MSP Steel & Power Ltd (MSPL) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

Comparison

Company

Score

Quality

Valuation

Financial

Technical

JTL Industries

BMW Industries

Venus Pipes

Rhetan TMT Ltd

MSP Steel & Pow.

Bharat Wire

Vardhman Special

Steel Exchange

Welspun Special.

Hi-Tech Pipes

Mahamaya Steel

Why is MSP Steel & Power Ltd ?

Weak Long Term Fundamental Strength with an average Return on Capital Employed (ROCE) of 5.86%

Poor long term growth as Net Sales has grown by an annual rate of 10.53% and Operating profit at 6.46% over the last 5 years
Low ability to service debt as the company has a high Debt to EBITDA ratio of 1.81 times

With a growth in Net Profit of 1457.4%, the company declared Very Positive results in Mar 26

The company has declared positive results for the last 2 consecutive quarters
ROCE(HY) Highest at 9.29%
OPERATING PROFIT TO INTEREST(Q) Highest at 4.62 times
NET SALES(Q) Highest at Rs 816.32 cr

With ROCE of 9.3, it has a Fair valuation with a 2 Enterprise value to Capital Employed

The stock is trading at a discount compared to its peers' average historical valuations
Over the past year, while the stock has generated a return of 51.99%, its profits have risen by 576.8% ; the PEG ratio of the company is 0

71.27% of Promoter Shares are Pledged

In falling markets, high promoter pledged shares puts additional downward pressure on the stock prices

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to MSP Steel & Pow. should be less than 10%
Overall Portfolio exposure to Iron & Steel Products should be less than 30%

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Iron & Steel Products)

When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock

Is MSP Steel & Pow. for you?

High Risk, High Return

Absolute

Risk Adjusted

Volatility

MSP Steel & Pow.

51.99%

1.12

46.32%

Sensex

-10.54%

-0.81

13.06%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

10.53%

EBIT Growth (5y)

6.46%

EBIT to Interest (avg)

1.17

Debt to EBITDA (avg)

6.04

Net Debt to Equity (avg)

0.28

Sales to Capital Employed (avg)

2.00

Tax Ratio

100.00%

Dividend Payout Ratio

Pledged Shares

71.27%

Institutional Holding

16.92%

ROCE (avg)

5.79%

ROE (avg)

3.95%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

Industry P/E

Price to Book Value

2.23

EV to EBIT

21.17

EV to EBITDA

14.59

EV to Capital Employed

1.96

EV to Sales

0.91

PEG Ratio

0.03

Dividend Yield

ROCE (Latest)

9.26%

ROE (Latest)

13.12%

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Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

RSI

No Signal

Bollinger Bands

Mildly Bullish

Moving Averages

Bullish (Daily)

KST

Bullish

Mildly Bearish

Dow Theory

No Trend

Mildly Bullish

OBV

No Trend

Bullish

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

30What is working for the Company

ROCE(HY)

Highest at 9.29%

OPERATING PROFIT TO INTEREST(Q)

Highest at 4.62 times

NET SALES(Q)

Highest at Rs 816.32 cr

PBDIT(Q)

Highest at Rs 77.46 cr.

OPERATING PROFIT TO NET SALES(Q)

Highest at 9.49%

PBT LESS OI(Q)

Highest at Rs 46.77 cr.

PAT(Q)

Highest at Rs 85.20 cr.

EPS(Q)

Highest at Rs 1.50

-5What is not working for the Company

INTEREST(Q)

At Rs 16.75 cr has Grown at 54.81%

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Here's what is working for MSP Steel & Pow.

Profit Before Tax less Other Income (PBT) - Quarterly

At Rs 46.77 cr has Grown at 408.5% (vs previous 4Q average)

over average PBT of the previous four quarters of Rs 9.20 Cr

MOJO Watch

Near term PBT trend is very positive

PBT less Other Income (Rs Cr)

Profit After Tax (PAT) - Quarterly

At Rs 85.20 cr has Grown at 2005.6% (vs previous 4Q average)

over average PAT of the previous four quarters of Rs 4.05 Cr

MOJO Watch

Near term PAT trend is very positive

PAT (Rs Cr)

Operating Profit to Interest - Quarterly

Highest at 4.62 times

in the last five quarters

MOJO Watch

The company's ability to manage interest payments is improving

Operating Profit to Interest

Net Sales - Quarterly

Highest at Rs 816.32 cr

in the last five quarters

MOJO Watch

Near term sales trend is positive

Net Sales (Rs Cr)

Operating Profit (PBDIT) - Quarterly

Highest at Rs 77.46 cr.

in the last five quarters

MOJO Watch

Near term Operating Profit trend is positive

Operating Profit (Rs Cr)

Operating Profit Margin - Quarterly

Highest at 9.49%

in the last five quarters

MOJO Watch

Company's efficiency has improved

Operating Profit to Sales

Profit Before Tax less Other Income (PBT) - Quarterly

Highest at Rs 46.77 cr.

in the last five quarters

MOJO Watch

Near term PBT trend is positive

PBT less Other Income (Rs Cr)

Profit After Tax (PAT) - Quarterly

Highest at Rs 85.20 cr.

in the last five quarters

MOJO Watch

Near term PAT trend is positive

PAT (Rs Cr)

Earnings per Share (EPS) - Quarterly

Highest at Rs 1.50

in the last five quarters

MOJO Watch

Increasing profitability; company has created higher earnings for shareholders

EPS (Rs)

Here's what is not working for MSP Steel & Pow.

Interest - Quarterly

At Rs 16.75 cr has Grown at 54.81%

Quarter on Quarter (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (Rs cr)