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5004

Sunflag Iron and SteelBSE:500404 Stock Report

Market Cap

₹14.9b

7D

-2.9%

1Y

74.6%

Updated

22 Oct, 2021

Data

Company Financials
500404 fundamental analysis
Snowflake Score
Valuation4/6
Future Growth0/6
Past Performance5/6
Financial Health6/6
Dividends0/6

500404 Overview

Sunflag Iron and Steel Company Limited manufactures and sells steel rolled products in India.

Rewards

Trading at 13.2% below our estimate of its fair value

Earnings grew by 210.1% over the past year

Risk Analysis

No risks detected for 500404 from our risk checks.

Sunflag Iron and Steel Competitors

Price History & Performance

Summary of all time highs, changes and price drops for Sunflag Iron and Steel
Historical stock prices
Current Share Price₹81.10
52 Week High₹42.10
52 Week Low₹96.55
Beta1.11
1 Month Change0.31%
3 Month Change-3.74%
1 Year Change74.60%
3 Year Change41.04%
5 Year Change103.00%
Change since IPO3,504.44%

Recent News & Updates

Shareholder Returns

500404IN Metals and MiningIN Market
7D-2.9%-5.1%-3.1%
1Y74.6%123.3%61.1%

Return vs Industry: 500404 underperformed the Indian Metals and Mining industry which returned 131.7% over the past year.

Return vs Market: 500404 exceeded the Indian Market which returned 62.6% over the past year.

Price Volatility

Is 500404's price volatile compared to industry and market?
500404 volatility
500404 Beta1.11
Industry Beta1.22
Market Beta1

Stable Share Price: 500404 is not significantly more volatile than the rest of Indian stocks over the past 3 months, typically moving +/- 6% a week.

Volatility Over Time: 500404's weekly volatility (6%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
19841,098Pranav Bhardwajhttps://www.sunflagsteel.com

Sunflag Iron and Steel Company Limited manufactures and sells steel rolled products in India. The company offers bearing, cold forging, engine valve, micro alloyed, forging, free and semi-free cutting, stainless, spring, and tool steels, as well as carbon, valve, alloy, cold heading, and high strength steel; and forging ingots and super alloys. It also provides round bars, round cornered squares in straight bars, round and hexagonal wire rods, and hexagonal and flat sections straight bars, as well as bright bars, such as peeled/drawn/ground bars.

Sunflag Iron and Steel Fundamentals Summary

How do Sunflag Iron and Steel's earnings and revenue compare to its market cap?
500404 fundamental statistics
Market Cap₹14.89b
Earnings (TTM)₹2.24b
Revenue (TTM)₹23.60b

6.5x

P/E Ratio

0.6x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
500404 income statement (TTM)
Revenue₹23.60b
Cost of Revenue₹14.70b
Gross Profit₹8.90b
Expenses₹6.66b
Earnings₹2.24b

Last Reported Earnings

Jun 30, 2021

Next Earnings Date

n/a

Earnings per share (EPS)12.46
Gross Margin37.71%
Net Profit Margin9.51%
Debt/Equity Ratio14.7%

How did 500404 perform over the long term?

See historical performance and comparison

Valuation

Is Sunflag Iron and Steel undervalued compared to its fair value and its price relative to the market?

13.2%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: 500404 (₹81.1) is trading below our estimate of fair value (₹93.42)

Significantly Below Fair Value: 500404 is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: 500404 is good value based on its PE Ratio (6.5x) compared to the Indian Metals and Mining industry average (12.3x).

PE vs Market: 500404 is good value based on its PE Ratio (6.5x) compared to the Indian market (21.4x).


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate 500404's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: 500404 is good value based on its PB Ratio (1x) compared to the IN Metals and Mining industry average (1.7x).


Future Growth

How is Sunflag Iron and Steel forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

-8.9%

Forecasted Materials industry annual growth in earnings


In this section we usually present revenue and earnings growth projections based on the consensus estimates of professional analysts to help investors understand the company’s ability to generate profit. But as Sunflag Iron and Steel has not provided enough past data and has no analyst forecast, its future earnings cannot be reliably calculated by extrapolating past data or using analyst predictions.

This is quite a rare situation as 97% of companies covered by SimplyWall St do have past financial data.


Past Performance

How has Sunflag Iron and Steel performed over the past 5 years?

15.8%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 500404 has high quality earnings.

Growing Profit Margin: 500404's current net profit margins (9.5%) are higher than last year (4.9%).


Past Earnings Growth Analysis

Earnings Trend: 500404's earnings have grown by 15.8% per year over the past 5 years.

Accelerating Growth: 500404's earnings growth over the past year (210.1%) exceeds its 5-year average (15.8% per year).

Earnings vs Industry: 500404 earnings growth over the past year (210.1%) exceeded the Metals and Mining industry 129.5%.


Return on Equity

High ROE: 500404's Return on Equity (14.6%) is considered low.


Financial Health

How is Sunflag Iron and Steel's financial position?


Financial Position Analysis

Short Term Liabilities: 500404's short term assets (₹9.2B) exceed its short term liabilities (₹4.5B).

Long Term Liabilities: 500404's short term assets (₹9.2B) exceed its long term liabilities (₹4.2B).


Debt to Equity History and Analysis

Debt Level: 500404's debt to equity ratio (14.7%) is considered satisfactory.

Reducing Debt: 500404's debt to equity ratio has reduced from 40.9% to 14.7% over the past 5 years.

Debt Coverage: 500404's debt is well covered by operating cash flow (99.1%).

Interest Coverage: 500404's interest payments on its debt are well covered by EBIT (10.1x coverage).


Balance Sheet


Dividend

What is Sunflag Iron and Steel current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

Notable Dividend: Unable to evaluate 500404's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate 500404's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if 500404's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if 500404's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: 500404 is not paying a notable dividend for the Indian market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of 500404's dividend in 3 years as they are not forecast to pay a notable one for the Indian market.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

2.1yrs

Average management tenure


CEO

Pranav Bhardwaj (47 yo)

6.17yrs

Tenure

₹36,586,466

Compensation

Mr. Pranav Ravi Bhardwaj has been the Managing Director at Sunflag Iron And Steel Company Limited since August 12, 2015. Mr. Bhardwaj served as Joint Managing Director of Sunflag Iron And Steel Company Lim...


CEO Compensation Analysis

Compensation vs Market: Pranav's total compensation ($USD488.83K) is above average for companies of similar size in the Indian market ($USD190.19K).

Compensation vs Earnings: Pranav's compensation has been consistent with company performance over the past year.


Leadership Team

Experienced Management: 500404's management team is considered experienced (2.1 years average tenure).


Board Members

Experienced Board: 500404's board of directors are considered experienced (4.7 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Sunflag Iron and Steel Company Limited's employee growth, exchange listings and data sources


Key Information

  • Name: Sunflag Iron and Steel Company Limited
  • Ticker: 500404
  • Exchange: BSE
  • Founded: 1984
  • Industry: Steel
  • Sector: Materials
  • Market Cap: ₹14.886b
  • Shares outstanding: 180.22m
  • Website: https://www.sunflagsteel.com

Number of Employees


Location

  • Sunflag Iron and Steel Company Limited
  • 33 Mount Road
  • Sadar
  • Nagpur
  • Maharashtra
  • 440001
  • India

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/10/22 15:33
End of Day Share Price2021/10/22 00:00
Earnings2021/06/30
Annual Earnings2021/03/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.