Suraj Products (518075)

FairStock Score: 24/100 — RISKY

Score breakdown: P/E: 2/3 · ROCE: 1/2 · Growth: 1/2 · Dividend: 0/1

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

I look for durable moats, honest returns, and a price that leaves a margin of safety. Suraj Products in iron and steel products shows some respectable operating numbers: ROCE 17.45% and ROE 11.38%. A Piotroski F-Score of 6/9 suggests the financials are not fragile. But growth is nearly absent: sales declined 2.56%, profit rose just 1.25%, and five-year revenue CAGR is only 6.88%. For a commodity-linked steel-products business, that is not a compounding machine. Valuation is the bigger issue. At ₹664.45, market cap ₹771 Cr, P/E 17.29 and P/B 5.31 against book value ₹125.08. The PEG ratio of 13.83 tells me earnings growth does not justify that P/E. Dividend yield is only 0.86%, so there is little income support. The stock is at its 52-week high, with range ₹156.20–₹664.45, meaning optimism has run far ahead of fundamentals. Latest quarter sales ₹66 Cr and net profit ₹4 Cr show positive earnings but a thin margin typical of steel products. Debt/equity is N/A, so I cannot confirm balance-sheet safety. Promoter holding is also N/A, limiting governance comfort. FairStock score 24/100 (RISKY) reinforces caution. If I owned it, I would watch ROCE, sales growth, and margins. Without a durable moat or accelerating profits, I would not pay 5.3 times book and 17.3 times earnings. Graham would demand a margin of safety; here the price is at a peak and growth is flat. I would pass, or only watch.

The full AI analysis, bull and bear case and key monitorables are in FairStock Pro.

Data from BSE/NSE filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer