NSEI:SALSTEEL

Stock Analysis Report

Executive Summary

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


Snowflake Analysis

Worrying balance sheet with weak fundamentals.

Share Price & News

How has S.A.L. Steel's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: SALSTEEL's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

-5.1%

SALSTEEL

-7.3%

IN Metals and Mining

-2.9%

IN Market


1 Year Return

-63.0%

SALSTEEL

-50.4%

IN Metals and Mining

-29.3%

IN Market

Return vs Industry: SALSTEEL underperformed the Indian Metals and Mining industry which returned -50.6% over the past year.

Return vs Market: SALSTEEL underperformed the Indian Market which returned -29.2% over the past year.


Shareholder returns

SALSTEELIndustryMarket
7 Day-5.1%-7.3%-2.9%
30 Day-31.5%-36.4%-26.5%
90 Day-26.0%-43.2%-28.5%
1 Year-63.0%-63.0%-49.5%-50.4%-27.9%-29.3%
3 Year-62.6%-62.6%-47.0%-52.4%-15.4%-20.0%
5 Year2.8%2.8%-19.9%-33.6%-3.3%-8.3%

Price Volatility Vs. Market

How volatile is S.A.L. Steel's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is S.A.L. Steel undervalued compared to its fair value and its price relative to the market?

1.03x

Price to Book (PB) ratio


Share Price vs. Fair Value

Below Fair Value: Insufficient data to calculate SALSTEEL's fair value to establish if it is undervalued.

Significantly Below Fair Value: Insufficient data to calculate SALSTEEL's fair value to establish if it is undervalued.


Price To Earnings Ratio

PE vs Industry: SALSTEEL is unprofitable, so we can't compare its PE Ratio to the Metals and Mining industry average.

PE vs Market: SALSTEEL is unprofitable, so we can't compare its PE Ratio to the Indian market.


Price to Earnings Growth Ratio

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


Price to Book Ratio

PB vs Industry: SALSTEEL is overvalued based on its PB Ratio (1x) compared to the IN Metals and Mining industry average (0.5x).


Next Steps

Future Growth

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

21.3%

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.


Next Steps

Past Performance

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

51.3%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: SALSTEEL is currently unprofitable.

Growing Profit Margin: SALSTEEL is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: SALSTEEL is unprofitable, but has reduced losses over the past 5 years at a rate of 51.3% per year.

Accelerating Growth: Unable to compare SALSTEEL's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: SALSTEEL is unprofitable, making it difficult to compare its past year earnings growth to the Metals and Mining industry (-7.1%).


Return on Equity

High ROE: SALSTEEL has a negative Return on Equity (-51.57%), as it is currently unprofitable.


Next Steps

Financial Health

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


Financial Position Analysis

Short Term Liabilities: SALSTEEL's short term assets (₹1.5B) exceed its short term liabilities (₹1.1B).

Long Term Liabilities: SALSTEEL's short term assets (₹1.5B) do not cover its long term liabilities (₹1.8B).


Debt to Equity History and Analysis

Debt Level: SALSTEEL's debt to equity ratio (1275.4%) is considered high.

Reducing Debt: SALSTEEL's debt to equity ratio has increased from 198% to 1275.4% over the past 5 years.


Balance Sheet

Inventory Level: SALSTEEL has a high level of physical assets or inventory.

Debt Coverage by Assets: SALSTEEL's debt is not covered by short term assets (assets are 0.8x debt).


Cash Runway Analysis

For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.

Stable Cash Runway: Insufficient data to determine if SALSTEEL has enough cash runway based on its current free cash flow.

Forecast Cash Runway: Insufficient data to determine if SALSTEEL has enough cash runway if its free cash flow continues to grow or shrink based on historical rates.


Next Steps

Dividend

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


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 payouts.

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


Current Payout to Shareholders

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


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of SALSTEEL'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?

13.9yrs

Average management tenure


CEO

S.A.L. Steel has no CEO, or we have no data on them.


Leadership Team

NamePositionTenureCompensationOwnership
Babulal Singhal
CFO & Whole Time Director13.83yrs₹492.00kno data
Manish Daulani
Company Secretary & Compliance Officer1.17yrs₹464.98kno data
Sujalakumar Shah
Director of Purchase & Whole Time Director13.92yrs₹432.00kno data
Anil S. Pandya
Whole Time Director11.42yrs₹480.00kno data
Kiritkumar Shah
Assistant General Manager of Marketingno datano datano data
Rati Mishra
Head of Project & Productionno datano datano data
Suresh Shah
Director of Steel Mill & Personnel13.92yrs₹463.88kno data

13.9yrs

Average Tenure

64yo

Average Age

Experienced Management: SALSTEEL's management team is seasoned and experienced (13.9 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Babulal Singhal
CFO & Whole Time Director13.83yrs₹492.00kno data
Sujalakumar Shah
Director of Purchase & Whole Time Director13.92yrs₹432.00kno data
Anil S. Pandya
Whole Time Director11.42yrs₹480.00kno data
Rajendra Shah
Non-Executive Chairmanno datano datano data
Harshad Shah
Independent & Non-Executive Director15.75yrs₹37.50kno data
Ambalal Patel
Independent & Non-Executive Director15.58yrs₹60.00k0.10% 153.1k
Tejpal Shah
Independent & Non-Executive Director13.75yrs₹30.00kno data
Shrikant Jhaveri
Independent & Non-Executive Director8.5yrs₹60.00kno data
Shefaliben Patel
Non-Executive & Independent Women Director4.67yrs₹37.50kno data

13.8yrs

Average Tenure

64yo

Average Age

Experienced Board: SALSTEEL's board of directors are seasoned and experienced ( 13.8 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 company bio, 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
  • Market Cap: ₹146.143m
  • 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

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
532604BSE (Mumbai Stock Exchange)YesEquity SharesININRNov 2004
SALSTEELNSEI (National Stock Exchange of India)YesEquity SharesININRNov 2004

Biography

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. Its products are primarily used in iron and steel industries. In addition, it generates and sells 40 MW power from waste heat recovery boiler and fluidized bed combustion boiler. S.A.L. Steel Limited was incorporated in 2003 and is based in Gandhinagar, India. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/03/28 13:05
End of Day Share Price2020/03/27 00:00
Earnings2019/12/31
Annual Earnings2019/03/31


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.