Steel City Securities Limited

Financial Services — Capital Markets · NSE

₹80.89+₹1.13 (+1.42%)

DalalBaazaar Score

72 / 100

🟢 Good

Verdict

REASONABLE

Risk

Moderate

Driven by negative free cash flow, micro-cap size, which brings thin liquidity.

In simple words: Reasonable but unspectacular business quality, with both sales and profits growing well. Cash generation is currently the main factor to watch.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 6:09 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 Steel City Securities Limited — what it does, how it earns, and who it competes with, before any of the numbers below.

What does this company do?

Steel City Securities Limited engages in stock broking business in southern India. It operates in two segments, Stock Broking & DP Operations, and E-Governance Operations.

IndustryCapital Markets

SectorFinancial Services

Employees321

Annual revenue₹62 Cr

How does it make money?

Turns over ₹62 Cr a year. Of every ₹100 of sales, about ₹23 reaches shareholders as profit, with ₹33 left at the operating level before interest, tax and depreciation. Each of its 321 employees supports ₹19.4 lakh of revenue a year, the signature of a people-led business.

EBITDA margin33.1%

Net margin22.9%

Revenue / employee₹19.4 lakh

Who are its competitors?

The closest listed comparisons in its industry are BAJAJ FINANCE LIMITED, HDFC LIFE INS CO LTD, SBI LIFE INSURANCE CO LTD. These are the companies its valuation and returns are measured against elsewhere in this report.

BAJAJ FINANCE LIMITEDP/E 30.2x · ROE 17.8%

HDFC LIFE INS CO LTDP/E 58.4x · ROE 11.3%

SBI LIFE INSURANCE CO LTDP/E 63.9x · ROE 13.7%

What is its competitive advantage?Not assessable from these ratios

For a lender, returns on capital are shaped by leverage and funding cost rather than by pricing power, so the usual financial signature of an advantage does not apply. Judge this one on deposit franchise, cost of funds and asset quality — none of which are in this data.

ROCE13.5%

ROE10.4%

Peer median ROE13.7%

What has been driving growth?

Sales and margins have both contributed to where profit is now. Over 3 years revenue moved +14% while net margin moved +12% 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+14%

Margin effect+12%

DalalBaazaar Score

72/ 100

Good

Weighted across six categories. Every point is explained below.

✗ Revenue CAGR of only 4.5% — barely ahead of inflation
• Profit CAGR of 8.4%

Quality vs. Valuation

Company Quality

72/ 100

Good

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

Valuation

87/ 100

Cheap

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

A good business currently available at an undemanding price — the combination this framework is built to look for.

Historical Valuation

Current P/E

7.1x

3Y Median

9.9x

40 monthly readings · mean 10.3x · range 6.3x–14.9x

Sector Median

58.4x

median of 3 sector peers

🟢Current valuation is approximately 28% below its 3y median of 9.9x. Cheaper than its own history, which is worth a reason too: the market may be pricing in something the backward-looking numbers do not show.

🟢Against its sector it trades 88% below the peer median of 58.4x.

vs. its own history

Cheap

9.9x median over 40 months · -28%

vs. sector peers

Cheap

58.4x median of 3 peers · -88%

vs. generic bands

Cheap

Below 15x

P/E (Trailing)

7.1x

P/B

0.89x

EV/EBITDA

6.2x

PEG

0.84

Dividend Yield

4.94%

What's Good / What's Bad

🟢 What's Going Well3

Margins are improving
EBITDA margin is up from 28.7% to 33.1% over 3 years.
Valuation below its historical average
At 7.1x the stock trades 28% below its own median of 9.9x.
Consistently profitable
Profitable in every one of the last 4 reported years.

🔴 What Needs Attention1

Receivables growing faster than sales
Receivables are up 55% against revenue growth of 14% — customers are taking longer to pay.

Red Flags

No automated checks triggered

None of the automated financial checks below were triggered on the years of data available. That is not the same as a clean bill of health — see what could not be checked.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Margin expansion has further to run
EBITDA margin has risen from 28.7% to 33.1%. If that holds, profit compounds faster than sales and today's multiple looks cheaper in hindsight than it does now.
Priced below its own history
The stock trades 28% below its own median multiple. If the business performs as it has and simply re-rates back to normal, that gap is return on its own.
Cheaper than its peers
It trades 88% below the sector median. Either the market sees a problem the numbers do not show, or the discount closes.
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?

Growth barely outpaces inflation
Revenue compounding at 4.5% 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.
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 31%✓ 33.1%
Two points below today's level — enough room for noise, tight enough to catch real compression.
2Return on equity stays above 8%✓ 10.4%
For a lender this is the cleanest single read on whether the book is being grown profitably.
3Revenue growth stays above 4% a year✓ 4.5% CAGR
Latest reported year was 27.3%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
4Valuation vs its own median of 9.9x✓ 7.1x today
A re-rating above its own history needs a reason; without one it is just a higher price.

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

6 good · 3 neutral · 2 weak

Market Cap

₹122 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

7.1x

Cheap

Cheap against the generic band

P/B Ratio

0.89x

Reasonable

Reasonable against the company's book value

EPS (TTM)

₹11.36

Profitable

Profitable on a per-share basis

ROE

10.4%

Moderate

Moderate capital efficiency

ROCE

13.5%

Moderate

Moderate return on the capital in the business

Debt/Equity

7.16x

High

High leverage

Revenue Growth (YoY)

27.3%

Healthy

Healthy top-line growth

Profit Growth (YoY)

66.7%

Healthy

Profits growing at a healthy clip

Dividend Yield

4.94%

Healthy

Meaningful cash return while you hold the stock

Free Cash Flow

-₹3 Cr

Cash burning

Spending more cash than the operations bring in

More Metrics

CMP

₹80.89

Operating Margin

43.7%

Good

Healthy core-business profitability

Net Margin

24.1%

Good

Strong bottom-line conversion

Current Ratio

2.14

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

0.22

Defensive

Steadier than the market

52W Range Position

31%

Mid-range

Technical Snapshot

SMA 20 / SMA 50

82.1 / 83.4

Bearish alignment (short < long)

Price vs SMA 200

Below

Long-term downtrend

RSI (14)

49.3

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹55 Cr	₹59 Cr	₹65 Cr	₹62 Cr	+4.5%
EBITDA	₹16 Cr	₹17 Cr	₹24 Cr	₹21 Cr	+9.6%
EBITDA Margin	28.7%	28.2%	36.6%	33.1%	—
PAT (Net Profit)	₹11 Cr	₹12 Cr	₹17 Cr	₹14 Cr	+8.4%
EPS	₹7.42	₹7.85	₹11.35	₹9.46	+8.4%
ROE	10.0%	10.0%	13.2%	10.4%	—
ROCE	12.5%	12.5%	16.7%	13.5%	—
Total Debt	₹1 Cr	₹5 Cr	₹4 Cr	₹10 Cr	+133.3%
Free Cash Flow	₹2 Cr	-₹19 Cr	₹0 Cr	-₹3 Cr	—

🟢 Revenue has grown at 4.5% a year over 3 years.

🟢 EBITDA has grown at 9.6% a year over 3 years.

🟢 EBITDA Margin has risen from 28.7% to 33.1% over 3 years (+4.4 pts).

🟢 PAT (Net Profit) has grown at 8.4% a year over 3 years.

🟢 EPS has grown at 8.4% a year over 3 years.

🟡 ROE has held roughly flat at 10.4% over 3 years.

🟡 ROCE has held roughly flat at 13.5% over 3 years.

🔴 Total Debt has grown at 133.3% a year over 3 years.

🔴 Free Cash Flow has turned negative, from ₹2 Cr to -₹3 Cr.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹237 Cr

Total Liabilities

₹99 Cr

Total Debt

₹10 Cr

Cash & Equivalents

₹4 Cr

Operating Cash Flow

₹0 Cr

Capex

-₹3 Cr

Corporate Actions

Dividend Rate

₹4

Ex-Dividend Date

11 Sept 2026

Peer Comparison

Company	P/E	ROE
BAJAJ FINANCE LIMITED	30.2x	17.8%
HDFC LIFE INS CO LTD	58.4x	11.3%
SBI LIFE INSURANCE CO LTD	63.9x	13.7%

Recent News

1 mixed5 general

Steel City Securities Share: Bull Case vs Bear Case for 2026

Univest, 25 Sept

Steel City Securities Ltd. Peer Comparison – Compare with Others

Value Research, 03 Sept

Volume Gainers, August 4, 2026, 3:30 PM IST: Keystone Realtors Leads

HDFC Sky, 04 Aug

Momentum Stocks: Restaurant Brands, Mohit Industries, Steel City Securities rise up to 15% on sheer...

Moneycontrol.com, 04 Aug

Steel City Securities schedules 32nd AGM for June 3

scanx.trade, 03 Jun

Steel City Securities Share Price rises 11.12%: analysis

Univest, 25 AugPrice 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.

Watch Items

This is a financial-sector business: borrowing is its raw material, not leverage in the usual sense. Debt/Equity and ROCE here aren't comparable to a manufacturer's — read them alongside NIM, GNPA and capital adequacy from the company's own disclosures.
Cross-check against the company's latest quarterly filing / investor presentation before acting.

DalalBaazaar Thesis

🟢Business QualityStrong15.9/20

🟢Financial HealthStrong17/20

🟡GrowthModest10.4/20

🟢ProfitabilityStrong10.9/15

🟢ValuationAttractive12.8/15

🟡RiskModerate5.4/10

Attractive on both counts

A good business currently available at an undemanding price — the combination this framework exists to look for. The work left is qualitative: whether the advantage the numbers imply is one you can identify and expect to last.

This thesis breaks if

✓EBITDA margin holds above 31%33.1%
✓Return on equity stays above 8%10.4%
✓Revenue growth stays above 4% a year4.5% CAGR
✓Valuation vs its own median of 9.9x7.1x today