Kalyani Steels Limited
Kalyani Steels Limited Fundamental Analysis
Kalyani Steels Limited (KSL.NS) shows moderate financial fundamentals with a PE ratio of 10.46, profit margin of 13.98%, and ROE of 14.19%. The company generates $19.1B in annual revenue with weak year-over-year growth of 1.14%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 67.0/100 based on profitability, valuation, growth, and balance sheet metrics. The C+ grade reflects average fundamentals, with notable risks in certain areas.
Fundamental Health Score
We analyze KSL.NS's fundamental strength across five key dimensions:
Efficiency Score
WeakKSL.NS struggles to generate sufficient returns from assets.
Valuation Score
ModerateKSL.NS shows balanced valuation metrics.
Growth Score
WeakKSL.NS faces weak or negative growth trends.
Financial Health Score
ExcellentKSL.NS maintains a strong and stable balance sheet.
Profitability Score
WeakKSL.NS struggles to sustain strong margins.
Key Financial Metrics
Is KSL.NS Expensive or Cheap?
P/E Ratio
KSL.NS trades at 10.46 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, KSL.NS's PEG of 4.96 indicates potential overvaluation.
Price to Book
The market values Kalyani Steels Limited at 1.41 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 5.69 times EBITDA. This is generally considered low.
How Well Does KSL.NS Make Money?
Net Profit Margin
For every $100 in sales, Kalyani Steels Limited keeps $13.98 as profit after all expenses.
Operating Margin
Core operations generate 18.95 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $14.19 in profit for every $100 of shareholder equity.
ROA
Kalyani Steels Limited generates $9.44 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Kalyani Steels Limited generates limited operating cash flow of $1.39B, signaling weaker underlying cash strength.
Free Cash Flow
Kalyani Steels Limited produces free cash flow of $1.05B, offering steady but limited capital for shareholder returns and expansion.
FCF Per Share
Each share generates $24.04 in free cash annually.
FCF Yield
KSL.NS converts 3.77% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
10.46
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
4.96
vs 25 benchmark
P/B Ratio
Price to book value ratio
1.41
vs 25 benchmark
P/S Ratio
Price to sales ratio
1.46
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.22
vs 25 benchmark
Current Ratio
Current assets to current liabilities
1.67
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.14
vs 25 benchmark
ROA
Return on assets percentage
0.09
vs 25 benchmark
ROCE
Return on capital employed
0.18
vs 25 benchmark
How KSL.NS Stacks Against Its Sector Peers
| Metric | KSL.NS Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 10.46 | 23.53 | Better (Cheaper) |
| ROE | 14.19% | 873.00% | Weak |
| Net Margin | 13.98% | -102723.00% (disorted) | Strong |
| Debt/Equity | 0.22 | 0.51 | Strong (Low Leverage) |
| Current Ratio | 1.67 | 5.06 | Neutral |
| ROA | 9.44% | -6387.00% (disorted) | Weak |
KSL.NS outperforms its industry in 3 out of 6 key metrics, particularly excelling in Net Margin, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Kalyani Steels Limited's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
68.61%
Industry Style: Cyclical, Commodity, Value
High GrowthEPS CAGR
87.57%
Industry Style: Cyclical, Commodity, Value
High GrowthFCF CAGR
59.13%
Industry Style: Cyclical, Commodity, Value
High Growth