Beekay Steel Industries Limited

Basic Materials — Steel · NSE

₹423.45+₹0.20 (+0.05%)

DalalBaazaar Score

48 / 100

🟡 Moderate

Verdict

NEUTRAL

Risk

Moderate

Driven by micro-cap size, which brings thin liquidity.

In simple words: The business is earning a fairly low return on the money invested in it, with both sales and profits growing well. Nothing on this snapshot stands out as an immediate concern — the usual checks on business quality and management still apply.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 6:08 pm

Mixed / neutral. No major red flags jump out, but nothing here screams "obviously cheap" either. This is a name that needs a peer comparison and a view on near-term earnings triggers before sizing a position.

Understanding the Business

Company site ↗

The 60-second version of Beekay Steel Industries Limited — what it does, how it earns, and who it competes with, before any of the numbers below.

What does this company do?

Beekay Steel Industries Limited manufactures and sells steel products for the railway, infrastructure, housing, automobile, and engineering sectors in India. The company offers flat, round, square, round corner square, hexagonal, octagonal, and trapezium sections.

IndustrySteel

SectorBasic Materials

Employees1,023

Annual revenue₹1,113 Cr

How does it make money?

Turns over ₹1,113 Cr a year. Of every ₹100 of sales, about ₹3 reaches shareholders as profit, with ₹9 left at the operating level before interest, tax and depreciation. Each of its 1,023 employees supports ₹1.09 Cr of revenue a year, the signature of a capital- or asset-led business.

EBITDA margin8.8%

Net margin3.3%

Revenue / employee₹1.09 Cr

Who are its competitors?

The closest listed comparisons in its industry are TATA STEEL LIMITED, JSW STEEL LIMITED, JINDAL STEEL LIMITED, STEEL AUTHORITY OF INDIA. These are the companies its valuation and returns are measured against elsewhere in this report.

TATA STEEL LIMITEDP/E 19.8x · ROE 10.8%

JSW STEEL LIMITEDP/E 12.0x · ROE 24.7%

JINDAL STEEL LIMITEDP/E 39.1x · ROE 5.3%

STEEL AUTHORITY OF INDIAP/E 16.5x · ROE 7.1%

What is its competitive advantage?Little sign of one

Returns on capital of 6.4% are at or below what the capital likely costs. That is the financial pattern of a business competing largely on price, where advantage has to come from execution rather than position.

ROCE6.4%

ROE3.5%

Peer median ROE10.8%

What has been driving growth?

Profit has moved mainly because margins changed, not because the business sold much more. Over 3 years revenue moved +7% while net margin moved -68% relative to itself. What this cannot tell you is which products, customers or geographies did the work — that lives in the segment disclosures of the annual report.

Revenue effect+7%

Margin effect-68%

DalalBaazaar Score

48/ 100

Moderate

Weighted across six categories. Every point is explained below.

✗ Revenue CAGR of only 2.3% — barely ahead of inflation
✗ Profit has declined at 30.0% a year

Quality vs. Valuation

Company Quality

42/ 100

Weak

How good the business is, ignoring the share price entirely.

Valuation

68/ 100

Cheap

What you are being asked to pay, ignoring how good the business is.

Optically cheap, but the underlying business scores poorly. Cheap-and-weak is what a value trap looks like from the outside — the low price may be deserved.

Historical Valuation

Current P/E

18.8x

Sector Median

18.2x

median of 4 sector peers

🟡Against its sector it is priced broadly in line with the peer median of 18.2x.

vs. its own history

Not enough price and earnings history

vs. sector peers

Fair

18.2x median of 4 peers · +3%

vs. generic bands

Fair

15x–35x

P/E (Trailing)

18.8x

P/B

0.75x

EV/EBITDA

11.6x

PEG

0.85

Dividend Yield

0.24%

What's Good / What's Bad

🟢 What's Going Well1

Consistently profitable
Profitable in every one of the last 4 reported years.

🔴 What Needs Attention5

Margins are compressing
EBITDA margin has slipped from 16.4% to 8.8% over 3 years.
Debt is rising
Total debt is up 35% over 3 years — worth checking what it funded.
Return on equity is falling
ROE has dropped from 13.1% to 3.5% — each rupee of shareholder capital earns less than it did.
Return on capital is falling
ROCE has declined from 15.8% to 6.4% — often a sign of competition or overexpansion.
Inventory building faster than sales
Inventory is up 46% against revenue growth of 7% — stock may not be moving.

Red Flags

5 items require attention · 1 high · 4 watch

🔴Significant margin compressionFinancial
EBITDA margin has fallen 7.5 points, from 16.4% to 8.8%.
🟡Debt is increasingFinancial
Total debt is up 35% over 3 years.
🟡Interest coverage is deterioratingFinancial
Cover has fallen from 7.6x to 3.1x.
🟡Profit is decliningFinancial
Net profit is down 66% over 3 years.
🟡Inventory building faster than salesFinancial
Inventory up 46% against revenue up 7% — stock may not be moving.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Self-funding with balance-sheet headroom
Positive free cash flow of ₹41 Cr alongside low debt means growth, buybacks or dividends need no outside money — and a downturn can be absorbed rather than refinanced.
Earnings have proved durable
Profitable in every one of the last 4 reported years. Consistency lowers the risk that any single bad year is structural rather than cyclical.

🔴 Bear CaseWhat could go wrong?

Margins are being competed away
EBITDA margin has fallen from 16.4% to 8.8%. If the trend continues, profit falls even on flat sales — and margin decline rarely reverses quickly.
The debt load needs earnings to hold up
Debt is 3.4x EBITDA. At that level a downturn in earnings turns a manageable balance sheet into a refinancing problem, and lenders get paid before shareholders.
Growth barely outpaces inflation
Revenue compounding at 2.3% a year is close to the rate prices rise, so the business is gaining little ground in real terms. That leaves the share price dependent on a re-rating rather than on earnings growth.
Returns on shareholder capital are falling
ROE has dropped from 13.1% to 3.5%. Each rupee of equity earns less than it did, so profit growth increasingly depends on raising more capital rather than on the existing base working harder.
Size brings its own risk
Micro Cap businesses are thinly traded, so exits are harder in a falling market and single events move the price more than they would for a larger company.

🟡 Key Things to WatchMeasurable tripwires, set against where this company stands today

1EBITDA margin holds above 7%✓ 8.8%
Two points below today's level — enough room for noise, tight enough to catch real compression.
2Debt / EBITDA falls below 3x✗ 3.4x
Already stretched, so this is a reduction target rather than a level to hold. Around 3x is where lenders typically start attaching conditions.
3Interest cover stays above 3x✓ 3.1x
How much operating profit can fall before interest stops being comfortably covered.
4Revenue growth stays above 4% a year✗ 2.3% CAGR
Latest reported year was 32.5%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
5Free cash flow remains positive✓ ₹41 Cr
Profit that never becomes cash eventually stops being profit.

Investment Checklist

7 / 10 checks passed

✗ Strong return on equity (ROE ≥ 15%)
✗ Strong return on capital employed (ROCE ≥ 15%)
✗ Healthy net margin (≥ 10%)
✓ Generates positive free cash flow
✓ Manageable leverage (Debt/Equity < 1.0)
✓ Adequate short-term liquidity (Current Ratio ≥ 1.0)
✓ Revenue growing year-over-year
✓ Profit growing year-over-year
✓ Not trading at an extreme valuation (P/E < 40x)
✓ Not buying right at the 52-week high

Price history

Quick Metrics

6 good · 3 neutral · 2 weak

Market Cap

₹808 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

18.8x

Fair

Fairly valued against the generic band

P/B Ratio

0.75x

Reasonable

Reasonable against the company's book value

EPS (TTM)

₹22.57

Profitable

Profitable on a per-share basis

ROE

3.5%

Weak

Weak capital efficiency

ROCE

6.4%

Weak

Low return on total capital employed

Debt/Equity

0.32x

Low

Conservative leverage

Revenue Growth (YoY)

32.5%

Healthy

Healthy top-line growth

Profit Growth (YoY)

22.2%

Healthy

Profits growing at a healthy clip

Dividend Yield

0.24%

Modest

Small cash return — most of the return has to come from the price

Free Cash Flow

₹41 Cr

Cash generative

Generates cash even after funding its capex

More Metrics

CMP

₹423.45

Operating Margin

8.0%

Average

Average margins

Net Margin

3.4%

Average

Average bottom-line conversion

Current Ratio

1.63

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

0.37

Defensive

Steadier than the market

52W Range Position

37%

Mid-range

Technical Snapshot

RSI (14)

48.3

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹1,040 Cr	₹931 Cr	₹1,007 Cr	₹1,113 Cr	+2.3%
EBITDA	₹170 Cr	₹141 Cr	₹126 Cr	₹98 Cr	-16.7%
EBITDA Margin	16.4%	15.2%	12.5%	8.8%	—
PAT (Net Profit)	₹106 Cr	₹130 Cr	₹89 Cr	₹36 Cr	-30.0%
EPS	₹55.6	₹68.36	₹46.44	₹18.94	-30.2%
ROE	13.1%	13.9%	8.8%	3.5%	—
ROCE	15.8%	15.0%	11.3%	6.4%	—
Total Debt	₹246 Cr	₹246 Cr	₹299 Cr	₹332 Cr	+10.5%
Free Cash Flow	₹121 Cr	-₹29 Cr	₹38 Cr	₹41 Cr	-30.4%

🟢 Revenue has grown at 2.3% a year over 3 years.

🔴 EBITDA has shrunk at 16.7% a year over 3 years.

🔴 EBITDA Margin has fallen from 16.4% to 8.8% over 3 years (-7.5 pts).

🔴 PAT (Net Profit) has shrunk at 30.0% a year over 3 years.

🔴 EPS has shrunk at 30.2% a year over 3 years.

🔴 ROE has fallen from 13.1% to 3.5% over 3 years (-9.6 pts).

🔴 ROCE has fallen from 15.8% to 6.4% over 3 years (-9.5 pts).

🔴 Total Debt has grown at 10.5% a year over 3 years.

🔴 Free Cash Flow has shrunk at 30.4% a year over 3 years.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹1,547 Cr

Total Liabilities

₹500 Cr

Total Debt

₹332 Cr

Cash & Equivalents

₹0 Cr

Operating Cash Flow

₹146 Cr

Capex

-₹105 Cr

Shareholding (proxy)

Institutional Holding

0.0%

Insider Holding

86.4%

Corporate Actions

Dividend Rate

₹1

Ex-Dividend Date

22 Sept 2026

Peer Comparison

Company	P/E	ROE
TATA STEEL LIMITED	19.8x	10.8%
JSW STEEL LIMITED	12.0x	24.7%
JINDAL STEEL LIMITED	39.1x	5.3%
STEEL AUTHORITY OF INDIA	16.5x	7.1%

Recent News

1 mixed5 general

Beekay Steel Industries Ltd: Valuation Shifts Signal Renewed Price Attractiveness

MarketsMojo, 18 Oct

Beekay Steel Industries Ltd. Key Financial Ratios – Valuation, Profitability & More

Value Research, 04 Sept

Beekay Steel Industries Ltd Technical Momentum Shifts Amid Market Volatility

MarketsMojo, 15 Oct

Beekay Steel Industries Confirms Non-Larger Entity Status for FY 2025-26

scanx.trade, 03 Apr

Beekay Steel Industries Q4 FY26 Results: Loss Rs 20 Cr, Revenue Rs 339 Crore

Univest, 18 MayResults

🟡Mixed / dependsA results event. The figures on this page update once the new statements reach the data feed, which usually lags the announcement.

Beekay Steel Industries Ltd. Share Price Live Today

CNBC TV18, 03 Jan

Watch Items

Cross-check against the company's latest quarterly filing / investor presentation before acting.

DalalBaazaar Thesis

🔴Business QualityWeak5.9/20

🟢Financial HealthStrong16.3/20

🔴GrowthWeak5/20

🔴ProfitabilityWeak4.6/15

🟢ValuationAttractive11.3/15

🟡RiskModerate5.2/10

Cheap, but for a reason

The low price is the whole case here, and the business underneath scores poorly. Cheap-and-weak is what a value trap looks like from the outside — it needs a specific reason the numbers are about to improve, not just the observation that they are low. 1 high-severity red flag sits above this conclusion and should be read first.

This thesis breaks if

✓EBITDA margin holds above 7%8.8%
✗Debt / EBITDA falls below 3x3.4x
✓Interest cover stays above 3x3.1x
✗Revenue growth stays above 4% a year2.3% CAGR
✓Free cash flow remains positive₹41 Cr