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

Fundamental Analysis of Steel Exchange India Ltd

About the Company - Steel Exchange India Ltd

Steel Exchange India Ltd. is a Public Limited Listed company incorporated on 24/02/1999 and has its registered office in the State of Andhra Pradesh, India. Company’s Corporate Identification Number(CIN) is L74100TG1999PLC031191 and registration number is 031191. Currently Company is involved in the business activities of Manufacture of basic iron and steel. Company’s Total Operating Revenue is Rs. 1099.45 Cr. and Equity Capital is Rs. 88.08 Cr. for the Year ended 31/03/2022.
INDUSTRYADDRESSCONTACT
SteelD. No:1-65/K/60, Plot No: 60, 01st Floor, Hyderabad Telangana 500081cs@seil.co.in
http://www.seil.co.in
Management
NamePosition Held
Mr. B Satish KumarChairman & Managing Director
Mr. B Suresh KumarJoint Managing Director
Mr. B Ramesh KumarJoint Managing Director & CFO
Mr. V V Krishna RaoDirector
Mr. B SureshDirector
Mr. R Ramachandra RaoIndependent Director
Mr. C Siva PrasadIndependent Director
Mr. K Krishna RaoIndependent Director
Mr. E Sankara RaoIndependent Director
Ms. Sujata ChattopadhyayIndependent Director
Mr. Shyam JagetiyaNominee Director

Steel Exchange India Ltd. Share Price Update

Share PriceValue
Today₹15.82
Previous Day₹16.20

Basic Stock Data of Steel Exchange India Ltd

Market Cap 1,902 Cr.
Current Price 16.0
High / Low18.4/7.80
Stock P/E
Book Value 5.06
Dividend Yield0.00 %
ROCE8.56 %
ROE11.9 %
Face Value 1.00

Data Source: screener.in

Competitors of Steel Exchange India Ltd

Stock NameMarket CapCurrent PriceHigh / LowStock P/EBook ValueDividend YieldROCEROEFace Value
Shyam Metalics & Energy Ltd 17,948 Cr. 643772/25316.8 3200.28 %15.0 %13.0 % 10.0
Prakash Industries Ltd 3,283 Cr. 183224/48.810.3 1740.00 %7.87 %6.58 % 10.0
Steel Authority of India Ltd 53,511 Cr. 130150/77.615.8 1361.14 %5.89 %3.57 % 10.0
Tata Steel Ltd 1,82,197 Cr. 146147/10294.3 72.52.45 %12.6 %7.28 % 1.00
Aanchal Ispat Ltd 17.9 Cr. 8.6019.0/7.36 8.500.00 %20.1 %67.6 % 10.0
Industry Average18.38 Cr222.1227.44142.20.77%12.29%19.61%8.2

Technocraft Industries (India) Ltd Quarterly Results

MonthSep 2020Dec 2020Mar 2021Jun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023
Sales210.35269.38326.96262.62206.92263.04366.87364.85314.53304.12398.22251.25269.45
Expenses188.32218.88283.14232.28212.53210.32338.25330.97287.43303.58363.10230.91250.41
Operating Profit22.0350.5043.8230.34-5.6152.7228.6233.8827.100.5435.1220.3419.04
OPM %10.47%18.75%13.40%11.55%-2.71%20.04%7.80%9.29%8.62%0.18%8.82%8.10%7.07%
Other Income2.2554.8213.060.5113.050.186.540.530.553.110.850.910.80
Interest0.346.9418.9317.0317.3835.0718.6419.8820.5123.2741.9720.7918.35
Depreciation6.246.046.185.845.915.966.046.406.095.806.085.895.13
Profit before tax17.7092.3431.777.98-15.8511.8710.488.131.05-25.42-12.08-5.43-3.64
Tax %0.00%0.00%8.34%0.00%0.00%0.00%-973.28%0.00%0.00%0.00%-252.73%0.00%0.00%
Net Profit17.7192.3429.127.98-15.8511.87112.488.131.05-25.42-42.61-5.43-3.65
EPS in Rs0.231.220.360.09-0.180.131.280.090.01-0.29-0.41-0.05-0.03

Steel Exchange India Ltd Quarterly Chart

Technocraft Industries (India) Ltd Profit & Loss

MonthJun 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023TTM
Sales1,6879791,2521,5621,6581,2719221,0247818981,0991,3751,223
Expenses1,5398831,1241,3871,5061,1979331,0007107649931,2791,148
Operating Profit1489612717515274-1124711341069775
OPM %9%10%10%11%9%6%-1%2%9%15%10%7%6%
Other Income142071211-46-39-1-1772056
Interest10863801281231571361032688106104
Depreciation17121525273029302743242423
Profit before tax3840393514-159-215-173914314-28-47
Tax %29%-32%8%18%46%1%21%-114%-64%2%-704%-108%
Net Profit275336287-157-170-3764140116-59-77
EPS in Rs0.521.030.690.550.14-2.07-2.24-0.480.851.741.32-0.57-0.78
Dividend Payout %0%0%0%0%0%0%0%0%0%0%0%0%

Steel Exchange India Ltd Profit & Loss Yearly Chart

Steel Exchange India Ltd Growth

Compounded Sales Growth
10 Years:3%
5 Years:8%
3 Years:21%
TTM:-13%
Compounded Profit Growth
10 Years:%
5 Years:9%
3 Years:%
TTM:-153%
Stock Price CAGR
10 Years:15%
5 Years:62%
3 Years:46%
1 Year:6%
Return on Equity
10 Years:0%
5 Years:12%
3 Years:11%
Last Year:-12%

Technocraft Industries (India) Ltd Balance Sheet

MonthJun 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Sep 2023
Equity Capital5252525276767676768088104119
Reserves177230266323288222521580222392403482
Preference Capital0000190000000
Borrowings4244213997136739821,0691,0211,014438458359285
Other Liabilities524514624774830436337315217249178266297
Total Liabilities1,1771,2171,3421,8631,8681,7161,5331,4281,3879891,1171,1321,182
Fixed Assets328325350614591695717691666612596579569
CWIP249465354544671314
Investments3535350000000000
Other Assets8128549481,2021,223966811732717371514540599
Total Assets1,1771,2171,3421,8631,8681,7161,5331,4281,3879891,1171,1321,182

Steel Exchange India Ltd Reserves and Borrowings Chart

Steel Exchange India Ltd Cash Flow

MonthJun 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023
Cash from Operating Activity 2017714791166-149506037795138
Cash from Investing Activity -186-10-46-34-9-6-2-3-2139-14
Cash from Financing Activity -18-66-102-49-163151-49-58-10-116-1-120
Net Cash Flow-41-18-5-4-0-125-23134

Technocraft Industries (India) Ltd Financial Efficiency Indicators

MonthJun 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023
Debtor Days579762725962391418223130
Inventory Days991962181951902152682573441009888
Days Payable12119618516915336455965493345
Cash Conversion Cycle3497959996241262212297749573
Working Capital Days4094748870143135107155403818
ROCE %25%17%18%13%4%-3%-0%5%11%11%9%

Steel Exchange India Ltd Financial Efficiency Indicators Chart

Technocraft Industries (India) Ltd Share Holding Pattern

MonthMar 2021Jun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023
Promoters44.98%49.78%49.78%49.78%49.78%49.78%49.79%49.79%50.94%55.92%55.92%55.92%
FIIs4.47%4.27%4.50%5.14%6.65%6.40%6.35%5.91%4.52%4.30%4.01%3.87%
DIIs5.03%4.59%4.36%4.35%4.51%4.35%0.89%0.89%0.75%0.66%0.66%0.66%
Government0.38%0.35%0.35%0.35%0.35%0.35%0.35%0.35%0.30%0.26%0.26%0.26%
Public45.14%41.01%41.01%40.37%38.71%39.12%42.61%43.06%43.48%38.86%39.13%39.29%
No. of Shareholders48,40448,11348,01149,31147,13650,40667,10373,43973,14879,46198,4701,40,783

Steel Exchange India Ltd Shareholding Pattern Chart

No. of Steel Exchange India Ltd Shareholders

This stock is not held by any mutual fund

Steel Exchange India Ltd ROCE Trend

Steel Exchange India Ltd EPS Trend

Steel Exchange India Ltd Key Financial Ratios

MonthMar 23Mar 22Mar 21Mar 20Mar 19
FaceValue1.0010.0010.0010.0010.00
Basic EPS (Rs.)-0.7113.4218.278.44-4.84
Diluted EPS (Rs.)-0.7113.3418.278.44-4.84
Cash EPS (Rs.)-0.3315.9220.4812.05-0.92
Book Value[Excl.RevalReserv]/Share (Rs.)2.8332.1210.12-9.99-18.43
Book Value[Incl.RevalReserv]/Share (Rs.)4.8455.7537.6220.4612.02
Revenue From Operations / Share (Rs.)13.35124.82111.76102.76134.76
PBDIT / Share (Rs.)0.9714.3517.3810.712.95
PBIT / Share (Rs.)0.7411.6514.317.12-0.94
PBT / Share (Rs.)-0.271.6417.745.15-2.26
Net Profit / Share (Rs.)-0.5613.2217.418.46-4.83
PBDIT Margin (%)7.3211.4915.5510.422.18
PBIT Margin (%)5.569.3312.806.93-0.70
PBT Margin (%)-2.041.3115.875.01-1.67
Net Profit Margin (%)-4.2310.5915.578.23-3.58
Return on Networth / Equity (%)-19.9741.16171.98-84.720.00
Return on Capital Employeed (%)10.3312.2614.9917.58-2.50
Return On Assets (%)-5.1910.4214.154.63-2.56
Long Term Debt / Equity (X)0.771.215.07-1.36-0.87
Total Debt / Equity (X)0.811.255.07-11.10-6.19
Asset Turnover Ratio (%)1.231.040.750.550.69
Current Ratio (X)1.201.431.460.640.61
Quick Ratio (X)0.460.580.580.110.09
Inventory Turnover Ratio (X)3.473.451.480.841.15
Interest Coverage Ratio (X)0.961.435.3223.442.25
Interest Coverage Ratio (Post Tax) (X)0.442.324.2822.84-2.68
Enterprise Value (Cr.)1632.192450.85911.88914.20996.24
EV / Net Operating Revenue (X)1.182.231.011.170.97
EV / EBITDA (X)16.0519.406.5311.2444.45
MarketCap / Net Operating Revenue (X)1.021.920.560.120.12
Price / BV (X)4.807.476.19-1.30-0.94
Price / Net Operating Revenue (X)1.021.920.560.120.12
EarningsYield-0.040.050.270.65-0.27

Steel Exchange India Ltd Profitability Ratios (%)

Steel Exchange India Ltd Liquidity Ratios

Steel Exchange India Ltd Liquidity Ratios (%)

Steel Exchange India Ltd Interest Coverage Ratios (X)

Steel Exchange India Ltd Valuation Ratios

Fair Value / Intrinsic Value of Steel Exchange India Ltd

Fair Value: ₹9.21

The stock is overvalued by 42.42% compared to the current price ₹16

*Investments are subject to market risks

Strength and Weakness of Steel Exchange India Ltd

StrengthWeakness
  1. The company has higher reserves (242.46 cr) compared to borrowings (1.46 cr), indicating strong financial stability.
  1. The stock is trading at a high valuation with an average P/B ratio of 6.58 and average Dividend Yield of 3.70%.
  2. The stock has a low average ROCE of 9.17%, which may not be favorable.
  3. The stock has a high average Working Capital Days of 83.50, which may not be favorable.
  4. The stock has a high average Cash Conversion Cycle of 139.58, which may not be favorable.
  5. The company has not shown consistent growth in sales (276.08) and profit (-8.00).

Should I Buy Steel Exchange India Ltd Share Now?

  • Considering various financial indicators, investors might exercise caution regarding investment in Steel Exchange India Ltd:
    1. Net Profit Margin: -4.23%
      • 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: 10.33% (Industry Average ROCE: 7.29%)
      • 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): 0.44
      • 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: 0.46
      • 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: 32.52)
      • 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: 0.81
      • 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.
YoY Net Profit Growth
Year2013-20142014-20152015-20162016-20172017-20182018-20192019-20202020-20212021-20222022-2023
YoY Net Profit Growth (%)-32.08%-22.22%-75.00%-2342.86%-8.28%78.24%272.97%118.75%-17.14%-150.86%
Change in YoY Net Profit Growth (%)0.00%9.85%-52.78%-2267.86%2334.58%86.52%194.74%-154.22%-135.89%-133.72%

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 Exchange 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