NSEI:SURYAROSNI

Stock Analysis Report

Executive Summary

Surya Roshni Limited manufactures and markets steel pipes and tubes, lighting products, fans, home appliances, and PVC pipes in India.

Rewards

PE ratio (7.4x) is below the Indian market (12.9x)

Revenue is forecast to grow 15.03% per year

Earnings grew by 2.7% over the past year

Risk Analysis

Interest payments are not well covered by earnings

Unstable dividend track record



Snowflake Analysis

Fair value with acceptable track record.


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Share Price & News

How has Surya Roshni's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: SURYAROSNI has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-0.8%

SURYAROSNI

2.2%

IN Metals and Mining

0.8%

IN Market


1 Year Return

-25.4%

SURYAROSNI

-17.3%

IN Metals and Mining

3.6%

IN Market

Return vs Industry: SURYAROSNI underperformed the Indian Metals and Mining industry which returned -17.3% over the past year.

Return vs Market: SURYAROSNI underperformed the Indian Market which returned 3.6% over the past year.


Shareholder returns

SURYAROSNIIndustryMarket
7 Day-0.8%2.2%0.8%
30 Day-4.0%3.8%0.7%
90 Day-16.1%5.8%7.1%
1 Year-24.4%-25.4%-15.9%-17.3%5.6%3.6%
3 Year-12.9%-14.8%4.2%-7.7%34.1%27.0%
5 Year72.6%66.5%20.8%1.4%41.4%28.6%

Price Volatility Vs. Market

How volatile is Surya Roshni's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Surya Roshni undervalued compared to its fair value and its price relative to the market?

7.4x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: SURYAROSNI (₹158.95) is trading above our estimate of fair value (₹111.12)

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


Price To Earnings Ratio

PE vs Industry: SURYAROSNI is good value based on its PE Ratio (7.4x) compared to the Metals and Mining industry average (8.7x).

PE vs Market: SURYAROSNI is good value based on its PE Ratio (7.4x) compared to the Indian market (12.9x).


Price to Earnings Growth Ratio

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


Price to Book Ratio

PB vs Industry: SURYAROSNI is good value based on its PB Ratio (0.7x) compared to the IN Metals and Mining industry average (0.8x).


Next Steps

Future Growth

How is Surya Roshni forecast to perform in the next 1 to 3 years based on estimates from 1 analyst?

15.0%

Forecasted annual revenue growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: Insufficient data to determine if SURYAROSNI's forecast earnings growth is above the savings rate (6.5%).

Earnings vs Market: Insufficient data to determine if SURYAROSNI's earnings are forecast to grow faster than the Indian market

High Growth Earnings: Insufficient data to determine if earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: SURYAROSNI's revenue (15% per year) is forecast to grow faster than the Indian market (11.6% per year).

High Growth Revenue: SURYAROSNI's revenue (15% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: Insufficient data to determine if SURYAROSNI's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has Surya Roshni performed over the past 5 years?

20.7%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: SURYAROSNI has high quality earnings.

Growing Profit Margin: SURYAROSNI's current net profit margins (1.9%) are lower than last year (2.1%).


Past Earnings Growth Analysis

Earnings Trend: SURYAROSNI's earnings have grown significantly by 20.7% per year over the past 5 years.

Accelerating Growth: SURYAROSNI's earnings growth over the past year (2.7%) is below its 5-year average (20.7% per year).

Earnings vs Industry: SURYAROSNI earnings growth over the past year (2.7%) exceeded the Metals and Mining industry 0.6%.


Return on Equity

High ROE: SURYAROSNI's Return on Equity (9.9%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Surya Roshni's financial position?


Financial Position Analysis

Short Term Liabilities: SURYAROSNI's short term assets (₹18.3B) exceed its short term liabilities (₹13.6B).

Long Term Liabilities: SURYAROSNI's short term assets (₹18.3B) exceed its long term liabilities (₹4.5B).


Debt to Equity History and Analysis

Debt Level: SURYAROSNI's debt to equity ratio (91.2%) is considered high.

Reducing Debt: SURYAROSNI's debt to equity ratio has reduced from 125.2% to 91.2% over the past 5 years.

Debt Coverage: SURYAROSNI's debt is not well covered by operating cash flow (17.8%).

Interest Coverage: SURYAROSNI's interest payments on its debt are not well covered by EBIT (2.6x coverage).


Balance Sheet

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

Debt Coverage by Assets: SURYAROSNI's debt is covered by short term assets (assets are 1.7x debt).


Next Steps

Dividend

What is Surya Roshni's current dividend yield, its reliability and sustainability?

1.26%

Current Dividend Yield


Dividend Yield vs Market

company1.3%marketbottom25%0.6%markettop25%2.5%industryaverage4.1%forecastin3Yearsn/a

Current dividend yield vs market & industry

Notable Dividend: SURYAROSNI's dividend (1.26%) is higher than the bottom 25% of dividend payers in the Indian market (0.59%).

High Dividend: SURYAROSNI's dividend (1.26%) is low compared to the top 25% of dividend payers in the Indian market (2.54%).


Stability and Growth of Payments

Stable Dividend: SURYAROSNI's dividend payments have been volatile in the past 10 years.

Growing Dividend: SURYAROSNI's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its low payout ratio (9.3%), SURYAROSNI's dividend payments are thoroughly covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: Insufficient data to determine if a dividend will be paid in 3 years and that it will be covered by earnings.


Next Steps

Management

What is the CEO of Surya Roshni's salary, the management and board of directors tenure and is there insider trading?

5.2yrs

Average management tenure


CEO

Raju Bista (33yo)

7.2yrs

Tenure

₹49,860,000

Compensation

Shri Raju Bista has been the Managing Director at Surya Roshni Limited since October 29, 2012. Shri Bista served as a Deputy Managing Director of Surya Roshni Limited until October 29, 2012. He joined Sury ...


CEO Compensation Analysis

Compensation vs Market: Raju's total compensation ($USD704.11K) is above average for companies of similar size in the Indian market ($USD50.84K).

Compensation vs Earnings: Raju's compensation has increased by more than 20% in the past year.


Management Age and Tenure

5.2yrs

Average Tenure

52.5yo

Average Age

Experienced Management: SURYAROSNI's management team is seasoned and experienced (5.2 years average tenure).


Board Age and Tenure

5.6yrs

Average Tenure

68.5yo

Average Age

Experienced Board: SURYAROSNI's board of directors are considered experienced (5.6 years average tenure).


Insider Trading

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


Recent Insider Transactions

Buy₹351,34829 Aug 19
Sunil Sikka
EntityIndividual
Shares2,250
Max Price₹156.15

Ownership Breakdown

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


Management Team

  • R. Maloo (55yo)

    Executive Director & Group CFO

    • Tenure: 6yrs
    • Compensation: ₹8.11m
  • Rajendra Arya (50yo)

    Senior Vice President of Projects of Steel Division

    • Tenure: 0yrs
    • Compensation: ₹30.00k
  • Tarun Baldua (58yo)

    Chief Executive Officer of Steel Operations

    • Tenure: 0yrs
    • Compensation: ₹10.45m
  • B. Singal

    Senior VP

    • Tenure: 0yrs
    • Compensation: ₹3.88m
  • Vinay Surya (46yo)

    Additional Whole-Time Director

    • Tenure: 1.6yrs
    • Compensation: ₹19.52m
  • Jai Agarwal (68yo)

    Executive Chairman

    • Tenure: 0yrs
    • Compensation: ₹61.89m
  • Raju Bista (33yo)

    MD & Whole Time Director

    • Tenure: 7.2yrs
    • Compensation: ₹49.86m
  • Ramanjit Singh (58yo)

    Chief Executive Officer of Lighting Operations

    • Tenure: 4.3yrs
    • Compensation: ₹12.57m
  • Kaustubh Karmarkar (40yo)

    Additional Whole Time Director & Director of HR

    • Tenure: 1.3yrs
    • Compensation: ₹13.27m
  • Sushil Singhal

    Chief General Manager of Investor Relations

    • Tenure: 1.3yrs

Board Members

  • Tara Sankar Bhattacharya (71yo)

    Non-Executive Independent Director

    • Tenure: 8.8yrs
    • Compensation: ₹250.00k
  • Krishan Narula (80yo)

    Non Executive Independent Director

    • Tenure: 19.8yrs
    • Compensation: ₹640.00k
  • Urmil Agarwal (66yo)

    Non-Executive Non-Independent Woman Director

    • Tenure: 3yrs
    • Compensation: ₹80.00k
  • Vinay Surya (46yo)

    Additional Whole-Time Director

    • Tenure: 1.6yrs
    • Compensation: ₹19.52m
  • Jai Agarwal (68yo)

    Executive Chairman

    • Tenure: 0yrs
    • Compensation: ₹61.89m
  • Surendra Khurana (69yo)

    Non-Executive Independent Director

    • Tenure: 5.6yrs
    • Compensation: ₹310.00k
  • Raju Bista (33yo)

    MD & Whole Time Director

    • Tenure: 7.2yrs
    • Compensation: ₹49.86m
  • Ravinder Narang (80yo)

    Non-Executive Independent Director

    • Tenure: 10.5yrs
    • Compensation: ₹340.00k
  • Sudhanshu Awasthi (74yo)

    Non-Executive Independent Director

    • Tenure: 5.3yrs
    • Compensation: ₹80.00k
  • Kaustubh Karmarkar (40yo)

    Additional Whole Time Director & Director of HR

    • Tenure: 1.3yrs
    • Compensation: ₹13.27m

Company Information

Surya Roshni Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Surya Roshni Limited
  • Ticker: SURYAROSNI
  • Exchange: NSEI
  • Founded: 1973
  • Industry: Steel
  • Sector: Materials
  • Market Cap: ₹8.648b
  • Shares outstanding: 54.41m
  • Website: https://www.surya.co.in

Number of Employees


Location

  • Surya Roshni Limited
  • Padma Tower - 1
  • 2nd Floor
  • New Delhi
  • Delhi
  • 110008
  • India

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
500336BSE (Mumbai Stock Exchange)YesEquity SharesININRMay 1995
SURYAROSNINSEI (National Stock Exchange of India)YesEquity SharesININRMay 1995

Biography

Surya Roshni Limited manufactures and markets steel pipes and tubes, lighting products, fans, home appliances, and PVC pipes in India. The company operates through Steel Pipe and Strips; and Lighting and C ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/12/15 12:50
End of Day Share Price2019/12/13 00:00
Earnings2019/09/30
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.