Over the past five years, Steel Exchange India has recorded a sales growth rate of 10.91% and an EBIT growth of 37.27%, indicating a steady expansion in operational scale and profitability. The average EBIT to interest coverage ratio stands at 1.17, suggesting the company’s earnings before interest and tax are modestly above its interest obligations. Debt metrics reveal an average debt to EBITDA ratio of 4.45 and a net debt to equity ratio of 0.66, pointing to a moderate leverage position relative to earnings and shareholder equity.
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The company’s average ROCE is recorded at 9.04%, while the average ROE is 10.92%, reflecting the returns generated on capital and equity invested. These figures provide insight into the efficiency of capital utilisation and shareholder value creation over the medium term. The sales to capital employed ratio averages 1.22, indicating the revenue generated per unit of capital invested in the business. Taxation remains a significant factor with a tax ratio of 37.24%, impacting net profitability.
Shareholding patterns reveal a high percentage of pledged shares at 99.95%, which may be a consideration for investors assessing share liquidity and promoter confidence. Institutional holding is relatively low at 3.12%, suggesting limited participation from large financial entities. The stock price has shown volatility, with the current price at ₹8.79, a 52-week high of ₹11.54, and a low of ₹7.16. Recent trading ranges have fluctuated between ₹8.69 and ₹8.88.
When compared to the broader market benchmark, the Sensex, Steel Exchange India’s returns present a mixed picture. Over one week, the stock declined by 1.35% while the Sensex gained 0.96%. Over one month, the stock’s return was -12.88% against the Sensex’s 0.86%. Year-to-date and one-year returns for the stock are negative at -13.99% and -13.82% respectively, contrasting with Sensex gains of 8.36% and 9.48%. Longer-term performance over five years shows a cumulative return of 171.30%, surpassing the Sensex’s 91.65%, though the 10-year return of 113.09% trails the Sensex’s 232.28%.
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In the context of the Iron & Steel Products industry, Steel Exchange India’s quality evaluation adjustment aligns it with peers such as Hariom Pipe, Scoda Tubes, and Gandhi Spl. Tube, which also hold average quality grades. This repositioning suggests a recalibration of the company’s operational and financial parameters relative to sector benchmarks. Investors analysing Steel Exchange India should consider the interplay of its growth rates, capital efficiency, leverage, and market performance when assessing its business fundamentals.
Overall, the revision in Steel Exchange India’s quality parameter reflects a nuanced view of its financial health and operational consistency. While certain leverage indicators and shareholding patterns warrant attention, the company’s growth metrics and returns on capital provide a balanced perspective on its business trajectory within a competitive sector environment.
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