ScoreWhy is S.A.L Steel Ltd ?
1
With HIgh Debt (Debt-Equity Ratio at 6.03 times)- the company has a Weak Long Term Fundamental Strength
- Poor long term growth as Net Sales has grown by an annual rate of 10.52% and Operating profit at 17.68% over the last 5 years
- High Debt Company with a Debt to Equity ratio (avg) at 4.03 times
- The company has been able to generate a Return on Capital Employed (avg) of 7.90% signifying low profitability per unit of total capital (equity and debt)
2
The company has declared positive results in Sep'2025 after 2 consecutive negative quarters
- PAT(Q) At Rs 3.73 cr has Grown at 191.7% (vs previous 4Q average)
- OPERATING PROFIT TO INTEREST(Q) Highest at 2.52 times
- PBDIT(Q) Highest at Rs 12.97 cr.
3
With ROCE of 3.8, it has a Very Expensive valuation with a 2.5 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 30.25%, its profits have fallen by -888%
4
Consistent Returns over the last 3 years
- Along with generating 30.25% returns in the last 1 year, the stock has outperformed BSE500 in each of the last 3 annual periods
Real-Time Research ReportHow much should you hold?
- Overall Portfolio exposure to S.A.L Steel should be less than 10%
- Overall Portfolio exposure to Ferrous Metals should be less than 30%
(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Ferrous Metals)
When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock
Is S.A.L Steel for you?
High Risk, High Return
Absolute
Risk Adjusted
Volatility
S.A.L Steel
31.78%
0.48
63.53%
Sensex
4.67%
0.40
11.83%
Quality
Management Risk
Growth
Capital StructureQuality key factors
Factor
Value
Sales Growth (5y)
10.52%
EBIT Growth (5y)
18.40%
EBIT to Interest (avg)
7.01
Debt to EBITDA (avg)
7.95
Net Debt to Equity (avg)
6.03
Sales to Capital Employed (avg)
2.67
Tax Ratio
20.49%
Dividend Payout Ratio
0
Pledged Shares
45.39%
Institutional Holding
0.00%
ROCE (avg)
4.72%
ROE (avg)
17.81%
ValuationValuation Key Factors 
Factor
Value
P/E Ratio
NA (Loss Making)
Industry P/E
28
Price to Book Value
11.22
EV to EBIT
64.51
EV to EBITDA
28.91
EV to Capital Employed
2.45
EV to Sales
1.12
PEG Ratio
NA
Dividend Yield
NA
ROCE (Latest)
3.80%
ROE (Latest)
-25.71%
Loading Valuation Snapshot...
TechnicalsTechnical key factors
Indicator
Weekly
Monthly
MACD
Bullish
Bullish
RSI
No Signal
Bearish
Bollinger Bands
Mildly Bullish
Mildly Bullish
Moving Averages
Mildly Bullish (Daily)
KST
Bullish
Bullish
Dow Theory
Bullish
Bullish
OBV
Bullish
No Trend
Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned 
Financial Trend13What is working for the Company
PAT(Q)
At Rs 3.73 cr has Grown at 191.7% (vs previous 4Q average
OPERATING PROFIT TO INTEREST(Q)
Highest at 2.52 times
PBDIT(Q)
Highest at Rs 12.97 cr.
OPERATING PROFIT TO NET SALES(Q)
Highest at 19.73%
PBT LESS OI(Q)
Highest at Rs 5.13 cr.
EPS(Q)
Highest at Rs 0.44
-6What is not working for the Company
INTEREST(9M)
At Rs 15.17 cr has Grown at 34.61%
NET SALES(Q)
Lowest at Rs 65.73 cr
Loading Valuation Snapshot...
Here's what is working for S.A.L Steel
Profit Before Tax less Other Income (PBT) - Quarterly
At Rs 5.13 cr has Grown at 226.0% (vs previous 4Q average)
over average PBT of the previous four quarters of Rs -4.07 CrMOJO Watch
Near term PBT trend is very positive
PBT less Other Income (Rs Cr)
Profit After Tax (PAT) - Quarterly
At Rs 3.73 cr has Grown at 191.7% (vs previous 4Q average)
over average PAT of the previous four quarters of Rs -4.07 CrMOJO Watch
Near term PAT trend is very positive
PAT (Rs Cr)
Operating Profit to Interest - Quarterly
Highest at 2.52 times
in the last five quartersMOJO Watch
The company's ability to manage interest payments is improving
Operating Profit to Interest
Operating Profit (PBDIT) - Quarterly
Highest at Rs 12.97 cr.
in the last five quartersMOJO Watch
Near term Operating Profit trend is positive
Operating Profit (Rs Cr)
Operating Profit Margin - Quarterly
Highest at 19.73%
in the last five quartersMOJO Watch
Company's efficiency has improved
Operating Profit to Sales
Profit Before Tax less Other Income (PBT) - Quarterly
Highest at Rs 5.13 cr.
in the last five quartersMOJO Watch
Near term PBT trend is positive
PBT less Other Income (Rs Cr)
Profit After Tax (PAT) - Quarterly
Highest at Rs 3.73 cr.
in the last five quartersMOJO Watch
Near term PAT trend is positive
PAT (Rs Cr)
Earnings per Share (EPS) - Quarterly
Highest at Rs 0.44
in the last five quartersMOJO Watch
Increasing profitability; company has created higher earnings for shareholders
EPS (Rs)
Here's what is not working for S.A.L Steel
Net Sales - Quarterly
At Rs 65.73 cr has Fallen at -53.2% (vs previous 4Q average)
over average Net Sales of the previous four quarters of Rs 140.49 CrMOJO Watch
Near term sales trend is very negative
Net Sales (Rs Cr)
Interest - Nine Monthly
At Rs 15.17 cr has Grown at 34.61%
over preceding nine months periodMOJO Watch
Rising interest cost signifies increased borrowings
Interest Paid (Rs cr)
Net Sales - Quarterly
Lowest at Rs 65.73 cr
in the last five quartersMOJO Watch
Near term sales trend is negative
Net Sales (Rs Cr)
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