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Last Updated on: 22 February, 2024|Author: Getaka | Social: X Twitter Profile

Fundamental Analysis of Surya Roshni Ltd

About the Company - Surya Roshni Ltd

Surya Roshni Ltd. is a Public Limited Listed company incorporated on 17/10/1973 and has its registered office in the State of Haryana, India. Company’s Corporate Identification Number(CIN) is L31501HR1973PLC007543 and registration number is 007543. Currently Company is involved in the business activities of Manufacture of tube and tube fittings of basic iron and steel. Company’s Total Operating Revenue is Rs. 7730.07 Cr. and Equity Capital is Rs. 53.33 Cr. for the Year ended 31/03/2022.
INDUSTRYADDRESSCONTACT
Steel - Tubes/PipesPrakash Nagar, Rohtak Road, Bahadurgarh Haryana 124507investorgrievances@sroshni.com
http://www.surya.co.in
Management
NamePosition Held
Mr. Jai Prakash AgarwalExecutive Chairman
Mr. Raju BistaManaging Director
Mr. Vinay SuryaManaging Director
Mr. Kaustubh N KarmarkarWhole Time Director
Mr. T S BhattacharyaIndependent Director
Mr. Surendra Singh KhuranaIndependent Director
Mr. Sunil SikkaIndependent Director
Ms. Suruchi AggarwalIndependent Woman Director
Mrs. Urmil AgarwalDirector
Mr. Tekan Ghanshyam KeswaniAddnl.Independent Director
Mr. Naresh AgarwalAddnl.Independent Director

Surya Roshni Ltd. Share Price Update

Share PriceValue
Today₹621.20
Previous Day₹628.70

Basic Stock Data of Surya Roshni Ltd

Market Cap 6,768 Cr.
Current Price 622
High / Low842/301
Stock P/E17.8
Book Value 182
Dividend Yield0.94 %
ROCE22.8 %
ROE19.7 %
Face Value 5.00

Data Source: screener.in

Competitors of Surya Roshni Ltd

Stock NameMarket CapCurrent PriceHigh / LowStock P/EBook ValueDividend YieldROCEROEFace Value
Oil Country Tubular Ltd 189 Cr. 42.659.2/12.7 50.10.00 %47.4 %169 % 10.0
Surani Steel Tubes Ltd 579 Cr. 627735/30.0357 85.10.00 %1.36 %8.07 % 10.0
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 2,124 Cr. 43.050.5/26.163.5 6.250.00 %15.8 %15.2 % 1.00
Welspun Corp Ltd 13,917 Cr. 532625/17812.9 1930.95 %6.42 %3.21 % 5.00
Industry Average160.8 Cr249.5293.6147.290.27%19.66%43.3%5.6

Surya Roshni Ltd Quarterly Results

MonthDec 2020Mar 2021Jun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023
Sales1,5771,7221,4531,9462,0302,3011,8391,9842,0212,1511,8751,9161,938
Expenses1,4621,6021,3611,8451,9322,1491,7701,8551,8581,8991,7611,7781,783
Operating Profit116120921019815270129163252114137155
OPM %7%7%6%5%5%7%4%7%8%12%6%7%8%
Other Income1111121212214
Interest16161715171513111110667
Depreciation27282527282828293029292930
Profit before tax7477516054111309112321581103121
Tax %25%25%27%26%26%26%26%25%27%28%27%27%26%
Net Profit555837444082226890156597690
EPS in Rs5.095.363.434.073.727.582.036.258.2414.305.436.978.27

Surya Roshni Ltd Quarterly Chart

Surya Roshni Ltd Profit & Loss

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023TTM
Sales2,5222,9222,9622,7782,9643,8874,9385,9805,4695,5547,7307,9967,963
Expenses2,3262,6852,7282,5552,7223,5744,5925,6085,1155,1777,2887,3827,296
Operating Profit196237235224243313346372354377442614667
OPM %8%8%8%8%8%8%7%6%6%7%6%8%8%
Other Income1133213435656
Interest941101141099611310511511470644534
Depreciation4757565661848789103103108115116
Profit before tax5672676287118156173139209276459522
Tax %7%4%20%12%27%27%31%30%27%25%26%27%
Net Profit526953546386108121102156205335380
EPS in Rs5.937.906.086.177.199.849.9311.119.3914.3818.8030.8234.94
Dividend Payout %0%25%8%8%7%9%10%9%11%10%10%11%

Surya Roshni Ltd Profit & Loss Yearly Chart

Surya Roshni Ltd Growth

Compounded Sales Growth
10 Years:11%
5 Years:10%
3 Years:14%
TTM:-3%
Compounded Profit Growth
10 Years:17%
5 Years:25%
3 Years:49%
TTM:45%
Stock Price CAGR
10 Years:34%
5 Years:41%
3 Years:55%
1 Year:89%
Return on Equity
10 Years:12%
5 Years:14%
3 Years:16%
Last Year:20%

Surya Roshni Ltd Balance Sheet

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Sep 2023
Equity Capital44444444445454545454535454
Reserves6246887307676488979931,0981,1851,3121,4921,8071,926
Borrowings8338571,0389488951,0711,0971,1921,090732593418229
Other Liabilities198226259310390594711685641842974776669
Total Liabilities1,6991,8152,0712,0681,9772,6162,8553,0292,9702,9393,1123,0542,878
Fixed Assets8218539129367531,1011,0721,0891,0611,029943912879
CWIP382654261816222515105389
Investments505050505000044444
Other Assets7908861,0551,0561,1551,5001,7621,9161,8901,8962,1122,1301,986
Total Assets1,6991,8152,0712,0681,9772,6162,8553,0292,9702,9393,1123,0542,878

Surya Roshni Ltd Reserves and Borrowings Chart

Surya Roshni Ltd Cash Flow

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023
Cash from Operating Activity 11717590267208256155120280540285279
Cash from Investing Activity -98-77-146-62-51-100-63-105-52-66-54-33
Cash from Financing Activity -23-10062-203-156-163-88-37-229-475-231-246
Net Cash Flow-4-2621-64-22-1-1-0-0

Surya Roshni Ltd Financial Efficiency Indicators

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023
Debtor Days495161696559535147504234
Inventory Days716370707984806679745968
Days Payable141219313644392726413524
Cash Conversion Cycle105102112108108999390100826578
Working Capital Days827793959489837785745864
ROCE %10%12%11%9%11%13%13%13%11%13%16%23%

Surya Roshni Ltd Financial Efficiency Indicators Chart

Surya Roshni Ltd Share Holding Pattern

MonthMar 2021Jun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023
Promoters62.96%62.96%62.96%62.96%62.96%62.96%62.96%62.96%62.96%62.96%62.96%62.96%
FIIs1.29%1.59%2.68%2.63%1.04%0.71%1.18%0.86%2.54%4.87%5.15%5.26%
DIIs1.61%1.64%1.43%1.47%1.24%1.24%0.04%0.24%0.24%0.45%0.45%0.52%
Public32.67%32.08%30.66%30.92%32.76%33.10%33.93%34.33%33.15%30.63%30.54%30.63%
Others1.47%1.73%2.27%2.01%1.99%1.99%1.89%1.61%1.11%1.09%0.91%0.62%
No. of Shareholders25,41326,80529,55237,99245,07745,64646,64545,72238,13341,37443,08347,632

Surya Roshni Ltd Shareholding Pattern Chart

No. of Surya Roshni Ltd Shareholders

Surya Roshni Ltd Mutual Fund Holdings

Fund NameNo of SharesAUM (%)Amount Invested (Cr)
Motilal Oswal Nifty Microcap 250 Index Fund441400.553.43

Surya Roshni Ltd ROCE Trend

Surya Roshni Ltd EPS Trend

Surya Roshni Ltd Key Financial Ratios

MonthMar 23Mar 22Mar 21Mar 20Mar 19
FaceValue10.0010.0010.0010.0010.00
Basic EPS (Rs.)62.7838.4029.3518.8522.20
Diluted EPS (Rs.)61.6737.6629.1018.8522.20
Cash EPS (Rs.)83.8058.7548.6937.8638.47
Book Value[Excl.RevalReserv]/Share (Rs.)346.33290.19255.04227.76211.70
Book Value[Incl.RevalReserv]/Share (Rs.)346.33290.19255.04227.76211.70
Revenue From Operations / Share (Rs.)1486.101449.621037.381005.521098.15
PBDIT / Share (Rs.)115.1384.1371.6365.7169.12
PBIT / Share (Rs.)93.6863.8152.4846.7052.85
PBT / Share (Rs.)85.3551.8839.4525.7231.70
Net Profit / Share (Rs.)62.3538.4229.5318.8522.20
NP After MI And SOA / Share (Rs.)62.3538.4229.5318.8522.20
PBDIT Margin (%)7.745.806.906.536.29
PBIT Margin (%)6.304.405.054.644.81
PBT Margin (%)5.743.573.802.552.88
Net Profit Margin (%)4.192.652.841.872.02
NP After MI And SOA Margin (%)4.192.652.841.872.02
Return on Networth / Equity (%)18.0013.2411.578.2710.48
Return on Capital Employeed (%)25.6019.4716.7915.4917.66
Return On Assets (%)10.976.575.383.453.98
Long Term Debt / Equity (X)0.000.030.120.210.29
Total Debt / Equity (X)0.210.370.480.830.98
Asset Turnover Ratio (%)2.592.551.881.820.00
Current Ratio (X)1.921.511.451.381.33
Quick Ratio (X)0.850.790.760.690.72
Inventory Turnover Ratio (X)5.476.354.544.630.00
Dividend Payout Ratio (NP) (%)11.353.9812.0210.609.00
Dividend Payout Ratio (CP) (%)8.442.607.295.285.19
Earning Retention Ratio (%)88.6596.0287.9889.4091.00
Cash Earning Retention Ratio (%)91.5697.4092.7194.7294.81
Interest Coverage Ratio (X)13.817.055.503.133.27
Interest Coverage Ratio (Post Tax) (X)8.484.223.271.902.05
Enterprise Value (Cr.)3940.862785.692525.951372.702498.41
EV / Net Operating Revenue (X)0.490.360.450.250.41
EV / EBITDA (X)6.366.216.583.846.64
MarketCap / Net Operating Revenue (X)0.440.280.330.060.22
Retention Ratios (%)88.6496.0187.9789.3990.99
Price / BV (X)1.901.431.360.271.19
Price / Net Operating Revenue (X)0.440.280.330.060.22
EarningsYield0.090.090.080.290.08

Surya Roshni Ltd Profitability Ratios (%)

Surya Roshni Ltd Liquidity Ratios

Surya Roshni Ltd Liquidity Ratios (%)

Surya Roshni Ltd Interest Coverage Ratios (X)

Surya Roshni Ltd Valuation Ratios

Fair Value / Intrinsic Value of Surya Roshni Ltd

Fair Value: ₹644.20

The stock is undervalued by 3.57% compared to the current price ₹622

*Investments are subject to market risks

Strength and Weakness of Surya Roshni Ltd

StrengthWeakness
  1. The company has higher reserves (1,089.77 cr) compared to borrowings (845.62 cr), indicating strong financial stability.
  2. The company has shown consistent growth in sales (4.08 cr) and profit (184.31 cr) over the years.
  1. The stock is trading at a high valuation with an average P/B ratio of 61.90 and average Dividend Yield of 5.04%.
  2. The stock has a low average ROCE of 12.92%, which may not be favorable.
  3. The stock has a high average Working Capital Days of 80.92, which may not be favorable.
  4. The stock has a high average Cash Conversion Cycle of 95.17, which may not be favorable.

Should I Buy Surya Roshni Ltd Share Now?

  • Considering various financial indicators, investors might exercise caution regarding investment in Surya Roshni Ltd:
    1. Net Profit Margin: 4.19%
      • 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: 25.60% (Industry Average ROCE: 18.37%)
      • 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): 8.48
      • 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: 0.85
      • 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: 18.2 (Industry average Stock P/E: 92.44)
      • 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: 0.21
      • 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 Surya Roshni 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