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

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Comparison

Company

Score

Quality

Valuation

Financial

Technical

Manaksia Coated

Welspun Special.

Mahamaya Steel

Venus Pipes

Rhetan TMT Ltd

Shivalik Bimetal

Hi-Tech Pipes

MSP Steel & Pow.

Aeroflex

JTL Industries

Rama Steel Tubes

Why is MSP Steel & Power Ltd ?

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 14.74% and Operating profit at 8.00% over the last 5 years
Low ability to service debt as the company has a high Debt to EBITDA ratio of 6.07 times

Flat results in Sep 25

PBT LESS OI(Q) At Rs -0.77 cr has Fallen at -128.3% (vs previous 4Q average)
DEBTORS TURNOVER RATIO(HY) Lowest at 32.53 times
NON-OPERATING INCOME(Q) is 297.44 % of Profit Before Tax (PBT)

With ROCE of 6.7, it has a Expensive valuation with a 2.1 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 -20.02%, its profits have risen by 21.9% ; the PEG ratio of the company is 33.1

81.33% of Promoter Shares are Pledged

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

Underperformed the market in the last 1 year

Even though the market (BSE500) has generated returns of 1.61% in the last 1 year, the stock has hugely underperformed and has generate negative returns of -20.02% returns

Real-Time Research Report

Verdict Report

How much should you sell?

All quantity irrespective of whether you are making profits or losses

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

When to re-enter? - We will constantly monitor the company and review our call based on new data

Is MSP Steel & Pow. for you?

High Risk, Low Return

Absolute

Risk Adjusted

Volatility

MSP Steel & Pow.

-21.0%

-0.42

47.82%

Sensex

4.44%

0.36

11.83%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

14.74%

EBIT Growth (5y)

8.00%

EBIT to Interest (avg)

0.98

Debt to EBITDA (avg)

6.38

Net Debt to Equity (avg)

0.27

Sales to Capital Employed (avg)

1.92

Tax Ratio

5.55%

Dividend Payout Ratio

Pledged Shares

81.33%

Institutional Holding

16.88%

ROCE (avg)

5.54%

ROE (avg)

2.90%

Valuation

Valuation Scorecard

Valuation grade scale :

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

Valuation Key Factors

Factor

Value

P/E Ratio

116

Industry P/E

Price to Book Value

2.34

EV to EBIT

30.84

EV to EBITDA

18.11

EV to Capital Employed

2.06

EV to Sales

0.83

PEG Ratio

33.14

Dividend Yield

ROCE (Latest)

6.67%

ROE (Latest)

2.01%

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Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

RSI

No Signal

Bollinger Bands

Bullish

Moving Averages

Bullish (Daily)

KST

Mildly Bearish

Dow Theory

Mildly Bullish

Mildly Bearish

OBV

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

11What is working for the Company

PAT(Q)

Highest at Rs 26.12 cr.

-6What is not working for the Company

PBT LESS OI(Q)

At Rs -0.77 cr has Fallen at -128.3% (vs previous 4Q average

DEBTORS TURNOVER RATIO(HY)

Lowest at 32.53 times

NON-OPERATING INCOME(Q)

is 297.44 % of Profit Before Tax (PBT

EPS(Q)

Lowest at Rs -1.32

Loading Valuation Snapshot...

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

Profit After Tax (PAT) - Quarterly

At Rs 26.12 cr has Grown at 703.9% (vs previous 4Q average)

over average PAT of the previous four quarters of Rs -4.33 Cr

MOJO Watch

Near term PAT trend is very positive

PAT (Rs Cr)

Profit After Tax (PAT) - Quarterly

Highest at Rs 26.12 cr.

in the last five quarters

MOJO Watch

Near term PAT trend is positive

PAT (Rs Cr)

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

Profit Before Tax less Other Income (PBT) - Quarterly

At Rs -0.77 cr has Fallen at -128.3% (vs previous 4Q average)

over average PBT of the previous four quarters of Rs 2.73 Cr

MOJO Watch

Near term PBT trend is very negative

PBT less Other Income (Rs Cr)

Non Operating Income - Quarterly

is 297.44 % of Profit Before Tax (PBT)

MOJO Watch

The company's income from non business activities is high; which is not a sustainable business model

Non Operating Income to PBT

Earnings per Share (EPS) - Quarterly

Lowest at Rs -1.32

in the last five quarters

MOJO Watch

Declining profitability; company has created lower earnings for shareholders

EPS (Rs)

Debtors Turnover Ratio- Half Yearly

Lowest at 32.53 times

in the last five half yearly periods

MOJO Watch

Company's pace of settling its Debtors has slowed

Debtors Turnover Ratio