S.A.L Steel Ltd (SALSTEEL) 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 Steels

S.A.L Steel

Vraj Iron

Nagpur Power

Jainam Ferro

Prakash Industri

Mukand

Vaswani Industri

Visa Steel

Scan Steels

Neetu Yoshi

Why is S.A.L Steel Ltd ?

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 0% over the last 5 years
High Debt Company with a Debt to Equity ratio (avg) at 0 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)

With ROCE of 3.8, it has a Very Expensive valuation with a 2.7 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 97.61%, its profits have fallen by -888%

29.1% 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 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 Ferrous Metals)

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

Is S.A.L Steel for you?

High Risk, High Return

Absolute

Risk Adjusted

Volatility

S.A.L Steel

97.61%

1.60

61.01%

Sensex

8.49%

0.74

11.41%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality 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

Pledged Shares

29.10%

Institutional Holding

0.00%

ROCE (avg)

4.72%

ROE (avg)

Valuation

Valuation Scorecard

Valuation grade scale :

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

Valuation Key Factors

Factor

Value

P/E Ratio

NA (Loss Making)

Industry P/E

Price to Book Value

13.16

EV to EBIT

71.74

EV to EBITDA

32.15

EV to Capital Employed

2.73

EV to Sales

1.25

PEG Ratio

Dividend Yield

ROCE (Latest)

3.80%

ROE (Latest)

-25.71%

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Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

Bullish

RSI

No Signal

Bollinger Bands

Bullish

Moving Averages

Mildly Bullish (Daily)

KST

Mildly Bearish

Bullish

Dow Theory

Mildly Bearish

Bullish

OBV

No Trend

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

13What 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

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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 Cr

MOJO 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 Cr

MOJO 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 quarters

MOJO 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 quarters

MOJO Watch

Near term Operating Profit trend is positive

Operating Profit (Rs Cr)

Operating Profit Margin - Quarterly

Highest at 19.73%

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 5.13 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 3.73 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 0.44

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 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 Cr

MOJO 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 period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (Rs cr)

Net Sales - Quarterly

Lowest at Rs 65.73 cr

in the last five quarters

MOJO Watch

Near term sales trend is negative

Net Sales (Rs Cr)