturing of Mild Steel Ingots from Heavy Metal Scrap Steel plant for rolled products from Mild Steel Ingots and Billets (from 6mm to 36mm diameter)

Hot rolled products like cold Twisted Deformed (CTD) bars, TOR Steel, Thermo-Mechanically Treated (TMT) bars (known as Surana TMT), Mild Steel Wires, MS Structurals and Angels etc.

Cold Rolled Items - Surana Industries manufactures High Strength Deformed Steel bars (approved by Bureau of Indian Standards association), Thermo Mechanically treated bars known as SURANA TMT, CRS Reinforcing bars, Cold Twisted Deformed bars, Mild Steel Rounds and Mild Steel Structurals. The plant has an installed capacity to produce per annum 30,000 tonnes of mild steel ingots, and 1,09,800 tonnes of CTD bars and TMT bars.

Surana Industries Limited is one of the major TMT (thermo mechanically treated) bars manufacturer located in Chennai and sourced Eurotherm DEL India Limited to modernize their plant located at Gummidipoondi around 45KM from chennai.

CF series of online pyrometers have been used in the TMT line by Surana Industries. CF series of Infrared Radiation Thermometers are compact, on-line instruments for non contact temperature measurement from 300 to 25000 C in applications such as secondary metals processing -- hardening, forging, soldering and sintering - and many others with spectral response from 0.8 to 1.1mm(CF 100 series) or 1.45 to 1.8mm (CF 200 series), providing measurement of temperature which is relatively insensitive to variation in target surface emissivity. It has high accuracy digital signal processing system housed in rugged stainless steel. CF series thermometers may be configured from a PC via a serial interface and proprietary set-up software.

Surana adopts a unique and highly refined process in the making of Surana TMT bars. The infrastructure advantage of Surana's fully integrated steel manufacturing plant is complete with Programmable Logic Controllers (PLC), where in the entire process is fully computerized.Being the only plant in the private sector in Southern India, Surana offers a good value addition to the industry by studying and employing global trends in TMT processes.

Surana Industries has a team of well-qualified and experienced professionals who have in-depth knowledge of the steel industry. Keeping abreast with the latest trends in steel manufacturing, the company constantly analyses the latest trends so as to adopt to new technologies.SIL is an accredited / authorized conversion agent of SAIL for TMT BARS and has also entered into MOU with SAIL (Steel Authority of India Ltd.) & LTC (Long Term Contact) with RINL (Rashtriya Ispat Nigam Ltd.)

In 2011 Surana Industries acquired Surana Mines and Minerals Pte Limited.

Product range of the company includes:

Surana offers steel, can be described as high-strength steel having superior properties such as weldability, ductility and bendability meeting highest quality standards at domestic level.

  • MS Billets
  • MS Ingots
  • CTD Bars
  • Ms Wires rods
  • Ms Structural
  • MS Rounds
  • MS Angles
  • MS Channels
  • MS Beams
  • MS Joist
  • MS Flats
  • MS Plate
  • MS Square

Achievements/ milestones

  • During 1970-85, Surana was in the business of metal & finance.
  • Surana entered in the field of steel by trading business from 1986-1994. However it was a closely held company.
  • On 12th March 1991; 'surana metals & steels (India) limited' was incorporated as a public limited company. Since 1991, the Surana Group has been focusing on creation of high standards in their production fields. 
  • The company received “the best customer satisfaction award' and 'the best service and management' award issued by two academies at Chennai for the year 1991-1992.
  • Envisaging bright prospects for steel, in 1995 Surana embarked upon the steel manufacturing activity.
  • Company also received 'Certificate Of Excellence' Award By Rashtriya Ispat Nigam Ltd, Visakhapatnam Steel Plant (Southern Region) Highest Lifting Of Semis For the Year 1997-98.
  • In 2000, Surana added a power wing, for its captive consumption, utilizing (Non Conventional) wind energy. On and from 5th February 2002, Surana had Its name changed & thus was born 'Surana Industries Limited'.
Puchho Befikar
SEBI Registered: Investment Adviser - INA000013323
Research Analyst - INH000000719

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