SAL Steel Intrinsic Value

SALSTEEL • Metals & Mining
Current Stock Price
₹40.16
Primary Intrinsic Value
₹8.03
Market Cap
₹341.4 Cr
-35.4% Downside
Median Value
₹25.95
Value Range
₹8 - ₹31
Assessment
Trading Above Calculated Value
Safety Margin
-54.8%

SALSTEEL Valuation Methods Summary

Method Type Intrinsic Value Range Upside/Downside Details
Book Value Method asset ₹8.03 ₹7.23 - ₹8.83 -80.0% Book Value/Share: ₹4.59, P/B: 1.0x
Revenue Multiple Method revenue ₹30.96 ₹27.86 - ₹34.06 -22.9% Revenue/Share: ₹38.71, P/S: 0.8x
EBITDA Multiple Method earnings ₹16.94 ₹15.25 - ₹18.63 -57.8% EBITDA: ₹24.00Cr, EV/EBITDA: 6x
Simple DCF (5Y) dcf ₹25.95 ₹20.76 - ₹31.14 -35.4% CF Growth: 2.7%, Discount: 15%
Method Types: Earnings Asset DCF Growth Dividend Conservative

Valuation Comparison Chart

SALSTEEL Intrinsic Value Analysis

What is the intrinsic value of SALSTEEL?

Based on our comprehensive analysis using 4 different valuation methods, the estimated intrinsic value of SAL Steel (SALSTEEL) is ₹25.95 (median value). With the current market price of ₹40.16, this represents a -35.4% variance from our estimated fair value.

The valuation range spans from ₹8.03 to ₹30.96, indicating ₹8.03 - ₹30.96.

Is SALSTEEL undervalued or overvalued?

Based on our multi-method analysis, SAL Steel (SALSTEEL) appears to be trading above calculated value by approximately 35.4%.

Financial Health Analysis

Financial Metric Current Value Industry Benchmark Assessment Impact on Valuation
Current Ratio 1.28 Industry Standard: 2.0+ Below 1.5 Measures short-term liquidity capacity
Return on Equity -12.8% Industry Standard: 15%+ Below 10% Measures shareholder return efficiency
Operating Margin 3.0% Industry Standard: 20%+ Below 10% Indicates operational efficiency level
Asset Turnover Ratio 0.97x Industry Standard: 1.0x+ Above 0.5x Measures asset utilization efficiency

Cash Flow Quality Analysis

Period Operating Cash Flow Free Cash Flow Cash Flow Quality Sustainability Score
March 2025 ₹-21 Cr ₹-30 Cr Negative Cash Flow 3/10
March 2024 ₹26 Cr ₹19 Cr Positive Free Cash Flow 8/10
March 2023 ₹8 Cr ₹7 Cr Positive Free Cash Flow 8/10
March 2022 ₹22 Cr ₹22 Cr Positive Free Cash Flow 8/10
March 2021 ₹24 Cr ₹24 Cr Positive Free Cash Flow 8/10