Surani Steel Tubes Ltd: Share Price Intrinsic Value and Fundamental Analysis

Share Price and Basic Stock Data

Last Updated: December 18, 2024, 9:08 pm

Market Cap	244 Cr.
Current Price	195
High / Low	735/140
Stock P/E	82.4
Book Value	81.6
Dividend Yield	0.00 %
ROCE	0.86 %
ROE	0.90 %
Face Value	10.0
PEG Ratio	1.67

Stock P/E, Current Price, and Intrinsic Value Over Time

Stock P/E Current Price Intrinsic Value

View Share Price Target for Surani Steel Tubes Ltd

Competitors of Surani Steel Tubes Ltd

Stock Name	Market Cap	Current Price	High / Low	Stock P/E	Book Value	Dividend Yield	ROCE	ROE	Face Value
Mukat Pipes Ltd	24.2 Cr.	20.4	26.0/9.54	173	5.76	0.00 %	%	%	5.00
Hariom Pipe Industries Ltd	1,753 Cr.	565	889/440	29.3	178	0.11 %	14.6 %	13.5 %	10.0
Earthstahl & Alloys Ltd	51.4 Cr.	42.0	66.0/0.00	34.0	30.7	0.00 %	8.22 %	5.21 %	10.0
Crimson Metal Engineering Company Ltd	4.57 Cr.	10.3	10.3/9.38		12.5	0.00 %	7.27 %	21.7 %	10.0
Welspun Corp Ltd	20,664 Cr.	788	824/440	18.8	230	0.63 %	20.2 %	19.8 %	5.00
Industry Average	9,803.23 Cr	611.43		50.85	145.94	0.33%	16.71%	14.57%	4.69

All Competitor Stocks of Surani Steel Tubes Ltd

Quarterly Result

Month	Sep 2019	Mar 2020	Sep 2020	Mar 2021	Sep 2021	Mar 2022	Sep 2022	Mar 2023	Sep 2023	Mar 2024
Sales	51	47	43	64	70	67	59	65	65	91
Expenses	54	45	42	58	67	65	63	61	66	89
Operating Profit	-3	2	1	6	3	1	-4	4	-1	2
OPM %	-6%	4%	2%	10%	5%	2%	-6%	6%	-2%	2%
Other Income	0	0	0	0	0	0	0	0	0	0
Interest	1	1	1	1	1	1	1	1	0	0
Depreciation	1	1	1	1	1	1	1	0	0	0
Profit before tax	-5	0	-1	5	2	0	-5	3	-1	2
Tax %	9%	-106%	13%	2%	1%	50%	-2%	12%	9%	-1%
Net Profit	-5	0	-1	4	2	0	-5	3	-1	2
EPS in Rs	-6.40	0.42	-0.72	5.43	2.22	0.02	-5.67	3.51	-1.45	1.68

Last Updated: Unknown

Quarterly Chart

Profit & Loss - Annual Report

Last Updated: Unknown

Month	Mar 2013	Mar 2014	Mar 2015	Mar 2016	Mar 2017	Mar 2018	Mar 2019	Mar 2020	Mar 2021	Mar 2022	Mar 2023	Mar 2024
Sales	0	36	58	68	77	101	93	98	107	137	124	155
Expenses	0	34	56	65	73	97	92	99	99	132	123	155
Operating Profit	-0	1	2	3	4	4	1	-2	7	5	0	0
OPM %		4%	3%	5%	5%	4%	1%	-2%	7%	3%	0%	0%
Other Income	0	0	0	0	0	0	0	0	0	0	0	1
Interest	0	1	1	1	1	1	1	2	2	2	1	0
Depreciation	0	0	0	1	0	0	0	1	1	1	1	0
Profit before tax	-0	0	0	1	2	3	-0	-5	4	2	-2	1
Tax %	0%	100%	37%	3%	43%	36%	18%	6%	3%	2%	20%	18%
Net Profit	-0	0	0	1	1	2	-0	-5	4	2	-2	0
EPS in Rs	-0.16	0.00	0.64	5.72	4.00	3.03	-0.17	-5.99	4.70	2.23	-2.16	0.47
Dividend Payout %	0%		0%	0%	0%	0%	0%	0%	0%	0%	0%	0%

Profit & Loss Yearly Chart

YoY Net Profit Growth

Year	2016-2017	2017-2018	2018-2019	2020-2021	2021-2022	2022-2023	2023-2024
YoY Net Profit Growth (%)	0.00%	100.00%	-100.00%	180.00%	-50.00%	-200.00%	100.00%
Change in YoY Net Profit Growth (%)	0.00%	100.00%	-200.00%	280.00%	-230.00%	-150.00%	300.00%

Surani Steel Tubes Ltd has shown an inconsistent trend in YoY Net Profit Growth (%) in the last 7 years from 2016-2017 to 2023-2024.

Growth

Compounded Sales Growth
10 Years:	16%
5 Years:	11%
3 Years:	13%
TTM:	56%

Compounded Profit Growth
10 Years:	%
5 Years:	41%
3 Years:	-50%
TTM:	83%

Stock Price CAGR
10 Years:	%
5 Years:	45%
3 Years:	95%
1 Year:	-34%

Return on Equity
10 Years:	2%
5 Years:	0%
3 Years:	0%
Last Year:	1%

Last Updated: Unknown

Balance Sheet

Last Updated: December 14, 2024, 2:40 pm

Month	Mar 2013	Mar 2014	Mar 2015	Mar 2016	Mar 2017	Mar 2018	Mar 2019	Mar 2020	Mar 2021	Mar 2022	Mar 2023	Mar 2024	Sep 2024
Equity Capital	2	2	2	2	2	6	8	8	8	8	8	11	12
Reserves	-0	-0	0	2	2	5	16	11	14	16	14	78	89
Borrowings	3	11	10	12	13	15	17	20	18	15	11	42	0
Other Liabilities	0	2	3	7	10	9	4	9	5	12	7	4	12
Total Liabilities	5	16	16	23	28	36	45	48	45	51	41	134	113
Fixed Assets	0	5	5	5	5	4	4	15	13	12	5	10	11
CWIP	5	0	0	0	2	6	11	0	0	0	0	0	1
Investments	0	0	0	0	0	0	0	0	0	0	0	0	20
Other Assets	1	10	11	18	21	25	30	33	32	39	37	124	82
Total Assets	5	16	16	23	28	36	45	48	45	51	41	134	113

Reserves and Borrowings Chart

Cash Flow

Month	Mar 2013	Mar 2015	Mar 2016	Mar 2017	Mar 2018	Mar 2019	Mar 2020	Mar 2021	Mar 2022	Mar 2023	Mar 2024
Cash from Operating Activity +	0	2	-0	2	-1	-8	-0	2	5	-2	-57
Cash from Investing Activity +	0	-0	-1	-2	-4	-5	-1	-0	0	7	-5
Cash from Financing Activity +	0	-2	0	-0	5	13	1	-2	-5	-5	96
Net Cash Flow	0	0	-0	-0	-0	0	0	-0	-0	0	34

Free Cash Flow

Month	Mar 2013	Mar 2014	Mar 2015	Mar 2016	Mar 2017	Mar 2018	Mar 2019	Mar 2020	Mar 2021	Mar 2022	Mar 2023	Mar 2024
Free Cash Flow	-3.00	-10.00	-8.00	-9.00	-9.00	-11.00	-16.00	-22.00	-11.00	-10.00	-11.00	-42.00

Free Cash Flow = Income Generated from Operational Activities - Borrowings - Capital Work in Progress (CWIP)

Consistent positive free cash flow is crucial for businesses as it indicates their ability to generate cash from their core operations. It provides financial flexibility, allowing companies to invest in growth opportunities, pay dividends to shareholders, reduce debt, and weather economic downturns more effectively.

Free Cash Flow Chart

Financial Efficiency Indicators

Month	Mar 2014	Mar 2015	Mar 2016	Mar 2017	Mar 2018	Mar 2019	Mar 2020	Mar 2021	Mar 2022	Mar 2023
Debtor Days	43	30	30	38	22	24	22	24	13	39
Inventory Days	57	35	63	60	66	82	88	83	77	53
Days Payable	19	14	32	44	30	14	31	12	17	17
Cash Conversion Cycle	82	51	61	54	58	93	79	95	72	76
Working Capital Days	77	43	54	47	52	94	85	95	74	86
ROCE %	12%	12%	19%	18%	17%	2%	-7%	15%	9%	-1%

Financial Efficiency Indicators Chart

Share Holding Pattern

Month	Sep 2019	Mar 2020	Sep 2020	Mar 2021	Sep 2021	Mar 2022	Sep 2022	Mar 2023	Sep 2023	Dec 2023	Mar 2024	Jun 2024
Promoters	33.97%	33.97%	33.97%	33.97%	33.97%	33.97%	33.97%	33.97%	53.75%	51.72%	44.93%	39.02%
Public	66.04%	66.03%	66.03%	66.03%	66.03%	66.03%	66.03%	66.03%	46.25%	48.28%	55.07%	60.98%
No. of Shareholders	384	373	374	373	374	387	394	364	258	321	587	1,098

Shareholding Pattern Chart

No. of Shareholders

This stock is not held by any mutual fund

ROCE Trend

EPS Trend

Key Financial Ratios

Month	Mar 24	Mar 23	Mar 22	Mar 21	Mar 20
FaceValue	10.00	10.00	10.00	10.00	10.00
Basic EPS (Rs.)	0.56	-2.16	2.24	4.70	-5.99
Diluted EPS (Rs.)	0.44	-2.16	2.24	4.70	-5.99
Cash EPS (Rs.)	0.91	-1.03	3.76	6.24	-4.46
Book Value[Excl.RevalReserv]/Share (Rs.)	83.08	27.50	29.66	27.43	22.73
Book Value[Incl.RevalReserv]/Share (Rs.)	83.08	27.50	29.66	27.43	22.73
Revenue From Operations / Share (Rs.)	145.89	149.21	165.08	128.66	118.26
PBDIT / Share (Rs.)	1.12	0.68	5.82	8.78	-1.72
PBIT / Share (Rs.)	0.66	-0.45	4.30	7.24	-3.24
PBT / Share (Rs.)	0.56	-1.81	2.29	4.87	-5.66
Net Profit / Share (Rs.)	0.47	-2.16	2.24	4.70	-5.99
PBDIT Margin (%)	0.76	0.45	3.52	6.82	-1.45
PBIT Margin (%)	0.45	-0.30	2.60	5.63	-2.73
PBT Margin (%)	0.38	-1.21	1.38	3.78	-4.78
Net Profit Margin (%)	0.32	-1.45	1.35	3.65	-5.06
Return on Networth / Equity (%)	0.56	-7.87	7.54	17.14	-26.33
Return on Capital Employeed (%)	0.80	-1.59	14.05	23.52	-12.15
Return On Assets (%)	0.37	-4.33	3.61	8.56	-10.39
Long Term Debt / Equity (X)	0.00	0.00	0.00	0.09	0.14
Total Debt / Equity (X)	0.47	0.49	0.60	0.75	0.98
Asset Turnover Ratio (%)	1.77	2.67	2.83	2.29	2.11
Current Ratio (X)	2.72	2.04	1.50	1.60	1.28
Quick Ratio (X)	1.33	1.07	0.46	0.50	0.38
Inventory Turnover Ratio (X)	3.55	5.28	5.33	3.97	4.32
Interest Coverage Ratio (X)	11.10	0.50	2.90	3.70	-0.70
Interest Coverage Ratio (Post Tax) (X)	5.68	-0.59	2.12	2.98	-1.47
Enterprise Value (Cr.)	463.53	54.96	52.92	32.79	37.15
EV / Net Operating Revenue (X)	2.99	0.44	0.38	0.30	0.37
EV / EBITDA (X)	390.17	96.77	10.97	4.51	-26.14
MarketCap / Net Operating Revenue (X)	2.94	0.35	0.27	0.14	0.19
Price / BV (X)	5.16	1.95	1.55	0.69	0.99
Price / Net Operating Revenue (X)	2.94	0.35	0.27	0.14	0.19
EarningsYield	0.00	-0.04	0.04	0.24	-0.26

Profitability Ratios (%)

Liquidity Ratios

Liquidity Ratios (%)

Interest Coverage Ratios (%)

Valuation Ratios

Fair Value

Fair Value of Surani Steel Tubes Ltd as of December 19, 2024 is: 61.72

Calculation basis:

Fair value = P/E Ratio * (Return on Equity / 100) * Book Value * (1 + Dividend Yield / 100)
P/E Ratio (Price-to-Earnings Ratio): Represents the price of the stock relative to its earnings per share. A higher P/E ratio indicates that investors are willing to pay a higher price for the stock.
Return on Equity (ROE): Measures a company's profitability relative to its shareholder equity. It showcases the company's ability to generate profits using the investment made by its shareholders, offering valuable insight into its operational efficiency and financial performance.
Book Value: Represents the net asset value of the company per share. It is calculated as the total assets minus intangible assets and liabilities, divided by the number of outstanding shares.
Dividend Yield: The ratio of the annual dividend per share to the current market price per share. It offers valuable insights into the profitability of an investment through dividends.

This formula allows us to gauge the fair value of the stock by analyzing its fundamental indicators.

As of December 19, 2024, Surani Steel Tubes Ltd is Overvalued by 68.35% compared to the current share price 195.00

Intrinsic Value of Surani Steel Tubes Ltd as of December 19, 2024 is: 92.25

Calculation basis:

Intrinsic value = P/E Ratio * (Return on Equity / 100) * Book Value * (1 + Dividend Yield / 100) * (1 + EPS CAGR for Last 5 Years)
P/E Ratio (Price-to-Earnings Ratio): Represents the price of the stock relative to its earnings per share. A higher P/E ratio indicates that investors are willing to pay a higher price for the stock.
Return on Equity (ROE): Measures a company's profitability relative to its shareholder equity. It showcases the company's ability to generate profits using the investment made by its shareholders, offering valuable insight into its operational efficiency and financial performance.
Book Value: Represents the net asset value of the company per share. It is calculated as the total assets minus intangible assets and liabilities, divided by the number of outstanding shares.
Dividend Yield: The ratio of the annual dividend per share to the current market price per share. It offers valuable insights into the profitability of an investment through dividends.
EPS CAGR (Compound Annual Growth Rate): Represents the geometric mean growth rate of earnings per share over the last 5 years. It provides insight into the historical growth trajectory of the company's earnings.

This formula allows us to gauge the intrinsic value of the stock by analyzing its fundamental indicators along with EPS growth.

As of December 19, 2024, Surani Steel Tubes Ltd is Overvalued by 52.69% compared to the current share price 195.00

Last 5 Year EPS CAGR: 49.47%

*Investments are subject to market risks

Strength and Weakness

Strength	Weakness
The company has higher reserves (19.00 cr) compared to borrowings (14.38 cr), indicating strong financial stability. The company has shown consistent growth in sales (87.83 cr) and profit (0.50 cr) over the years.	The stock has a low average ROCE of 8.00%, which may not be favorable. The stock has a high average Working Capital Days of 58.92, which may not be favorable. The stock has a high average Cash Conversion Cycle of 60.08, which may not be favorable.

Stock Analysis

Considering all of the following key financial indicators, prospective investors are encouraged to conduct thorough research and seek professional guidance before considering any investment in Surani Steel Tubes Ltd:
1. Net Profit Margin: 0.32%
  - 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: 0.8% (Industry Average ROCE: 14.62%)
  - 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. ROE%: 0.56% (Industry Average ROE: 12.75%)
  - ROE (Return on Equity): ROE measures a company's profitability relative to shareholders' equity. A higher ROE indicates efficient use of shareholders' funds.
4. Interest Coverage Ratio (Post Tax): 5.68
  - 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.
5. Quick Ratio: 1.33
  - 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.
6. Stock P/E: 82.4 (Industry average Stock P/E: 47.67)
  - 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.
7. Total Debt / Equity: 0.47
  - 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 is available for review. It's important to conduct thorough research and consider consulting with financial professionals before making any investment decisions.
Stock Rating:

About the Company - Qualitative Analysis

Surani Steel Tubes Ltd. is a Public Limited Listed company incorporated on 31/07/2012 and has its registered office in the State of Gujarat, India. Company’s Corporate Identification Number(CIN) is L27109GJ2012PLC071373 and registration number is 071373. Currently Company is involved in the business activities of Manufacture of basic iron and steel. Company’s Total Operating Revenue is Rs. 136.75 Cr. and Equity Capital is Rs. 8.28 Cr. for the Year ended 31/03/2022.

INDUSTRY	ADDRESS	CONTACT
Steel - Tubes/Pipes	S.No. 110, 115, Opp. Vinayak TMT, Gandhinagar Gujarat 382315	cs@suranisteel.com http://www.suranisteel.com

Management
Name	Position Held
Mr. Vijay Singla	Managing Director
Mr. Chetan Singla	Joint Managing Director
Ms. Pavni Singla	Whole Time Executive Director & CFO
Mr. Gurpreet Singh Bhatia	Ind. Non-Executive Director
Mrs. Sangeeta Mehtani	Ind. Non-Executive Director
Mr. Kailash Garg	Ind. Non-Executive Director

FAQ

What is the latest intrinsic value of Surani Steel Tubes Ltd?

The latest intrinsic value of Surani Steel Tubes Ltd as on 19 December 2024 is ₹61.72, which is 68.35% lower than the current market price of ₹195.00. The stock has a market capitalization of 244 Cr. and recorded a high/low of ₹735/140 during the current fiscal year 2024-2025. As of Sep 2024, the company has reserves of ₹89 Cr and total liabilities of ₹113 Cr.

What is the Market Cap of Surani Steel Tubes Ltd?

The Market Cap of Surani Steel Tubes Ltd is 244 Cr..

What is the current Stock Price of Surani Steel Tubes Ltd as on 19 December 2024?

The current stock price of Surani Steel Tubes Ltd as on 19 December 2024 is 195.

What is the High / Low of Surani Steel Tubes Ltd stocks in FY 2024-2025?

In FY 2024-2025, the High / Low of Surani Steel Tubes Ltd stocks is 735/140.

What is the Stock P/E of Surani Steel Tubes Ltd?

The Stock P/E of Surani Steel Tubes Ltd is 82.4.

What is the Book Value of Surani Steel Tubes Ltd?

The Book Value of Surani Steel Tubes Ltd is 81.6.

What is the Dividend Yield of Surani Steel Tubes Ltd?

The Dividend Yield of Surani Steel Tubes Ltd is 0.00 %.

What is the ROCE of Surani Steel Tubes Ltd?

The ROCE of Surani Steel Tubes Ltd is 0.86 %.

What is the ROE of Surani Steel Tubes Ltd?

The ROE of Surani Steel Tubes Ltd is 0.90 %.

What is the Face Value of Surani Steel Tubes Ltd?

The Face Value of Surani Steel Tubes Ltd is 10.0.

Share Price and Basic Stock Data

Stock P/E, Current Price, and Intrinsic Value Over Time

Competitors of Surani Steel Tubes Ltd

Quarterly Result

Quarterly Chart

Profit & Loss - Annual Report

Profit & Loss Yearly Chart

YoY Net Profit Growth

Growth

Balance Sheet

Reserves and Borrowings Chart

Cash Flow

Free Cash Flow

Free Cash Flow Chart

Financial Efficiency Indicators

Financial Efficiency Indicators Chart

Share Holding Pattern

Shareholding Pattern Chart

No. of Shareholders

ROCE Trend

EPS Trend

Key Financial Ratios

Profitability Ratios (%)

Liquidity Ratios

Liquidity Ratios (%)

Interest Coverage Ratios (%)

Valuation Ratios

Fair Value

Strength and Weakness

Stock Analysis

About the Company - Qualitative Analysis

FAQ

What is the latest intrinsic value of Surani Steel Tubes Ltd?

What is the Market Cap of Surani Steel Tubes Ltd?

What is the current Stock Price of Surani Steel Tubes Ltd as on 19 December 2024?

What is the High / Low of Surani Steel Tubes Ltd stocks in FY 2024-2025?

What is the Stock P/E of Surani Steel Tubes Ltd?

What is the Book Value of Surani Steel Tubes Ltd?

What is the Dividend Yield of Surani Steel Tubes Ltd?

What is the ROCE of Surani Steel Tubes Ltd?

What is the ROE of Surani Steel Tubes Ltd?

What is the Face Value of Surani Steel Tubes Ltd?

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