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Last Updated on: 26 July, 2024
Author: Getaka|Social: Getaka Financial Services X (Earlier Twitter) Profile Getaka Financial Services LinkedIn Logo
Stock Ticker - BSE: 532721 | NSE: VISASTEEL

Fundamental Analysis of Visa Steel Ltd

Basic Stock Data

Last Updated: July 26, 2024, 11:06 am

Market Cap 279 Cr.
Current Price 24.1
High / Low28.1/12.3
Stock P/E
Book Value 72.9
Dividend Yield0.00 %
ROCE7.07 %
ROE%
Face Value 10.0
PEG Ratio0.00

Data Source: screener.in

Competitors of Visa Steel Ltd

Stock NameMarket CapCurrent PriceHigh / LowStock P/EBook ValueDividend YieldROCEROEFace Value
Eastcoast Steel Ltd 13.5 Cr. 25.035.1/17.7 35.90.00 %0.18 %0.15 % 10.0
Bonlon Industries Ltd 49.6 Cr. 35.056.0/26.421.3 55.70.00 %4.43 %2.99 % 10.0
Beekay Steel Industries Ltd 1,415 Cr. 742845/53710.6 4940.13 %14.6 %15.2 % 10.0
Ecofinity Atomix Ltd 16.5 Cr. 42.843.0/27.861.0 8.540.00 %8.85 %8.56 % 10.0
Aerpace Industries Ltd 556 Cr. 40.740.7/2.53 0.940.00 %12.7 %15.8 % 1.00
Industry Average47,088.55 Cr406.3572.23162.420.30%9.31%8.14%7.00

Quarterly Result

MonthMar 2021Jun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023Mar 2024
Sales348.06251.68259.77265.95310.45196.87193.08160.26107.28234.96189.2389.63156.08
Expenses327.33256.20266.32256.84293.34195.45187.40156.54109.41229.81194.8294.26145.91
Operating Profit20.73-4.52-6.559.1117.111.425.683.72-2.135.15-5.59-4.6310.17
OPM %5.96%-1.80%-2.52%3.43%5.51%0.72%2.94%2.32%-1.99%2.19%-2.95%-5.17%6.52%
Other Income-1,055.870.912.780.220.040.350.241,748.080.900.470.240.360.43
Interest4.664.785.285.405.395.955.816.337.287.757.337.497.34
Depreciation31.6323.8218.9521.6021.1121.2421.5018.0511.8211.8711.9712.6112.14
Profit before tax-1,071.43-32.21-28.00-17.67-9.35-25.42-21.391,727.42-20.33-14.00-24.65-24.37-8.88
Tax %0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%
Net Profit-1,071.42-32.21-27.99-17.67-9.35-25.42-21.391,727.42-20.33-14.00-24.65-24.36-8.88
EPS in Rs-92.53-2.78-2.42-1.53-0.81-2.20-1.85149.19-1.76-1.21-2.13-2.10-0.77

Last Updated: July 10, 2024, 11:20 pm

Quarterly Chart

Profit & Loss - Annual Report

Last Updated: July 25, 2024, 11:30 am

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Sales1,0251,4551,2801,3031,5592,0671,4146839881,118657670
Expenses1,0511,3441,2641,3221,5012,0271,4407339841,101649665
Operating Profit-2611116-195840-26-5041895
OPM %-3%8%1%-1%4%2%-2%-7%0%2%1%1%
Other Income156-24-71818551612-1,05611,7502
Interest1681632294854734192017212530
Depreciation657577146163151133134128857349
Profit before tax-104-150-297-632-133-90-162-192-1,197-871,660-72
Tax %7%-4%2%4%0%0%0%0%0%0%0%0%
Net Profit-111-144-303-659-133-90-162-192-1,197-871,660-72
EPS in Rs-9.78-13.44-24.81-57.64-12.29-7.56-13.96-16.57-103.40-7.53143.39-6.21
Dividend Payout %0%0%0%0%0%0%0%0%0%0%0%0%

Profit & Loss Yearly Chart

YoY Net Profit Growth

Year2013-20142014-20152015-20162016-20172017-20182018-20192019-20202020-20212021-20222022-20232023-2024
YoY Net Profit Growth (%)-29.73%-110.42%-117.49%79.82%32.33%-80.00%-18.52%-523.44%92.73%2008.05%-104.34%
Change in YoY Net Profit Growth (%)0.00%-80.69%-7.08%197.31%-47.49%-112.33%61.48%-504.92%616.17%1915.31%-2112.38%

Growth

Compounded Sales Growth
10 Years:-7%
5 Years:-14%
3 Years:-12%
TTM:2%
Compounded Profit Growth
10 Years:3%
5 Years:9%
3 Years:14%
TTM:18%
Stock Price CAGR
10 Years:1%
5 Years:34%
3 Years:32%
1 Year:68%
Return on Equity
10 Years:%
5 Years:%
3 Years:%
Last Year:%

Last Updated: July 23, 2024, 4:58 pm

Balance Sheet

Last Updated: July 10, 2024, 11:20 pm

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Equity Capital110110110110110116116116116116116116
Reserves111-37-315-976-725-909-1,071-1,264-2,462-2,549-888-960
Borrowings2,3572,7993,3583,8363,8853,6293,5173,4793,4863,4811,3941,409
Other Liabilities8611,112803822858717738734712720445467
Total Liabilities3,4393,9853,9563,7934,1283,5533,3003,0651,8531,7671,0681,032
Fixed Assets1,1361,1723,0362,8953,1422,9332,8042,6791,7041,625960920
CWIP1,8112,03335135030629929729039393939
Investments000114444444
Other Assets49278056954767831619492106996569
Total Assets3,4393,9853,9563,7934,1283,5533,3003,0651,8531,7671,0681,032

Reserves and Borrowings Chart

Cash Flow

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Cash from Operating Activity -558126-216-33312151825913172617
Cash from Investing Activity 10-149-267-4316111-9-19-9
Cash from Financing Activity 550841573284-153-113-64-14-9-8-8
Net Cash Flow161-853121-1661-0-00

Free Cash Flow

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Free Cash Flow-28.00109.0013.00-22.0055.0037.00-29.00-53.001.0015.008.004.00

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 2023Mar 2024
Debtor Days222317483312950000
Inventory Days6110010069107293524201587
Days Payable147180117808530398650324641
Cash Conversion Cycle-64-57-03755125-57-30-17-38-34
Working Capital Days-136-122-138-219-258-311-581-1,468-226-205-225-237
ROCE %-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 24Mar 23Mar 22Mar 21Mar 20
FaceValue10.0010.0010.0010.0010.00
Basic EPS (Rs.)-6.21143.39-7.53-103.40-16.57
Diluted EPS (Rs.)-6.21143.39-7.53-103.40-16.57
Cash EPS (Rs.)-2.01149.66-0.15-92.31-5.00
Book Value[Excl.RevalReserv]/Share (Rs.)-72.90-66.68-210.13-202.64-99.13
Book Value[Incl.RevalReserv]/Share (Rs.)-72.90-66.68-210.13-202.64-99.13
Revenue From Operations / Share (Rs.)57.8556.7896.5984.3259.02
PBDIT / Share (Rs.)0.560.891.650.38-3.31
PBIT / Share (Rs.)-3.63-5.37-5.73-10.71-14.89
PBT / Share (Rs.)-6.21143.39-7.53-103.40-16.57
Net Profit / Share (Rs.)-6.21143.39-7.53-103.40-16.57
NP After MI And SOA / Share (Rs.)-6.21143.39-7.53-103.40-16.57
PBDIT Margin (%)0.981.581.700.46-5.60
PBIT Margin (%)-6.26-9.45-5.93-12.69-25.22
PBT Margin (%)-10.73252.51-7.79-122.62-28.08
Net Profit Margin (%)-10.73252.51-7.79-122.62-28.08
NP After MI And SOA Margin (%)-10.73252.52-7.79-122.62-28.08
Return on Networth / Equity (%)0.00-215.030.000.000.00
Return on Capital Employeed (%)5.238.572.745.3333.10
Return On Assets (%)-6.96155.51-4.93-64.62-6.26
Long Term Debt / Equity (X)0.000.000.000.00-0.52
Total Debt / Equity (X)-1.62-1.75-1.42-0.32-1.19
Asset Turnover Ratio (%)0.630.460.470.240.13
Current Ratio (X)0.030.030.020.020.02
Quick Ratio (X)0.020.020.010.010.01
Inventory Turnover Ratio (X)55.2917.3119.1612.083.58
Interest Coverage Ratio (X)0.220.410.910.26-1.96
Interest Coverage Ratio (Post Tax) (X)-1.40-2.45-3.19-7.30-8.82
Enterprise Value (Cr.)1571.351455.203630.35825.541386.26
EV / Net Operating Revenue (X)2.352.213.250.842.03
EV / EBITDA (X)238.12139.80190.19183.78-36.19
MarketCap / Net Operating Revenue (X)0.340.190.150.070.04
Price / BV (X)-0.27-0.16-0.07-0.03-0.02
Price / Net Operating Revenue (X)0.340.190.150.070.04
EarningsYield-0.3112.89-0.49-16.28-6.14

Profitability Ratios (%)

Liquidity Ratios

Liquidity Ratios (%)

Interest Coverage Ratios (%)

Valuation Ratios

Fair Value

Fair Value: 167.31

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: 594.21% compared to the current price 24.1

Default values used*: Deafault value of 15 for Stock P/E is used, Deafault value of 15% for ROE is used

Intrinsic Value: 272.01

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: 1,028.67% compared to the current price 24.1

Default values used*: Deafault value of 15 for Stock P/E is used, Deafault value of 15% for ROE is used

Last 5 Year EPS CAGR: 62.58%

*Investments are subject to market risks

Strength and Weakness

StrengthWeakness
  1. The stock has a low average Working Capital Days of -221.58, which is a positive sign.
  2. The stock has a low average Cash Conversion Cycle of -15.67, which is a positive sign.
  1. The stock has a low average ROCE of -3.67%, which may not be favorable.
  2. The company has higher borrowings (3,052.50) compared to reserves (-1,003.75), which may suggest financial risk.
  3. The company has not shown consistent growth in sales (250.58) and profit (-159.92).

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: -10.73%
      • 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: 5.23% (Industry Average ROCE: 9.31%)
      • 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%: 0.00% (Industry Average ROE: 8.14%)
      • 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): -1.40
      • 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: (Industry average Stock P/E: 72.09)
      • 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: -1.62
      • 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

No data availabale for About the Company
INDUSTRYADDRESSCONTACT
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Management Data not Available

FAQ

What is the latest fair value of Visa Steel Ltd?

The latest fair value of Visa Steel Ltd is ₹167.31.

What is the Market Cap of Visa Steel Ltd?

The Market Cap of Visa Steel Ltd is 279 Cr..

What is the current Stock Price of Visa Steel Ltd as on 26 July 2024?

The current stock price of Visa Steel Ltd as on 26 July 2024 is 24.1.

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 28.1/12.3.

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 72.9.

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 7.07 %.

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