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Last Updated on: 27 February, 2024|Author: Getaka | Social: X Twitter Profile

Fundamental Analysis of SAL Steel Ltd

About the Company - SAL Steel Ltd

SAL Steel Ltd. is a Public Limited Listed company incorporated on 06/11/2003 and has its registered office in the State of Gujarat, India. Company’s Corporate Identification Number(CIN) is L29199GJ2003PLC043148 and registration number is 043148. Currently company belongs to the Industry of Steel. Company’s Total Operating Revenue is Rs. 505.27 Cr. and Equity Capital is Rs. 84.97 Cr. for the Year ended 31/03/2022.
INDUSTRYADDRESSCONTACT
Steel5/1, Shreeji House, B/h M.J. Library, Ahmedabad Gujarat 380006cs@salsteel.co.in
http://www.salsteel.co.in
Management
NamePosition Held
Mr. Rajendra V ShahNon Executive Chairman
Mr. Sujal ShahWhole Time Director
Mr. Babulal M SinghalWhole Time Director
Mr. Ambalal C PatelIndependent Director
Mr. Tejpal S ShahIndependent Director
Mr. Harshad M ShahIndependent Director
Mr. Shrikant JhaveriIndependent Director
Mrs. Shefali M PatelIndependent Director

SAL Steel Ltd. Share Price Update

Share PriceValue
Today₹29.96
Previous Day₹30.57

Basic Stock Data of SAL Steel Ltd

Market Cap 204 Cr.
Current Price 24.0
High / Low30.6/12.9
Stock P/E
Book Value 4.93
Dividend Yield0.00 %
ROCE8.12 %
ROE8.95 %
Face Value 10.0

Data Source: screener.in

Competitors of SAL Steel Ltd

Stock NameMarket CapCurrent PriceHigh / LowStock P/EBook ValueDividend YieldROCEROEFace Value
Technocraft Industries (India) Ltd 4,594 Cr. 2,0012,750/1,00017.7 6820.00 %19.6 %19.3 % 10.0
JSW Steel Ltd 1,99,769 Cr. 817896/64918.5 3020.42 %8.33 %5.64 % 1.00
Adishakti Loha & Ispat ltd 5.56 Cr. 12.216.0/7.4026.5 11.40.00 %1.78 %1.39 % 10.0
Steel Authority of India Ltd 52,871 Cr. 128150/77.615.6 1361.17 %5.89 %3.57 % 10.0
Prakash Industries Ltd 3,183 Cr. 178224/48.810.0 1740.00 %7.87 %6.58 % 10.0
Industry Average52,084.51 Cr627.2417.66261.080.32%8.69%7.30%8.20

SAL Steel Ltd Quarterly Results

MonthSep 2020Dec 2020Mar 2021Jun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023
Sales79.2877.49132.66117.4094.87135.78186.48118.70137.36142.14112.31153.64157.00
Expenses81.4872.80112.37109.9589.00133.28176.70116.05130.23134.83106.52148.00151.23
Operating Profit-2.204.6920.297.455.872.509.782.657.137.315.795.645.77
OPM %-2.77%6.05%15.29%6.35%6.19%1.84%5.24%2.23%5.19%5.14%5.16%3.67%3.68%
Other Income0.000.000.000.000.000.000.000.000.000.000.000.000.00
Interest0.050.000.100.000.000.100.090.100.573.853.303.143.20
Depreciation1.892.702.532.292.292.292.292.382.392.382.392.382.40
Profit before tax-4.141.9917.665.163.580.117.400.174.171.080.100.120.17
Tax %6.52%88.94%11.89%25.00%25.70%36.36%33.11%17.65%35.25%24.07%220.00%16.67%17.65%
Net Profit-3.870.2215.563.872.660.074.950.142.700.82-0.120.100.14
EPS in Rs-0.460.031.830.460.310.010.580.020.320.10-0.010.010.02

SAL Steel Ltd Quarterly Chart

SAL Steel Ltd Profit & Loss

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023TTM
Sales326377326363327361446571408301505496565
Expenses290370326337304351440562426301509487541
Operating Profit367-026231069-18-0-4825
OPM %11%2%-0%7%7%3%1%2%-4%-0%-1%2%4%
Other Income612-47-31266-19442229140
Interest2332303012112200813
Depreciation181917988888991010
Profit before tax1-43-47-59-29464-1917121661
Tax %48%33%24%-28%0%75%34%-16%7%7%29%36%
Net Profit0-29-35-76-29142-2216121241
EPS in Rs0.05-3.36-4.17-8.93-3.390.104.99-2.541.871.361.360.420.12
Dividend Payout %0%0%0%0%0%0%0%0%0%0%0%0%

SAL Steel Ltd Profit & Loss Yearly Chart

SAL Steel Ltd Growth

Compounded Sales Growth
10 Years:3%
5 Years:2%
3 Years:7%
TTM:-6%
Compounded Profit Growth
10 Years:8%
5 Years:97%
3 Years:-39%
TTM:-127%
Stock Price CAGR
10 Years:32%
5 Years:39%
3 Years:88%
1 Year:44%
Return on Equity
10 Years:%
5 Years:35%
3 Years:29%
Last Year:9%

SAL Steel Ltd Balance Sheet

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Sep 2023
Equity Capital85858585858585858585858585
Reserves4113-15-91-120-124-65-86-70-59-47-43-43
Borrowings23520717612186172175170161146124125125
Other Liabilities12113416717219916287114139123129110137
Total Liabilities482439413287250296282283314295291277304
Fixed Assets153174156147140133128126118155146136134
CWIP1341041045625252511461131
Investments-0-0-0-0-0-0-0-0-0-0-0-0-0
Other Assets1941611538386138130147150139144137169
Total Assets482439413287250296282283314295291277304

SAL Steel Ltd Reserves and Borrowings Chart

SAL Steel Ltd Cash Flow

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023
Cash from Operating Activity 1724-17222-67-45424228
Cash from Investing Activity -11-910-1-1-38-35-10-2
Cash from Financing Activity -6-1611-22-17-3-6-18-22-22-7
Net Cash Flow0-2-40-001-2010-1

SAL Steel Ltd Financial Efficiency Indicators

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023
Debtor Days55385413455128581071044051
Inventory Days1197057434892852822564757
Days Payable11469353438443043751114628
Cash Conversion Cycle604076225599834354504181
Working Capital Days4-47-116-139-149-43352510351932
ROCE %6%-3%-6%10%18%5%1%2%11%7%10%8%

SAL Steel Ltd Financial Efficiency Indicators Chart

SAL Steel Ltd Share Holding Pattern

MonthMar 2021Jun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023
Promoters50.56%50.56%50.56%50.56%50.56%50.56%50.56%50.56%50.56%50.56%50.56%50.56%
Public49.44%49.44%49.44%49.44%49.44%49.44%49.44%49.44%49.44%49.44%49.44%49.43%
No. of Shareholders25,20726,55830,82335,81242,95844,84643,80241,64641,90542,11143,28455,589

SAL Steel Ltd Shareholding Pattern Chart

No. of SAL Steel Ltd Shareholders

This stock is not held by any mutual fund

SAL Steel Ltd ROCE Trend

SAL Steel Ltd EPS Trend

SAL Steel Ltd Key Financial Ratios

MonthMar 23Mar 22Mar 21Mar 20Mar 19
FaceValue10.0010.0010.0010.0010.00
Basic EPS (Rs.)0.421.361.361.87-2.54
Diluted EPS (Rs.)0.421.361.361.87-2.54
Cash EPS (Rs.)1.542.442.422.75-1.62
Book Value[Excl.RevalReserv]/Share (Rs.)4.894.453.081.71-0.14
Book Value[Incl.RevalReserv]/Share (Rs.)4.894.453.081.71-0.14
Revenue From Operations / Share (Rs.)58.3459.4735.4148.0067.60
PBDIT / Share (Rs.)2.693.012.553.071.25
PBIT / Share (Rs.)1.571.931.492.190.33
PBT / Share (Rs.)0.641.911.462.01-2.19
Net Profit / Share (Rs.)0.411.361.361.87-2.54
PBDIT Margin (%)4.615.067.206.391.85
PBIT Margin (%)2.693.254.204.550.49
PBT Margin (%)1.113.214.124.18-3.24
Net Profit Margin (%)0.712.283.833.89-3.76
Return on Networth / Equity (%)8.5330.5044.15109.040.00
Return on Capital Employeed (%)7.1227.327.3510.111.58
Return On Assets (%)1.283.963.915.05-7.63
Long Term Debt / Equity (X)3.010.004.7410.01-127.22
Total Debt / Equity (X)3.013.284.7510.03-129.13
Asset Turnover Ratio (%)1.751.720.981.372.03
Current Ratio (X)1.500.581.061.091.36
Quick Ratio (X)0.840.370.800.931.05
Inventory Turnover Ratio (X)7.009.378.2012.367.24
Interest Coverage Ratio (X)2.93136.2691.5217.247.10
Interest Coverage Ratio (Post Tax) (X)1.4562.4649.7911.48-0.05
Enterprise Value (Cr.)239.99207.14149.13159.92204.45
EV / Net Operating Revenue (X)0.480.400.490.390.35
EV / EBITDA (X)10.498.096.886.1319.17
MarketCap / Net Operating Revenue (X)0.230.160.080.030.07
Price / BV (X)2.792.241.001.00-33.58
Price / Net Operating Revenue (X)0.230.160.080.030.07
EarningsYield0.030.130.431.09-0.51

SAL Steel Ltd Profitability Ratios (%)

SAL Steel Ltd Liquidity Ratios

SAL Steel Ltd Liquidity Ratios (%)

SAL Steel Ltd Interest Coverage Ratios (X)

SAL Steel Ltd Valuation Ratios

Fair Value / Intrinsic Value of SAL Steel Ltd

Fair Value: ₹6.75

The stock is overvalued by 71.87% compared to the current price ₹24

*Investments are subject to market risks

Strength and Weakness of SAL Steel Ltd

StrengthWeakness
  1. The stock has a low average Working Capital Days of -27.83, which is a positive sign.
  1. The stock has a low average ROCE of 5.75%, which may not be favorable.
  2. The stock has a high average Cash Conversion Cycle of 58.67, which may not be favorable.
  3. The company has higher borrowings (155.62) compared to reserves (-54.54), which may suggest financial risk.
  4. The company has not shown consistent growth in sales (413.23) and profit (-5.85).

Should I Buy SAL Steel Ltd Share Now?

  • Considering various financial indicators, investors might exercise caution regarding investment in SAL Steel Ltd:
    1. Net Profit Margin: 0.71%
      • 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: 7.12% (Industry Average ROCE: 8.69%)
      • 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): 1.45
      • 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: 0.84
      • 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 of N/A (Industry average Stock P/E: 17.66)
      • 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: 3.01
      • 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 SAL Steel 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