Steelcast (STEELCAS)
CyclicalFairStock Score: 29/100 — RISKY
Score breakdown: P/E: 1/3 · ROCE: 2/2 · Growth: 1/2 · Dividend: 0/1
Key Financials
| Current Price | ₹351.85 |
| Market Cap | ₹3,560.72 Cr |
| P/E Ratio | 39.23 |
| ROCE | 32.94% |
| ROE | 31.56% |
| Dividend Yield | 0.51% |
| Profit Growth | 19.1% |
| Debt/Equity | — |
| Sales Growth | 17% |
| Promoter Holding | 45% |
| 52-Week Range | ₹176.02 — ₹364 |
| Sector | Industrial Products |
| Book Value | ₹39.03 |
Strengths
- Elite ROE of 31.56% and ROCE of 32.94% show strong capital efficiency.
- Debt/Equity N/A indicates no meaningful debt burden.
- Latest quarter net profit of ₹21 Cr on sales of ₹97 Cr demonstrates strong margins.
- Promoter holding of 45% aligns ownership with minority investors.
- Profit growth of 7.18% despite falling sales suggests cost discipline.
Concerns
- P/E of 26.20 and P/B of 9.96 leave no margin of safety.
- Sales growth is negative at -4.33%, showing weak top-line momentum.
- PEG ratio of 3.65 and FairStock Score of 21/100 point to expensive and risky valuation.
- Dividend yield of only 0.61% provides negligible income support.
AI Analysis
At first glance Steelcast looks like a wonderful business. A return on equity of 31.56% and return on capital employed of 32.94% would impress anyone, and the debt-to-equity figure being N/A suggests the company is not burdened by leverage. Promoter holding of 45% also tells me that owners have skin in the game. But investing is not about buying good businesses at any price; it is about buying good businesses at a sensible price. At ₹287.91 the market cap is ₹2,370 Cr, which is nearly ten times book value of ₹28.90 and 26.2 times earnings. That is a rich price for a company whose sales have fallen 4.33%. Profit growth of 7.18% is encouraging, but with a PEG ratio of 3.65, the current price already expects far more than the growth can justify. The latest quarter shows sales of ₹97 Cr and net profit of ₹21 Cr, so margins are strong, but castings and forgings are cyclical by nature. Such margins can compress quickly when order volumes drop. The dividend yield of just 0.61% gives me almost no cash return while I wait, and the 52-week range of ₹176 to ₹358 reminds me how much this stock can swing. The FairStock score of 21/100 calls it risky, and I agree. There is no margin of safety at this valuation. I would much rather wait for a lower market price, preferably one that gives me growth at a reasonable price, before committing capital to Steelcast.
Data from BSE/NSE filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer