Prakash Steelage Limited (PRAKASHSTL) AI Stock Analysis

• Market Cap: ₹827.75M
• Dividend Yield: N/A
• Average Volume (3M): 30.07K
• Price to Earnings (P/E): 59.1
• Beta (1Y): 1.24
• Revenue Growth: -6.37%
• EPS Growth: -96.15%
• Country: IN
• Employees: 72
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Steel
• EPS (TTM): <0.01
• Shares Outstanding: 175,000,380
• 10 Day Avg. Volume: 23,429
• 30 Day Avg. Volume: 30,073
• PEG Ratio: -0.88
• Price to Book (P/B): 12.47
• Price to Sales (P/S): 1.45
• P/FCF Ratio: -28.98
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 43 Neutral
• Price Target: ₹4.50 ▼(-12.79% Downside)

Overall score is driven down primarily by very weak financial performance (high leverage/negative equity and negative cash flows). Technicals provide some support via improving momentum, but valuation remains expensive given the high P/E and no dividend yield data.

Positive Factors

Specialized product focus

Prakash Steelage's focus on stainless-steel tubular products for corrosion-resistant and hygienic applications maps to enduring industrial and infrastructure demand. Specialization supports technical know‑how, repeat OEM/installer relationships and steady order flows versus undifferentiated commodity producers.

Product-mix pricing flexibility

Ability to sell different stainless grades and specifications allows the company to capture premiums on higher‑spec or hygienic products. This structural pricing flexibility can sustain margins through product up‑mixing and mitigate raw material cost swings if the company maintains quality and certifications.

Recent margin improvement

Recent uptick in net margins suggests operational or mix improvements that could be sustainable if maintained. Improved margin performance can convert to stronger cash generation and buffer cyclical revenue swings, provided management keeps cost controls and higher‑margin product focus intact.

Negative Factors

Very high leverage / negative equity

Extremely high leverage and negative equity materially weaken financial flexibility, increasing refinancing and covenant risk. This structural capital weakness limits ability to invest in capacity or weather downturns and raises the probability of distress if operating performance falters.

Weak cash generation

Negative operating cash flow and deteriorating free cash flow indicate the business is not self‑funding its working capital and capex needs. Over time this forces reliance on external financing, elevates solvency risk and constrains routine maintenance or strategic investments.

Declining and volatile revenue

Declining and volatile revenue undermines scale benefits and forecasting reliability. Persistent top‑line weakness makes margin recovery harder and increases customer concentration or pricing pressure risks, impairing the firm’s ability to fund growth or stabilize operating performance.

Prakash Steelage Limited Business Overview & Revenue Model

Company Description

Prakash Steelage Limited manufactures, trades, and sells stainless steel welded pipes, tubes, and U-tubes in India. It serves chemical and fertilizer, pharmaceutical, railway coaches, refrigeration, desalination, decorative, dairy, breweries, pipelines, furniture, pulp and paper, food, petrochemical and refinery, oil and gas, sugar, automobile, power, synthetic fiber, pesticide, and ornamental industries. The company also exports its products to customers in North America, South East Asia, Africa, the Middle East, and Europe. Prakash Steelage Limited was incorporated in 1991 and is based in Mumbai, India.

How the Company Makes Money

Prakash Steelage Limited generates revenue primarily through the sale of its stainless steel products, which include tubes, pipes, and fittings. The company benefits from a diverse customer base spanning multiple industries, which helps mitigate risks associated with market fluctuations. Key revenue streams include direct sales to manufacturers, wholesalers, and exporters, as well as contracts with large enterprises for bulk orders. Additionally, Prakash Steelage engages in strategic partnerships with industry players to enhance its distribution network and expand its market reach. Factors contributing to its earnings include the rising demand for stainless steel products due to infrastructure development and industrial growth, along with the company's commitment to quality and timely delivery, which fosters customer loyalty and repeat business.

Prakash Steelage Limited Financial Statement Overview

Summary

Weak financial health: declining and volatile revenue, low EBIT/EBITDA margins, extremely high leverage with negative equity, and deteriorating cash generation with negative operating cash flow and free cash flow.

Income Statement

Prakash Steelage Limited shows a volatile revenue trend with recent annual revenue decreasing significantly from the previous year. Net profit margin has improved recently but remains inconsistent over the years. The EBIT and EBITDA margins are low, indicating operational challenges.

Balance Sheet

The company's debt-to-equity ratio is extremely high, reflecting significant leverage and potential financial instability. Stockholders' equity has been negative in recent years, indicating financial distress. The equity ratio is concerning, highlighting a reliance on debt financing.

Cash Flow

Free cash flow has deteriorated, with the company showing a negative trend recently, reflecting challenges in liquidity management. The operating cash flow is negative, which raises concerns about the company's ability to sustain operations without external financing.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	762.29M	765.69M	1.06B	949.74M	460.97M	238.82M
Gross Profit	135.46M	88.37M	145.03M	132.02M	97.09M	23.49M
EBITDA	32.71M	29.91M	593.55M	58.34M	1.67B	460.39M
Net Income	15.91M	12.96M	578.87M	41.46M	1.64B	507.59M
Balance Sheet
Total Assets	0.00	375.20M	403.61M	374.14M	374.20M	298.48M
Cash, Cash Equivalents and Short-Term Investments	7.39M	7.39M	3.52M	7.67M	3.70M	2.60M
Total Debt	0.00	40.92M	3.07M	289.01M	339.58M	1.92B
Total Liabilities	-89.03M	286.17M	326.44M	875.67M	916.95M	2.48B
Stockholders Equity	89.03M	89.03M	77.17M	-501.53M	-542.75M	-2.18B
Cash Flow
Free Cash Flow	0.00	-38.30M	283.54M	56.10M	373.40M	3.98M
Operating Cash Flow	0.00	-33.49M	292.03M	60.88M	378.58M	5.41M
Investing Cash Flow	0.00	-5.10M	-6.74M	-5.28M	-1.66M	504.90M
Financing Cash Flow	0.00	37.71M	-289.44M	-51.63M	-375.82M	-508.33M

Prakash Steelage Limited Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 5.16
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:PRAKASHSTL, the sentiment is Negative. The current price of 5.16 is above the 20-day moving average (MA) of 4.89, above the 50-day MA of 4.71, and below the 200-day MA of 5.58, indicating a neutral trend. The MACD of -0.06 indicates Positive momentum. The RSI at 47.27 is Neutral, neither overbought nor oversold. The STOCH value of 57.58 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for IN:PRAKASHSTL.

Prakash Steelage Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
HISARMETAL	63 Neutral	₹891.00M	36.29	―	0.61%	-1.81%	-45.95%
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
SALSTEEL	57 Neutral	₹3.53B	-28.03	―	―	0.19%	-2962.74%
MANGALAM	55 Neutral	₹571.56M	-1.85	―	―	-24.55%	-310.57%
PRAKASHSTL	43 Neutral	₹827.75M	59.05	―	―	-6.37%	-96.15%
ZENITHSTL	43 Neutral	₹731.32M	17.20	―	―	-36.62%	-37.94%

Prakash Steelage Limited Corporate Events

Prakash Steelage Closes Trading Window Ahead of Q3 FY2026 Results

Prakash Steelage Limited has announced the closure of its trading window for company securities from 1 January 2026 until 48 hours after the declaration of its unaudited financial results for the quarter ended 31 December 2025, in line with SEBI (Prohibition of Insider Trading) Regulations, 2015 and its internal code of conduct for designated persons. The move temporarily restricts directors, employees and their immediate relatives from trading in the company’s shares, underscoring regulatory compliance and governance standards ahead of the forthcoming quarterly financial disclosure, for which the board meeting date will be notified to the exchanges in due course.

Prakash Steelage Limited Reports Q3 2025 Financial Results

Prakash Steelage Limited announced the publication of its unaudited financial results for the quarter ending September 30, 2025. The company reported a total income from operations of 2,510.91 lakhs and a net profit after tax of 8.72 lakhs for the quarter. These results reflect the company’s ongoing efforts to maintain financial stability and growth, which are crucial for its positioning in the competitive steel manufacturing industry. The financial results were reviewed by the audit committee and approved by the Board of Directors, highlighting the company’s commitment to transparency and regulatory compliance.