Steelco Gujarat Limited

Basic Materials — Steel · BSE

₹206.60+₹4.05 (+2.00%)

DalalBaazaar Score

29 / 100

🔴 Weak

Verdict

HIGH RISK

Risk

Very High

Driven by high debt relative to equity, negative free cash flow, the company is currently loss-making.

In simple words: The company is currently losing money, though profits are falling even as sales grow. Debt is the main factor to watch.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 7:02 pm

Understanding the Business

Company site ↗

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

What does this company do?

Steelco Gujarat Limited manufactures and sells cold-rolled steel products in India.

IndustrySteel

SectorBasic Materials

Annual revenue₹59 Cr

How does it make money?

Turns over ₹59 Cr a year. Of every ₹100 of sales, about ₹-64 reaches shareholders as profit, with ₹-31 left at the operating level before interest, tax and depreciation.

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.

Compared side by side in Peers ↓

What is its competitive advantage?Little sign of one

Returns on capital of -9.6% 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.

Peer median ROE10.8%

DalalBaazaar Score

29/ 100

Weak

Weighted across six categories. Every point is explained below.

✗ Return on equity is negative

Quality vs. Valuation

Company Quality

30/ 100

Weak

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

Valuation

21/ 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.

vs. its own history

Not enough price and earnings history

vs. sector peers

Not enough peers with a usable P/E

vs. generic bands

N/A

No P/E — the company is lossmaking

EV/EBITDA

—

PEG

—

Red Flags

7 items require attention · 4 high · 3 watch

🔴Debt has risen sharplyFinancial
Total debt is up 54% over 3 years, from ₹147 Cr to ₹227 Cr.
🔴High leverageFinancial
Debt/Equity of 83.47x — earnings must service borrowings before shareholders see anything.
🔴Thin interest coverageFinancial
Operating profit covers interest only -1.5x — little room if earnings dip.
🔴The company is lossmakingFinancial
Net profit of -₹37 Cr in the latest reported year.
🟡Interest coverage is deterioratingFinancial
Cover has fallen from -1.8x to -1.5x.
🟡Free cash flow is negativeFinancial
Free cash flow was -₹109 Cr in the latest year.
🟡Shareholders have been dilutedOwnership
Shares outstanding are up 367% over 3 years — each existing share owns a smaller slice of the company.

Investment Thesis

🟢 Bull CaseWhat could make this work?

No clear supporting case emerges from the available numbers.

🔴 Bear CaseWhat could go wrong?

Leverage amplifies any setback
Debt/Equity of 83.47x. Interest is payable whether or not the business has a good year.
Earnings are hard to forecast
Profit has swung sharply from year to year, so any single year — good or bad — is a weak guide to the next. Cyclical earnings deserve lower multiples for that reason.
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.
Several serious flags at once
4 high-severity checks triggered. Individually each has an explanation; together they raise the chance that something structural is wrong rather than a one-off.

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

1EBITDA margin holds above -33%✓ -30.8%
Two points below today's level — enough room for noise, tight enough to catch real compression.
2Free cash flow remains positive✗ -₹109 Cr
Profit that never becomes cash eventually stops being profit.
3Interest cover stays above 3x✗ -1.5x
How much operating profit can fall before interest stops being comfortably covered.
4ROCE stays above 8%✗ -9.6%
Falling returns on capital are usually competition arriving, and show up here before they reach the margin.

Investment Checklist

4 / 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

1 good · 2 neutral · 8 weak

Market Cap

₹130 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

Not meaningful

Loss-making

Earnings are negative, so a P/E multiple can't be read here

P/B Ratio

37.63x

Rich

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

EPS (TTM)

₹-621

Loss-making

Negative earnings per share — the business is losing money

ROE

-1371.7%

Weak

Weak capital efficiency

ROCE

-9.6%

Weak

Low return on total capital employed

Debt/Equity

83.47x

High

High leverage

Revenue Growth (YoY)

15485.0%

Healthy

Healthy top-line growth

Profit Growth (YoY)

-81.5%

Falling

Profits are shrinking

Dividend Yield

None

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

Free Cash Flow

-₹109 Cr

Cash burning

Spending more cash than the operations bring in

More Metrics

Operating Margin

-9.5%

Weak

Thin margins leave little room for error

Net Margin

-43.1%

Weak

Very little revenue reaches the bottom line

Current Ratio

5.37

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

0.77

Defensive

Steadier than the market

52W Range Position

75%

Mid-range

Technical Snapshot

SMA 20 / SMA 50

209.2 / 217.1

Bearish alignment (short < long)

Price vs SMA 200

Above

Long-term uptrend

RSI (14)

37.5

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	—	₹0 Cr	₹4 Cr	₹59 Cr	—
EBITDA	₹3 Cr	₹2 Cr	-₹8 Cr	-₹18 Cr	—
EBITDA Margin	—	646.2%	-184.2%	-30.8%	—
PAT (Net Profit)	-₹8 Cr	₹165 Cr	-₹21 Cr	-₹37 Cr	—
EPS	₹-58.48	₹246.7	₹-30.63	₹-55.59	—
ROE	—	273.0%	-51.3%	-1371.7%	—
ROCE	—	118.1%	-10.0%	-9.6%	—
Total Debt	₹147 Cr	₹82 Cr	₹91 Cr	₹227 Cr	+15.5%
Free Cash Flow	₹0 Cr	₹36 Cr	₹3 Cr	-₹109 Cr	—

🔴 EBITDA has turned negative, from ₹3 Cr to -₹18 Cr.

🔴 EBITDA Margin has fallen from 646.2% to -30.8% over 3 years (-677.0 pts).

🔴 ROE has fallen from 273.0% to -1371.7% over 3 years (-1644.7 pts).

🔴 ROCE has fallen from 118.1% to -9.6% over 3 years (-127.7 pts).

🔴 Total Debt has grown at 15.5% a year over 3 years.

🔴 Free Cash Flow has turned negative, from ₹0 Cr to -₹109 Cr.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹245 Cr

Total Liabilities

₹243 Cr

Cash & Equivalents

₹12 Cr

Operating Cash Flow

-₹100 Cr

Capex

-₹9 Cr

Shareholding (proxy)

Institutional Holding

7.9%

Insider Holding

73.0%

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

STEELCO GUJARAT Upper Circuit Streak: Day 4 Price and Data

Univest, 16 Oct

Steelco Gujarat Submits Letter of Offer for Rights Issue of 13,30,060 Shares at ₹112 Each

scanx.trade, 15 May

Steelco Gujarat Rights Issue 2026 Date, Price, Allotment, Ratio

IPO Watch, 19 Feb

STEELCO GUJARAT LTD. Upper Circuit Today: Price, Data and Peers

Univest, 01 Oct

Steelco Gujarat appoints T R Chadha & Co as auditors for five years

scanx.trade, 25 Sept

Steelco Gujarat Limited Postal Ballot Results: All Three Director Appointments Approved

scanx.trade, 13 MayResults

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

Watch Items

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

DalalBaazaar Thesis

MiddlingGrowth

WeakBusiness Quality · Financial Health · Profitability · Valuation · Risk

Points for each in the Score ↑

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. 4 high-severity red flags sit above this conclusion and should be read first.

3 of 4 tripwires tripped — Free cash flow remains positive; Interest cover stays above 3x; ROCE stays above 8% · see Key things to watch ↑