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SAL Steel Ltd Stock Analysis

Small Cap
Evaluated by 157 users | BSE: 532604 | NSE: SALSTEEL |
Steel/Sponge Iron/Pig Iron
S A L Steel was incorporated on November 6, 2003 under the Companies Act, 1956 as a private limited company and as such did not require any certificate of commencement of business. Pursuant to its conversion from a private limited company to a public limited company, a fresh Certificate of...

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 4.39%4.24%-1.73%-4.63%-12.02%2.29%0.56%-1.72%-4.04%-8.13%
Growth Parameters
Growth Parameters Colour Code Guide
Net Sales (Rs. Cr.) 320328379328365338361446574408
Y-o-Y Gr. Rt.-2.3%15.8%-13.6%11.4%-7.6%6.8%23.7%28.8%-29%
Adjusted EPS (Rs.) 0.01-0.07-3.32-4.01-5.02-0.80-0.43-0.99-1.77
Y-o-Y Gr. Rt.--800%NANANANANANANANA
Book Value per Share (Rs.) 14.7914.8411.478.24-0.74-4.13-4.562.39-0.151.71
Adjusted Net Profit 0.1-0.6-28.2-34.1-42.7-6.80-3.6-8.4-15
Net Op. Cash Flow (Rs. Cr.) 24.817.123.6-16.821.91.9-5.86.9-4.153.7
Debt to Cash Flow from Ops 9.6813.738.78-10.525.5546.01-29.5425.39-41.242.99
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.
SAL Steel Ltd. should be analysed on a Standalone basis
CAGR
CAGR Colour Code Guide
  9 yrs 5 yrs 3 yrs 1 yr
Net Sales 2.7%2.2%4.2%-29%
Adjusted EPS -277.7%NANANA
Book Value per Share -21.3000
Share Price -2.9% 10% -13.1% 55.1%
Key Financial Parameter
Performance Ratio Colour Code Guide
 Mar'11Mar'12Mar'13Mar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20
Return on Equity (%) 0.1-0.48-23.55-38.85-133.8532.73-0.0239.3-88.35-226.11
Operating Profit Margin (%) 12.711.471.90.437.136.882.661.431.62-4.46
Net Profit Margin (%) 0.04-0.19-7.43-10.4-11.67-2.010-0.81-1.46-3.69
Debt to Equity 1.911.862.132.51-19.17-2.46-4.458.62-135.0511.03
Working Capital Days 13617414914598819910687132
Cash Conversion Cycle 12193848332854684868
Entity Percentage Holding
Promoters 50.56%
Non-Institutions 49.44%
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 SAL Steel Ltd's performance infers:

SAL Steel Ltd earnings have grown by 0%, whereas share price has appreciated 10% 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 SAL Steel Ltd share prices over the last 10 years. Here is what we found out:

SAL Steel Ltd share price has appreciated -6.3% annually over the past ten years.

S A L Steel was incorporated on November 6, 2003 under the Companies Act, 1956 as a private limited company and as such did not require any certificate of commencement of business. Pursuant to its conversion from a private limited company to a public limited company, a fresh Certificate of Incorporation was issued on December 17, 2003 and its name was changed from S A L Steel Private Limited to S A L Steel Limited.

SAL achieved assessment standard of ISO 9001:2000 in April 2002 from SGS

S A L Steel was incorporated on November 6, 2003 under the Companies Act, 1956 as a private limited company and as such did not require any certificate of commencement of business. Pursuant to its conversion from a private limited company to a public limited company, a fresh Certificate of Incorporation was issued on December 17, 2003 and its name was changed from S A L Steel Private Limited to S A L Steel Limited.

SAL achieved assessment standard of ISO 9001:2000 in April 2002 from SGS Yarsley International Certification Services for manufacture and supply of mild steel, stainless steel and other alloy steel plates and coils.

In 2011 S A L Steel entered into a Memorandum of Understanding with the Government of Gujarat for establishment of the Cement project at Kachchh.

Business areas of the company: 

SAL is engaged in manufacture of stainless steel (SS) products. The main products of the company include stainless steel, hot rolled (HR) sheets, coils, plates, slabs, flats, rounds, bars, etc. The stainless steel products are used for manufacture/preparation of utensils, railway coaches, wagons, electrical appliances, food processing equipment, pharmaceutical equipment, telecommunication equipment, household kitchenware, petroleum refining equipment, pressure vessels, large mufflers for engines, silencers, pipes and emission control units, bulk solid handling areas, surgical instruments, vegetable choppers, tableware, cutlery, washing machine parts, automobile components, etc.

Group companies:

  • Shah Steel and Rolling Industries (SSRI)

SSRI is a partnership firm managed by Rajendra V. Shah and Ragini R. Shah. The firm commenced operations in 1997-98 to manufacture M S angles, CTD bars, sections and melting scrap. The firm has stopped its manufacturing activity. Its main source of income is labour charges and rent income.

  • Shah Industries Unit - I (SIU-I)

SIU-I is a proprietorship firm managed by Rajendra V Shah. The firm commenced operations in 1986-87. It has stopped its manufacturing activity. Its main source of income is rent, commission, etc.

  • Shah Steel Udyog (SSU)

SSU is a proprietorship firm managed by Rajendra V Shah HUF. The firm commenced operations in 1998-99 and is in business of manufacturing of M S angles, CTD bars, sections and melting scrap.

  • Shah Steel Craft and Rolling Industries (SSCRI)

SSCRI is a proprietorship firm managed by Ragini R Shah. The firm commenced operations in 1987-88 and is in the business of manufacture M S angles, CTD bars, sections, channels, etc. The concern has stopped its manufacturing activity. The main source of income is rent.

Puchho Befikar
SEBI Registered: Investment Adviser - INA000013323

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