Scan Steels Ltd Falls to 52-Week Low Amidst Continued Downtrend

Stock Price Movement and Volatility

On 1 Feb 2026, Scan Steels Ltd recorded an intraday low of Rs.28.02, down 13.89% from its intraday high of Rs.33.90, which itself was a 4.18% rise from the previous close. The stock exhibited high volatility with an intraday weighted average price volatility of 9.5%. Over the last two trading sessions, the stock has declined by 6.64%, signalling sustained selling pressure. The day’s performance saw a 5.87% drop, underperforming the Ferrous Metals sector by 5.78%.

Notably, Scan Steels is trading below all key moving averages including the 5-day, 20-day, 50-day, 100-day, and 200-day averages, indicating a bearish trend across multiple timeframes.

Market Context and Comparative Performance

While Scan Steels has been on a downward trajectory, the broader market has shown resilience. The Sensex opened 119.19 points higher and was trading at 82,538.76, up 0.33% on the day. The index remains 4.39% shy of its 52-week high of 86,159.02. Mega-cap stocks have led the market gains, contrasting with the underperformance of smaller and mid-cap stocks such as Scan Steels.

Over the past year, Scan Steels has delivered a negative return of 28.28%, starkly contrasting with the Sensex’s positive 7.53% return over the same period. The stock’s 52-week high was Rs.48.50, underscoring the extent of the recent decline.

Financial Performance and Fundamental Metrics

Scan Steels’ long-term financial indicators reveal subdued growth and profitability. The company’s average Return on Capital Employed (ROCE) stands at 5.29%, reflecting limited efficiency in generating returns from its capital base. Over the past five years, net sales have grown at an annualised rate of 5.16%, while operating profit has increased by 4.45% annually, both figures indicating modest expansion.

The latest quarterly results for September 2025 further highlight challenges. Profit Before Tax Less Other Income (PBT LESS OI) declined sharply to a loss of Rs.0.42 crore, a fall of 108.6% compared to the previous four-quarter average. Profit After Tax (PAT) also contracted significantly to Rs.0.19 crore, down 95.7% from the prior four-quarter average. Net sales for the quarter were the lowest in recent periods at Rs.132.96 crore.

Relative Valuation and Shareholding Pattern

Despite the weak financial performance, Scan Steels maintains an attractive valuation profile. The stock’s Enterprise Value to Capital Employed ratio is 0.6, suggesting it trades at a discount relative to its capital base. This valuation is lower than the average historical valuations of its peers in the Ferrous Metals sector.

The majority of Scan Steels’ shares are held by non-institutional investors, which may influence liquidity and trading dynamics.

Long-Term and Recent Performance Trends

Scan Steels’ performance over the last three years and one year has been below par compared to the BSE500 index. The stock’s negative returns of 28.28% over the past year coincide with a 29.4% decline in profits, underscoring the correlation between earnings contraction and share price depreciation.

The downgrade in the company’s Mojo Grade from Sell to Strong Sell on 19 Nov 2025 reflects the deteriorating fundamentals and market sentiment. The current Mojo Score of 14.0 further emphasises the stock’s challenging position within the Ferrous Metals sector.

Summary of Key Metrics

To summarise, Scan Steels Ltd’s key data points as of 1 Feb 2026 are:

• New 52-week low price: Rs.28.02
• Day’s high/low: Rs.33.90 / Rs.28.02
• Intraday volatility: 9.5%
• Consecutive two-day decline: -6.64%
• One-year return: -28.28%
• Five-year net sales growth: 5.16% CAGR
• Five-year operating profit growth: 4.45% CAGR
• ROCE: 5.29%
• Enterprise Value to Capital Employed: 0.6
• Mojo Grade: Strong Sell (upgraded from Sell on 19 Nov 2025)

These figures collectively illustrate the pressures faced by Scan Steels Ltd in maintaining market valuation and financial momentum amid sectoral and company-specific headwinds.

Sector and Market Positioning

Operating within the Ferrous Metals sector, Scan Steels contends with competitive pressures and cyclical demand patterns. The stock’s current valuation discount relative to peers may reflect market caution given the company’s recent earnings contraction and subdued growth rates.

Meanwhile, the broader market environment remains positive, with the Sensex nearing its 52-week high and mega-cap stocks leading gains. This divergence highlights the challenges faced by smaller-cap and mid-cap stocks such as Scan Steels in capturing investor attention and capital flows.

Conclusion

Scan Steels Ltd’s fall to a 52-week low of Rs.28.02 marks a continuation of a downward trend characterised by declining profitability, modest growth, and valuation pressures. The stock’s performance contrasts with broader market gains and sectoral peers, reflecting a complex interplay of financial metrics and market sentiment.

While the company’s valuation metrics suggest some degree of discounting, the recent quarterly results and long-term growth rates indicate ongoing challenges in reversing the negative trend. The downgrade to a Strong Sell Mojo Grade further underscores the cautious stance adopted by market analysts.

Investors and market participants will continue to monitor Scan Steels’ financial disclosures and market movements closely as the stock navigates this low price territory.

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