SRU Steels Valuation

Is 540914 undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

2/6

Valuation Score 2/6

Below Fair Value
Significantly Below Fair Value
Price-To-Sales vs Peers
Price-To-Sales vs Industry
Price-To-Sales vs Fair Ratio
Analyst Forecast

Share Price vs Fair Value

What is the Fair Price of 540914 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: 540914 (₹7.35) is trading below our estimate of fair value (₹91.07)

Significantly Below Fair Value: 540914 is trading below fair value by more than 20%.

Key Valuation Metric

Which metric is best to use when looking at relative valuation for 540914?

Key metric: As 540914 is unprofitable we use its Price-To-Sales Ratio for relative valuation analysis.

The above table shows the Price to Sales ratio for 540914. This is calculated by dividing 540914's market cap by their current revenue.
What is 540914's PS Ratio?
PS Ratio	10.3x
Sales	₹8.53m
Market Cap	₹88.11m

540914 key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue	10.5x
Enterprise Value/EBITDA	-11.3x
PEG Ratio	n/a

Price to Sales Ratio vs Peers

How does 540914's PS Ratio compare to its peers?

The above table shows the PS ratio for 540914 vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
Company	Forward PS	Estimated Growth	Market Cap
Peer Average	2.4x
524628 Parker Agrochem Exports	2.2x	n/a	₹81.2m
534755 Trio Mercantile & Trading	4.8x	n/a	₹72.7m
534796 CDG Petchem	0.4x	n/a	₹125.6m
514223 Ramgopal Polytex	2.2x	n/a	₹87.0m
540914 SRU Steels	10.3x	n/a	₹88.1m

Price-To-Sales vs Peers: 540914 is expensive based on its Price-To-Sales Ratio (10.3x) compared to the peer average (2.4x).

Price to Sales Ratio vs Industry

How does 540914's PS Ratio compare vs other companies in the IN Trade Distributors Industry?

37 Companies	Price / Sales	Estimated Growth	Market Cap
512229 Veritas (India)	0.6x	n/a	US$275.04m
544272 Shiv Texchem	0.4x	n/a	US$83.53m
530299 Kothari Products	0.5x	n/a	US$54.73m
SHIVAUM Shiv Aum Steels	0.7x	n/a	US$41.87m

37 Companies		Estimated Growth	Market Cap

No more companies

Price-To-Sales vs Industry: 540914 is expensive based on its Price-To-Sales Ratio (10.3x) compared to the Indian Trade Distributors industry average (1.7x).

Price to Sales Ratio vs Fair Ratio

What is 540914's PS Ratio compared to its Fair PS Ratio? This is the expected PS Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

540914 PS Ratio vs Fair Ratio.
Fair Ratio
Current PS Ratio	10.3x
Fair PS Ratio	n/a

Price-To-Sales vs Fair Ratio: Insufficient data to calculate 540914's Price-To-Sales Fair Ratio for valuation analysis.

Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

Analyst Forecast: Insufficient data to show price forecast.

Discover undervalued companies

J. Kumar Infraprojects

₹52.1b

Engages in the construction business in India.

JKIL

₹687.95

-1.7%

65.2%

IRB Infrastructure Developers

₹287.5b

Engages in the infrastructure development business in India.

IRB

₹47.60

-0.3%

21.9%

Jamna Auto Industries

₹39.8b

Engages in the manufacture and sale of tapered leaf, parabolic springs, and lift axles under the JAI brand in India and internationally.

520051

₹99.85

-4.2%

-12.5%