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Last Updated on: 04 March, 2024|Author: Getaka | Social: X Twitter Profile

Fundamental Analysis of Steel City Securities Ltd

About the Company - Steel City Securities Ltd

Steel City Securities Ltd. is a Public Limited Listed company incorporated on 22/02/1995 and has its registered office in the State of Andhra Pradesh, India. Company’s Corporate Identification Number(CIN) is L67120AP1995PLC019521 and registration number is 019521. Currently company belongs to the Industry of Finance & Investments. Company’s Total Operating Revenue is Rs. 63.54 Cr. and Equity Capital is Rs. 15.11 Cr. for the Year ended 31/03/2022.
INDUSTRYADDRESSCONTACT
Finance & InvestmentsSteel City Heights, # 50-81-18, Vishakapatnam Andhra Pradesh 530016investorrelations@steelcitynettrade.com
http://www.steelcitynettrade.com
Management
NamePosition Held
Mr. K SatyanarayanaExecutive Chairman
Dr. Satish Kumar AryaManaging Director & CEO
Ms. G V VandanaNon Executive Director
Mr. T V SrikanthDirector
Mr. G Vijaya KumarIndependent Director
Mr. G Satya Rama PrasadIndependent Director
Mr. B Krishna RaoIndependent Director
Mr. E SridharIndependent Director

Steel City Securities Ltd. Share Price Update

Share PriceValue
Today₹78.60
Previous Day₹80.00

Basic Stock Data of Steel City Securities Ltd

Market Cap 121 Cr.
Current Price 80.0
High / Low94.7/58.0
Stock P/E12.8
Book Value 75.9
Dividend Yield3.75 %
ROCE14.3 %
ROE10.4 %
Face Value 10.0

Data Source: screener.in

Competitors of Steel City Securities Ltd

Stock NameMarket CapCurrent PriceHigh / LowStock P/EBook ValueDividend YieldROCEROEFace Value
Adinath Exim Resources Ltd 12.4 Cr. 28.738.5/13.016.1 42.50.00 %4.06 %4.06 % 10.0
Bajaj Finance Ltd 4,06,928 Cr. 6,5848,192/5,48629.5 9690.46 %11.8 %23.5 % 2.00
Algoquant Fintech Ltd 1,252 Cr. 1,5581,620/483 43.80.00 %9.93 %8.64 % 2.00
AK Capital Services Ltd 686 Cr. 1,0401,160/3997.94 1,3281.15 %8.77 %11.0 % 10.0
Abate As Industries Ltd 12.4 Cr. 24.824.8/16.0 0.160.00 %57.8 %184 % 10.0
Industry Average81,778.16 Cr1,847.1010.71476.690.32%18.47%46.24%6.80

Steel City Securities Ltd Quarterly Results

MonthSep 2020Dec 2020Mar 2021Jun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023
Sales13.9813.3714.8913.5416.5717.1416.3813.1214.3313.3013.8612.9915.26
Expenses10.6811.1711.1910.7011.9112.4812.4410.6011.359.2211.5110.6912.08
Operating Profit3.302.203.702.844.664.663.942.522.984.082.352.303.18
OPM %23.61%16.45%24.85%20.97%28.12%27.19%24.05%19.21%20.80%30.68%16.96%17.71%20.84%
Other Income0.720.930.820.650.650.661.080.711.660.950.890.850.68
Interest0.150.120.120.130.110.120.130.110.110.160.240.130.14
Depreciation0.170.180.160.170.170.170.160.160.170.180.220.280.28
Profit before tax3.702.834.243.195.035.034.732.964.364.692.782.743.44
Tax %31.62%16.25%27.59%26.96%28.43%25.25%27.91%25.34%28.44%23.88%28.78%25.55%29.07%
Net Profit2.602.523.182.723.783.893.442.243.233.751.992.152.46
EPS in Rs1.721.672.101.802.502.572.281.482.142.481.321.421.63

Steel City Securities Ltd Quarterly Chart

Steel City Securities Ltd Profit & Loss

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023TTM
Sales33312735303866645155675955
Expenses23221922222947494040474344
Operating Profit10108138919151215191612
OPM %32%31%28%38%28%24%29%24%22%27%29%28%21%
Other Income0000000000003
Interest1111112111111
Depreciation1111111111111
Profit before tax886116816131014181514
Tax %34%33%33%35%34%33%30%34%26%26%27%26%
Net Profit654745119711141110
EPS in Rs3.593.672.875.523.373.327.535.964.717.009.157.426.85
Dividend Payout %0%0%0%0%36%60%33%42%32%43%33%40%

Steel City Securities Ltd Profit & Loss Yearly Chart

Steel City Securities Ltd Growth

Compounded Sales Growth
10 Years:6%
5 Years:-2%
3 Years:5%
TTM:-3%
Compounded Profit Growth
10 Years:9%
5 Years:0%
3 Years:16%
TTM:-25%
Stock Price CAGR
10 Years:%
5 Years:6%
3 Years:30%
1 Year:24%
Return on Equity
10 Years:11%
5 Years:11%
3 Years:12%
Last Year:10%

Steel City Securities Ltd Balance Sheet

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Sep 2023
Equity Capital12.3812.3812.3812.3812.3815.1115.1115.1115.1115.1115.1115.1115.11
Reserves34.1038.6940.8442.8645.4257.4064.2370.8172.8880.4389.7296.4499.54
Borrowings5.8313.203.4717.674.810.040.030.120.070.850.080.781.75
Other Liabilities39.9035.0332.1929.3630.9344.2561.7658.9659.1168.2476.9271.1181.54
Total Liabilities92.2199.3088.88102.2793.54116.80141.13145.00147.17164.63181.83183.44197.94
Fixed Assets5.765.705.504.264.506.707.128.869.309.139.1025.5925.35
CWIP0.000.000.000.000.000.000.000.000.341.697.334.104.10
Investments0.000.600.601.602.683.754.986.515.615.416.066.326.49
Other Assets86.4593.0082.7896.4186.36106.35129.03129.63131.92148.40159.34147.43162.00
Total Assets92.2199.3088.88102.2793.54116.80141.13145.00147.17164.63181.83183.44197.94

Steel City Securities Ltd Reserves and Borrowings Chart

Steel City Securities Ltd Cash Flow

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023
Cash from Operating Activity -6.72-11.894.66-8.159.336.6616.4412.783.751.6127.5116.24
Cash from Investing Activity 2.151.552.000.980.2910.220.06-1.161.442.52-3.18-10.53
Cash from Financing Activity 4.666.29-12.368.54-16.31-9.17-5.00-4.81-4.25-2.75-5.79-2.95
Net Cash Flow0.09-4.04-5.701.37-6.697.7111.506.810.941.3718.552.75

Steel City Securities Ltd Financial Efficiency Indicators

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023
Debtor Days366498533510550512293275300424316271
Inventory Days
Days Payable
Cash Conversion Cycle366498533510550512293275300424316271
Working Capital Days-27146161243223129-14-3955-50-115
ROCE %14%10%18%11%12%23%17%12%15%19%14%

Steel City Securities Ltd Financial Efficiency Indicators Chart

No data available for the Shareholding

No data available for the Shareholding Pattern chart.

No data available for the No. of Shareholders chart.

This stock is not held by any mutual fund

Steel City Securities Ltd ROCE Trend

Steel City Securities Ltd EPS Trend

Steel City Securities Ltd Key Financial Ratios

MonthMar 23Mar 22Mar 21Mar 20Mar 19
FaceValue10.0010.0010.0010.0010.00
Basic EPS (Rs.)7.459.157.004.715.85
Diluted EPS (Rs.)7.459.157.004.715.85
Cash EPS (Rs.)7.699.117.115.526.72
Book Value[Excl.RevalReserv]/Share (Rs.)73.8469.3963.2458.2455.96
Book Value[Incl.RevalReserv]/Share (Rs.)73.8469.3963.2458.2455.96
Revenue From Operations / Share (Rs.)36.1542.1234.6632.1239.90
PBDIT / Share (Rs.)10.6812.679.807.579.90
PBIT / Share (Rs.)10.2012.239.346.989.27
PBT / Share (Rs.)9.7911.909.006.649.04
Net Profit / Share (Rs.)7.218.676.654.936.09
NP After MI And SOA / Share (Rs.)7.429.157.004.715.85
PBDIT Margin (%)29.5530.0928.2823.5524.82
PBIT Margin (%)28.2029.0326.9321.7323.23
PBT Margin (%)27.0828.2625.9620.6622.66
Net Profit Margin (%)19.9320.5819.1715.3515.26
NP After MI And SOA Margin (%)20.5221.7120.1914.6614.67
Return on Networth / Equity (%)10.0413.1811.068.0810.46
Return on Capital Employeed (%)13.7117.6114.6311.9716.54
Return On Assets (%)6.117.596.424.836.19
Long Term Debt / Equity (X)0.010.000.010.000.00
Total Debt / Equity (X)0.010.000.010.000.00
Asset Turnover Ratio (%)0.290.380.350.340.44
Current Ratio (X)1.881.902.001.912.03
Quick Ratio (X)1.881.902.001.912.03
Dividend Payout Ratio (NP) (%)40.4332.7928.5742.4644.96
Dividend Payout Ratio (CP) (%)37.9431.2726.7837.7740.56
Earning Retention Ratio (%)59.5767.2171.4357.5455.04
Cash Earning Retention Ratio (%)62.0668.7373.2262.2359.44
Interest Coverage Ratio (X)26.3138.8629.0122.0643.65
Interest Coverage Ratio (Post Tax) (X)18.7527.5820.6715.3927.84
Enterprise Value (Cr.)15.2910.47-5.64-31.0432.35
EV / Net Operating Revenue (X)0.270.16-0.10-0.630.53
EV / EBITDA (X)0.940.54-0.38-2.722.16
MarketCap / Net Operating Revenue (X)1.751.391.010.551.48
Retention Ratios (%)59.5667.2071.4257.5355.03
Price / BV (X)0.850.840.550.301.06
Price / Net Operating Revenue (X)1.751.391.010.551.48
EarningsYield0.110.150.190.260.09

Steel City Securities Ltd Profitability Ratios (%)

Steel City Securities Ltd Liquidity Ratios

Steel City Securities Ltd Liquidity Ratios (%)

Steel City Securities Ltd Interest Coverage Ratios (X)

Steel City Securities Ltd Valuation Ratios

Fair Value / Intrinsic Value of Steel City Securities Ltd

Fair Value: ₹104.83

The stock is undervalued by 31.03% compared to the current price ₹80

*Investments are subject to market risks

Strength and Weakness of Steel City Securities Ltd

StrengthWeakness
  1. The company has higher reserves (64.10 cr) compared to borrowings (3.75 cr), indicating strong financial stability.
  2. The company has shown consistent growth in sales (47.00 cr) and profit (11.31 cr) over the years.
  1. The stock is trading at a high valuation with an average P/B ratio of 9.60 and average Dividend Yield of 25.82%.
  2. The stock has a low average ROCE of 13.75%, which may not be favorable.
  3. The stock has a high average Working Capital Days of 60.75, which may not be favorable.
  4. The stock has a high average Cash Conversion Cycle of 404.00, which may not be favorable.

Should I Buy Steel City Securities Ltd Share Now?

  • Based on the analysis of various financial indicators, it may be worth considering investment in Steel City Securities Ltd:
    1. Net Profit Margin: 19.93% (Higher values are generally favorable)
      • 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: 13.71% (Industry Average ROCE: 12.66%)
      • 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): 18.75 (Higher values, preferably > 2, are recommended)
      • 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: 1.88 (Higher values, preferably > 1, are recommended)
      • 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: 12.6 (Industry average Stock P/E: 31.76)
      • 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: 0.01 (Lower values, preferably < 1, are preferred)
      • 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.
    While these metrics suggest potential opportunity, it's essential to conduct thorough research or seek advice from financial experts before making any investment decisions.

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 City Securities 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