Earthstahl & Alloys Ltd - Stock Valuation and Financial Performance

BSE: 543765 | NSE: | Steel & Iron Products | Small Cap

Earthstahl & Alloys Share Price

42 1.22 2.99%
as on 28-Mar'24 16:01

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Earthstahl & Alloys stock performance -

mw4me loader
P/E Ratio (SA):
6.85
Market Cap:
51.4 Cr.
52-wk low:
40.8
52-wk high:
77

Is Earthstahl & Alloys Ltd an attractive stock to invest in?

1. Is Earthstahl & Alloys Ltd a good quality company?

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

2. Is Earthstahl & Alloys Ltd undervalued or overvalued?

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

3. Is Earthstahl & Alloys Ltd a good buy now?

The Price Trend analysis by MoneyWorks4Me indicates it is Weak which suggest that the price of Earthstahl & Alloys 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 Earthstahl & Alloys:

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.
Earthstahl & Alloys 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'20Mar'21Mar'22Mar'23TTM
ROCE % 4%17.7%32.6%21.3%-
Value Creation
Index
-0.70.31.30.5-

Growth Parameters

Growth Parameters Colour Code Guide

Sales 31.724.148.991.892
Sales YoY Gr.--23.8%102.7%87.8%-
Adj EPS -0.438.36.16.1
YoY Gr.-NA179.1%-25.7%-
BVPS (₹) 5.68.516.929.129.1
Adj Net
Profit
-0.32.77.47.58
Cash Flow from Ops. 1.46.87.912-
Debt/CF from Ops. 12.12.11.81.1-

CAGR

CAGR Colour Code Guide

9 Years 5 Years 3 Years 1 Years
Sales NANA42.6%87.8%
Adj EPS NANANA-25.7%
BVPSNANA73.7%72.8%
Share Price - - - -7.7%

Key Financial Parameters

Performance Ratio Colour Code Guide

Mar'20Mar'21Mar'22Mar'23TTM
Return on
Equity %
-6.74265.129.621.1
Op. Profit
Mgn %
8.325.627.513.5NAN
Net Profit
Mgn %
-1.111.115.28.28.2
Debt to
Equity
3.51.80.90.4-
Working Cap
Days
014387780
Cash Conv.
Cycle
01727270

Recent Performance Summary

Sales growth is growing at healthy rate in last 3 years 42.62%

Debt to equity has declined versus last 3 years average to 0.36

Return on Equity has declined versus last 3 years average to 21.10%

Net Profit has been subdued in last 3 years 0.00%

Sales growth is not so good in last 4 quarters at 0.00%

Latest Financials - Earthstahl & Alloys Ltd.

Standalone Consolidated
TTM EPS (₹) 6.1 -
TTM Sales (₹ Cr.) 91.8 -
BVPS (₹.) 29.1 -
Reserves (₹ Cr.) 23 -
P/BV 1.44 -
PE 6.85 -
From the Market
52 Week Low / High (₹) 40.75 / 76.95
All Time Low / High (₹) 40.61 / 76.95
Market Cap (₹ Cr.) 51.4
Equity (₹ Cr.) 12.2
Face Value (₹) 10
Industry PE 25.1

Management X-Ray of Earthstahl & Alloys:

Shareholding Pattern

Promoter's Holding & Share Pledging

Pledged *0.000.00
* Pledged shares as % of Promoter's holding (%)

Event Update

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Analyst's Notes

Key Ratios of Earthstahl & Alloys

Adj EPS (Rs.)

Sales (Cr.)

ROE (%)

ROCE (%)

Profit And Loss

(All Figures are in Crores.)
PARTICULARSMar'20Mar'21Mar'22Mar'23
Sales31.6524.1248.8891.81
Operating Expenses 29.0417.9535.4379.41
Manufacturing Costs18.269.8519.4636.40
Material Costs9.146.4112.2937.72
Employee Cost 0.991.242.383.55
Other Costs 0.660.441.311.74
Operating Profit 2.616.1713.4512.41
Operating Profit Margin (%) 8.2%25.6%27.5%13.5%
Other Income 0.160.460.200.38
Interest 1.751.751.201.06
Depreciation 1.381.451.512.10
Exceptional Items 0000
Profit Before Tax -0.363.4210.939.63
Tax -0.020.753.442.12
Profit After Tax -0.332.677.497.51
PAT Margin (%) -1.1%11.1%15.3%8.2%
Adjusted EPS (₹)-0.43.08.36.1
Dividend Payout Ratio (%)0%0%0%8%

Balance Sheet

(All Figures are in Crores.)
PARTICULARSMar'20Mar'21Mar'22Mar'23

Equity and Liabilities

Shareholders Fund 57.6815.1735.64
Share Capital 33312.24
Reserves 24.6812.1723.40
Minority Interest0000
Debt17.3413.9713.9112.40
Long Term Debt13.1111.9411.356.79
Short Term Debt4.232.032.565.62
Trade Payables3.292.333.625.64
Others Liabilities 1.031.703.234.03
Total Liabilities 26.6625.6835.9357.71

Fixed Assets

Gross Block24.7225.6527.1037.41
Accumulated Depreciation8.479.8011.1413.25
Net Fixed Assets16.2515.8415.9524.16
CWIP 0.200.245.211.56
Investments 0.150.150.150.15
Inventories4.963.649.6010.63
Trade Receivables0.680.840.563.49
Cash Equivalents 0.010.670.147.13
Others Assets4.434.304.3110.60
Total Assets 26.6625.6835.9357.71

Cash Flow

(All Figures are in Crores.)
PARTICULARSMar'20Mar'21Mar'22Mar'23
Cash Flow From Operating Activity 1.436.817.9111.97
PBT -0.363.4210.939.63
Adjustment 3.023.072.512.78
Changes in Working Capital -1.220.32-4.761.04
Tax Paid 00-0.78-1.47
Cash Flow From Investing Activity -1.50-1.04-6.86-12.70
Capex -0.62-1.08-6.52-6.65
Net Investments 0000
Others -0.880.05-0.35-6.05
Cash Flow From Financing Activity 0.06-5.11-1.577.72
Net Proceeds from Shares 00012.96
Net Proceeds from Borrowing 0.71-1.17-0.50-4.56
Interest Paid -1.74-1.74-1.20-1.06
Dividend Paid 0000
Others 1.09-2.200.120.38
Net Cash Flow -0.010.66-0.536.98
PARTICULARSMar'20Mar'21Mar'22Mar'23
Ratios
ROE (%)-6.742.1765.5829.56
ROCE (%)6.2123.5247.7627.57
Asset Turnover Ratio1.190.921.591.96
PAT to CFO Conversion(x)N/A2.551.061.59
Working Capital Days
Receivable Days81158
Inventory Days57654940
Payable Days1311608845

Earthstahl & Alloys Ltd Stock News

Earthstahl & Alloys Ltd FAQs

Company share prices are keep on changing according to the market conditions. The closing price of Earthstahl & Alloys on 28-Mar-2024 16:01 is ₹42.00.
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 28-Mar-2024 16:01 the market cap of Earthstahl & Alloys stood at ₹51.41.
The latest P/E ratio of Earthstahl & Alloys as of 28-Mar-2024 16:01 is 6.85.
The latest P/B ratio of Earthstahl & Alloys as of 28-Mar-2024 16:01 is 1.44.
The 52-week high of Earthstahl & Alloys is ₹76.95 and the 52-week low is ₹40.75.
The TTM revenue is Trailing Twelve Months sales. The TTM revenue/sales of Earthstahl & Alloys is ₹91.81 ( Cr.) .

About Earthstahl & Alloys Ltd

The company was originally incorporated as a Private Limited Company under the name ‘Earthstahl & Alloys Private Limited’ on December 09, 2009 under the provisions of the Companies Act, 1956 with the Registrar of Companies, Madhya Pradesh and Chhattisgarh. Subsequently, pursuant to Special Resolution passed by the Shareholders at the Annual General Meeting, held on August 27, 2022, the company was converted into a Public Limited Company and consequently the name of the company was changed from ‘Earthstahl & Alloys Private Limited’ to ‘Earthstahl & Alloys Limited’ vide a fresh certificate of incorporation dated September 21, 2022, issued by the Registrar of Companies, Chhattisgarh.

Earthstahl & Alloys originally established in 2009 as a Greenfield project for production of cast iron lumps through submerged arc furnace route by first generation Entrepreneurs  and Technocrats with diverse and wide industrial and commercial experience. In addition to production of cast iron lumps, the company has put up a Lost Foam based Foundry for production of high end ductile iron, cast iron, steels, alloys, and non-ferrous castings which has plenty of uses such as-pellet plants, cement plants, sponge iron plants, power plants, automobiles, railways, mining, agriculture equipments, pipes and fittings.

The company started its operations of manufacturing cast iron in the year 2012 with one submerged electric arc furnace with capacity of 3.6 MVA to manufacture 10,500 tonnes p.a. of Cast iron Lumps and thereafter in the year 2017 the company forayed into the Ductile Iron Pipes fittings segment to cater to the growing water infrastructure requirements in the country for which it commissioned Lost Foam based Steel Foundry consisting of one induction furnace with two crucibles, one of 500 KG and another 1000 KG to produce Ductile iron pipe fittings of different dimensions, shapes and sizes used in water supply system.

The foundry is also capable of producing parts or components of plant and machinery/ automobiles using foam molds and therefore the company can produce various parts of Pellet plants, Cement plants, Sponge iron plants, Power plants, Automobile Sector, Railway & Ductile Iron Pipes Fittings. Over the years, the company has been successful in manufacturing a full range of BIS Certified Ductile Iron Pipe Fittings of upto 600 mm width with accuracy, consistency & smooth surface finish. In the year 2022, the company also commissioned another 5.5 MVA submerged electric arc furnace to manufacture 15,750 tonnes p.a. of cast iron lumps.

Business area of the company

The company is engaged in the business of manufacturing Cast Iron Lumps and Ductile Iron Pipe Fittings. The Cast Iron Lumps manufactured by the company are then used in the form of raw material to manufacture products like cast iron pipe fittings, machine components such as latche machines, fan components, manhole covers, decorative cast iron pieces, cast iron pipe fitting and other units engaged in manufacturing of steel or cast iron products.

Major events and milestones

  • 2009: Incorporation of the Company in the name of ‘Earthstahl & Alloys Private Limited’.
  • 2012: Commissioned of one Submerged Electric Arc Furnace with capacity of 3.6 MVA to manufacture 10500 MTs of Cast Iron lumps.
  • 2015: Closure of Plant.
  • 2018: Restarting of Plant.
  • 2017: Started commercial production of manufacturing ductile iron pipe fittings.
  • 2020: Shutdown of plant during COVID from March 2020 to August 2020.
  • 2022: Commissioned another Submerged Electric Arc Furnace with capacity of 5.5MVA to manufacture 15,750 MTs of Cast Iron lumps.
  • 2022: Conversion of Private limited Company to Public Limited Company.
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