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Last Updated on: 21 July, 2024
Author: Getaka|Social: Getaka Financial Services X (Earlier Twitter) Profile Getaka Financial Services LinkedIn Logo

Fundamental Analysis of Surani Steel Tubes Ltd

Basic Stock Data

Last Updated: July 19, 2024, 10:34 pm

Market Cap 350 Cr.
Current Price 329
High / Low735/186
Stock P/E700
Book Value 51.7
Dividend Yield0.00 %
ROCE2.08 %
ROE2.19 %
Face Value 10.0
PEG Ratio14.15

Data Source: screener.in

Competitors of Surani Steel Tubes Ltd

Stock NameMarket CapCurrent PriceHigh / LowStock P/EBook ValueDividend YieldROCEROEFace Value
Prakash Steelage Ltd 154 Cr. 8.8216.6/4.256.60 0.440.00 %%% 1.00
Man Industries (India) Ltd 2,913 Cr. 450514/12927.7 2170.44 %15.3 %8.73 % 5.00
Rama Steel Tubes Ltd 1,533 Cr. 10.416.8/9.9052.6 2.260.00 %12.7 %10.4 % 1.00
Surya Roshni Ltd 6,428 Cr. 591842/36419.6 1991.02 %21.0 %16.3 % 5.00
Earthstahl & Alloys Ltd 51.8 Cr. 42.377.0/40.827.4 30.21.18 %8.35 %5.30 % 10.0
Industry Average7,195.02 Cr594.3426.35147.460.46%14.77%13.19%4.20

Quarterly Result

MonthSep 2019Mar 2020Sep 2020Mar 2021Sep 2021Mar 2022Sep 2022Mar 2023Sep 2023Mar 2024
Sales51474364706759656591
Expenses54454258676563616689
Operating Profit-321631-44-12
OPM %-6%4%2%10%5%2%-6%6%-2%2%
Other Income0000000000
Interest1111111100
Depreciation1111111000
Profit before tax-50-1520-53-12
Tax %-9%-106%-13%2%1%50%2%12%-9%-1%
Net Profit-50-1420-53-12
EPS in Rs-6.400.42-0.725.432.220.02-5.673.51-1.451.68

Last Updated: July 11, 2024, 11:28 am

Quarterly Chart

Profit & Loss - Annual Report

Last Updated: July 10, 2024, 7:22 pm

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Sales0365868771019398107137124155
Expenses03456657397929999132123155
Operating Profit-0123441-27500
OPM %4%3%5%5%4%1%-2%7%3%0%0%
Other Income000000000001
Interest011111122210
Depreciation000100011110
Profit before tax-000123-0-542-21
Tax %0%100%37%3%43%36%-18%-6%3%2%-20%18%
Net Profit-000112-0-542-20
EPS in Rs-0.160.000.645.724.003.03-0.17-5.994.702.23-2.160.47
Dividend Payout %0%0%0%0%0%0%0%0%0%0%0%

Profit & Loss Yearly Chart

YoY Net Profit Growth

Year2016-20172017-20182018-20192020-20212021-20222022-20232023-2024
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%

Growth

Compounded Sales Growth
10 Years:16%
5 Years:11%
3 Years:13%
TTM:26%
Compounded Profit Growth
10 Years:%
5 Years:41%
3 Years:-50%
TTM:126%
Stock Price CAGR
10 Years:%
5 Years:52%
3 Years:123%
1 Year:70%
Return on Equity
10 Years:2%
5 Years:-1%
3 Years:1%
Last Year:2%

Last Updated: July 16, 2024, 5:06 pm

Balance Sheet

Last Updated: July 10, 2024, 7:22 pm

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Equity Capital2222268888811
Reserves-0-00225161114161444
Borrowings31110121315172018151142
Other Liabilities023710949512737
Total Liabilities516162328364548455141134
Fixed Assets0555544151312510
CWIP5000261100000
Investments000000000000
Other Assets110111821253033323937124
Total Assets516162328364548455141134

Reserves and Borrowings Chart

Cash Flow

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Cash from Operating Activity 02-02-1-8-025-2-57
Cash from Investing Activity 0-0-1-2-4-5-1-007-5
Cash from Financing Activity 0-20-05131-2-5-596
Net Cash Flow00-0-0-000-0-0034

Free Cash Flow

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 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

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%

Financial Efficiency Indicators Chart

Share Holding Pattern

MonthSep 2019Mar 2020Sep 2020Mar 2021Sep 2021Mar 2022Sep 2022Mar 2023Sep 2023Dec 2023Mar 2024Jun 2024
Promoters33.97%33.97%33.97%33.97%33.97%33.97%33.97%33.97%53.75%51.72%44.93%43.19%
Public66.04%66.03%66.03%66.03%66.03%66.03%66.03%66.03%46.25%48.28%55.07%56.81%
No. of Shareholders384373374373374387394364258321587684

Shareholding Pattern Chart

No. of Shareholders

This stock is not held by any mutual fund

ROCE Trend

EPS Trend

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

Profitability Ratios (%)

Liquidity Ratios

Liquidity Ratios (%)

Interest Coverage Ratios (%)

Valuation Ratios

Fair Value

Fair Value: 808.41

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.

Undervalued: 145.72% compared to the current price 329

Intrinsic Value: 1,208.32

Calculation basis:

  • Fair 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 fair value of the stock by analyzing its fundamental indicators along with EPS growth.

Undervalued: 267.27% compared to the current price 329

Last 5 Year EPS CAGR: 49.47%

*Investments are subject to market risks

Strength and Weakness

StrengthWeakness
  1. The company has shown consistent growth in sales (87.83 cr) and profit (0.50 cr) over the years.
  1. The stock has a low average ROCE of 8.73%, which may not be favorable.
  2. The stock has a high average Working Capital Days of 64.27, which may not be favorable.
  3. The stock has a high average Cash Conversion Cycle of 65.55, which may not be favorable.
  4. The company has higher borrowings (15.58) compared to reserves (10.33), which may suggest financial risk.

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: -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: %)
      • 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%: -7.87% (Industry Average ROE: %)
      • 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): -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.
    5. 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.
    6. Stock P/E: 700 (Industry average Stock P/E: )
      • 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: 0.49
      • 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 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

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

FAQ

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

The latest fair value of Surani Steel Tubes Ltd is ₹808.41.

What is the Market Cap of Surani Steel Tubes Ltd?

The Market Cap of Surani Steel Tubes Ltd is 350 Cr..

What is the current Stock Price of Surani Steel Tubes Ltd as on 21 July 2024?

The current stock price of Surani Steel Tubes Ltd as on 21 July 2024 is 329.

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

In FY 2024, the High / Low of Surani Steel Tubes Ltd stocks is 735/186.

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

The Stock P/E of Surani Steel Tubes Ltd is 700.

What is the Book Value of Surani Steel Tubes Ltd?

The Book Value of Surani Steel Tubes Ltd is 51.7.

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 2.08 %.

What is the ROE of Surani Steel Tubes Ltd?

The ROE of Surani Steel Tubes Ltd is 2.19 %.

What is the Face Value of Surani Steel Tubes Ltd?

The Face Value of Surani Steel Tubes Ltd is 10.0.

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