S.A.L Steel (SALSTEEL)
TurnaroundScore breakdown: P/E: 0/3 · ROCE: 0/2 · Growth: 0/2 · Dividend: 0/1
Key Financials
| Current Price | ₹66.42 |
| Market Cap | ₹961.54 Cr |
| P/E Ratio | 0 |
| ROCE | 7.05% |
| ROE | -0.38% |
| Dividend Yield | 0% |
| Profit Growth | -461.64% |
| Debt/Equity | 2.38 |
| Sales Growth | -89.7% |
| Promoter Holding | 70.98% |
| 52-Week Range | ₹26.1 — ₹86.32 |
| Sector | Ferrous Metals |
| Book Value | ₹10.06 |
Strengths
- Promoter holding is high at 70.98%, indicating strong insider ownership.
- Latest quarter reported a net profit of ₹7 Cr, albeit on very low sales.
- ROCE is positive at 7.05%, showing some return on capital employed.
- Stock has recovered sharply from its 52-week low of ₹15.18, reflecting market interest.
Concerns
- Sales collapsed by 98.86%, with latest quarterly revenue of only ₹2 Cr.
- Debt/Equity is extremely high at 6.05, creating solvency risk.
- ROE is deeply negative at -11.71%, destroying shareholder equity.
- Valuation is expensive: P/B of 17.65 against book value of ₹3.20, with zero dividend and poor Piotroski F-Score of 3/9.
AI Analysis
Let's start with the obvious: this is not a business I can understand as a going concern. Sales growth is -98.86%, and the latest quarter shows sales of just ₹2 Cr. A ₹680 Cr market cap sitting on top of that is speculation, not investing. Book value is only ₹3.20 per share, so the market is paying 17.65 times book for a company with negative ROE of -11.71%. Where is the margin of safety? I don't see it. Debt/Equity of 6.05 is alarming. In a cyclical sponge iron business, that level of leverage can destroy equity when prices stay low. ROCE of 7.05% is nowhere near enough to compensate for that debt. The Piotroski F-Score of 3/9 reinforces the picture of weak financial health. Promoter holding at 70.98% shows skin in the game, but even aligned promoters cannot wish away a collapsed revenue base. The latest quarter net profit of ₹7 Cr against ₹2 Cr in sales is not convincing; it appears to be non-operating or exceptional in nature, not core business earnings. P/E of 0.00 tells me current earnings are meaningless. As Graham would say, price is what you pay, value is what you get. Here, I get enormous risk and a balance sheet that can sink the equity. I would need proof of debt reduction, a meaningful revival in sales, and several quarters of genuine operational profit before this becomes investable. Until then, it is a speculative turnaround, not a value investment.
Data from BSE/NSE filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer