ScoreWhy is Sunflag Iron & Steel Company Ltd ?
1
Strong ability to service debt as the company has a low Debt to EBITDA ratio of 1.10 times
2
Weak Long Term Fundamental Strength with an average Return on Capital Employed (ROCE) of 7.12%
3
Flat results in Mar 26
- PAT(Q) At Rs 34.27 cr has Fallen at -37.1% (vs previous 4Q average)
- EPS(Q) Lowest at Rs 1.90
4
Stock is technically in a Bullish range
- The technical trend has improved from Mildly Bullish on 13-May-26 and has generated -4.77% returns since then
- Multiple factors for the stock are Bullish like MACD, Bollinger Band, KST, DOW and OBV
5
With ROE of 2.4, it has a Very Expensive valuation with a 0.7 Price to Book Value
- The stock is trading at a discount compared to its peers' average historical valuations
- Over the past year, while the stock has generated a return of 31.31%, its profits have risen by 29% ; the PEG ratio of the company is 1.1
6
Despite the size of the company, domestic mutual funds hold only 0.04% of the company
- Domestic mutual funds have capability to do in-depth on-the-ground research on companies- their small stake may signify either they are not comfortable at the price or the business
Real-Time Research ReportHow much should you hold?
- Overall Portfolio exposure to Sunflag Iron should be less than 10%
- Overall Portfolio exposure to Ferrous Metals should be less than 30%
(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Ferrous Metals)
When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock
Is Sunflag Iron for you?
High Risk, High Return
Absolute
Risk Adjusted
Volatility
Sunflag Iron
31.31%
0.60
52.60%
Sensex
-4.95%
-0.37
13.26%
Quality
Management Risk
Growth
Capital StructureQuality key factors
Factor
Value
Sales Growth (5y)
15.80%
EBIT Growth (5y)
14.60%
EBIT to Interest (avg)
4.63
Debt to EBITDA (avg)
1.54
Net Debt to Equity (avg)
0.03
Sales to Capital Employed (avg)
0.70
Tax Ratio
32.73%
Dividend Payout Ratio
8.34%
Pledged Shares
0
Institutional Holding
0.58%
ROCE (avg)
7.44%
ROE (avg)
5.21%
ValuationValuation Key Factors 
Factor
Value
P/E Ratio
31
Industry P/E
26
Price to Book Value
0.73
EV to EBIT
18.64
EV to EBITDA
14.22
EV to Capital Employed
0.74
EV to Sales
1.72
PEG Ratio
1.07
Dividend Yield
0.19%
ROCE (Latest)
3.97%
ROE (Latest)
2.36%
Loading Valuation Snapshot...
TechnicalsTechnical key factors
Indicator
Weekly
Monthly
MACD
Bullish
Bullish
RSI
No Signal
No Signal
Bollinger Bands
Bullish
Mildly Bullish
Moving Averages
Bullish (Daily)
KST
Bullish
Mildly Bearish
Dow Theory
Mildly Bearish
Bullish
OBV
Mildly Bearish
Bullish
Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned 
Financial Trend0What is working for the Company
NO KEY POSITIVE TRIGGERS
-4What is not working for the Company
PAT(Q)
At Rs 34.27 cr has Fallen at -37.1% (vs previous 4Q average
EPS(Q)
Lowest at Rs 1.90
Loading Valuation Snapshot...
Here's what is not working for Sunflag Iron
Profit After Tax (PAT) - Quarterly
At Rs 34.27 cr has Fallen at -37.1% (vs previous 4Q average)
over average PAT of the previous four quarters of Rs 54.50 CrMOJO Watch
Near term PAT trend is very negative
PAT (Rs Cr)
Earnings per Share (EPS) - Quarterly
Lowest at Rs 1.90
in the last five quartersMOJO Watch
Declining profitability; company has created lower earnings for shareholders
EPS (Rs)
