Generic selectors
Exact matches only
Search in title
Search in content
Post Type Selectors
post
Last Updated on: 27 February, 2024|Author: Getaka | Social: X Twitter Profile

Fundamental Analysis of Shah Alloys Ltd

About the Company - Shah Alloys Ltd

Shah Alloys Ltd. is a Public Limited Listed company incorporated on 23/11/1990 and has its registered office in the State of Gujarat, India. Company’s Corporate Identification Number(CIN) is L27100GJ1990PLC014698 and registration number is 014698. Currently Company is involved in the business activities of Manufacture of steel in ingots or other primary forms, and other semi- finished products of steel. Company’s Total Operating Revenue is Rs. 880.08 Cr. and Equity Capital is Rs. 19.80 Cr. for the Year ended 31/03/2022.
INDUSTRYADDRESSCONTACT
Steel - Alloys/Special5/1, Shreeji House, B/h M.J.Library, Ahmedabad Gujarat 380006info@shahalloys.com
http://www.shahalloys.com
Management
NamePosition Held
Mr. Rajendra V ShahNon Executive Chairman
Mr. Mrinal SinhaWhole Time Director
Mr. Ashok A SharmaWhole Time Director
Mr. G M ShaikhIndependent Director
Mr. Tejpal S ShahIndependent Director
Mr. Harshad M ShahIndependent Director
Mrs. Shefali M PatelIndependent Director
Mr. Prakash PatelWhole Time Director

Shah Alloys Ltd. Share Price Update

Share PriceValue
Today₹67.85
Previous Day₹68.50

Basic Stock Data of Shah Alloys Ltd

Market Cap 140 Cr.
Current Price 70.8
High / Low94.2/38.8
Stock P/E
Book Value 16.1
Dividend Yield0.00 %
ROCE1.53 %
ROE10.1 %
Face Value 10.0

Data Source: screener.in

Competitors of Shah Alloys Ltd

Stock NameMarket CapCurrent PriceHigh / LowStock P/EBook ValueDividend YieldROCEROEFace Value
Mishra Dhatu Nigam Ltd 7,908 Cr. 422548/17271.3 70.40.76 %14.6 %12.6 % 10.0
Mukand Ltd 2,420 Cr. 168213/11512.2 60.81.19 %8.29 %50.9 % 10.0
Usha Martin Ltd 9,833 Cr. 323380/17123.3 70.60.75 %21.2 %18.8 % 1.00
Industry Average6,720.33 Cr304.3335.6067.270.90%14.70%27.43%7.00

Shah Alloys Ltd Quarterly Results

MonthSep 2020Dec 2020Mar 2021Jun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023
Sales110.69174.85207.42193.15215.73219.36257.91187.48133.21153.65153.65159.56180.59
Expenses113.07169.54177.61185.21167.24188.82222.04184.03128.63150.53159.09155.52176.91
Operating Profit-2.385.3129.817.9448.4930.5435.873.454.583.12-5.444.043.68
OPM %-2.15%3.04%14.37%4.11%22.48%13.92%13.91%1.84%3.44%2.03%-3.54%2.53%2.04%
Other Income0.004.3916.199.320.000.000.000.000.000.000.000.000.00
Interest0.030.640.030.030.820.770.570.750.340.520.981.051.06
Depreciation3.243.253.242.822.832.822.822.242.242.232.242.232.23
Profit before tax-5.655.8142.7314.4144.8426.9532.480.462.000.37-8.660.760.39
Tax %14.16%525.65%162.77%9.78%25.22%39.67%11.82%26.09%26.00%24.32%23.90%18.42%12.82%
Net Profit-1.46-29.12-23.313.6833.5316.2628.640.342.490.31-6.370.700.35
EPS in Rs-0.74-14.71-11.771.8616.948.2114.470.171.260.16-3.220.350.18

Shah Alloys Ltd Quarterly Chart

Shah Alloys Ltd Profit & Loss

MonthMar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023TTM
Sales261260299480570489502880626647
Expenses300525306487569545486763622642
Operating Profit-39-265-7-71-561611745
OPM %-15%-102%-2%-1%0%-11%3%13%1%1%
Other Income-364968214279341630
Interest7023140002234
Depreciation391814141313131199
Profit before tax-18418947121-62442109-5-7
Tax %27%34%22%70%232%120%231%25%29%
Net Profit-14012136368-5-5682-3-5
EPS in Rs-70.9561.0918.4317.993.80-2.35-28.1941.47-1.62-2.53
Dividend Payout %0%0%0%0%0%0%0%0%0%

Shah Alloys Ltd Profit & Loss Yearly Chart

Shah Alloys Ltd Growth

Compounded Sales Growth
10 Years:%
5 Years:5%
3 Years:9%
TTM:-13%
Compounded Profit Growth
10 Years:%
5 Years:13%
3 Years:25%
TTM:-144%
Stock Price CAGR
10 Years:32%
5 Years:39%
3 Years:112%
1 Year:38%
Return on Equity
10 Years:%
5 Years:%
3 Years:%
Last Year:-10%

Shah Alloys Ltd Balance Sheet

MonthMar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Sep 2023
Equity Capital20202020202020202020
Reserves-735-400-295-193-186-38-74131112
Borrowings6534193382632382091841177471
Other Liabilities801587566368448241175172197178
Total Liabilities738626628457520431305322301281
Fixed Assets17515714313111910693827369
CWIP13999999999
Investments0000000677
Other Assets551460476317392316202225212196
Total Assets738626628457520431305322301281

Shah Alloys Ltd Reserves and Borrowings Chart

Shah Alloys Ltd Cash Flow

MonthMar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023
Cash from Operating Activity 4978124141211516845
Cash from Investing Activity 60-1-10000
Cash from Financing Activity -53-80-124-13-121-150-70-46
Net Cash Flow2-1-1-1-01-1-0

Shah Alloys Ltd Financial Efficiency Indicators

MonthMar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023
Debtor Days21149318181069
Inventory Days1601582418911487757490
Days Payable1171401645310514813873103
Cash Conversion Cycle6432853927-43-537-4
Working Capital Days-1,031-740-554-209-223-112-45-3-28
ROCE %-39%-26%2%-51%17%80%-2%

Shah Alloys Ltd Financial Efficiency Indicators Chart

Shah Alloys Ltd Share Holding Pattern

MonthMar 2021Jun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023
Promoters53.75%53.75%53.80%53.80%53.77%53.75%53.75%53.75%53.75%53.75%53.77%53.78%
FIIs0.00%0.00%0.00%0.01%0.02%0.04%0.02%0.00%0.00%0.00%0.01%0.00%
Public46.25%46.25%46.20%46.18%46.21%46.22%46.23%46.25%46.26%46.24%46.22%46.22%
No. of Shareholders7,7087,5637,5778,7319,5669,69310,0689,8259,7599,9139,8489,494

Shah Alloys Ltd Shareholding Pattern Chart

No. of Shah Alloys Ltd Shareholders

This stock is not held by any mutual fund

Shah Alloys Ltd ROCE Trend

Shah Alloys Ltd EPS Trend

Shah Alloys Ltd Key Financial Ratios

MonthMar 23Mar 22Mar 21Mar 20Mar 19
FaceValue10.0010.0010.0010.0010.00
Basic EPS (Rs.)-1.6241.47-28.18-2.353.80
Diluted EPS (Rs.)-1.6241.47-28.18-2.353.80
Cash EPS (Rs.)2.2647.18-21.63-0.7613.80
Book Value[Excl.RevalReserv]/Share (Rs.)15.4013.84-27.62-9.06-83.75
Book Value[Incl.RevalReserv]/Share (Rs.)15.4013.84-27.62-9.06-83.75
Revenue From Operations / Share (Rs.)316.33444.54253.53247.17287.93
PBDIT / Share (Rs.)2.8962.0520.65-27.653.74
PBIT / Share (Rs.)-1.6356.3414.10-34.20-2.83
PBT / Share (Rs.)-2.9455.2421.467.060.53
Net Profit / Share (Rs.)-2.2641.47-28.18-7.327.22
NP After MI And SOA / Share (Rs.)-1.6241.47-28.18-2.353.80
PBDIT Margin (%)0.9113.958.14-11.181.29
PBIT Margin (%)-0.5112.675.56-13.83-0.98
PBT Margin (%)-0.9212.428.462.850.18
Net Profit Margin (%)-0.719.32-11.11-2.962.50
NP After MI And SOA Margin (%)-0.519.32-11.11-0.951.32
Return on Networth / Equity (%)-10.53299.690.000.00-4.53
Return on Capital Employeed (%)-6.28185.5369.43-39.89-58.48
Return On Assets (%)-1.0625.98-18.31-1.071.44
Long Term Debt / Equity (X)0.120.47-1.37-9.49-0.94
Total Debt / Equity (X)2.424.27-1.64-9.49-0.94
Asset Turnover Ratio (%)2.032.711.351.021.15
Current Ratio (X)0.520.560.350.420.31
Quick Ratio (X)0.080.100.080.100.07
Inventory Turnover Ratio (X)3.666.504.123.404.11
Interest Coverage Ratio (X)2.2156.2125.15-120.5673.04
Interest Coverage Ratio (Post Tax) (X)-0.7338.57-43.27-211.8575.30
Enterprise Value (Cr.)158.99315.72104.38183.36188.60
EV / Net Operating Revenue (X)0.250.350.200.370.33
EV / EBITDA (X)27.812.572.55-3.3525.49
MarketCap / Net Operating Revenue (X)0.130.220.030.020.05
Price / BV (X)2.807.27-0.29-0.74-0.19
Price / Net Operating Revenue (X)0.130.220.030.020.05
EarningsYield-0.030.41-3.47-0.340.23

Shah Alloys Ltd Profitability Ratios (%)

Shah Alloys Ltd Liquidity Ratios

Shah Alloys Ltd Liquidity Ratios (%)

Shah Alloys Ltd Interest Coverage Ratios (X)

Shah Alloys Ltd Valuation Ratios

Fair Value / Intrinsic Value of Shah Alloys Ltd

Fair Value: ₹24.88

The stock is overvalued by 64.86% compared to the current price ₹70.8

*Investments are subject to market risks

Strength and Weakness of Shah Alloys Ltd

StrengthWeakness
  1. The stock has a low average Working Capital Days of -212.78, which is a positive sign.
  2. The company has shown consistent growth in sales (501.40 cr) and profit (33.00 cr) over the years.
  1. The stock is trading at a high valuation with an average P/B ratio of 6.36 and average Dividend Yield of 0.58%.
  2. The stock has a low average ROCE of -2.11%, which may not be favorable.
  3. The stock has a high average Cash Conversion Cycle of 17.11, which may not be favorable.
  4. The company has higher borrowings (256.60) compared to reserves (-188.50), which may suggest financial risk.

Should I Buy Shah Alloys Ltd Share Now?

  • Considering various financial indicators, investors might exercise caution regarding investment in Shah Alloys 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: -6.28% (Industry Average ROCE: 14.7%)
      • 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): -0.73
      • 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: 0.08
      • 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: 34.23)
      • 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: 2.42
      • 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 Shah Alloys 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