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Last Updated on: 20 April, 2024|Author: Getaka | Social: X Twitter Profile
Stock Ticker - BSE: 532721 | NSE: VISASTEEL

Fundamental Analysis of Visa Steel Ltd

Basic Stock Data

Last Updated: April 19, 2024, 5:27 pm

Market Cap 263 Cr.
Current Price 22.7
High / Low25.9/10.5
Stock P/E
Book Value 70.0
Dividend Yield0.00 %
ROCE7.45 %
ROE%
Face Value 10.0

Data Source: screener.in

Competitors of Visa Steel Ltd

Stock NameMarket CapCurrent PriceHigh / LowStock P/EBook ValueDividend YieldROCEROEFace Value
Steel Authority of India Ltd 60,306 Cr. 146157/80.417.8 1361.03 %5.89 %3.57 % 10.0
Adishakti Loha & Ispat ltd 4.88 Cr. 10.716.0/7.7023.2 11.40.00 %1.78 %1.39 % 10.0
Shyam Metalics & Energy Ltd 16,600 Cr. 595772/29215.5 3200.30 %15.0 %13.0 % 10.0
JSW Steel Ltd 2,06,702 Cr. 845896/68119.1 3020.40 %8.33 %5.64 % 1.00
SAL Steel Ltd 161 Cr. 19.030.6/13.8 4.930.00 %8.12 %8.95 % 10.0
Industry Average56,754.78 Cr323.1415.12154.870.35%7.82%6.51%8.20

Quarterly Result

MonthDec 2020Mar 2021Jun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023
Sales28534825226026631019719316010723518990
Expenses29132725626625729319518715710923019594
Operating Profit-621-5-7917164-25-6-5
OPM %-2%6%-2%-3%3%6%1%3%2%-2%2%-3%-5%
Other Income3-1,0561300001,7481000
Interest4555556667877
Depreciation32322419222121221812121213
Profit before tax-40-1,071-32-28-18-9-25-211,727-20-14-25-24
Tax %0%0%0%0%0%0%0%0%0%0%0%0%0%
Net Profit-40-1,071-32-28-18-9-25-211,727-20-14-25-24
EPS in Rs-3.44-92.53-2.78-2.42-1.53-0.81-2.20-1.85149.19-1.76-1.21-2.13-2.10

Last Updated: April 10, 2024, 5:18 am

Quarterly Chart

Profit & Loss - Annual Report

Last Updated: April 5, 2024, 7:18 am

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023TTM
Sales1,3661,0251,4551,2801,3031,5592,0671,4146839881,118657621
Expenses1,2861,0511,3441,2641,3221,5012,0271,4407339841,101649628
Operating Profit80-2611116-195840-26-504189-7
OPM %6%-3%8%1%-1%4%2%-2%-7%0%2%1%-1%
Other Income-35156-24-71818551612-1,05611,7502
Interest1901681632294854734192017212530
Depreciation51657577146163151133134128857348
Profit before tax-197-104-150-297-632-133-90-162-192-1,197-871,660-83
Tax %40%-7%4%-2%-4%-0%-0%-0%-0%-0%-0%-0%
Net Profit-119-111-144-303-659-133-90-162-192-1,197-871,660-83
EPS in Rs-10.81-9.78-13.44-24.81-57.64-12.29-7.56-13.96-16.57-103.40-7.53143.39-7.20
Dividend Payout %-0%-0%-0%-0%-0%-0%-0%-0%-0%-0%-0%-0%

Profit & Loss Yearly Chart

YoY Net Profit Growth

Year2012-20132013-20142014-20152015-20162016-20172017-20182018-20192019-20202020-20212021-20222022-2023
YoY Net Profit Growth (%)6.72%-29.73%-110.42%-117.49%79.82%32.33%-80.00%-18.52%-523.44%92.73%2008.05%
Change in YoY Net Profit Growth (%)0.00%-36.45%-80.69%-7.08%197.31%-47.49%-112.33%61.48%-504.92%616.17%1915.31%

Growth

Compounded Sales Growth
10 Years:-4%
5 Years:-20%
3 Years:-1%
TTM:-28%
Compounded Profit Growth
10 Years:5%
5 Years:0%
3 Years:16%
TTM:-9%
Stock Price CAGR
10 Years:3%
5 Years:26%
3 Years:54%
1 Year:98%
Return on Equity
10 Years:%
5 Years:%
3 Years:%
Last Year:%

Last Updated: April 16, 2024, 12:59 am

Balance Sheet

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Sep 2023
Equity Capital110110110110110110116116116116116116116
Reserves128111-37-315-976-725-909-1,071-1,264-2,462-2,549-888-926
Borrowings1,6232,3572,7993,3583,8363,8853,6293,5173,4793,4863,4811,3941,393
Other Liabilities1,5608611,112803822858717738734712720445472
Total Liabilities3,4213,4393,9853,9563,7934,1283,5533,3003,0651,8531,7671,0681,054
Fixed Assets7821,1361,1723,0362,8953,1422,9332,8042,6791,7041,625960936
CWIP1,8931,8112,03335135030629929729039393939
Investments0000114444444
Other Assets74549278056954767831619492106996575
Total Assets3,4213,4393,9853,9563,7934,1283,5533,3003,0651,8531,7671,0681,054

Reserves and Borrowings Chart

Cash Flow

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023
Cash from Operating Activity 542-558126-216-333121518259131726
Cash from Investing Activity -64010-149-267-4316111-9-19
Cash from Financing Activity 81550841573284-153-113-64-14-9-8
Net Cash Flow-16161-853121-1661-0-0

Free Cash Flow

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023
Free Cash Flow79.00-28.00109.0013.00-22.0055.0037.00-29.00-53.001.0015.008.00

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 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023
Debtor Days1422231748331295000
Inventory Days113611001006910729352420158
Days Payable2991471801178085303986503246
Cash Conversion Cycle-173-64-57-03755125-57-30-17-38
Working Capital Days-356-136-122-138-219-258-311-581-1,468-226-205-225
ROCE %3%-3%2%-1%-5%-3%-2%-5%-7%-7%-6%-7%

Financial Efficiency Indicators Chart

Share Holding Pattern

MonthMar 2021Jun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023
Promoters58.88%58.88%58.88%58.88%38.33%38.33%38.33%43.33%43.33%43.33%48.27%48.27%
FIIs21.95%21.95%21.95%21.95%21.95%21.95%21.95%21.95%21.95%21.95%17.42%17.42%
Public19.17%19.17%19.17%19.17%39.72%39.72%39.72%34.72%34.73%34.71%34.32%34.32%
No. of Shareholders17,00417,59618,11619,10020,20021,74421,79722,68822,36521,98521,32420,438

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.)143.39-7.53-103.40-16.57-13.96
Diluted EPS (Rs.)143.39-7.53-103.40-16.57-13.96
Cash EPS (Rs.)149.66-0.15-92.31-5.00-2.44
Book Value[Excl.RevalReserv]/Share (Rs.)-66.68-210.13-202.64-99.13-82.50
Book Value[Incl.RevalReserv]/Share (Rs.)-66.68-210.13-202.64-99.13-82.50
Revenue From Operations / Share (Rs.)56.7896.5984.3259.02122.36
PBDIT / Share (Rs.)0.891.650.38-3.31-0.82
PBIT / Share (Rs.)-5.37-5.73-10.71-14.89-12.35
PBT / Share (Rs.)143.39-7.53-103.40-16.57-13.96
Net Profit / Share (Rs.)143.39-7.53-103.40-16.57-13.96
NP After MI And SOA / Share (Rs.)143.39-7.53-103.40-16.57-13.96
PBDIT Margin (%)1.581.700.46-5.60-0.67
PBIT Margin (%)-9.45-5.93-12.69-25.22-10.09
PBT Margin (%)252.51-7.79-122.62-28.08-11.40
Net Profit Margin (%)252.51-7.79-122.62-28.08-11.40
NP After MI And SOA Margin (%)252.52-7.79-122.62-28.08-11.40
Return on Networth / Equity (%)-215.030.000.000.000.00
Return on Capital Employeed (%)8.572.745.3333.10-180.80
Return On Assets (%)155.51-4.93-64.62-6.26-4.89
Long Term Debt / Equity (X)0.000.000.00-0.52-1.08
Total Debt / Equity (X)-1.75-1.42-0.32-1.19-1.90
Asset Turnover Ratio (%)0.460.470.240.130.30
Current Ratio (X)0.030.020.020.020.05
Quick Ratio (X)0.020.010.010.010.02
Inventory Turnover Ratio (X)17.3119.1612.083.585.46
Interest Coverage Ratio (X)0.410.910.26-1.96-0.51
Interest Coverage Ratio (Post Tax) (X)-2.45-3.19-7.30-8.82-7.66
Enterprise Value (Cr.)1455.203630.35825.541386.261904.57
EV / Net Operating Revenue (X)2.213.250.842.031.34
EV / EBITDA (X)139.80190.19183.78-36.19-199.18
MarketCap / Net Operating Revenue (X)0.190.150.070.040.06
Price / BV (X)-0.16-0.07-0.03-0.02-0.09
Price / Net Operating Revenue (X)0.190.150.070.040.06
EarningsYield12.89-0.49-16.28-6.14-1.74

Profitability Ratios (%)

Liquidity Ratios

Liquidity Ratios (%)

Interest Coverage Ratios (%)

Valuation Ratios

Fair Value

Fair Value: 160.65

The stock is undervalued by 607.71% compared to the current price ₹22.7

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.

*Investments are subject to market risks

Strength and Weakness

StrengthWeakness
  1. The stock has a low average Working Capital Days of -231.50, which is a positive sign.
  2. The stock has a low average Cash Conversion Cycle of -27.25, which is a positive sign.
  1. The stock has a low average ROCE of -3.42%, which may not be favorable.
  2. The company has higher borrowings (2,941.31) compared to reserves (-914.08), which may suggest financial risk.
  3. The company has not shown consistent growth in sales (227.62) and profit (-163.62).

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 Visa Steel Ltd:
    1. Net Profit Margin: 252.51%
      • 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: 8.57% (Industry Average ROCE: 7.82%)
      • 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%: -215.03% (Industry Average ROE: 6.51%)
      • 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): -2.45
      • 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: 0.02
      • 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 of N/A (Industry average Stock P/E: 15.12)
      • 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: -1.75
      • 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

Visa Steel Ltd. is a Public Limited Listed company incorporated on 10/09/1996 and has its registered office in the State of Orissa, India. Company’s Corporate Identification Number(CIN) is L51109OR1996PLC004601 and registration number is 004601. Currently Company is involved in the business activities of Manufacture of basic iron and steel. Company’s Total Operating Revenue is Rs. 792.00 Cr. and Equity Capital is Rs. 115.79 Cr. for the Year ended 31/03/2022.
INDUSTRYADDRESSCONTACT
Steel11 Ekamra Kanan, Nayapalli, Bhubaneshwar Orissa 751015cs@visasteel.com
http://www.visasteel.com
Management
NamePosition Held
Mr. Vishambhar SaranChairman
Mr. Vishal AgarwalVice Chairman & Mng.Director
Mr. Dhanesh RanjanIndependent Director
Mr. Biswajit ChongdarIndependent Director
Ms. Ritu BajajIndependent Director
Mr. Manoj KumarDirector

Visa Steel Ltd. Share Price Update

Share PriceValue
Today₹22.80
Previous Day₹22.80

FAQ

What is the latest fair value of Visa Steel Ltd?

The latest fair value of Visa Steel Ltd is 160.65.

What is the Market Cap of Visa Steel Ltd?

The Market Cap of Visa Steel Ltd is 263 Cr..

What is the current Stock Price of Visa Steel Ltd as on 20 April 2024?

The current stock price of Visa Steel Ltd as on 20 April 2024 is 22.7.

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

In FY 2024, the High / Low of Visa Steel Ltd stocks is ₹25.9/10.5.

What is the Stock P/E of Visa Steel Ltd?

The Stock P/E of Visa Steel Ltd is .

What is the Book Value of Visa Steel Ltd?

The Book Value of Visa Steel Ltd is 70.0.

What is the Dividend Yield of Visa Steel Ltd?

The Dividend Yield of Visa Steel Ltd is 0.00 %.

What is the ROCE of Visa Steel Ltd?

The ROCE of Visa Steel Ltd is 7.45 %.

What is the ROE of Visa Steel Ltd?

The ROE of Visa Steel Ltd is %.

What is the Face Value of Visa Steel Ltd?

The Face Value of Visa Steel 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 Visa Steel 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