Shiv Aum Steels Limited

Basic Materials — Steel · NSE

₹553.00+₹1.70 (+0.31%)

DalalBaazaar Score

39 / 100

🔴 Weak

Verdict

CAUTION

Risk

High

Driven by moderate debt load, micro-cap size, which brings thin liquidity, a very high earnings multiple, which leaves little margin for disappointment.

In simple words: The business is earning a fairly low return on the money invested in it, with both sales and profits growing well. Valuation is currently the main factor to watch.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 6:09 pm

Caution warranted. Multiple fundamental metrics — flagged in red below — point to either valuation stretch, leverage risk, or weakening profitability. This doesn't mean avoid the stock outright, but it does mean the burden of proof is on the growth story to justify the current price.

Understanding the Business

Company site ↗

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

What does this company do?

Shiv Aum Steels Limited trades in iron and steel products in India. It provides structural steel, coils, and plates. The company was founded in 1982 and is based in Mumbai, India.

IndustrySteel

SectorBasic Materials

Employees32

Annual revenue₹574 Cr

How does it make money?

Turns over ₹574 Cr a year. Of every ₹100 of sales, about ₹1 reaches shareholders as profit, with ₹3 left at the operating level before interest, tax and depreciation. Each of its 32 employees supports ₹17.92 Cr of revenue a year, the signature of a capital- or asset-led business.

EBITDA margin2.8%

Net margin1.3%

Revenue / employee₹17.92 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 12.8% 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.

ROCE12.8%

ROE6.0%

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 +16% while net margin moved -57% 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+16%

Margin effect-57%

DalalBaazaar Score

39/ 100

Weak

Weighted across six categories. Every point is explained below.

✗ P/E of 104.5x is demanding — it needs sustained high growth to justify
✗ P/E is 173% above its own historical median of 38.2x — expensive by its own standards
✗ P/B of 6.23x is a steep premium to book

Quality vs. Valuation

Company Quality

39/ 100

Weak

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

Valuation

23/ 100

Expensive

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

Weak on business quality and not cheap enough to compensate.

Historical Valuation

Current P/E

104.5x

3Y Median

38.2x

40 monthly readings · mean 40.5x · range 27.9x–78.0x

Sector Median

18.2x

median of 4 sector peers

⚠️Current valuation is approximately 173% above its 3y median of 38.2x. Paying more than usual needs a reason — faster growth, a better balance sheet, or a re-rating you believe in.

⚠️Against its sector it trades 475% above the peer median of 18.2x.

vs. its own history

Expensive

38.2x median over 40 months · +173%

vs. sector peers

Expensive

18.2x median of 4 peers · +475%

vs. generic bands

Expensive

Above 35x

P/E (Trailing)

104.5x

P/B

6.23x

EV/EBITDA

52.1x

PEG

—

Dividend Yield

None

What's Good / What's Bad

🟢 What's Going Well2

Cash generation is improving
Free cash flow is up 129% over 3 years.
Consistently profitable
Profitable in every one of the last 4 reported years.

🔴 What Needs Attention6

Margins are compressing
EBITDA margin has slipped from 5.0% to 2.8% over 3 years.
Debt is rising
Total debt is up 65% over 3 years — worth checking what it funded.
Return on equity is falling
ROE has dropped from 15.0% to 6.0% — each rupee of shareholder capital earns less than it did.
Return on capital is falling
ROCE has declined from 23.1% to 12.8% — often a sign of competition or overexpansion.
Receivables growing faster than sales
Receivables are up 101% against revenue growth of 16% — customers are taking longer to pay.
Valuation above its historical average
At 104.5x the stock trades 173% above its own median of 38.2x.

Red Flags

4 items require attention · 2 high · 2 watch

🔴Debt has risen sharplyFinancial
Total debt is up 65% over 3 years, from ₹59 Cr to ₹97 Cr.
🔴Receivables growing faster than salesFinancial
Receivables up 101% against revenue up 16% — sales are being booked faster than they are collected.
🟡Profit is decliningFinancial
Net profit is down 50% over 3 years.
🟡Margins are compressingFinancial
EBITDA margin is down 2.2 points over 3 years.

Investment Thesis

🟢 Bull CaseWhat could make this work?

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 5.0% to 2.8%. 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 6.0x EBITDA. At that level a downturn in earnings turns a manageable balance sheet into a refinancing problem, and lenders get paid before shareholders.
Sales are being booked faster than collected
Receivables are up 101% against revenue up 16%. If customers keep taking longer to pay, reported profit will not turn into cash — and write-offs follow if some never do.
The price already assumes success
The stock trades 173% above its own median multiple. At this level the business has to deliver just to stand still, and a stumble is repriced twice — lower earnings on a lower multiple.
Growth barely outpaces inflation
Revenue compounding at 5.0% 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.

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

1EBITDA margin holds above 1%✓ 2.8%
Two points below today's level — enough room for noise, tight enough to catch real compression.
2Debt / EBITDA falls below 3x✗ 6.0x
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✗ 2.2x
How much operating profit can fall before interest stops being comfortably covered.
4Revenue growth stays above 4% a year✓ 5.0% CAGR
Latest reported year was 25.2%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
5Free cash flow remains positive✓ ₹14 Cr
Profit that never becomes cash eventually stops being profit.

Investment Checklist

6 / 11 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
✓ Short-term technical trend isn't bearish

Price history

Quick Metrics

4 good · 4 neutral · 3 weak

Market Cap

₹752 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

104.5x

Expensive

Expensive — verify against sector peers

P/B Ratio

6.23x

Rich

Steep premium to book — needs high, durable returns to justify

EPS (TTM)

₹5.29

Profitable

Profitable on a per-share basis

ROE

6.0%

Weak

Weak capital efficiency

ROCE

12.8%

Moderate

Moderate return on the capital in the business

Debt/Equity

0.80x

Moderate

Moderate leverage

Revenue Growth (YoY)

25.2%

Healthy

Healthy top-line growth

Profit Growth (YoY)

149.1%

Healthy

Profits growing at a healthy clip

Dividend Yield

None

No dividend yield reported — usually means no payout, but verify if one was recently initiated

Free Cash Flow

₹14 Cr

Cash generative

Generates cash even after funding its capex

More Metrics

CMP

₹553

Operating Margin

4.7%

Weak

Thin margins leave little room for error

Net Margin

1.6%

Weak

Very little revenue reaches the bottom line

Current Ratio

2.39

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

-0.76

Defensive

Steadier than the market

52W Range Position

96%

Near high

Near its 52-week high

Technical Snapshot

SMA 20 / SMA 50

536.3 / 483.2

Bullish alignment (short > long)

Price vs SMA 200

Above

Long-term uptrend

RSI (14)

83.2

Overbought zone

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹496 Cr	₹555 Cr	₹555 Cr	₹574 Cr	+5.0%
EBITDA	₹25 Cr	₹21 Cr	₹17 Cr	₹16 Cr	-13.5%
EBITDA Margin	5.0%	3.8%	3.1%	2.8%	—
PAT (Net Profit)	₹14 Cr	₹10 Cr	₹10 Cr	₹7 Cr	-20.5%
EPS	₹10.53	₹7.69	₹7.18	—	—
ROE	15.0%	9.8%	8.4%	6.0%	—
ROCE	23.1%	17.8%	16.0%	12.8%	—
Total Debt	₹59 Cr	₹69 Cr	₹94 Cr	₹97 Cr	+18.1%
Free Cash Flow	₹6 Cr	₹10 Cr	₹6 Cr	₹14 Cr	+31.7%

🟢 Revenue has grown at 5.0% a year over 3 years.

🔴 EBITDA has shrunk at 13.5% a year over 3 years.

🔴 EBITDA Margin has fallen from 5.0% to 2.8% over 3 years (-2.2 pts).

🔴 PAT (Net Profit) has shrunk at 20.5% a year over 3 years.

🔴 ROE has fallen from 15.0% to 6.0% over 3 years (-9.0 pts).

🔴 ROCE has fallen from 23.1% to 12.8% over 3 years (-10.2 pts).

🔴 Total Debt has grown at 18.1% a year over 3 years.

🟢 Free Cash Flow has grown at 31.7% a year over 3 years.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹224 Cr

Total Liabilities

₹103 Cr

Total Debt

₹97 Cr

Cash & Equivalents

₹10 Cr

Operating Cash Flow

₹14 Cr

Capex

-₹0 Cr

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

Volume Gainers Today, October 16, 2026, at 3:30 PM IST

HDFC Sky, 16 Oct

Shiv Aum Steels Share Price Target 2027 to 2030: Analyst Outlook

Univest, 18 AugAnalyst view

🟡Mixed / dependsBroker commentary — an opinion about the price rather than new information about the business.

Volume Gainers, September 22, 2026 at 12:00 PM

HDFC Sky, 22 Sept

Shiv Aum Steels Share Price Analysis After Rs 44.50 Gain

Univest, 22 Sept

Volume Gainers, September 22, 2026 at 3:30 PM IST: Shiv Aum Steels Leads

HDFC Sky, 22 Sept

Shiv Aum Steels Ltd. Financials – Balance Sheet, Profit & Loss, Cash Flow

Value Research, 30 Aug

Watch Items

Trading very close to its 52-week high — momentum-driven entries here carry more mean-reversion risk.
Cross-check against the company's latest quarterly filing / investor presentation before acting.
RSI is in overbought territory — momentum entries here carry more short-term pullback risk.

DalalBaazaar Thesis

🔴Business QualityWeak7.5/20

🟡Financial HealthAdequate11.8/20

🔴GrowthWeak5.7/20

🔴ProfitabilityWeak4.6/15

🔴ValuationDemanding3.3/15

🟡RiskModerate5.8/10

Weak on the fundamentals

Poor scores on business quality without a price low enough to compensate. There is no obvious argument for owning this over a stronger company at a similar valuation. 2 high-severity red flags sit above this conclusion and should be read first.

This thesis breaks if

✓EBITDA margin holds above 1%2.8%
✗Debt / EBITDA falls below 3x6.0x
✗Interest cover stays above 3x2.2x
✓Revenue growth stays above 4% a year5.0% CAGR
✓Free cash flow remains positive₹14 Cr