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SALS

S.A.L. Steel NSEI:SALSTEEL Stock Report

Last Price

₹7.90

Market Cap

₹680.6m

7D

-7.1%

1Y

41.1%

Updated

23 Jun, 2022

Data

Company Financials
SALSTEEL fundamental analysis
Snowflake Score
Valuation2/6
Future Growth0/6
Past Performance2/6
Financial Health3/6
Dividends0/6

SALSTEEL Stock Overview

S.A.L. Steel Limited manufactures and sells sponge iron and ferro alloys in India and internationally.

S.A.L. Steel Competitors

 

 

 

 

 

 

 

 

 

 

 

 

Price History & Performance

Summary of all time highs, changes and price drops for S.A.L. Steel
Historical stock prices
Current Share Price₹7.90
52 Week High₹17.60
52 Week Low₹5.35
Beta0.75
1 Month Change-10.73%
3 Month Change-30.40%
1 Year Change41.07%
3 Year Change163.33%
5 Year Change27.42%
Change since IPO-59.59%

Recent News & Updates

Mar 29
These 4 Measures Indicate That S.A.L. Steel (NSE:SALSTEEL) Is Using Debt Extensively

These 4 Measures Indicate That S.A.L. Steel (NSE:SALSTEEL) Is Using Debt Extensively

Howard Marks put it nicely when he said that, rather than worrying about share price volatility, 'The possibility of...

Shareholder Returns

SALSTEELIN Metals and MiningIN Market
7D-7.1%-10.8%-3.1%
1Y41.1%-18.6%-2.5%

Return vs Industry: SALSTEEL exceeded the Indian Metals and Mining industry which returned -18.6% over the past year.

Return vs Market: SALSTEEL exceeded the Indian Market which returned -2.5% over the past year.

Price Volatility

Is SALSTEEL's price volatile compared to industry and market?
SALSTEEL volatility
SALSTEEL Average Weekly Movement7.0%
Metals and Mining Industry Average Movement7.6%
Market Average Movement6.9%
10% most volatile stocks in IN Market9.8%
10% least volatile stocks in IN Market4.5%

Stable Share Price: SALSTEEL is not significantly more volatile than the rest of Indian stocks over the past 3 months, typically moving +/- 7% a week.

Volatility Over Time: SALSTEEL's weekly volatility (7%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
2003441Jai Goyalhttps://www.salsteel.co.in

S.A.L. Steel Limited manufactures and sells sponge iron and ferro alloys in India and internationally. It operates through Iron & Steel and Power segments. The company also offers iron ore pellets and finished steel products.

S.A.L. Steel Fundamentals Summary

How do S.A.L. Steel's earnings and revenue compare to its market cap?
SALSTEEL fundamental statistics
Market Cap₹680.58m
Earnings (TTM)₹115.50m
Revenue (TTM)₹5.05b

5.9x

P/E Ratio

0.1x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
SALSTEEL income statement (TTM)
Revenue₹5.05b
Cost of Revenue₹4.76b
Gross Profit₹290.00m
Other Expenses₹174.50m
Earnings₹115.50m

Last Reported Earnings

Mar 31, 2022

Next Earnings Date

n/a

Earnings per share (EPS)1.36
Gross Margin5.74%
Net Profit Margin2.28%
Debt/Equity Ratio328.1%

How did SALSTEEL perform over the long term?

See historical performance and comparison
We’ve recently updated our valuation analysis.

Valuation

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

Valuation Score

2/6

Valuation Score 2/6

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Below Fair Value

  • Significantly Below Fair Value

  • PEG Ratio

Key Valuation Metric

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

Other financial metrics that can be useful for relative valuation.

SALSTEEL 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/Revenue0.4x
Enterprise Value/EBITDA7.4x
PEG Ration/a

Price to Earnings Ratio vs Peers

How does SALSTEEL's PE Ratio compare to its peers?

SALSTEEL PE Ratio vs Peers
The above table shows the PE ratio for SALSTEEL vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyPEEstimated GrowthMarket Cap
Peer Average17.7x

Price-To-Earnings vs Peers: SALSTEEL is good value based on its Price-To-Earnings Ratio (5.9x) compared to the peer average (17.7x).


Price to Earnings Ratio vs Industry

How does SALSTEEL's PE Ratio compare vs other companies in the Indian Metals and Mining Industry?

Price-To-Earnings vs Industry: SALSTEEL is good value based on its Price-To-Earnings Ratio (5.9x) compared to the Indian Metals and Mining industry average (11.7x)


Price to Earnings Ratio vs Fair Ratio

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

SALSTEEL PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio5.9x
Fair PE Ration/a

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


Share Price vs Fair Value

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

Below Fair Value: SALSTEEL (₹7.9) is trading above our estimate of fair value (₹1.95)

Significantly Below Fair Value: SALSTEEL is trading above our estimate of fair value.


Price to Earnings Growth Ratio

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


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Future Growth

How is S.A.L. Steel forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

Future Growth Score

0/6

Future Growth Score 0/6

  • Earnings vs Savings Rate

  • Earnings vs Market

  • High Growth Earnings

  • Revenue vs Market

  • High Growth Revenue

  • Future ROE


-12.4%

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 S.A.L. 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.


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  • Take a look at our analysis of SALSTEEL’s management and see if the CEO’s compensation is within a reasonable range, who is on the board and if insiders have been trading lately.
  • S.A.L. Steel competitive advantages and company strategy can generally be found in its financial reports archived here.

Past Performance

How has S.A.L. Steel performed over the past 5 years?

Past Performance Score

2/6

Past Performance Score 2/6

  • Quality Earnings

  • Growing Profit Margin

  • Earnings Trend

  • Accelerating Growth

  • Earnings vs Industry

  • High ROE


0.9%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: SALSTEEL has high quality earnings.

Growing Profit Margin: SALSTEEL's current net profit margins (2.3%) are lower than last year (3.8%).


Past Earnings Growth Analysis

Earnings Trend: SALSTEEL's earnings have grown by 0.9% per year over the past 5 years.

Accelerating Growth: SALSTEEL's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: SALSTEEL had negative earnings growth (-0.04%) over the past year, making it difficult to compare to the Metals and Mining industry average (76.9%).


Return on Equity

High ROE: Whilst SALSTEEL's Return on Equity (30.52%) is high, this metric is skewed due to their high level of debt.


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Financial Health

How is S.A.L. Steel's financial position?

Financial Health Score

3/6

Financial Health Score 3/6

  • Short Term Liabilities

  • Long Term Liabilities

  • Debt Level

  • Reducing Debt

  • Debt Coverage

  • Interest Coverage

Financial Position Analysis

Short Term Liabilities: SALSTEEL's short term assets (₹1.3B) do not cover its short term liabilities (₹2.3B).

Long Term Liabilities: SALSTEEL's short term assets (₹1.3B) exceed its long term liabilities (₹222.8M).


Debt to Equity History and Analysis

Debt Level: SALSTEEL's net debt to equity ratio (323.8%) is considered high.

Reducing Debt: SALSTEEL had negative shareholder equity 5 years ago, but is now positive and has therefore improved.

Debt Coverage: SALSTEEL's debt is not well covered by operating cash flow (18%).

Interest Coverage: SALSTEEL's interest payments on its debt are well covered by EBIT (86.5x coverage).


Balance Sheet


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Dividend

What is S.A.L. Steel current dividend yield, its reliability and sustainability?

Dividend Score

0/6

Dividend Score 0/6

  • Notable Dividend

  • High Dividend

  • Stable Dividend

  • Growing Dividend

  • Earnings Coverage

  • Future Dividend Coverage

Dividend Yield vs Market

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

High Dividend: Unable to evaluate SALSTEEL'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 SALSTEEL's dividends per share have been stable in the past.

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


Earnings Payout to Shareholders

Earnings Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Cash Payout to Shareholders

Cash Flow Coverage: Unable to calculate sustainability of dividends as SALSTEEL has not reported any payouts.


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Management

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

9.8yrs

Average management tenure


CEO

Jai Goyal (63 yo)

1.75yrs

Tenure

₹2,568,001

Compensation

Mr. Jai Prakash Goyal serves as Whole Time Director at S.A.L. Steel Limited since September 11, 2020. He has been Joint Chief Executive Officer of Electronics and Instrumentation at Shah Alloys Limited sin...


CEO Compensation Analysis

Compensation vs Market: Jai's total compensation ($USD32.83K) is about average for companies of similar size in the Indian market ($USD38.41K).

Compensation vs Earnings: Insufficient data to compare Jai's compensation with company performance.


Leadership Team

Experienced Management: SALSTEEL's management team is seasoned and experienced (9.8 years average tenure).


Board Members

Experienced Board: SALSTEEL's board of directors are seasoned and experienced ( 16 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.


Ownership Breakdown

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


Top Shareholders

Company Information

S.A.L. Steel Limited's employee growth, exchange listings and data sources


Key Information

  • Name: S.A.L. Steel Limited
  • Ticker: SALSTEEL
  • Exchange: NSEI
  • Founded: 2003
  • Industry: Steel
  • Sector: Materials
  • Implied Market Cap: ₹680.583m
  • Shares outstanding: 84.97m
  • Website: https://www.salsteel.co.in

Number of Employees


Location

  • S.A.L. Steel Limited
  • Shah Alloys Corporate House
  • Sola-Kalol Road
  • Gandhinagar
  • Gujarat
  • 382721
  • India

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/06/23 00:00
End of Day Share Price2022/06/23 00:00
Earnings2022/03/31
Annual Earnings2022/03/31


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.