Steelcast (STEELCAS)

FairStock Score: 29/100 — RISKY

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

Key Financials

AI Analysis

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

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.

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