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Last Updated on: 27 February, 2024|Author: Getaka | Social: X Twitter Profile

Fundamental Analysis of Surani Steel Tubes Ltd

About the Company - Surani Steel Tubes Ltd

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.
INDUSTRYADDRESSCONTACT
Steel - Tubes/PipesS.No. 110, 115, Opp. Vinayak TMT, Gandhinagar Gujarat 382315cs@suranisteel.com
http://www.suranisteel.com
Management
NamePosition Held
Mr. Vijay SinglaManaging Director
Mr. Chetan SinglaJoint Managing Director
Ms. Pavni SinglaAdditional Director
Mr. Gurpreet Singh BhatiaInd. Non-Executive Director
Mrs. Sangeeta MehtaniInd. Non-Executive Director
Mr. Kailash GargInd. Non-Executive Director

Surani Steel Tubes Ltd. Share Price Update

Share PriceValue
Today₹666.35
Previous Day₹634.65

Basic Stock Data of Surani Steel Tubes Ltd

Market Cap 633 Cr.
Current Price 667
High / Low735/30.0
Stock P/E391
Book Value 85.1
Dividend Yield0.00 %
ROCE1.36 %
ROE8.07 %
Face Value 10.0

Data Source: screener.in

Competitors of Surani Steel Tubes Ltd

Stock NameMarket CapCurrent PriceHigh / LowStock P/EBook ValueDividend YieldROCEROEFace Value
Ratnamani Metals & Tubes Ltd 21,525 Cr. 3,0713,939/1,91634.6 4020.39 %27.3 %21.0 % 2.00
Rama Steel Tubes Ltd 2,073 Cr. 42.050.5/26.161.9 6.250.00 %15.8 %15.2 % 1.00
Oil Country Tubular Ltd 195 Cr. 44.159.2/12.7 50.10.00 %47.4 %169 % 10.0
Surya Roshni Ltd 6,736 Cr. 619842/30117.7 1820.96 %22.8 %19.7 % 5.00
Prakash Steelage Ltd 163 Cr. 9.2916.6/3.207.10 1.620.00 %%% 1.00
Industry Average6,138.40 Cr757.0824.26128.390.27%22.66%44.98%3.80

Surani Steel Tubes Ltd Quarterly Results

MonthSep 2019Mar 2020Sep 2020Mar 2021Sep 2021Mar 2022Sep 2022Mar 2023Sep 2023
Sales514743647067596565
Expenses544542586765636166
Operating Profit-321631-44-1
OPM %-6%4%2%10%5%2%-6%6%-2%
Other Income000000000
Interest111111110
Depreciation111111100
Profit before tax-50-1520-53-1
Tax %-9%-106%-13%2%1%50%2%12%-9%
Net Profit-50-1420-53-1
EPS in Rs-6.400.42-0.725.432.220.02-5.673.51-1.45

Surani Steel Tubes Ltd Quarterly Chart

Surani Steel Tubes Ltd Profit & Loss

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023TTM
Sales0365868771019398107137124129
Expenses03456657397929999132123126
Operating Profit-0123441-27503
OPM %4%3%5%5%4%1%-2%7%3%0%2%
Other Income000000000000
Interest011111122211
Depreciation000100011110
Profit before tax-000123-0-542-22
Tax %0%100%37%3%43%36%-18%-6%3%2%-20%
Net Profit-000112-0-542-22
EPS in Rs-0.160.000.645.724.003.03-0.17-5.994.702.23-2.162.06
Dividend Payout %0%0%0%0%0%0%0%0%0%0%

Surani Steel Tubes Ltd Profit & Loss Yearly Chart

Surani Steel Tubes Ltd Growth

Compounded Sales Growth
10 Years:%
5 Years:4%
3 Years:8%
TTM:3%
Compounded Profit Growth
10 Years:%
5 Years:%
3 Years:17%
TTM:135%
Stock Price CAGR
10 Years:%
5 Years:64%
3 Years:222%
1 Year:2063%
Return on Equity
10 Years:2%
5 Years:-1%
3 Years:6%
Last Year:-8%

Surani Steel Tubes Ltd Balance Sheet

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Sep 2023
Equity Capital222226888889
Reserves-0-00225161114161467
Borrowings3111012131517201815110
Other Liabilities02371094951271
Total Liabilities51616232836454845514177
Fixed Assets055554415131258
CWIP5000261100000
Investments000000000000
Other Assets11011182125303332393768
Total Assets51616232836454845514177

Surani Steel Tubes Ltd Reserves and Borrowings Chart

Surani Steel Tubes Ltd Cash Flow

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023
Cash from Operating Activity 02-02-1-8-025-2
Cash from Investing Activity 0-0-1-2-4-5-1-007
Cash from Financing Activity 0-20-05131-2-5-5
Net Cash Flow00-0-0-000-0-00

Surani Steel Tubes Ltd Financial Efficiency Indicators

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023
Debtor Days43303038222422241339
Inventory Days57356360668288837753
Days Payable19143244301431121717
Cash Conversion Cycle82516154589379957276
Working Capital Days77435447529485957486
ROCE %12%12%19%18%17%2%-7%15%9%-1%

Surani Steel Tubes Ltd Financial Efficiency Indicators Chart

Surani Steel Tubes Ltd Share Holding Pattern

MonthMar 2019Sep 2019Mar 2020Sep 2020Mar 2021Sep 2021Mar 2022Sep 2022Mar 2023Sep 2023Dec 2023Feb 2024
Promoters33.97%33.97%33.97%33.97%33.97%33.97%33.97%33.97%33.97%53.75%51.72%47.05%
Public66.03%66.04%66.03%66.03%66.03%66.03%66.03%66.03%66.03%46.25%48.28%52.94%
No. of Shareholders387384373374373374387394364258321500

Surani Steel Tubes Ltd Shareholding Pattern Chart

No. of Surani Steel Tubes Ltd Shareholders

This stock is not held by any mutual fund

Surani Steel Tubes Ltd ROCE Trend

Surani Steel Tubes Ltd EPS Trend

Surani Steel Tubes Ltd Key Financial Ratios

MonthMar 23Mar 22Mar 21Mar 20Mar 19
FaceValue10.0010.0010.0010.0010.00
Basic EPS (Rs.)-2.162.244.70-5.99-0.22
Diluted EPS (Rs.)-2.162.244.70-5.99-0.22
Cash EPS (Rs.)-1.033.766.24-4.460.28
Book Value[Excl.RevalReserv]/Share (Rs.)27.5029.6627.4322.7328.71
Book Value[Incl.RevalReserv]/Share (Rs.)27.5029.6627.4322.7328.71
Revenue From Operations / Share (Rs.)149.21165.08128.66118.26112.26
PBDIT / Share (Rs.)0.685.828.78-1.721.35
PBIT / Share (Rs.)-0.454.307.24-3.240.90
PBT / Share (Rs.)-1.812.294.87-5.66-0.13
Net Profit / Share (Rs.)-2.162.244.70-5.99-0.16
PBDIT Margin (%)0.453.526.82-1.451.20
PBIT Margin (%)-0.302.605.63-2.730.80
PBT Margin (%)-1.211.383.78-4.78-0.11
Net Profit Margin (%)-1.451.353.65-5.06-0.14
Return on Networth / Equity (%)-7.877.5417.14-26.33-0.57
Return on Capital Employeed (%)-1.5914.0523.52-12.152.70
Return On Assets (%)-4.333.618.56-10.39-0.30
Long Term Debt / Equity (X)0.000.000.090.140.15
Total Debt / Equity (X)0.490.600.750.980.65
Asset Turnover Ratio (%)2.672.832.292.112.30
Current Ratio (X)2.041.501.601.281.71
Quick Ratio (X)1.070.460.500.380.55
Inventory Turnover Ratio (X)5.285.333.974.324.78
Interest Coverage Ratio (X)0.502.903.70-0.701.30
Interest Coverage Ratio (Post Tax) (X)-0.592.122.98-1.470.84
Enterprise Value (Cr.)54.9652.9232.7937.1559.31
EV / Net Operating Revenue (X)0.440.380.300.370.63
EV / EBITDA (X)96.7710.974.51-26.1452.92
MarketCap / Net Operating Revenue (X)0.350.270.140.190.47
Price / BV (X)1.951.550.690.991.84
Price / Net Operating Revenue (X)0.350.270.140.190.47
EarningsYield-0.040.040.24-0.260.00

Surani Steel Tubes Ltd Profitability Ratios (%)

Surani Steel Tubes Ltd Liquidity Ratios

Surani Steel Tubes Ltd Liquidity Ratios (%)

Surani Steel Tubes Ltd Interest Coverage Ratios (X)

Surani Steel Tubes Ltd Valuation Ratios

Fair Value / Intrinsic Value of Surani Steel Tubes Ltd

Fair Value: ₹2738.92

The stock is undervalued by 310.63% compared to the current price ₹667

*Investments are subject to market risks

Strength and Weakness of Surani Steel Tubes Ltd

StrengthWeakness
  1. The company has higher reserves (12.25 cr) compared to borrowings (12.08 cr), indicating strong financial stability.
  2. The company has shown consistent growth in sales (85.67 cr) and profit (0.58 cr) over the years.
  1. The stock is trading at a high valuation with an average P/B ratio of 1.75 and average Dividend Yield of -0.19%.
  2. The stock has a low average ROCE of 8.73%, which may not be favorable.
  3. The stock has a high average Working Capital Days of 64.27, which may not be favorable.
  4. The stock has a high average Cash Conversion Cycle of 65.55, which may not be favorable.

Should I Buy Surani Steel Tubes Ltd Share Now?

  • Considering various financial indicators, investors might exercise caution regarding investment in Surani Steel Tubes Ltd:
    1. Net Profit Margin: -1.45%
      • 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: -1.59% (Industry Average ROCE: 14.46%)
      • 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): -0.59
      • 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: 1.07
      • 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: 357 (Industry average Stock P/E: 27.25)
      • 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: 0.49
      • 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 Surani Steel Tubes 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