ScoreWhy is MSP Steel & Power Ltd ?
1
Weak Long Term Fundamental Strength with an average Return on Capital Employed (ROCE) of 5.71%
- Poor long term growth as Net Sales has grown by an annual rate of 12.51% and Operating profit at 1.67% over the last 5 years
- Low ability to service debt as the company has a high Debt to EBITDA ratio of 2.14 times
2
Positive results in Dec 25
- PAT(Latest six months) Higher at Rs 32.18 cr
- PBT LESS OI(Q) At Rs 7.91 cr has Grown at 69.1% (vs previous 4Q average)
3
With ROCE of 6.7, it has a Expensive valuation with a 2.3 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 58.13%, its profits have fallen by -12.5%
4
71.27% of Promoter Shares are Pledged
- In falling markets, high promoter pledged shares puts additional downward pressure on the stock prices
5
Market Beating performance in long term as well as near term
- Along with generating 58.13% returns in the last 1 year, the stock has outperformed BSE500 in the last 3 years, 1 year and 3 months
Real-Time Research ReportHow 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.
57.95%
1.31
44.40%
Sensex
-6.4%
-0.49
12.94%
Quality
Management Risk
Growth
Capital StructureQuality key factors
Factor
Value
Sales Growth (5y)
12.51%
EBIT Growth (5y)
1.67%
EBIT to Interest (avg)
0.99
Debt to EBITDA (avg)
6.38
Net Debt to Equity (avg)
0.27
Sales to Capital Employed (avg)
1.92
Tax Ratio
39.34%
Dividend Payout Ratio
0
Pledged Shares
71.27%
Institutional Holding
16.92%
ROCE (avg)
5.54%
ROE (avg)
2.90%
ValuationValuation Key Factors 
Factor
Value
P/E Ratio
150
Industry P/E
26
Price to Book Value
2.67
EV to EBIT
29.70
EV to EBITDA
18.50
EV to Capital Employed
2.31
EV to Sales
0.96
PEG Ratio
NA
Dividend Yield
NA
ROCE (Latest)
6.67%
ROE (Latest)
2.01%
Loading Valuation Snapshot...
TechnicalsTechnical key factors
Indicator
Weekly
Monthly
MACD
Bullish
Mildly Bearish
RSI
No Signal
No Signal
Bollinger Bands
Bullish
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 
Financial Trend17What is working for the Company
PAT(Latest six months)
Higher at Rs 32.18 cr
PBT LESS OI(Q)
At Rs 7.91 cr has Grown at 69.1% (vs previous 4Q average
-4What is not working for the Company
DEBTORS TURNOVER RATIO(HY)
Lowest at 32.53 times
NET SALES(Q)
Lowest at Rs 638.92 cr
Loading Valuation Snapshot...
Here's what is working for MSP Steel & Pow.
Profit Before Tax less Other Income (PBT) - Quarterly
At Rs 7.91 cr has Grown at 69.1% (vs previous 4Q average)
over average PBT of the previous four quarters of Rs 4.68 CrMOJO Watch
Near term PBT trend is very positive
PBT less Other Income (Rs Cr)
Profit After Tax (PAT) - Quarterly
At Rs 6.06 cr has Grown at 32.0% (vs previous 4Q average)
over average PAT of the previous four quarters of Rs 4.59 CrMOJO Watch
Near term PAT trend is positive
PAT (Rs Cr)
Here's what is not working for MSP Steel & Pow.
Net Sales - Quarterly
At Rs 638.92 cr has Fallen at -10.8% (vs previous 4Q average)
over average Net Sales of the previous four quarters of Rs 716.16 CrMOJO Watch
Near term sales trend is very negative
Net Sales (Rs Cr)
Net Sales - Quarterly
Lowest at Rs 638.92 cr
in the last five quartersMOJO Watch
Near term sales trend is negative
Net Sales (Rs Cr)
Debtors Turnover Ratio- Half Yearly
Lowest at 32.53 times
in the last five half yearly periodsMOJO Watch
Company's pace of settling its Debtors has slowed
Debtors Turnover Ratio
InfinHub Market Technologies FZ-LLC, Building-2, Unit 112, Dubai Internet City, Dubai, United Arab Emirates
GET THE MARKETSMOJO APP
Company
Stocks
Portfolio
"Investment in securities markets are subject to market risk. Read all the related documents carefully before investing."
