Steel City Sec. (STEELCITY)
CyclicalScore breakdown: P/E: 3/3 · ROCE: 1/2 · Growth: 0/2 · Dividend: 1/1
Key Financials
| Current Price | ₹83.53 |
| Market Cap | ₹126.19 Cr |
| P/E Ratio | 8.83 |
| ROCE | 18.2% |
| ROE | —% |
| Dividend Yield | 4.79% |
| Profit Growth | 66.7% |
| Debt/Equity | 0.07 |
| Sales Growth | 27.3% |
| Promoter Holding | 74.7% |
| 52-Week Range | ₹71.26 — ₹105.57 |
| Sector | Capital Markets |
| Book Value | ₹91.35 |
Strengths
- Trades below book value: P/B 0.97 with price ₹85.48 against book value ₹88.38.
- Conservative balance sheet with debt/equity of only 0.09.
- Attractive dividend yield of 4.58% for a stock near book value.
- ROCE of 18.20% shows decent capital efficiency despite a downcycle.
- High promoter holding of 74.70% aligns management with minority shareholders.
Concerns
- Sales declined 6.14% and profit declined 23.30%, showing deteriorating fundamentals.
- Piotroski F-Score of 3/9 signals weak financial health and possible red flags.
- Stockbroking is a highly competitive, cyclical business without a durable moat.
- ROE is not available, and the latest quarter's profitability may not be sustainable across market cycles.
AI Analysis
Even at a glance, Steel City Sec looks like a Graham-style bargain: price ₹85.48 versus book value of ₹88.38, a P/E of 9.53 and a dividend yield of 4.58%. But a low multiple is not enough. Stockbroking is a competitive, volume-driven business. I see sales fell 6.14% and profits dropped 23.30%. That is not a compounding machine. The Piotroski F-score of 3/9 confirms weak fundamentals, and I cannot ignore deteriorating profitability. On the positive side, the balance sheet is conservative with debt/equity only 0.09 and ROCE at 18.20%. The promoter stake of 74.70% aligns owners and shareholders. The latest quarter shows ₹15 Cr sales and ₹4 Cr net profit; if that quarterly profit were maintained, the stock would look cheaper than the trailing numbers suggest. But stockbroking revenues are volatile. My rule is to pay a fair price for a wonderful business, not a cheap price for a mediocre one. This may be an asset-backed cigar butt with one puff left, not a long-term compounder. I would not call it a stalwart. It is a cyclical. I want to see whether declining sales and profit reverse, whether the dividend remains safely covered, and whether the F-score improves. Until then, the margin of safety from book value is interesting, but value traps are common in this sector. I would wait for evidence of stabilisation before committing capital.
Data from BSE/NSE filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer