ScoreWhy is Sunflag Iron & Steel Company Ltd ?
1
Strong ability to service debt as the company has a low Debt to EBITDA ratio of 1.10 times
2
Poor long term growth as Net Sales has grown by an annual rate of 11.10% and Operating profit at 4.39% over the last 5 years
3
Positive results in Jun 26
- DEBT-EQUITY RATIO(HY) Lowest at 0.06 times
- OPERATING PROFIT TO INTEREST(Q) Highest at 8.52 times
- DEBTORS TURNOVER RATIO(HY) Highest at 11.61 times
4
With ROE of 2.4, it has a Very Expensive valuation with a 0.7 Price to Book Value
- The stock is trading at a premium compared to its peers' average historical valuations
- Over the past year, while the stock has generated a return of 28.05%, its profits have risen by 8% ; the PEG ratio of the company is 3.6
5
Despite the size of the company, domestic mutual funds hold only 0.04% of the company
- Domestic mutual funds have capability to do in-depth on-the-ground research on companies- their small stake may signify either they are not comfortable at the price or the business
6
Market Beating Performance
- The stock has generated a return of 28.05% in the last 1 year, much higher than market (BSE500) returns of 3.76%
Real-Time Research ReportHow much should you hold?
- Overall Portfolio exposure to Sunflag Iron 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 Sunflag Iron for you?
High Risk, High Return
Absolute
Risk Adjusted
Volatility
Sunflag Iron
28.12%
0.65
43.09%
Sensex
-3.57%
-0.27
13.41%
Quality
Management Risk
Growth
Capital StructureQuality key factors
Factor
Value
Sales Growth (5y)
11.10%
EBIT Growth (5y)
4.39%
EBIT to Interest (avg)
4.31
Debt to EBITDA (avg)
1.54
Net Debt to Equity (avg)
0.03
Sales to Capital Employed (avg)
0.70
Tax Ratio
32.95%
Dividend Payout Ratio
8.34%
Pledged Shares
0
Institutional Holding
1.07%
ROCE (avg)
7.44%
ROE (avg)
5.21%
ValuationValuation Key Factors 
Factor
Value
P/E Ratio
29
Industry P/E
25
Price to Book Value
0.69
EV to EBIT
17.82
EV to EBITDA
13.48
EV to Capital Employed
0.70
EV to Sales
1.61
PEG Ratio
3.62
Dividend Yield
0.21%
ROCE (Latest)
3.97%
ROE (Latest)
2.36%
Loading Valuation Snapshot...
TechnicalsTechnical key factors
Indicator
Weekly
Monthly
MACD
Mildly Bearish
Bullish
RSI
No Signal
No Signal
Bollinger Bands
Bearish
Mildly Bullish
Moving Averages
Mildly Bullish (Daily)
KST
Mildly Bearish
Mildly Bearish
Dow Theory
Mildly Bearish
Mildly Bearish
OBV
No Trend
Bullish
Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned 
Financial Trend8What is working for the Company
DEBT-EQUITY RATIO(HY)
Lowest at 0.06 times
OPERATING PROFIT TO INTEREST(Q)
Highest at 8.52 times
DEBTORS TURNOVER RATIO(HY)
Highest at 11.61 times
NET SALES(Q)
Highest at Rs 1,078.95 cr
PAT(Q)
At Rs 66.05 cr has Grown at 26.4% (vs previous 4Q average
EPS(Q)
Highest at Rs 3.66
0What is not working for the Company
NO KEY NEGATIVE TRIGGERS
Loading Valuation Snapshot...
Here's what is working for Sunflag Iron
Operating Profit to Interest - Quarterly
Highest at 8.52 times
in the last five quartersMOJO Watch
The company's ability to manage interest payments is improving
Operating Profit to Interest
Debt-Equity Ratio - Half Yearly
Lowest at 0.06 times and Fallen
each half year in the last five half yearly periodsMOJO Watch
The company has been reducing its borrowing as compared to equity capital
Debt-Equity Ratio
Net Sales - Quarterly
Highest at Rs 1,078.95 cr
in the last five quartersMOJO Watch
Near term sales trend is positive
Net Sales (Rs Cr)
Profit After Tax (PAT) - Quarterly
At Rs 66.05 cr has Grown at 26.4% (vs previous 4Q average)
over average PAT of the previous four quarters of Rs 52.25 CrMOJO Watch
Near term PAT trend is positive
PAT (Rs Cr)
Earnings per Share (EPS) - Quarterly
Highest at Rs 3.66
in the last five quartersMOJO Watch
Increasing profitability; company has created higher earnings for shareholders
EPS (Rs)
Debtors Turnover Ratio- Half Yearly
Highest at 11.61 times
in the last five half yearly periodsMOJO Watch
Company has been able to settle its Debtors faster
Debtors Turnover Ratio
Here's what is not working for Sunflag Iron
Non Operating Income - Quarterly
Highest at Rs 10.52 cr
in the last five quartersMOJO Watch
Increased income from non business activities may not be sustainable
Non Operating Income
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."
