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Last Updated on: 22 November, 2024
Author: Getaka|Social: Getaka Financial Services X (Earlier Twitter) Profile Getaka Financial Services LinkedIn Logo
Stock Ticker - BSE: 500113 | NSE: SAIL

Steel Authority of India Ltd: Intrinsic Value and Fundamental Analysis

Share Price and Basic Stock Data

Last Updated: November 21, 2024, 9:25 pm

Market Cap 45,720 Cr.
Current Price 111
High / Low176/88.2
Stock P/E14.5
Book Value 139
Dividend Yield1.81 %
ROCE8.10 %
ROE6.44 %
Face Value 10.0
PEG Ratio1.89

Stock P/E, Current Price, and Intrinsic Value Over Time

View Share Price Target for Steel Authority of India Ltd

Competitors of Steel Authority of India Ltd

Stock NameMarket CapCurrent PriceHigh / LowStock P/EBook ValueDividend YieldROCEROEFace Value
Incredible Industries Ltd 206 Cr. 43.863.6/31.026.6 29.10.00 %9.09 %4.61 % 10.0
Eastcoast Steel Ltd 10.7 Cr. 19.835.1/17.7 34.80.00 %3.78 %4.64 % 10.0
Bonlon Industries Ltd 47.9 Cr. 33.856.0/29.516.9 56.60.00 %4.56 %2.99 % 10.0
Beekay Steel Industries Ltd 1,179 Cr. 618845/5499.28 5260.16 %10.7 %11.2 % 10.0
Ecofinity Atomix Ltd 22.1 Cr. 57.369.7/32.130.2 9.840.00 %8.85 %8.56 % 10.0
Industry Average37,446.23 Cr312.2761.72145.160.37%8.74%9.17%7.50

All Competitor Stocks of Steel Authority of India Ltd

Quarterly Result

MonthMar 2021Jun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023Mar 2024
Sales23,28520,64326,82825,24730,75924,02926,24625,04229,13124,35929,71223,34927,959
Expenses17,13114,07519,79421,84526,42121,72725,51122,96426,20622,71025,83721,20624,476
Operating Profit6,1546,5687,0343,4024,3382,3027352,0792,9241,6493,8752,1423,483
OPM %26%32%26%13%14%10%3%8%10%7%13%9%12%
Other Income205173256-31525314512509519527-174355-43
Interest540503439316440374506640517613605614642
Depreciation1,1581,0261,0561,0491,1441,1941,1831,2211,3651,2751,3271,3211,356
Profit before tax4,6615,2125,7952,0063,2791,047-4437261,5622881,7705631,441
Tax %26%25%25%24%24%23%26%25%26%26%26%25%22%
Net Profit3,4703,8974,3391,5292,479804-3295421,1592121,3064231,126
EPS in Rs8.409.4410.503.706.001.95-0.801.312.810.513.161.022.73

Last Updated: Unknown

Quarterly Chart

Profit & Loss - Annual Report

Last Updated: Unknown

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Sales44,89146,80446,03238,79344,21057,49666,97361,66469,114103,477104,448105,378
Expenses39,98242,64641,21741,62844,09452,78857,16751,40056,33782,11496,41094,229
Operating Profit4,9104,1574,815-2,8341154,7089,80710,26412,77621,3638,03811,149
OPM %11%9%10%-7%0%8%15%17%18%21%8%11%
Other Income9232,0718924253786542832801,3499021,856665
Interest8461,0471,5552,3002,5282,8233,1553,4872,8171,6982,0372,474
Depreciation1,5271,8361,9072,4042,6823,0663,3853,7564,1034,2754,9645,278
Profit before tax3,4603,3462,245-7,114-4,716-5273,5493,3027,20616,2922,8924,062
Tax %33%21%14%-41%-42%-47%34%36%42%25%25%24%
Net Profit2,3292,6521,939-4,176-2,756-2812,3492,1214,14812,2432,1773,067
EPS in Rs5.646.424.93-10.11-6.67-0.685.695.1310.0429.645.277.42
Dividend Payout %35%31%41%0%0%0%9%0%28%30%28%13%

Profit & Loss Yearly Chart

YoY Net Profit Growth

Year2013-20142014-20152015-20162016-20172017-20182018-20192019-20202020-20212021-20222022-20232023-2024
YoY Net Profit Growth (%)13.87%-26.89%-315.37%34.00%89.80%935.94%-9.71%95.57%195.15%-82.22%40.88%
Change in YoY Net Profit Growth (%)0.00%-40.75%-288.48%349.37%55.80%846.14%-945.65%105.27%99.59%-277.37%123.10%

Steel Authority of India Ltd has shown an inconsistent trend in YoY Net Profit Growth (%) in the last 11 years from 2013-2014 to 2023-2024.

Growth

Compounded Sales Growth
10 Years:8%
5 Years:9%
3 Years:15%
TTM:-8%
Compounded Profit Growth
10 Years:7%
5 Years:6%
3 Years:-4%
TTM:-5%
Stock Price CAGR
10 Years:3%
5 Years:23%
3 Years:0%
1 Year:23%
Return on Equity
10 Years:5%
5 Years:10%
3 Years:11%
Last Year:6%

Last Updated: Unknown

Balance Sheet

Last Updated: November 14, 2024, 7:35 pm

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024Sep 2024
Equity Capital4,1314,1314,1314,1314,1314,1314,1314,1314,1314,1314,1314,1314,131
Reserves37,51439,15439,64136,02132,91232,81635,51637,38041,27650,08150,61652,97153,458
Borrowings22,53926,02032,14635,14141,39645,40945,17054,12737,67717,28430,77336,32341,265
Other Liabilities22,50624,76726,93226,23429,40533,33933,38531,56035,00748,88545,26247,59840,889
Total Liabilities86,68994,072102,849101,527107,843115,694118,201127,198118,090120,381130,782141,022139,742
Fixed Assets18,38428,17539,01145,94250,30058,62561,37469,03467,61873,67773,54372,42671,755
CWIP36,16133,95829,32824,92723,27518,39516,0148,7538,8814,7104,8916,1416,443
Investments7391612,2802,4752,6292,9753,2403,4423,7574,1854,5894,776
Other Assets32,07131,84734,45028,37731,79236,04437,83846,17038,14938,23748,16357,86756,768
Total Assets86,68994,072102,849101,527107,843115,694118,201127,198118,090120,381130,782141,022139,742

Reserves and Borrowings Chart

Cash Flow

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Cash from Operating Activity +2,8236,3132,5794,0432,1606,1647,215-61823,43030,987-5,2902,911
Cash from Investing Activity +-8,317-7,488-6,292-4,805-5,467-6,480-3,694-4,261-3,295-3,976-3,371-4,261
Cash from Financing Activity +3,0091,0173,7757433,302269-3,5495,003-19,808-27,3988,5871,362
Net Cash Flow-2,485-15863-20-5-47-28125328-387-7412

Free Cash Flow

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Free Cash Flow-18.00-22.00-28.00-37.0074.00-41.00-36.00-44.00-25.004.00-22.00-25.00

Free Cash Flow = Income Generated from Operational Activities - Borrowings - Capital Work in Progress (CWIP)

Consistent positive free cash flow is crucial for businesses as it indicates their ability to generate cash from their core operations. It provides financial flexibility, allowing companies to invest in growth opportunities, pay dividends to shareholders, reduce debt, and weather economic downturns more effectively.

Free Cash Flow Chart

Financial Efficiency Indicators

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Debtor Days374326302425255243171929
Inventory Days299272370308274199243370207170180220
Days Payable635677829087899710714392103
Cash Conversion Cycle27325931925520913717932514444107146
Working Capital Days76504810-8-1077516-192954
ROCE %7%5%5%-6%-2%3%9%8%11%24%6%8%

Financial Efficiency Indicators Chart

Share Holding Pattern

MonthDec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023Mar 2024Jun 2024Sep 2024
Promoters65.00%65.00%65.00%65.00%65.00%65.00%65.00%65.00%65.00%65.00%65.00%65.00%
FIIs4.41%4.58%4.22%4.31%4.34%4.69%3.82%3.69%4.34%3.18%3.01%2.82%
DIIs10.51%10.24%8.79%9.40%10.73%12.40%13.63%14.61%15.46%15.86%15.72%16.04%
Government0.08%0.00%0.09%0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%
Public20.01%20.18%21.91%21.29%19.94%17.91%17.56%16.70%15.20%15.96%16.27%16.15%
No. of Shareholders12,44,83614,66,89016,71,49916,27,16716,25,63715,21,98814,99,83614,83,37115,03,77916,43,07318,42,45419,88,076

Shareholding Pattern Chart

No. of Shareholders

Mutual Fund Holdings

Fund NameNo of SharesAUM (%)Amount Invested (Cr)Previous Number of SharesPrevious DatePercentage Change
Quant ELSS Tax Saver Fund15,900,0002.69194.7811,768,0002024-11-2135.11%
Edelweiss Arbitrage Fund13,168,0001.98161.3111,768,0002024-11-2111.9%
Kotak Equity Arbitrage Fund - Regular Plan12,984,0000.44159.0511,768,0002024-11-2110.33%
Quant Active Fund12,900,0001.94158.0311,768,0002024-11-219.62%
SBI Arbitrage Opportunities Fund11,768,0000.54144.1611,768,0002024-11-210%
Aditya Birla Sun Life Arbitrage Fund9,416,0001.18115.3511,768,0002024-11-21-19.99%
Quant Flexi Cap Fund8,875,0003.07108.7211,768,0002024-11-21-24.58%
Nippon India Arbitrage Fund8,720,0000.82106.8211,768,0002024-11-21-25.9%
UTI Arbitrage Fund6,712,0001.8482.2211,768,0002024-11-21-42.96%
Tata Arbitrage Fund6,496,0000.8379.5811,768,0002024-11-21-44.8%

ROCE Trend

EPS Trend

Key Financial Ratios

MonthMar 24Mar 23Mar 22Mar 21Mar 20
FaceValue10.0010.0010.0010.0010.00
Basic EPS (Rs.)7.425.2729.6410.045.13
Diluted EPS (Rs.)7.425.2729.6410.045.13
Cash EPS (Rs.)19.1415.7238.9818.8413.76
Book Value[Excl.RevalReserv]/Share (Rs.)138.24132.54131.25109.93100.50
Book Value[Incl.RevalReserv]/Share (Rs.)138.24132.54131.25109.93100.50
Revenue From Operations / Share (Rs.)255.12252.87250.52167.32149.29
PBDIT / Share (Rs.)29.5721.7653.7532.9226.93
PBIT / Share (Rs.)16.809.7543.4022.9917.83
PBT / Share (Rs.)8.775.4438.4316.317.52
Net Profit / Share (Rs.)6.363.7128.638.914.66
NP After MI And SOA / Share (Rs.)7.425.2729.6410.045.13
PBDIT Margin (%)11.598.6021.4519.6718.03
PBIT Margin (%)6.583.8517.3213.7411.94
PBT Margin (%)3.432.1515.349.745.03
Net Profit Margin (%)2.491.4611.425.323.12
NP After MI And SOA Margin (%)2.912.0811.836.003.43
Return on Networth / Equity (%)5.373.9722.589.135.10
Return on Capital Employeed (%)7.954.9622.1913.058.98
Return On Assets (%)2.171.6610.193.471.67
Long Term Debt / Equity (X)0.160.110.150.430.83
Total Debt / Equity (X)0.530.460.240.781.23
Asset Turnover Ratio (%)0.770.840.870.560.50
Current Ratio (X)0.980.860.850.780.91
Quick Ratio (X)0.280.200.230.360.38
Inventory Turnover Ratio (X)1.652.201.961.071.35
Dividend Payout Ratio (NP) (%)20.2061.6728.009.950.00
Dividend Payout Ratio (CP) (%)7.4218.8020.755.000.00
Earning Retention Ratio (%)79.8038.3372.0090.050.00
Cash Earning Retention Ratio (%)92.5881.2079.2595.000.00
Interest Coverage Ratio (X)4.944.4113.074.833.19
Interest Coverage Ratio (Post Tax) (X)2.401.628.172.291.77
Enterprise Value (Cr.)85339.0959386.2953305.9767349.1660276.67
EV / Net Operating Revenue (X)0.800.560.510.970.97
EV / EBITDA (X)6.996.612.404.955.42
MarketCap / Net Operating Revenue (X)0.520.320.390.470.15
Retention Ratios (%)79.7938.3271.9990.040.00
Price / BV (X)0.970.620.750.710.22
Price / Net Operating Revenue (X)0.520.320.390.470.15
EarningsYield0.050.060.300.120.22

Profitability Ratios (%)

Liquidity Ratios

Liquidity Ratios (%)

Interest Coverage Ratios (%)

Valuation Ratios

Fair Value

Fair Value of Steel Authority of India Ltd as of November 22, 2024 is: 132.15

Calculation basis:

  • Fair value = P/E Ratio * (Return on Equity / 100) * Book Value * (1 + Dividend Yield / 100)
  • P/E Ratio (Price-to-Earnings Ratio): Represents the price of the stock relative to its earnings per share. A higher P/E ratio indicates that investors are willing to pay a higher price for the stock.
  • Return on Equity (ROE): Measures a company's profitability relative to its shareholder equity. It showcases the company's ability to generate profits using the investment made by its shareholders, offering valuable insight into its operational efficiency and financial performance.
  • Book Value: Represents the net asset value of the company per share. It is calculated as the total assets minus intangible assets and liabilities, divided by the number of outstanding shares.
  • Dividend Yield: The ratio of the annual dividend per share to the current market price per share. It offers valuable insights into the profitability of an investment through dividends.

This formula allows us to gauge the fair value of the stock by analyzing its fundamental indicators.

As of November 22, 2024, Steel Authority of India Ltd is Undervalued by 19.05% compared to the current share price 111.00

Intrinsic Value of Steel Authority of India Ltd as of November 22, 2024 is: 142.27

Calculation basis:

  • Intrinsic value = P/E Ratio * (Return on Equity / 100) * Book Value * (1 + Dividend Yield / 100) * (1 + EPS CAGR for Last 5 Years)
  • P/E Ratio (Price-to-Earnings Ratio): Represents the price of the stock relative to its earnings per share. A higher P/E ratio indicates that investors are willing to pay a higher price for the stock.
  • Return on Equity (ROE): Measures a company's profitability relative to its shareholder equity. It showcases the company's ability to generate profits using the investment made by its shareholders, offering valuable insight into its operational efficiency and financial performance.
  • Book Value: Represents the net asset value of the company per share. It is calculated as the total assets minus intangible assets and liabilities, divided by the number of outstanding shares.
  • Dividend Yield: The ratio of the annual dividend per share to the current market price per share. It offers valuable insights into the profitability of an investment through dividends.
  • EPS CAGR (Compound Annual Growth Rate): Represents the geometric mean growth rate of earnings per share over the last 5 years. It provides insight into the historical growth trajectory of the company's earnings.

This formula allows us to gauge the intrinsic value of the stock by analyzing its fundamental indicators along with EPS growth.

As of November 22, 2024, Steel Authority of India Ltd is Undervalued by 28.17% compared to the current share price 111.00

Last 5 Year EPS CAGR: 7.66%

*Investments are subject to market risks

Strength and Weakness

StrengthWeakness
  1. The stock has a low average Working Capital Days of 27.33, which is a positive sign.
  2. The company has higher reserves (41,488.92 cr) compared to borrowings (35,790.00 cr), indicating strong financial stability.
  1. The stock has a low average ROCE of 6.50%, which may not be favorable.
  2. The stock has a high average Cash Conversion Cycle of 199.75, which may not be favorable.
  3. The company has not shown consistent growth in sales (65.25) and profit (-41.25).

Stock Analysis

  • Considering all of the following key financial indicators, prospective investors are encouraged to conduct thorough research and seek professional guidance before considering any investment in Steel Authority of India Ltd:
    1. Net Profit Margin: 2.49%
      • Net Profit Margin: This metric indicates the percentage of profit a company makes from its total revenue. A higher net profit margin is generally desirable as it reflects better profitability.
    2. ROCE: 7.95% (Industry Average ROCE: 8.74%)
      • ROCE (Return on Capital Employed): ROCE measures a company's profitability and the efficiency with which its capital is employed. A higher ROCE indicates efficient use of capital.
    3. ROE%: 5.37% (Industry Average ROE: 9.17%)
      • ROE (Return on Equity): ROE measures a company's profitability relative to shareholders' equity. A higher ROE indicates efficient use of shareholders' funds.
    4. Interest Coverage Ratio (Post Tax): 2.4
      • Interest Coverage Ratio: The interest coverage ratio measures a company's ability to cover its interest payments on outstanding debt. A ratio greater than 2 is generally considered healthy as it indicates the company can meet its interest obligations comfortably.
    5. Quick Ratio: 0.28
      • Quick Ratio: The quick ratio assesses a company's ability to cover its short-term liabilities with its most liquid assets. A ratio higher than 1 suggests the company can meet its short-term obligations without relying heavily on inventory.
    6. Stock P/E: 14.5 (Industry average Stock P/E: 61.72)
      • Stock P/E (Price-to-Earnings) Ratio: The P/E ratio compares a company's current share price to its earnings per share. A lower P/E ratio relative to industry peers or historical values may indicate that the stock is undervalued.
    7. Total Debt / Equity: 0.53
      • Total Debt / Equity: This ratio measures a company's financial leverage by comparing its total debt to its total equity. A lower ratio indicates lower financial risk and greater financial stability.
    The current analysis is available for review. It's important to conduct thorough research and consider consulting with financial professionals before making any investment decisions.
    Stock Rating:

About the Company - Qualitative Analysis

Steel Authority of India (SAIL) Ltd. is a Public Limited Listed company incorporated on 24/01/1973 and has its registered office in the State of Delhi, India. Company’s Corporate Identification Number(CIN) is L27109DL1973GOI006454 and registration number is 006454. Currently Company is involved in the business activities of Manufacture of basic iron and steel. Company’s Total Operating Revenue is Rs. 103473.32 Cr. and Equity Capital is Rs. 4130.53 Cr. for the Year ended 31/03/2022.
INDUSTRYADDRESSCONTACT
SteelIspat Bhawan, Lodi Road, New Delhi Delhi 110003secy.sail@sail.in
http://www.sail.co.in
Management
NamePosition Held
Mr. Amarendu PrakashChairman
Mr. Vijendla Srinivasa ChakravarthyDirector
Mr. Atanu BhowmickDirector
Mr. Brijendra Pratap SinghDirector
Mr. Anil Kumar TulsianiDirector - Finance
Mr. Anirban DasguptaDirector
Mr. Krishna Kumar SinghDirector
Mr. Arvind Kumar SinghDirector
Mrs. Sukriti LikhiGovernment Director
Mr. Abhijit NarendraGovernment Director
Mr. Ashok Kumar TripathyIndependent Director
Mr. Kanhaiya SardaIndependent Director
Mrs. Neelam SonkerIndependent Director
Mr. Sagi Kasi Viswanatha RajuIndependent Director
Dr. Gopal Singh BhatiIndependent Director
Prof. (Dr) K JayaprasadIndependent Director

FAQ

What is the latest intrinsic value of Steel Authority of India Ltd?

The latest intrinsic value of Steel Authority of India Ltd as on 21 November 2024 is ₹132.15, which is 19.05% higher than the current market price of ₹111.00.

What is the Market Cap of Steel Authority of India Ltd?

The Market Cap of Steel Authority of India Ltd is 45,720 Cr..

What is the current Stock Price of Steel Authority of India Ltd as on 21 November 2024?

The current stock price of Steel Authority of India Ltd as on 21 November 2024 is ₹111.

What is the High / Low of Steel Authority of India Ltd stocks in FY 2024?

In FY 2024, the High / Low of Steel Authority of India Ltd stocks is 176/88.2.

What is the Stock P/E of Steel Authority of India Ltd?

The Stock P/E of Steel Authority of India Ltd is 14.5.

What is the Book Value of Steel Authority of India Ltd?

The Book Value of Steel Authority of India Ltd is 139.

What is the Dividend Yield of Steel Authority of India Ltd?

The Dividend Yield of Steel Authority of India Ltd is 1.81 %.

What is the ROCE of Steel Authority of India Ltd?

The ROCE of Steel Authority of India Ltd is 8.10 %.

What is the ROE of Steel Authority of India Ltd?

The ROE of Steel Authority of India Ltd is 6.44 %.

What is the Face Value of Steel Authority of India Ltd?

The Face Value of Steel Authority of India Ltd is 10.0.

About the Author

Author Avatar
Getaka

Getaka, CFA, a financial analyst with 15 years of experience in the industry. Getaka holds an MBA degree and the Chartered Financial Analyst designation, demonstrating his profound understanding of financial analysis and investment management. Throughout his career, he has conducted numerous financial analyses and due diligence processes for companies in the industry, and has a strong track record of identifying key trends and opportunities. He leverages his expertise to deliver a thorough financial analysis of a company, encompassing its financial performance, key ratios, future prospects, and risks. Getaka is committed to providing accurate, reliable, and trustworthy information to help readers make informed decisions about their finances and investments.

Disclaimer: This article is for informational purposes only and should not be construed as financial advice. The author is not a SEBI registered financial advisor and does not have any vested interest in Steel Authority of India Ltd. Investors are advised to conduct their own due diligence and consult with a financial professional before making any investment decisions. The information provided in this article is based on publicly available data and the author's analysis, but it may not be comprehensive or up-to-date. The author and getaka.co.in are not responsible for any errors or omissions in the content. This article is not intended to promote any particular investment strategy or recommendation, and readers should consult with their own financial advisors before making any investment decisions. Data Source: NSE