WEBSITE BSE:531638 NSE: SURAJ LTD Inc. Year: 2005 Industry: Steel & Iron Products My Bucket: Add Stock
Last updated: 15:46
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1. Business Overview
Suraj Ltd. operates in the Steel & Iron Products sector in India. Its core business involves the manufacturing, processing, and/or trading of various steel and iron products. The company likely caters to a diverse set of customers, including those in construction, infrastructure development, automotive, manufacturing, and general engineering sectors. Revenue is primarily generated through the sale of these products, with profitability driven by managing raw material costs, operational efficiencies, and product pricing relative to market demand.
2. Key Segments / Revenue Mix
Specific key segments or a detailed revenue mix for Suraj Ltd. are not provided. Given its industry, potential segments could include:
Primary Steel Products (e.g., billets, slabs)
Flat Products (e.g., sheets, plates, coils)
Long Products (e.g., rebar, wire rods, structural steel)
Specialty Steel Products (e.g., alloy steel, stainless steel)
Iron Castings or Forgings
Without specific data, it is not possible to quantify the contribution of each potential segment.
3. Industry & Positioning
The Indian steel industry is one of the largest globally, characterized by its cyclical nature, high capital intensity, and sensitivity to economic growth. It consists of large integrated players (e.g., Tata Steel, JSW Steel, SAIL), mid-sized producers, and numerous smaller, often regional, players. Suraj Ltd., as an individual entity without scale or market share information, likely positions itself as a mid-sized to smaller player, potentially focusing on specific product categories, regional markets, or operational efficiencies to compete against larger, more diversified players and a fragmented unorganized sector. The industry is highly competitive, driven by pricing, product quality, and supply chain efficiency.
4. Competitive Advantage (Moat)
Without specific details, Suraj Ltd.'s competitive advantages are likely operational rather than structural. In the highly commoditized steel industry, strong moats are challenging for smaller players to establish. Potential advantages could include:
Cost Efficiency: Lean operations, favorable raw material sourcing, or efficient energy consumption.
Regional Dominance: Strong market presence and distribution network within a specific geographic area.
Product Specialization: Expertise in producing niche or high-quality specific steel/iron products.
Customer Relationships: Strong, long-standing relationships with key industrial clients.
A brand-based moat is less common in this B2B commodity-driven sector, and significant scale or network effects are usually reserved for the largest integrated producers.
5. Growth Drivers
Key factors that could drive Suraj Ltd.'s growth over the next 3-5 years include:
Government Infrastructure Spending: Significant public investment in roads, railways, ports, and urban development.
Real Estate & Construction Sector Growth: Increasing demand for residential and commercial spaces driven by urbanization and economic growth.
Manufacturing Sector Expansion: Growth in industries like automotive, capital goods, and consumer durables.
Increasing Per Capita Steel Consumption: India's per capita steel consumption is still below the global average, indicating headroom for growth.
Export Opportunities: Leveraging competitive production costs to access international markets, subject to global demand and trade policies.
6. Risks
Commodity Price Volatility: Fluctuations in prices of raw materials (iron ore, coking coal, energy) and finished steel products directly impact profitability.
Cyclicality of Demand: The steel industry is highly sensitive to economic cycles, with downturns leading to reduced demand and pricing pressure.
High Capital Intensity & Debt: Steel production requires significant capital expenditure, making companies vulnerable to interest rate changes and balance sheet stress.
Import Competition: Cheaper imports can put pressure on domestic steel prices and margins.
Environmental Regulations: Stricter environmental norms can lead to increased compliance costs and operational challenges.
Supply Chain Disruptions: Geopolitical events or logistics issues can disrupt raw material availability or product delivery.
7. Management & Ownership
Specific information on Suraj Ltd.'s promoters, management quality, or ownership structure is not provided. In many Indian companies, a promoter group often holds a significant stake and plays a crucial role in strategic decision-making. The quality of management would be assessed based on their experience, financial prudence, strategic vision, and corporate governance practices, none of which can be evaluated without further information.
8. Outlook
Suraj Ltd., as a participant in India's Steel & Iron Products sector, is poised to benefit from India's robust long-term economic growth drivers, particularly in infrastructure and construction. The government's continued focus on 'Make in India' and infrastructure development presents a tailwind for domestic steel demand.
However, the company operates in a highly competitive and cyclical industry. Profitability will be subject to the volatile swings in raw material costs and finished product prices. Without a strong, discernible competitive moat, Suraj Ltd. may face challenges in sustaining superior margins over the long term, relying heavily on operational efficiency, prudent financial management, and effective market positioning. Its performance will be closely tied to broader macroeconomic trends and the company's ability to navigate the inherent volatility of the commodity market.
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Market Cap ₹424 Cr.
Stock P/E 31.9
P/B 3.1
Current Price ₹231.1
Book Value ₹ 75
Face Value 10
52W High ₹434.3
Dividend Yield 0.65%
52W Low ₹ 202
Price goes above X
Price falls below X
PE goes above X
PE falls below X
₹ | |
| #(Fig in Cr.) | Dec 2023 | Mar 2024 | Jun 2024 | Sep 2024 | Dec 2024 | Mar 2025 | Jun 2025 | Sep 2025 | Dec 2025 | Mar 2026 |
|---|---|---|---|---|---|---|---|---|---|---|
| Net Sales | 93 | 76 | 55 | 57 | 64 | 59 | 50 | 50 | 62 | 43 |
| Other Income | 1 | 1 | 0 | 2 | 1 | 2 | 1 | 1 | 1 | 3 |
| Total Income | 94 | 78 | 55 | 58 | 64 | 60 | 52 | 51 | 63 | 46 |
| Total Expenditure | 82 | 65 | 46 | 48 | 51 | 61 | 45 | 47 | 57 | 41 |
| Operating Profit | 12 | 13 | 10 | 10 | 14 | -1 | 6 | 5 | 6 | 5 |
| Interest | 1 | 1 | 1 | 1 | 1 | 2 | 1 | 1 | 1 | 1 |
| Depreciation | 2 | 3 | 3 | 3 | 3 | 3 | 3 | 3 | 3 | -1 |
| Exceptional Income / Expenses | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Profit Before Tax | 9 | 9 | 6 | 7 | 10 | -5 | 2 | 1 | 2 | 5 |
| Provision for Tax | 3 | 3 | 2 | 2 | 3 | -2 | 1 | 1 | 1 | 1 |
| Profit After Tax | 6 | 6 | 4 | 5 | 7 | -4 | 2 | 1 | 1 | 4 |
| Adjustments | 0 | 0 | 1 | 2 | 0 | -2 | 1 | 0 | 0 | -1 |
| Profit After Adjustments | 7 | 6 | 6 | 6 | 7 | -6 | 3 | 1 | 1 | 3 |
| Adjusted Earnings Per Share | 3.7 | 3.3 | 3.1 | 3.5 | 3.8 | -3.2 | 1.5 | 0.5 | 0.7 | 1.4 |
| #(Fig in Cr.) | Mar 2018 | Mar 2019 | Mar 2024 | Mar 2025 | TTM |
|---|---|---|---|---|---|
| Net Sales | 207 | 182 | 331 | 234 | 205 |
| Other Income | 4 | 0 | 3 | 4 | 6 |
| Total Income | 211 | 182 | 334 | 238 | 212 |
| Total Expenditure | 194 | 164 | 291 | 205 | 190 |
| Operating Profit | 17 | 18 | 43 | 33 | 22 |
| Interest | 10 | 10 | 4 | 5 | 4 |
| Depreciation | 6 | 7 | 9 | 11 | 8 |
| Exceptional Income / Expenses | 0 | 0 | 0 | 0 | 0 |
| Profit Before Tax | 1 | 1 | 31 | 18 | 10 |
| Provision for Tax | 1 | -0 | 9 | 5 | 4 |
| Profit After Tax | 0 | 1 | 22 | 13 | 8 |
| Adjustments | 0 | -0 | 0 | 0 | 0 |
| Profit After Adjustments | 0 | 1 | 22 | 13 | 8 |
| Adjusted Earnings Per Share | 0.2 | 0.7 | 11.7 | 7.2 | 4.1 |
| # | 1 Year | 3 Year | 5 Year | 10 Year |
|---|---|---|---|---|
| Sales CAGR | -29% | 4% | 0% | 0% |
| Operating Profit CAGR | -23% | 25% | 0% | 0% |
| PAT CAGR | -41% | 0% | 0% | 0% |
| # | 1 Year | 3 Year | 5 Year | 10 Year |
|---|---|---|---|---|
| Share Price CAGR | -42% | 25% | 38% | 18% |
| ROE Average | 10% | 11% | 8% | 8% |
| ROCE Average | 13% | 13% | 12% | 12% |
| #(Fig in Cr.) | Mar 2018 | Mar 2019 | Mar 2024 | Mar 2025 |
|---|---|---|---|---|
| Shareholder's Funds | 85 | 87 | 123 | 133 |
| Minority's Interest | 0 | 0 | 0 | 0 |
| Borrowings | 0 | 0 | 0 | 0 |
| Other Non-Current Liabilities | 3 | 1 | 1 | 2 |
| Total Current Liabilities | 125 | 109 | 62 | 87 |
| Total Liabilities | 213 | 198 | 186 | 222 |
| Fixed Assets | 61 | 57 | 85 | 89 |
| Other Non-Current Assets | 0 | 0 | 29 | 26 |
| Total Current Assets | 153 | 141 | 72 | 107 |
| Total Assets | 213 | 198 | 186 | 222 |
| #(Fig in Cr.) | Mar 2018 | Mar 2019 | Mar 2024 | Mar 2025 |
|---|---|---|---|---|
| Opening Cash & Cash Equivalents | 5 | 4 | 1 | 0 |
| Cash Flow from Operating Activities | 14 | 27 | 41 | -9 |
| Cash Flow from Investing Activities | -1 | -2 | -47 | -14 |
| Cash Flow from Financing Activities | -14 | -24 | 6 | 23 |
| Net Cash Inflow / Outflow | -1 | 1 | -0 | -0 |
| Closing Cash & Cash Equivalent | 4 | 5 | 0 | 0 |
| # | Mar 2018 | Mar 2019 | Mar 2024 | Mar 2025 |
|---|---|---|---|---|
| Earnings Per Share (Rs) | 0.19 | 0.73 | 11.72 | 7.25 |
| CEPS(Rs) | 3.5 | 4.16 | 16.83 | 13.18 |
| DPS(Rs) | 0 | 0 | 1.5 | 1.5 |
| Book NAV/Share(Rs) | 44.38 | 45.12 | 66.72 | 72.44 |
| Core EBITDA Margin(%) | 6.25 | 9.65 | 11.94 | 12.1 |
| EBIT Margin(%) | 5.04 | 6.26 | 10.4 | 9.93 |
| Pre Tax Margin(%) | 0.46 | 0.53 | 9.29 | 7.91 |
| PAT Margin (%) | 0.17 | 0.78 | 6.51 | 5.69 |
| Cash Profit Margin (%) | 3.25 | 4.41 | 9.35 | 10.35 |
| ROA(%) | 0.2 | 0.69 | 11.23 | 6.52 |
| ROE(%) | 0.58 | 1.64 | 20.55 | 10.41 |
| ROCE(%) | 6.93 | 5.94 | 20.14 | 13.14 |
| Receivable days | 53.51 | 72.79 | 35.76 | 52.34 |
| Inventory Days | 127.72 | 173.4 | 59.8 | 59.74 |
| Payable days | 33.14 | 18.61 | 15.51 | 32.87 |
| PER(x) | 239.2 | 49.03 | 18.61 | 52.46 |
| Price/Book(x) | 1.01 | 0.8 | 3.27 | 5.25 |
| Dividend Yield(%) | 0 | 0 | 0.69 | 0.39 |
| EV/Net Sales(x) | 0.94 | 0.9 | 1.31 | 3.26 |
| EV/Core EBITDA(x) | 11.54 | 9.08 | 10.11 | 23.43 |
| Net Sales Growth(%) | -11 | -12.43 | 82.14 | -29.31 |
| EBIT Growth(%) | -45.4 | 8.84 | 202.57 | -32.54 |
| PAT Growth(%) | -95.8 | 304.74 | 1418.56 | -38.19 |
| EPS Growth(%) | -96.18 | 291.63 | 1496.17 | -38.19 |
| Debt/Equity(x) | 1.31 | 1.13 | 0.27 | 0.48 |
| Current Ratio(x) | 1.22 | 1.29 | 1.16 | 1.23 |
| Quick Ratio(x) | 0.51 | 0.52 | 0.77 | 0.63 |
| Interest Cover(x) | 1.1 | 1.09 | 9.37 | 4.92 |
| Total Debt/Mcap(x) | 1.3 | 1.42 | 0.08 | 0.09 |
| # | Dec 2023 | Mar 2024 | Jun 2024 | Sep 2024 | Dec 2024 | Mar 2025 | Jun 2025 | Sep 2025 | Dec 2025 | Mar 2026 |
|---|---|---|---|---|---|---|---|---|---|---|
| Promoter | 75 | 75 | 75 | 75 | 75 | 75 | 75 | 75 | 75 | 75 |
| FII | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0.02 | 0 | 0 |
| DII | 0.38 | 0.38 | 0.38 | 0.38 | 0.38 | 0.38 | 0 | 0 | 0 | 0 |
| Public | 24.62 | 24.62 | 24.62 | 24.62 | 24.62 | 24.62 | 25 | 24.99 | 25 | 25 |
| Others | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Total | 100 | 100 | 100 | 100 | 100 | 100 | 100 | 100 | 100 | 100 |
| # | Dec 2023 | Mar 2024 | Jun 2024 | Sep 2024 | Dec 2024 | Mar 2025 | Jun 2025 | Sep 2025 | Dec 2025 | Mar 2026 |
|---|---|---|---|---|---|---|---|---|---|---|
| Promoter | 1.38 | 1.38 | 1.38 | 1.38 | 1.38 | 1.38 | 1.38 | 1.38 | 1.38 | 1.38 |
| FII | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| DII | 0.01 | 0.01 | 0.01 | 0.01 | 0.01 | 0.01 | 0 | 0 | 0 | 0 |
| Public | 0.45 | 0.45 | 0.45 | 0.45 | 0.45 | 0.45 | 0.46 | 0.46 | 0.46 | 0.46 |
| Others | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Total | 1.84 | 1.84 | 1.84 | 1.84 | 1.84 | 1.84 | 1.84 | 1.84 | 1.84 | 1.84 |
* The pros and cons are machine generated.
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