WEBSITE BSE:0 NSE: Inc. Year: 2004 Industry: Steel & Iron Products My Bucket: Add Stock
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1. Business Overview
PS Raj Steels Ltd. operates in the Steel & Iron Products sector in India. As a company in this industry, its core business likely involves the manufacturing, processing, and/or trading of various steel and iron products. This could include long products (e.g., rebar, wire rods, structural steel), flat products (e.g., sheets, plates, coils), or semi-finished goods. The company generates revenue by selling these products to a diverse range of end-users across construction, infrastructure, automotive, manufacturing, and consumer durable sectors. Its business model relies on procuring raw materials (iron ore, coking coal, scrap), converting them into finished goods, and distributing them to customers.
2. Key Segments / Revenue Mix
Specific details regarding PS Raj Steels Ltd.'s key segments or revenue mix are not provided in the input. However, typical segments for an integrated steel manufacturer could include primary steel production, rolling of various finished steel products (e.g., TMT bars, structural steel, billets, wire rods), or specialized processing. Without specific data, the exact contribution from different product categories or geographical markets cannot be determined.
3. Industry & Positioning
PS Raj Steels Ltd. operates within the Indian steel and iron products industry, which is characterized by its cyclical nature, capital intensity, and significant reliance on infrastructure development, construction, and manufacturing growth. The industry is competitive, with a mix of large integrated players (both public and private sector), mid-sized producers, and numerous smaller regional players. Given that PS Raj Steels Ltd. is listed with ticker PSRAJ, it is likely a mid-sized to smaller player within this landscape, competing on factors such as product quality, pricing, regional distribution networks, and operational efficiency against both larger domestic and potential import competition.
4. Competitive Advantage (Moat)
Based on the general information, PS Raj Steels Ltd. is unlikely to possess a strong, durable competitive advantage (moat) typical of larger, more established players. In the steel industry, moats often stem from massive scale (cost leadership), significant backward integration (control over raw materials), proprietary technology, or strong brand recognition for specific niche products. Without these, PS Raj Steels Ltd. likely operates in a more commoditized segment where competition is primarily price-based. Any potential advantage would likely be operational efficiency, strong regional market presence, or customer relationships rather than a deep structural moat.
5. Growth Drivers
Key growth drivers for PS Raj Steels Ltd. over the next 3-5 years include:
Government Infrastructure Spending: Continued investment in roads, railways, ports, and urban infrastructure projects.
Real Estate & Construction: Growth in housing, commercial, and industrial construction activities.
Manufacturing Sector Growth: Expansion in automotive, capital goods, and other manufacturing industries that consume steel.
Urbanization: Increasing demand for steel in urban development and associated infrastructure.
"Make in India" Initiative: Policy support promoting domestic manufacturing and consumption of steel.
6. Risks
Key business risks for PS Raj Steels Ltd. include:
Raw Material Price Volatility: Fluctuations in the prices of iron ore, coking coal, and scrap can significantly impact profitability.
Cyclical Demand: The steel industry is highly sensitive to economic cycles, with downturns leading to reduced demand and pricing pressure.
Intense Competition: Competition from larger domestic players and potential imports can squeeze margins.
Regulatory & Environmental Compliance: Stringent environmental regulations and compliance costs can impact operations.
Energy Costs: High energy consumption makes the company vulnerable to volatility in power and fuel prices.
Interest Rate Sensitivity: High capital intensity often means reliance on debt, making interest rate changes impactful.
7. Management & Ownership
Specific details on the promoters, management quality, or ownership structure of PS Raj Steels Ltd. are not provided in the input. Typically, for an Indian company, promoters hold a significant stake, influencing strategic direction. Management quality would be assessed based on their experience, corporate governance practices, and track record. Institutional and public shareholding patterns also play a role in overall ownership structure.
8. Outlook
The outlook for PS Raj Steels Ltd. is largely tied to the broader Indian economy and the steel sector's performance. On the bullish side, India's strong economic growth projections, robust infrastructure pipeline, and increasing urbanization present a favorable demand environment for steel products. Government impetus on manufacturing and "Make in India" also provides tailwinds. However, the company faces inherent risks associated with the highly cyclical and capital-intensive nature of the steel industry. Volatility in raw material prices, intense competition, and potential oversupply remain constant challenges. Profitability will depend on its ability to manage operational costs, maintain product quality, ensure efficient distribution, and navigate price fluctuations effectively within a competitive landscape.
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Market Cap ₹298 Cr.
Stock P/E 40.2
P/B 4.6
Current Price ₹394.9
Book Value ₹ 86.1
Face Value 10
52W High ₹390
Dividend Yield 0%
52W Low ₹ 133.3
Price goes above X
Price falls below X
PE goes above X
PE falls below X
₹ | |
| #(Fig in Cr.) |
|---|
| Net Sales |
| Other Income |
| Total Income |
| Total Expenditure |
| Operating Profit |
| Interest |
| Depreciation |
| Exceptional Income / Expenses |
| Profit Before Tax |
| Provision for Tax |
| Profit After Tax |
| Adjustments |
| Profit After Adjustments |
| Adjusted Earnings Per Share |
| #(Fig in Cr.) | Mar 2022 | Mar 2023 | Mar 2024 | Mar 2025 | TTM |
|---|---|---|---|---|---|
| Net Sales | 180 | 225 | 298 | 266 | |
| Other Income | 0 | 0 | 0 | 0 | |
| Total Income | 180 | 225 | 298 | 266 | |
| Total Expenditure | 173 | 218 | 287 | 254 | |
| Operating Profit | 7 | 7 | 11 | 12 | |
| Interest | 1 | 1 | 2 | 1 | |
| Depreciation | 1 | 1 | 1 | 1 | |
| Exceptional Income / Expenses | 0 | 0 | 0 | 0 | |
| Profit Before Tax | 5 | 5 | 8 | 10 | |
| Provision for Tax | 1 | 1 | 2 | 3 | |
| Profit After Tax | 4 | 4 | 6 | 7 | |
| Adjustments | 0 | 0 | 0 | 0 | |
| Profit After Adjustments | 4 | 4 | 6 | 7 | |
| Adjusted Earnings Per Share | 6.7 | 6.7 | 11.5 | 9.8 |
| # | 1 Year | 3 Year | 5 Year | 10 Year |
|---|---|---|---|---|
| Sales CAGR | -11% | 14% | 0% | 0% |
| Operating Profit CAGR | 9% | 20% | 0% | 0% |
| PAT CAGR | 17% | 21% | 0% | 0% |
| # | 1 Year | 3 Year | 5 Year | 10 Year |
|---|---|---|---|---|
| Share Price CAGR | 186% | NA% | NA% | NA% |
| ROE Average | 16% | 18% | 18% | 18% |
| ROCE Average | 19% | 19% | 18% | 18% |
| #(Fig in Cr.) | Mar 2022 | Mar 2023 | Mar 2024 | Mar 2025 |
|---|---|---|---|---|
| Shareholder's Funds | 21 | 25 | 31 | 65 |
| Minority's Interest | 0 | 0 | 0 | 0 |
| Borrowings | 4 | 2 | 0 | 0 |
| Other Non-Current Liabilities | -0 | -0 | 0 | 0 |
| Total Current Liabilities | 21 | 48 | 21 | 9 |
| Total Liabilities | 46 | 74 | 52 | 74 |
| Fixed Assets | 4 | 4 | 4 | 4 |
| Other Non-Current Assets | 0 | 0 | 0 | 2 |
| Total Current Assets | 41 | 69 | 47 | 68 |
| Total Assets | 46 | 74 | 52 | 74 |
| #(Fig in Cr.) | Mar 2022 | Mar 2023 | Mar 2024 | Mar 2025 |
|---|---|---|---|---|
| Opening Cash & Cash Equivalents | 0 | 0 | 0 | 0 |
| Cash Flow from Operating Activities | 0 | 1 | 3 | -9 |
| Cash Flow from Investing Activities | 1 | -1 | -1 | -3 |
| Cash Flow from Financing Activities | -1 | -0 | -2 | 12 |
| Net Cash Inflow / Outflow | 0 | -0 | 0 | 1 |
| Closing Cash & Cash Equivalent | 0 | 0 | 0 | 1 |
| # | Mar 2022 | Mar 2023 | Mar 2024 | Mar 2025 |
|---|---|---|---|---|
| Earnings Per Share (Rs) | 6.74 | 6.72 | 11.48 | 9.83 |
| CEPS(Rs) | 8.44 | 8.18 | 12.98 | 11.11 |
| DPS(Rs) | 0 | 0 | 0 | 0 |
| Book NAV/Share(Rs) | 37.69 | 44.41 | 55.28 | 86.15 |
| Core EBITDA Margin(%) | 3.85 | 3.12 | 3.64 | 4.62 |
| EBIT Margin(%) | 3.43 | 2.77 | 3.36 | 4.27 |
| Pre Tax Margin(%) | 2.74 | 2.2 | 2.84 | 3.74 |
| PAT Margin (%) | 2.07 | 1.65 | 2.13 | 2.78 |
| Cash Profit Margin (%) | 2.59 | 2 | 2.4 | 3.14 |
| ROA(%) | 8.14 | 6.21 | 10.1 | 11.81 |
| ROE(%) | 17.87 | 16.37 | 23.04 | 15.53 |
| ROCE(%) | 16.25 | 15.55 | 22.05 | 19.28 |
| Receivable days | 28.86 | 22.83 | 17.81 | 23.62 |
| Inventory Days | 40.22 | 51.89 | 40.35 | 35.73 |
| Payable days | 11.65 | 28.88 | 18.42 | 0.91 |
| PER(x) | 0 | 0 | 0 | 14.29 |
| Price/Book(x) | 0 | 0 | 0 | 1.63 |
| Dividend Yield(%) | 0 | 0 | 0 | 0 |
| EV/Net Sales(x) | 0.1 | 0.08 | 0.06 | 0.41 |
| EV/Core EBITDA(x) | 2.49 | 2.63 | 1.69 | 8.89 |
| Net Sales Growth(%) | 0 | 25.43 | 32.08 | -10.57 |
| EBIT Growth(%) | 0 | 1.57 | 60.18 | 13.45 |
| PAT Growth(%) | 0 | -0.23 | 70.87 | 16.93 |
| EPS Growth(%) | 0 | -0.23 | 70.87 | -14.41 |
| Debt/Equity(x) | 0.82 | 0.74 | 0.58 | 0.07 |
| Current Ratio(x) | 1.92 | 1.44 | 2.28 | 7.89 |
| Quick Ratio(x) | 1 | 0.52 | 1.24 | 4.33 |
| Interest Cover(x) | 4.98 | 4.83 | 6.48 | 8.13 |
| Total Debt/Mcap(x) | 0 | 0 | 0 | 0.04 |
| # | Mar 2025 | Sep 2025 | Mar 2026 |
|---|---|---|---|
| Promoter | 73.2 | 73.2 | 73.22 |
| FII | 7.35 | 0 | 0 |
| DII | 1.13 | 0 | 0 |
| Public | 18.32 | 26.8 | 26.78 |
| Others | 0 | 0 | 0 |
| Total | 100 | 100 | 100 |
| # | Mar 2025 | Sep 2025 | Mar 2026 |
|---|---|---|---|
| Promoter | 0.55 | 0.55 | 0.55 |
| FII | 0.06 | 0 | 0 |
| DII | 0.01 | 0 | 0 |
| Public | 0.14 | 0.2 | 0.2 |
| Others | 0 | 0 | 0 |
| Total | 0.75 | 0.75 | 0.75 |
* The pros and cons are machine generated.
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