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Last Updated on: 24 February, 2024|Author: Getaka | Social: X Twitter Profile

Fundamental Analysis of Prakash Steelage Ltd

About the Company - Prakash Steelage Ltd

Prakash Steelage Ltd. is a Public Limited Listed company incorporated on 09/05/1991 and has its registered office in the State of Maharashtra, India. Company’s Corporate Identification Number(CIN) is L27106MH1991PLC061595 and registration number is 061595. Currently Company is involved in the business activities of Manufacture of tube and tube fittings of basic iron and steel. Company’s Total Operating Revenue is Rs. 46.22 Cr. and Equity Capital is Rs. 17.50 Cr. for the Year ended 31/03/2022.
INDUSTRYADDRESSCONTACT
Steel - Tubes/Pipes101, 1st Floor, Shatrunjay Apartment, Mumbai Maharashtra 400004investorsgrievances@prakashsteelage.com
http://www.prakashsteelage.com
Management
NamePosition Held
Mr. Prakash C KanugoChairman & Managing Director
Mr. Ashok M SethExecutive Director
Mr. Hemant P KanugoExecutive Director
Mr. Kamal P KanugoExecutive Director
Mr. A Prakashchandra HegdeIndependent Director
Mr. Himanshu J ThakerIndependent Director
Mr. Neetta K BokariaIndependent Director
Mr. Rajesh Kumar AgrawalIndependent Director
Mr. Sundaram PadmanabhanIndependent Director
Mr. Sharad Chandra BohraIndependent Director

Prakash Steelage Ltd. Share Price Update

Share PriceValue
Today₹10.22
Previous Day₹10.42

Basic Stock Data of Prakash Steelage Ltd

Market Cap 165 Cr.
Current Price 9.44
High / Low16.6/3.20
Stock P/E7.22
Book Value 1.62
Dividend Yield0.00 %
ROCE%
ROE%
Face Value 1.00

Data Source: screener.in

Competitors of Prakash Steelage Ltd

Stock NameMarket CapCurrent PriceHigh / LowStock P/EBook ValueDividend YieldROCEROEFace Value
Surani Steel Tubes Ltd 579 Cr. 627735/30.0357 85.10.00 %1.36 %8.07 % 10.0
Ratnamani Metals & Tubes Ltd 21,525 Cr. 3,0713,939/1,91634.6 4020.39 %27.3 %21.0 % 2.00
Surya Roshni Ltd 6,768 Cr. 622842/30117.8 1820.94 %22.8 %19.7 % 5.00
Welspun Corp Ltd 13,917 Cr. 532625/17812.9 1930.95 %6.42 %3.21 % 5.00
Oil Country Tubular Ltd 195 Cr. 44.159.2/12.7 50.10.00 %47.4 %169 % 10.0
Industry Average162.8 Cr365.6284.46182.440.46%21.06%44.2%6.4

Prakash Steelage Ltd Quarterly Results

MonthSep 2020Dec 2020Mar 2021Jun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023
Sales5.466.388.958.769.0712.3816.0116.7219.5727.3231.3729.0425.14
Expenses4.977.889.657.569.8710.8814.2716.0818.8325.3132.2627.8324.10
Operating Profit0.49-1.50-0.701.20-0.801.501.740.640.742.01-0.891.211.04
OPM %8.97%-23.51%-7.82%13.70%-8.82%12.12%10.87%3.83%3.78%7.36%-2.84%4.17%4.14%
Other Income0.620.1847.010.000.0839.41124.001.490.040.000.0620.120.03
Interest0.030.030.050.030.020.622.490.020.050.10-0.090.040.06
Depreciation0.410.370.330.220.230.250.240.220.220.240.230.200.21
Profit before tax0.67-1.7245.930.95-0.9740.04123.011.890.511.67-0.9721.090.80
Tax %0.00%0.00%-14.06%0.00%0.00%0.00%-0.39%0.00%0.00%0.00%109.28%0.28%0.00%
Net Profit0.66-1.7252.390.95-0.9740.04123.491.890.501.670.0821.020.80
EPS in Rs0.04-0.102.990.05-0.062.297.060.110.030.100.001.200.05

Prakash Steelage Ltd Quarterly Chart

Prakash Steelage Ltd Profit & Loss

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023TTM
Sales6847939441,072555145464332244695113
Expenses6317458811,005590191444029274092110
Operating Profit52486367-35-46134-2623
OPM %8%6%7%6%-6%-32%2%6%11%-9%13%3%3%
Other Income61052-9-91-24713-248161220
Interest2430353629110000300
Depreciation77811833222111
Profit before tax27212521-81-151-24814-144163323
Tax %37%32%35%34%-1%-0%3%0%71%-15%-0%-34%
Net Profit17141714-81-152-24114-051164424
EPS in Rs0.970.800.950.80-4.65-8.66-13.760.79-0.012.909.340.241.35
Dividend Payout %10%12%11%6%0%0%0%0%0%0%0%0%

Prakash Steelage Ltd Profit & Loss Yearly Chart

Surani Steel Tubes Ltd Growth

Compounded Sales Growth
10 Years:-19%
5 Years:16%
3 Years:43%
TTM:40%
Compounded Profit Growth
10 Years:-12%
5 Years:-11%
3 Years:13%
TTM:542%
Stock Price CAGR
10 Years:-2%
5 Years:93%
3 Years:127%
1 Year:102%
Return on Equity
10 Years:%
5 Years:%
3 Years:%
Last Year:%

Prakash Steelage Ltd Balance Sheet

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Sep 2023
Equity Capital18181818181818181818181818
Reserves13614816217493-58-299-286-286-235-72-68-46
Borrowings196205264245203247243243243192342926
Other Liabilities182164193361183124104786355585932
Total Liabilities53153563779749733066533830373729
Fixed Assets7771848119141613119665
CWIP31411560000000
Investments0000333330000
Other Assets45145055271547030846372420313224
Total Assets53153563779749733066533830373729

Prakash Steelage Ltd Reserves and Borrowings Chart

Prakash Steelage Ltd Cash Flow

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023
Cash from Operating Activity 1827-95125-541-2000386
Cash from Investing Activity -13-4-9-14521420-051-0-1
Cash from Financing Activity -13-2223-58-7133-4-00-51-38-5
Net Cash Flow-815-7-2-00-0-0000

Prakash Steelage Ltd Financial Efficiency Indicators

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023
Debtor Days11293108124196343183118100903140
Inventory Days9299901023038779520718025573
Days Payable89716912278217917918941912661244
Cash Conversion Cycle116121128105148165-658-706-634-642-375-131
Working Capital Days132121128116197474-430-309-371-521-217-114
ROCE %15%14%15%15%-9%-13%0%

Prakash Steelage Ltd Financial Efficiency Indicators Chart

Prakash Steelage Ltd Share Holding Pattern

MonthMar 2021Jun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023
Promoters48.18%48.18%48.18%39.42%33.10%33.10%33.09%33.30%33.38%33.41%33.48%33.51%
FIIs2.18%2.18%2.18%2.18%0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%
DIIs2.38%1.98%0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%
Government0.02%0.02%0.02%0.07%0.07%0.07%0.07%0.15%0.15%0.15%0.15%0.15%
Public47.24%47.64%49.61%58.33%66.84%66.84%66.83%66.56%66.48%66.44%66.38%66.34%
No. of Shareholders13,59815,25122,85353,83085,38495,3131,00,13996,97993,78593,6331,06,6261,19,612

Prakash Steelage Ltd Shareholding Pattern Chart

No. of Prakash Steelage Ltd Shareholders

This stock is not held by any mutual fund

Prakash Steelage Ltd ROCE Trend

Prakash Steelage Ltd EPS Trend

Prakash Steelage Ltd Key Financial Ratios

MonthMar 16Mar 15Mar 14
FaceValue1.0010.0010.00
Basic EPS (Rs.)-5.028.4112.23
Diluted EPS (Rs.)-5.028.4112.23
Cash EPS (Rs.)-4.5814.9016.85
Book Value[Excl.RevalReserv]/Share (Rs.)6.31112.86105.35
Book Value[Incl.RevalReserv]/Share (Rs.)6.31112.86105.35
Revenue From Operations / Share (Rs.)32.26641.81585.96
PBDIT / Share (Rs.)-1.6245.6441.04
PBIT / Share (Rs.)-2.0739.1536.42
PBT / Share (Rs.)-4.9712.6017.24
Net Profit / Share (Rs.)-5.028.4112.23
NP After MI And SOA / Share (Rs.)-5.028.4112.23
PBDIT Margin (%)-5.027.117.00
PBIT Margin (%)-6.416.106.21
PBT Margin (%)-15.401.962.94
Net Profit Margin (%)-15.561.302.08
NP After MI And SOA Margin (%)-15.561.302.08
Return on Networth / Equity (%)-79.547.4411.60
Return on Capital Employeed (%)-20.4927.0627.55
Return On Assets (%)-17.691.833.33
Long Term Debt / Equity (X)0.240.240.21
Total Debt / Equity (X)1.841.211.40
Asset Turnover Ratio (%)0.851.490.00
Current Ratio (X)1.401.281.33
Quick Ratio (X)1.250.790.82
Inventory Turnover Ratio (X)0.531.040.00
Dividend Payout Ratio (NP) (%)0.005.948.17
Dividend Payout Ratio (CP) (%)0.003.355.93
Earning Retention Ratio (%)0.0094.0691.83
Cash Earning Retention Ratio (%)0.0096.6594.07
Interest Coverage Ratio (X)-0.982.212.03
Interest Coverage Ratio (Post Tax) (X)-1.291.691.56
Enterprise Value (Cr.)338.86455.72465.19
EV / Net Operating Revenue (X)0.600.400.45
EV / EBITDA (X)-11.935.716.48
MarketCap / Net Operating Revenue (X)0.240.200.22
Retention Ratios (%)0.0094.0591.82
Price / BV (X)1.271.151.23
Price / Net Operating Revenue (X)0.240.200.22
EarningsYield-0.620.060.09

Prakash Steelage Ltd Profitability Ratios (%)

Prakash Steelage Ltd Liquidity Ratios

Prakash Steelage Ltd Liquidity Ratios (%)

Prakash Steelage Ltd Interest Coverage Ratios (%)

Prakash Steelage Ltd Valuation Ratios

Fair Value / Intrinsic Value of Prakash Steelage Ltd

Fair Value: ₹1.79

The stock is overvalued by 81.04% compared to the current price ₹9.44

*Investments are subject to market risks

Strength and Weakness of Prakash Steelage Ltd

StrengthWeakness
  1. The stock has a low average Working Capital Days of -66.17, which is a positive sign.
  2. The stock has a low average Cash Conversion Cycle of -196.92, which is a positive sign.
  1. The stock is trading at a high valuation with an average P/B ratio of 24.50 and average Dividend Yield of 1.97%.
  2. The stock has a low average ROCE of 3.08%, which may not be favorable.
  3. The company has higher borrowings (182.31) compared to reserves (-49.00), which may suggest financial risk.
  4. The company has not shown consistent growth in sales (270.85) and profit (-10.77).

Should I Buy Surani Steel Tubes Ltd Share Now?

  • Considering various financial indicators, investors might exercise caution regarding investment in Prakash Steelage Ltd:
    1. Net Profit Margin: -15.56%
      • 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: -20.49% (Industry Average ROCE: 14.46%)
      • 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. Interest Coverage Ratio (Post Tax): -1.29
      • 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.
    4. Quick Ratio: 1.25
      • 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.
    5. ✓ Stock P/E: 7.22 (Industry average Stock P/E: 27.26)
      • 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.
    6. ✗ Total Debt / Equity: 1.84
      • 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 suggests exercising caution. It's advisable to conduct further research or consult with financial experts before considering any investment.

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 Prakash Steelage 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