Steelcast Limited

Basic Materials — Steel · NSE

₹356.00+₹6.55 (+1.87%)

DalalBaazaar Score

59 / 100

🟡 Moderate

Verdict

NEUTRAL

Risk

Moderate

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

In simple words: Strong business and financial position, 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 Steelcast Limited — what it does, how it earns, and who it competes with, before any of the numbers below.

What does this company do?

Steelcast Limited manufactures and sells steel and alloy castings in India.

IndustrySteel

SectorBasic Materials

Employees503

Annual revenue₹417 Cr

How does it make money?

Turns over ₹417 Cr a year. Of every ₹100 of sales, about ₹21 reaches shareholders as profit, with ₹31 left at the operating level before interest, tax and depreciation. Each of its 503 employees supports ₹83.0 lakh of revenue a year, the signature of a people-led business.

EBITDA margin30.9%

Net margin20.8%

Revenue / employee₹83.0 lakh

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?The numbers suggest a real one

ROCE has stayed above 15% in every year available and stands at 28.6%. Returns that high normally get competed away; when they persist, something is protecting them, and its ROE of 22.0% against a peer median of 10.8% is consistent with that. What that something is — brand, scale, switching costs, regulation — the accounts cannot tell you.

ROCE28.6%

ROE22.0%

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 -10% while net margin moved +37% 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-10%

Margin effect+37%

DalalBaazaar Score

59/ 100

Moderate

Weighted across six categories. Every point is explained below.

✗ Revenue has contracted at 3.5% a year
✗ Profit CAGR of only 7.2%

Quality vs. Valuation

Company Quality

65/ 100

Good

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.

A good business, but the price already reflects that. The quality is real; the question is whether you are overpaying for it today.

Historical Valuation

Current P/E

39.8x

3Y Median

5.4x

40 monthly readings · mean 17.0x · range 3.5x–44.0x

Sector Median

18.2x

median of 4 sector peers

⚠️Current valuation is approximately 636% above its 3y median of 5.4x. 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 119% above the peer median of 18.2x.

vs. its own history

Expensive

5.4x median over 40 months · +636%

vs. sector peers

Expensive

18.2x median of 4 peers · +119%

vs. generic bands

Expensive

Above 35x

P/E (Trailing)

39.8x

P/B

9.12x

EV/EBITDA

27.9x

PEG

5.53

Dividend Yield

0.51%

What's Good / What's Bad

🟢 What's Going Well3

Margins are improving
EBITDA margin is up from 24.8% to 30.9% over 3 years.
High return on capital employed
ROCE of 28.6% is the mark of a business that converts capital into profit efficiently.
Consistently profitable
Profitable in every one of the last 4 reported years.

🔴 What Needs Attention4

Return on equity is falling
ROE has dropped from 32.8% to 22.0% — each rupee of shareholder capital earns less than it did.
Return on capital is falling
ROCE has declined from 43.7% to 28.6% — often a sign of competition or overexpansion.
Receivables growing faster than sales
Receivables are up 41% against revenue growth of -10% — customers are taking longer to pay.
Valuation above its historical average
At 39.8x the stock trades 636% above its own median of 5.4x.

Red Flags

1 item require attention · 1 high

🔴Receivables growing faster than salesFinancial
Receivables up 41% against revenue up -10% — sales are being booked faster than they are collected.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Capital compounds at a high rate
ROCE of 28.6% means each rupee reinvested earns well above what capital costs. If the company can keep deploying at this rate, growth creates value rather than just consuming cash.
Margin expansion has further to run
EBITDA margin has risen from 24.8% to 30.9%. If that holds, profit compounds faster than sales and today's multiple looks cheaper in hindsight than it does now.
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?

Sales are being booked faster than collected
Receivables are up 41% against revenue up -10%. 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 636% 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.
Returns on shareholder capital are falling
ROE has dropped from 32.8% to 22.0%. 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 29%✓ 30.9%
Two points below today's level — enough room for noise, tight enough to catch real compression.
2Free cash flow remains positive✓ ₹54 Cr
Profit that never becomes cash eventually stops being profit.
3ROCE stays above 26%✓ 28.6%
Falling returns on capital are usually competition arriving, and show up here before they reach the margin.
4Valuation vs its own median of 5.4x✗ 39.8x today
A re-rating above its own history needs a reason; without one it is just a higher price.

Investment Checklist

10 / 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
✓ 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

6 good · 4 neutral · 1 weak

Market Cap

₹3,603 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

39.8x

Fair

Fairly valued against the generic band

P/B Ratio

9.12x

Rich

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

EPS (TTM)

₹8.95

Profitable

Profitable on a per-share basis

ROE

22.0%

Strong

Strong capital efficiency

ROCE

28.6%

Strong

Earns comfortably above its likely cost of capital

Debt/Equity

Not available

No data

Source didn't return this field

Revenue Growth (YoY)

17.0%

Healthy

Healthy top-line growth

Profit Growth (YoY)

19.1%

Healthy

Profits growing at a healthy clip

Dividend Yield

0.51%

Modest

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

Free Cash Flow

₹54 Cr

Cash generative

Generates cash even after funding its capex

More Metrics

CMP

₹356

Operating Margin

23.0%

Good

Healthy core-business profitability

Net Margin

20.5%

Good

Strong bottom-line conversion

Current Ratio

5.07

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

0.12

Defensive

Steadier than the market

52W Range Position

84%

Mid-range

Technical Snapshot

SMA 20 / SMA 50

358.2 / 344.7

Bullish alignment (short > long)

Price vs SMA 200

Above

Long-term uptrend

RSI (14)

37.6

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹464 Cr	₹401 Cr	₹369 Cr	₹417 Cr	-3.5%
EBITDA	₹115 Cr	₹119 Cr	₹111 Cr	₹129 Cr	+3.9%
EBITDA Margin	24.8%	29.6%	30.2%	30.9%	—
PAT (Net Profit)	₹71 Cr	₹75 Cr	₹72 Cr	₹87 Cr	+7.2%
EPS	₹34.84	₹37.06	₹7.13	₹8.58	-37.3%
ROE	32.8%	27.8%	22.2%	22.0%	—
ROCE	43.7%	36.5%	29.0%	28.6%	—
Total Debt	₹24 Cr	₹0 Cr	₹0 Cr	—	—
Free Cash Flow	₹51 Cr	₹64 Cr	₹57 Cr	₹54 Cr	+1.8%

🔴 Revenue has shrunk at 3.5% a year over 3 years.

🟢 EBITDA has grown at 3.9% a year over 3 years.

🟢 EBITDA Margin has risen from 24.8% to 30.9% over 3 years (+6.1 pts).

🟢 PAT (Net Profit) has grown at 7.2% a year over 3 years.

🔴 EPS has shrunk at 37.3% a year over 3 years.

🔴 ROE has fallen from 32.8% to 22.0% over 3 years (-10.8 pts).

🔴 ROCE has fallen from 43.7% to 28.6% over 3 years (-15.1 pts).

🟡 Free Cash Flow has been broadly flat over 3 years (1.8% a year).

Balance Sheet & Cash Flow — FY2026

Total Assets

₹460 Cr

Total Liabilities

₹65 Cr

Total Debt

—

Cash & Equivalents

₹1 Cr

Operating Cash Flow

₹86 Cr

Capex

-₹33 Cr

Shareholding (proxy)

Institutional Holding

1.5%

Insider Holding

58.2%

Corporate Actions

Dividend Rate

₹1.8

Ex-Dividend Date

07 Aug 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

3 mixed3 general

Steelcast Ltd. Share Price rise: fundamentals and sector

Univest, 22 SeptPrice move

🟡Mixed / dependsA price move, which is not by itself a change in the business. Worth finding the cause before reading it as either good or bad.

Steelcast Ltd. Share Price: price action and fundamentals

Univest, 25 Sept

Top stocks to buy: Acutaas, Prudent, Steelcast signal upside, says analyst

Business Standard, 20 AprAnalyst view

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

Steelcast Approves ₹1.20 Billion Foundry Project; Reports 237M Rupees Q1 Net Profit

Sahi, 29 JulResults

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

Steelcast adds MetLife, Dhamma to Sept 30 investor meetings

scanx.trade, 21 Sept

Steelcast Ltd. Share Price Near 52-Week High, Price Action

Univest, 25 Sept

Watch Items

Cross-check against the company's latest quarterly filing / investor presentation before acting.
1 metric couldn't be retrieved for this stock — this is more common for smaller or thinly-covered listings.

DalalBaazaar Thesis

🟢Business QualityStrong15.2/20

🟢Financial HealthStrong17.5/20

🔴GrowthWeak4.8/20

🟢ProfitabilityStrong11/15

🔴ValuationDemanding4.5/15

🟡RiskModerate6.2/10

Good business, demanding price

The quality is real and the price already reflects it. Buying here is a bet that the business keeps compounding for long enough to grow into the multiple — which good businesses often do, but it removes the margin for error that a lower price would have given you. 1 high-severity red flag sits above this conclusion and should be read first.

This thesis breaks if

✓EBITDA margin holds above 29%30.9%
✓Free cash flow remains positive₹54 Cr
✓ROCE stays above 26%28.6%
✗Valuation vs its own median of 5.4x39.8x today