Surya Roshni Limited

Basic Materials — Steel · NSE

₹212.60+₹0.08 (+0.04%)

DalalBaazaar Score

46 / 100

🟡 Moderate

Verdict

NEUTRAL

Risk

High

Driven by high debt relative to equity, micro-cap size, which brings thin liquidity.

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

Decision support, not a buy or sell call.

As of 18 Oct 2026, 7:49 pm

Understanding the Business

Company site ↗

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

What does this company do?

Surya Roshni Limited manufactures and sells steel pipes and strips, and lighting and consumer durables in India.

IndustrySteel

SectorBasic Materials

Employees3,319

Annual revenue₹7,500 Cr

How does it make money?

Turns over ₹7,500 Cr a year. Of every ₹100 of sales, about ₹4 reaches shareholders as profit, with ₹7 left at the operating level before interest, tax and depreciation. Each of its 3,319 employees supports ₹2.26 Cr of revenue a year, the signature of a capital- or asset-led business.

Revenue / employee₹2.26 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.

Compared side by side in Peers ↓

What is its competitive advantage?Little sign of one

Returns on capital of 14.9% 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%

What is the outlook?

1 analysts covering the stock expect revenue to grow about 9.6% and earnings to grow about 19.3% in the year to 2028. These are estimates by people who follow the company, not a forecast for the wider industry.

Est. revenue growth+9.6%

Est. earnings growth+19.3%

Analysts1

What has been driving growth?

Profit has moved mainly because margins changed, not because the business sold much more. Over 3 years revenue moved -6% while net margin moved -9% 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-6%

Margin effect-9%

DalalBaazaar Score

46/ 100

Moderate

Weighted across six categories. Every point is explained below.

✗ Revenue has contracted at 2.0% a year
✗ Profit has declined at 5.2% a year

Quality vs. Valuation

Company Quality

41/ 100

Weak

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

Valuation

65/ 100

Fair

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

14.8x

3Y Median

17.3x

40 monthly readings · mean 18.2x · range 11.8x–25.4x

Sector Median

18.2x

median of 4 sector peers

🟢Current valuation is approximately 14% below its 3y median of 17.3x. 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 18% below the peer median of 18.2x.

vs. its own history

Fair

17.3x median over 40 months · -14%

vs. sector peers

Fair

18.2x median of 4 peers · -18%

vs. generic bands

Cheap

Below 15x

EV/EBITDA

8.7x

PEG

—

What's Good / What's Bad

🟢 What's Going Well2

Debt is being paid down
Total debt is down 81% over 3 years.
Consistently profitable
Profitable in every one of the last 4 reported years.

🔴 What Needs Attention2

Return on equity is falling
ROE has dropped from 18.0% to 10.9% — each rupee of shareholder capital earns less than it did.
Return on capital is falling
ROCE has declined from 25.3% to 14.9% — often a sign of competition or overexpansion.

Red Flags

2 items require attention · 1 high · 1 watch

🔴High leverageFinancial
Debt/Equity of 3.03x — earnings must service borrowings before shareholders see anything.
🟡Receivables growing faster than salesFinancial
Receivables up 26% against revenue up -6% — sales are being booked faster than they are collected.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Deleveraging frees up earnings
Debt is down 81% over 3 years. Every rupee of interest not paid drops to the bottom line, so profit can grow even if revenue does not.
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?

Leverage amplifies any setback
Debt/Equity of 3.03x. Interest is payable whether or not the business has a good year.
Sales are being booked faster than collected
Receivables are up 26% against revenue up -6%. If customers keep taking longer to pay, reported profit will not turn into cash — and write-offs follow if some never do.
Returns on shareholder capital are falling
ROE has dropped from 18.0% to 10.9%. 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 5%✓ 7.1%
Two points below today's level — enough room for noise, tight enough to catch real compression.
2Free cash flow remains positive✓ ₹241 Cr
Profit that never becomes cash eventually stops being profit.
3Debt / EBITDA stays below 2x✓ 0.1x
The ratio lenders write covenants against; it survives a small or negative equity base, unlike Debt/Equity.
4ROCE stays above 12%✓ 14.9%
Falling returns on capital are usually competition arriving, and show up here before they reach the margin.
5Valuation vs its own median of 17.3x✓ 14.8x today
A re-rating above its own history needs a reason; without one it is just a higher price.

Investment Checklist

7 / 12 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
✓ Analyst consensus isn't majority-sell
✗ Short-term technical trend isn't bearish

Price history

Quick Metrics

6 good · 4 neutral · 1 weak

Market Cap

₹4,627 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

14.8x

Cheap

Cheap against the generic band

P/B Ratio

1.76x

Fair

Moderate premium to the company's book value

EPS (TTM)

₹14.33

Profitable

Profitable on a per-share basis

ROE

10.9%

Moderate

Moderate capital efficiency

ROCE

14.9%

Moderate

Moderate return on the capital in the business

Debt/Equity

3.03x

High

High leverage

Revenue Growth (YoY)

27.5%

Healthy

Healthy top-line growth

Profit Growth (YoY)

76.8%

Healthy

Profits growing at a healthy clip

Dividend Yield

2.35%

Healthy

Meaningful cash return while you hold the stock

Free Cash Flow

₹241 Cr

Cash generative

Generates cash even after funding its capex

More Metrics

P/E (Forward)

9.0x

Improving

Below the trailing multiple — the street expects earnings to grow into the price

Operating Margin

3.8%

Weak

Thin margins leave little room for error

Net Margin

3.9%

Average

Average bottom-line conversion

Current Ratio

3.21

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

0.66

Defensive

Steadier than the market

52W Range Position

20%

Mid-range

Technical Snapshot

SMA 20 / SMA 50

215.3 / 219.2

Bearish alignment (short < long)

Price vs SMA 200

Below

Long-term downtrend

RSI (14)

24.7

Oversold zone

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹7,975 Cr	₹7,762 Cr	₹7,385 Cr	₹7,500 Cr	-2.0%
EBITDA	₹614 Cr	₹583 Cr	₹604 Cr	₹535 Cr	-4.5%
EBITDA Margin	7.7%	7.5%	8.2%	7.1%	—
PAT (Net Profit)	₹336 Cr	₹329 Cr	₹347 Cr	₹286 Cr	-5.2%
EPS	₹15.42	₹15.13	₹15.93	₹13.13	-5.2%
ROE	18.0%	15.2%	14.1%	10.9%	—
ROCE	25.3%	20.6%	18.9%	14.9%	—
Total Debt	₹418 Cr	₹16 Cr	₹16 Cr	₹80 Cr	-42.4%
Free Cash Flow	₹244 Cr	₹484 Cr	₹244 Cr	₹241 Cr	-0.4%

🔴 Revenue has shrunk at 2.0% a year over 3 years.

🔴 EBITDA has shrunk at 4.5% a year over 3 years.

🟡 EBITDA Margin has held roughly flat at 7.1% over 3 years.

🔴 PAT (Net Profit) has shrunk at 5.2% a year over 3 years.

🔴 EPS has shrunk at 5.2% a year over 3 years.

🔴 ROE has fallen from 18.0% to 10.9% over 3 years (-7.2 pts).

🔴 ROCE has fallen from 25.3% to 14.9% over 3 years (-10.3 pts).

🟢 Total Debt has shrunk at 42.4% a year over 3 years.

🟡 Free Cash Flow has been broadly flat over 3 years (-0.4% a year).

Balance Sheet & Cash Flow — FY2026

Total Assets

₹3,545 Cr

Total Liabilities

₹911 Cr

Cash & Equivalents

₹44 Cr

Operating Cash Flow

₹401 Cr

Capex

-₹160 Cr

Shareholding (proxy)

Institutional Holding

1.4%

Insider Holding

67.8%

Corporate Actions

Dividend Rate

₹5

Ex-Dividend Date

21 Aug 2026

Analyst Consensus

Recommendations

0 Buy · 1 Hold · 0 Sell

Target Price (Mean)

₹225

+5.8% vs CMP

Target Range

₹225 – ₹225

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 positive1 mixed4 general

Surya Roshni (SURYAROSNI) Share/Stock Price Live, NSE

TechGraph, 08 Oct

Surya Roshni Share: Bull Case vs Bear Case for 2026

Univest, 25 Sept

Surya Roshni Bags North America Export Order Worth ₹28.21 Crore; Shares Rise Over 1.5%

HDFC Sky, 10 JulOrder win

🟢Potentially positiveAn order or contract win, which adds to future revenue. How much depends on its size against annual sales and on when it is executed.

Small-cap stock Surya Roshni share price jumps over 2.5% amid reports of business demerger

Livemint, 19 MayPrice 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.

Will Weakness in Surya Roshni Limited's (NSE:SURYAROSNI) Stock Prove Temporary Given Strong Fundamentals?

Simply Wall Street, 12 Feb

Surya Roshni Rises 2.7% on Demerger Reports, US Orders

Equitypandit, 19 May

Watch Items

Cross-check against the company's latest quarterly filing / investor presentation before acting.
RSI is in oversold territory — could mean either a bargain or a stock still falling for good reason. Check the 'why' before assuming reversal.

DalalBaazaar Thesis

StrongFinancial Health · Valuation

MiddlingRisk

WeakBusiness Quality · Growth · Profitability

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. 1 high-severity red flag sits above this conclusion and should be read first.

All 5 tripwires holding · see Key things to watch ↑