S.A.L. Steel Limited

NSEI:SALSTEEL Stock Report

Market Cap: ₹2.1b

S.A.L. Steel Valuation

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

Valuation Score

4/6

Valuation Score 4/6

  • 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 SALSTEEL when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: SALSTEEL (₹25.2) is trading below our estimate of fair value (₹132.07)

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

Key Valuation Metric

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

Key metric: As SALSTEEL is barely profitable we use its Price-To-Sales Ratio for relative valuation analysis.

The above table shows the Price to Sales ratio for SALSTEEL. This is calculated by dividing SALSTEEL's market cap by their current revenue.
What is SALSTEEL's PS Ratio?
PS Ratio0.4x
Sales₹5.01b
Market Cap₹2.14b

Price to Sales Ratio vs Peers

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

The above table shows the PS ratio for SALSTEEL vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PSEstimated GrowthMarket Cap
Peer Average0.8x
538365 Incredible Industries
0.3xn/a₹2.0b
513472 Simplex Castings
2xn/a₹2.4b
511672 Scan Steels
0.3xn/a₹2.3b
JAINAM Jainam Ferro Alloys (I)
0.7xn/a₹1.5b
SALSTEEL S.A.L. Steel
0.4xn/a₹2.1b

Price-To-Sales vs Peers: SALSTEEL is good value based on its Price-To-Sales Ratio (0.4x) compared to the peer average (0.8x).

Price to Sales Ratio vs Industry

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

16 CompaniesPrice / SalesEstimated GrowthMarket Cap
513693 K I C Metaliks
0.2xn/aUS$18.00m
SWASTIK Swastik Pipe
0.2xn/aUS$15.51m
AUSL Aditya Ultra Steel
0.2xn/aUS$15.30m
513629 Tulsyan NEC
0.1xn/aUS$15.15m
SALSTEEL 0.4xIndustry Avg. 1.2xNo. of Companies29PS012345+
16 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Sales vs Industry: SALSTEEL is good value based on its Price-To-Sales Ratio (0.4x) compared to the Indian Metals and Mining industry average (1.3x).

Price to Sales Ratio vs Fair Ratio

What is SALSTEEL'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.

SALSTEEL PS Ratio vs Fair Ratio.
Fair Ratio
Current PS Ratio0.4x
Fair PS Ration/a

Price-To-Sales vs Fair Ratio: Insufficient data to calculate SALSTEEL'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.

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