ScoreWhy is Scan Steels Ltd ?
1
Weak Long Term Fundamental Strength with a -7.84% CAGR growth in Operating Profits over the last 5 years
- The company has been able to generate a Return on Equity (avg) of 5.01% signifying low profitability per unit of shareholders funds
2
Positive results in Jun 26
- NET SALES(Q) At Rs 257.79 cr has Grown at 23.0% (vs previous 4Q average)
- PBDIT(Q) Highest at Rs 23.42 cr.
- OPERATING PROFIT TO NET SALES(Q) Highest at 9.08%
3
With ROCE of 6.5, it has a Attractive valuation with a 0.8 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 63.32%, its profits have risen by 41.1% ; the PEG ratio of the company is 0.4
4
Majority shareholders : Promoters
5
Market Beating performance in long term as well as near term
- Along with generating 63.32% 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 Scan Steels 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 Scan Steels for you?
High Risk, High Return
Absolute
Risk Adjusted
Volatility
Scan Steels
63.32%
1.17
54.22%
Sensex
-4.36%
-0.32
13.57%
Quality
Management Risk
Growth
Capital StructureQuality key factors
Factor
Value
Sales Growth (5y)
-5.71%
EBIT Growth (5y)
-7.84%
EBIT to Interest (avg)
4.01
Debt to EBITDA (avg)
1.91
Net Debt to Equity (avg)
0.15
Sales to Capital Employed (avg)
1.64
Tax Ratio
25.29%
Dividend Payout Ratio
0
Pledged Shares
0
Institutional Holding
1.98%
ROCE (avg)
6.42%
ROE (avg)
5.01%
ValuationValuation Key Factors 
Factor
Value
P/E Ratio
15
Industry P/E
24
Price to Book Value
0.82
EV to EBIT
11.56
EV to EBITDA
8.15
EV to Capital Employed
0.84
EV to Sales
0.50
PEG Ratio
0.41
Dividend Yield
NA
ROCE (Latest)
6.47%
ROE (Latest)
4.91%
Loading Valuation Snapshot...
TechnicalsTechnical key factors
Indicator
Weekly
Monthly
MACD
Bullish
Mildly Bullish
RSI
Bearish
No Signal
Bollinger Bands
Bullish
Bullish
Moving Averages
Bullish (Daily)
KST
Bullish
Mildly Bullish
Dow Theory
Mildly Bullish
Mildly Bullish
OBV
Bullish
Bullish
Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned 
Financial Trend19What is working for the Company
NET SALES(Q)
At Rs 257.79 cr has Grown at 23.0% (vs previous 4Q average
PBDIT(Q)
Highest at Rs 23.42 cr.
OPERATING PROFIT TO NET SALES(Q)
Highest at 9.08%
PBT LESS OI(Q)
Highest at Rs 17.05 cr.
PAT(Q)
Highest at Rs 13.25 cr.
EPS(Q)
Highest at Rs 2.18
-1What is not working for the Company
INTEREST(Q)
Highest at Rs 2.45 cr
Loading Valuation Snapshot...
Here's what is working for Scan Steels
Profit Before Tax less Other Income (PBT) - Quarterly
At Rs 17.05 cr has Grown at 168.9% (vs previous 4Q average)
over average PBT of the previous four quarters of Rs 6.34 CrMOJO Watch
Near term PBT trend is very positive
PBT less Other Income (Rs Cr)
Profit After Tax (PAT) - Quarterly
At Rs 13.25 cr has Grown at 140.7% (vs previous 4Q average)
over average PAT of the previous four quarters of Rs 5.51 CrMOJO Watch
Near term PAT trend is very positive
PAT (Rs Cr)
Net Sales - Quarterly
At Rs 257.79 cr has Grown at 23.0% (vs previous 4Q average)
over average Net Sales of the previous four quarters of Rs 209.57 CrMOJO Watch
Near term sales trend is positive
Net Sales (Rs Cr)
Operating Profit (PBDIT) - Quarterly
Highest at Rs 23.42 cr.
in the last five quartersMOJO Watch
Near term Operating Profit trend is positive
Operating Profit (Rs Cr)
Operating Profit Margin - Quarterly
Highest at 9.08%
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 17.05 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 13.25 cr.
in the last five quartersMOJO Watch
Near term PAT trend is positive
PAT (Rs Cr)
Earnings per Share (EPS) - Quarterly
Highest at Rs 2.18
in the last five quartersMOJO Watch
Increasing profitability; company has created higher earnings for shareholders
EPS (Rs)
Here's what is not working for Scan Steels
Interest - Quarterly
Highest at Rs 2.45 cr
in the last five quarters and Increased by 25.00 % (QoQ)MOJO Watch
Rising interest cost signifies increased borrowings
Interest Paid (Rs cr)
InfinHub Market Technologies FZ-LLC, Building-2, Unit 112, Dubai Internet City, Dubai, United Arab Emirates
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