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

Fundamental Analysis of Sunflag Iron & Steel Company Ltd

About the Company - Sunflag Iron & Steel Company Ltd

Sunflag Iron & Steel Company Ltd. is a Public Limited Listed company incorporated on 12/09/1984 and has its registered office in the State of Maharashtra, India. Company’s Corporate Identification Number(CIN) is L27100MH1984PLC034003 and registration number is 034003. Currently Company is involved in the business activities of Manufacture of basic iron and steel. Company’s Total Operating Revenue is Rs. 2698.26 Cr. and Equity Capital is Rs. 180.22 Cr. for the Year ended 31/03/2022.
INDUSTRYADDRESSCONTACT
Steel - Rolling33, Mount Road, Sadar, Nagpur Maharashtra 440001investor@sunflagsteel.com
http://www.sunflagsteel.com
Management
NamePosition Held
Mr. Ravi Bhushan BhardwajNon Executive Chairman
Mr. Pranav BhardwajManaging Director
Mr. Surendra Kumar GuptaDeputy Managing Director
CA. Neelam KothariInd. Non-Executive Director
Mr. Sajiv DhawanInd. Non-Executive Director
Mr. Anand Sadashiv KapreInd. Non-Executive Director
CA. Vinita BahriInd. Non-Executive Director
CA. R MuralidharDirector - Finance
Mr. Ramchandra Vasant DalviDirector - Technical
Mr. Suhrit BhardwajNon Executive Director
CA. M A V GouthamInd. Non-Executive Director
Mr. Tirthnath JhaInd. Non-Executive Director

Sunflag Iron & Steel Company Ltd. Share Price Update

Share PriceValue
Today₹220.60
Previous Day₹230.45

Basic Stock Data of Sunflag Iron & Steel Company Ltd

Market Cap 3,777 Cr.
Current Price 210
High / Low249/128
Stock P/E27.0
Book Value 263
Dividend Yield0.00 %
ROCE11.9 %
ROE8.78 %
Face Value 10.0

Data Source: screener.in

Competitors of Sunflag Iron & Steel Company Ltd

Stock NameMarket CapCurrent PriceHigh / LowStock P/EBook ValueDividend YieldROCEROEFace Value
Kalyani Steels Ltd 3,631 Cr. 832889/28114.3 3591.20 %13.3 %11.7 % 5.00
Industry Average3 Cr83214.33591.2%13.3%11.7%5

Sunflag Iron & Steel Company Ltd Quarterly Results

MonthSep 2020Dec 2020Mar 2021Jun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023
Sales489648555667686696649897886869837784858
Expenses427568450553568609570827723753740704759
Operating Profit6280105115117887970162117978099
OPM %13%12%19%17%17%13%12%8%18%13%12%10%12%
Other Income33211111,19413221
Interest9766101412151722272423
Depreciation17171919191920202020212626
Profit before tax395982919056481,22912678503351
Tax %25%21%3%25%27%25%15%25%25%24%21%23%25%
Net Profit294780686543419219560402639
EPS in Rs1.632.604.453.783.632.362.2651.105.283.312.201.432.15

Sunflag Iron & Steel Company Ltd Quarterly Chart

Sunflag Iron & Steel Company Ltd Profit & Loss

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023TTM
Sales1,5131,5211,4701,6401,5241,4562,0182,1861,7581,8922,6983,4883,349
Expenses1,3931,4021,3231,4711,3461,3111,7821,9491,5881,6382,3003,0432,956
Operating Profit120118147169178145237237170254398446393
OPM %8%8%10%10%12%10%12%11%10%13%15%13%12%
Other Income5855981711111151,2018
Interest53827371653535394129428196
Depreciation42566151363334384670768192
Profit before tax30-1218528685184172941662851,485213
Tax %36%0%-18%53%35%23%30%36%2%15%24%25%
Net Profit19-1222245665129110921412171,115164
EPS in Rs1.19-0.771.341.353.123.627.146.125.117.8012.0461.899.09
Dividend Payout %0%0%0%0%0%0%7%8%0%0%0%0%

Sunflag Iron & Steel Company Ltd Profit & Loss Yearly Chart

Sunflag Iron & Steel Company Ltd Growth

Compounded Sales Growth
10 Years:9%
5 Years:12%
3 Years:26%
TTM:7%
Compounded Profit Growth
10 Years:35%
5 Years:12%
3 Years:34%
TTM:-21%
Stock Price CAGR
10 Years:29%
5 Years:40%
3 Years:56%
1 Year:74%
Return on Equity
10 Years:10%
5 Years:10%
3 Years:10%
Last Year:9%

Sunflag Iron & Steel Company Ltd Balance Sheet

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Sep 2023
Equity Capital162167167185180180180180180180180180180
Reserves3323193414034635296577601,2051,3531,5693,1624,561
Borrowings608506477421250330341352387268587609830
Other Liabilities332377330333355342389477637588755991899
Total Liabilities1,4341,3681,3141,3421,2481,3811,5661,7692,4092,3893,0914,9426,470
Fixed Assets4196205865725435135155371,1471,1901,2521,5911,543
CWIP2615837292669130202233173373193262
Investments0444799121116171,7263,240
Other Assets7546866867366717919131,0191,0191,0111,4491,4321,424
Total Assets1,4341,3681,3141,3421,2481,3811,5661,7692,4092,3893,0914,9426,470

Sunflag Iron & Steel Company Ltd Reserves and Borrowings Chart

Sunflag Iron & Steel Company Ltd Cash Flow

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023
Cash from Operating Activity 7323910778236-1811717720922343278
Cash from Investing Activity -164-54-7-4-13-33-97-141-125-60-335-219
Cash from Financing Activity 108-185-103-71-21360-41-39-79-151289-63
Net Cash Flow17-0-331010-20-3512-3-4

Sunflag Iron & Steel Company Ltd Financial Efficiency Indicators

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023
Debtor Days363752425362554846413733
Inventory Days138124130140129166130147190164186142
Days Payable68918270645957711068010293
Cash Conversion Cycle1077010011211816912812413012412283
Working Capital Days82597174651109190909210058
ROCE %8%7%9%12%16%12%20%17%9%11%16%12%

Sunflag Iron & Steel Company Ltd Financial Efficiency Indicators Chart

Sunflag Iron & Steel Company Ltd Share Holding Pattern

MonthMar 2021Jun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023
Promoters51.16%51.16%51.16%51.16%51.16%51.16%51.16%51.16%51.16%51.16%51.16%51.16%
FIIs0.05%0.42%0.34%0.38%0.22%0.43%0.33%0.31%0.88%0.73%0.96%0.93%
DIIs0.04%0.05%0.04%0.04%0.04%0.04%0.04%0.04%0.04%0.05%0.04%0.08%
Public48.75%48.38%48.46%48.42%48.58%48.37%48.47%48.50%47.92%48.07%47.84%47.83%
No. of Shareholders62,07271,24670,97474,49172,60166,08166,55563,97461,23260,13666,89767,612

Sunflag Iron & Steel Company Ltd Shareholding Pattern Chart

No. of Sunflag Iron & Steel Company Ltd Shareholders

Sunflag Iron & Steel Company Ltd Mutual Fund Holdings

Fund NameNo of SharesAUM (%)Amount Invested (Cr)
Motilal Oswal Nifty Microcap 250 Index Fund751350.251.57

Sunflag Iron & Steel Company Ltd ROCE Trend

Sunflag Iron & Steel Company Ltd EPS Trend

Sunflag Iron & Steel Company Ltd Key Financial Ratios

MonthMar 23Mar 22Mar 21Mar 20Mar 19
FaceValue10.0010.0010.0010.0010.00
Basic EPS (Rs.)61.8912.047.805.116.33
Diluted EPS (Rs.)61.8912.047.805.116.33
Cash EPS (Rs.)66.3116.2411.687.708.24
Book Value[Excl.RevalReserv]/Share (Rs.)185.5497.1385.1476.9452.25
Book Value[Incl.RevalReserv]/Share (Rs.)185.5497.1385.1476.9452.25
Revenue From Operations / Share (Rs.)193.56149.72104.9697.55123.71
PBDIT / Share (Rs.)25.1322.3614.6610.1713.81
PBIT / Share (Rs.)20.6618.1210.777.6011.71
PBT / Share (Rs.)82.3415.789.175.249.56
Net Profit / Share (Rs.)61.8312.017.785.146.14
NP After MI And SOA / Share (Rs.)61.8812.047.805.116.12
PBDIT Margin (%)12.9814.9313.9610.4211.16
PBIT Margin (%)10.6712.1010.257.799.46
PBT Margin (%)42.5410.538.745.367.73
Net Profit Margin (%)31.948.027.415.264.96
NP After MI And SOA Margin (%)31.978.047.435.234.94
Return on Networth / Equity (%)33.3612.409.176.6411.72
Return on Capital Employeed (%)9.1714.789.937.6018.76
Return On Assets (%)22.567.035.863.836.23
Long Term Debt / Equity (X)0.110.110.080.080.05
Total Debt / Equity (X)0.160.300.100.190.33
Asset Turnover Ratio (%)0.860.980.790.841.34
Current Ratio (X)1.561.532.061.561.52
Quick Ratio (X)0.580.570.830.610.65
Inventory Turnover Ratio (X)2.652.771.981.912.99
Dividend Payout Ratio (NP) (%)0.000.000.0011.799.85
Dividend Payout Ratio (CP) (%)0.000.000.007.857.33
Earning Retention Ratio (%)0.000.000.0088.2190.15
Cash Earning Retention Ratio (%)0.000.000.0092.1592.67
Interest Coverage Ratio (X)5.589.549.214.306.43
Interest Coverage Ratio (Post Tax) (X)0.036.125.893.173.86
Enterprise Value (Cr.)3096.641598.221224.94651.481141.24
EV / Net Operating Revenue (X)0.880.590.640.370.51
EV / EBITDA (X)6.843.974.643.564.58
MarketCap / Net Operating Revenue (X)0.760.420.590.240.39
Retention Ratios (%)0.000.000.0088.2090.14
Price / BV (X)0.790.640.730.310.93
Price / Net Operating Revenue (X)0.760.420.590.240.39
EarningsYield0.410.190.120.210.12

Sunflag Iron & Steel Company Ltd Profitability Ratios (%)

Sunflag Iron & Steel Company Ltd Liquidity Ratios

Sunflag Iron & Steel Company Ltd Liquidity Ratios (%)

Sunflag Iron & Steel Company Ltd Interest Coverage Ratios (X)

Sunflag Iron & Steel Company Ltd Valuation Ratios

Fair Value / Intrinsic Value of Sunflag Iron & Steel Company Ltd

Fair Value: ₹635.94

The stock is undervalued by 202.83% compared to the current price ₹210

*Investments are subject to market risks

Strength and Weakness of Sunflag Iron & Steel Company Ltd

StrengthWeakness
  1. The company has higher reserves (1,204.15 cr) compared to borrowings (458.92 cr), indicating strong financial stability.
  2. The company has shown consistent growth in sales (1.54 cr) and profit (105.69 cr) over the years.
  1. The stock is trading at a high valuation with an average P/B ratio of 13.77 and average Dividend Yield of 10.05%.
  2. The stock has a low average ROCE of 12.42%, which may not be favorable.
  3. The stock has a high average Working Capital Days of 81.83, which may not be favorable.
  4. The stock has a high average Cash Conversion Cycle of 115.58, which may not be favorable.

Should I Buy Sunflag Iron & Steel Company Ltd Share Now?

  • Considering various financial indicators, investors might exercise caution regarding investment in Sunflag Iron & Steel Company Ltd:
    1. Net Profit Margin: 31.94%
      • 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: 9.17% (Industry Average ROCE: 13.3%)
      • 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): 0.03
      • 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: 0.58
      • 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: 27.6 (Industry average Stock P/E: 13.9)
      • 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: 0.16
      • 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 Sunflag Iron & Steel Company 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