Surya Roshni (SURYAROSNI)

FairStock Score: 42/100 — MIXED

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

Key Financials

Strengths

• Low debt-to-equity of 0.05 provides balance sheet strength to withstand steel cycles
• ROCE of 20.70% and ROE of 14.00% show respectable capital efficiency
• Promoter holding of 62.89% aligns management with minority shareholders
• Dividend yield of 1.90% offers modest income while waiting
• Large quarterly revenue base of ₹1,927 Cr indicates established operations

Concerns

• Profit growth is negative at -11.38% while sales growth is only 3.19%
• Piotroski F-Score of 4/9 points to deteriorating financial health
• PEG of 4.81 indicates the valuation is not supported by growth
• FairStock Score of 21/100 flags the stock as risky

AI Analysis

At ₹240.72, Surya Roshni is not a business I would mistake for a great franchise. It operates in iron and steel products, a commodity world where pricing is set by the market, not by the company. There is no durable moat here. The last twelve months tell a sobering story: sales grew only 3.19% while profits fell 11.38%. That is not the signature of a compounding machine. In the latest quarter, revenue was ₹1,927 Cr and net profit ₹80 Cr, decent but not thrilling for a ₹4,871 Cr market cap. The balance sheet is the one genuinely comforting item. Debt-to-equity is just 0.05, and promoter holding is 62.89%. Return on capital employed is 20.70% and return on equity is 14.00%, respectable for a cyclical. But the Piotroski F-score of 4 out of 9 warns that financial health is weakening. The dividend yield of 1.90% gives some comfort, while the 52-week range of ₹187.35 to ₹314.50 reminds me that sentiment can shift sharply. Valuation? At 15.35 times earnings and 2.27 times book value, the market is paying up for a commodity business with barely any growth. Book value stands at ₹106.07, so you are paying ₹240.72 for every ₹106.07 of net worth. The PEG ratio of 4.81 says the opposite of growth: expansion has stalled, and the FairStock score of 21/100 labels this risky. For a cyclical, I prefer to buy when margins are depressed and Mr. Market is fearful. Here profits are slipping while the price remains well off the low. This looks like a Cyclical, not a Stalwart. I would wait for better evidence of margin recovery and a lower price before investing. In steel, patience is a competitive advantage.

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