S.A.L. Steel Ltd. (SALSTEEL) AI Stock Analysis

• Market Cap: ₹3.43B
• Dividend Yield: N/A
• Average Volume (3M): 154.57K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.50
• Revenue Growth: 0.19%
• EPS Growth: -2962.74%
• Country: IN
• Employees: 315
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Steel
• EPS (TTM): 0.44
• Shares Outstanding: 84,966,705
• 10 Day Avg. Volume: 61,880
• 30 Day Avg. Volume: 154,569
• PEG Ratio: 0.02
• Price to Book (P/B): 4.09
• Price to Sales (P/S): 0.29
• P/FCF Ratio: -4.03
• 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: Hold
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 57 Neutral
• Price Target: ₹41.00 ▼(-0.32% Downside)

The overall stock score of 57 reflects significant financial challenges, including high leverage and liquidity issues, which are partially offset by strong technical momentum. However, the overbought technical indicators and poor valuation metrics suggest caution.

Positive Factors

Business Model Strength

The B2B model with long-term contracts and partnerships ensures stable revenue streams, enhancing resilience against market fluctuations.

Market Position

Being a leading supplier in the steel industry positions SALSTEEL to capitalize on infrastructure growth, supporting long-term demand.

Product Innovation

Ongoing innovation in production processes can improve efficiency and meet evolving customer needs, sustaining competitive advantage.

Negative Factors

High Leverage

High leverage increases financial risk and limits flexibility, potentially impacting the company's ability to invest in growth opportunities.

Declining Profit Margins

Decreasing profit margins suggest operational inefficiencies, which could erode profitability and competitiveness over time.

Negative Cash Flow

Negative free cash flow indicates liquidity issues, constraining the company's ability to fund operations and growth initiatives.

S.A.L. Steel Ltd. Business Overview & Revenue Model

Company Description

S.A.L. Steel Ltd. (SALSTEEL) is a leading manufacturer and supplier of a wide range of steel products, catering primarily to the construction, infrastructure, and industrial sectors. The company specializes in producing high-quality steel bars, rods, and other structural steel components, which are essential for various construction projects, including residential buildings, commercial complexes, and infrastructure developments. SALSTEEL is committed to innovation and sustainability, continuously enhancing its production processes to meet the evolving needs of its customers while adhering to environmental regulations.

How the Company Makes Money

SALSTEEL generates revenue primarily through the sale of its steel products to construction companies, contractors, and wholesalers. The company operates on a B2B (business-to-business) model, supplying bulk quantities of steel materials that are critical for construction and industrial applications. Key revenue streams include direct sales from its production facilities, long-term contracts with major construction firms, and partnerships with distributors that expand its market reach. Additionally, SALSTEEL may engage in value-added services such as custom steel fabrication and processing, further contributing to its earnings by providing tailored solutions to clients and enhancing customer loyalty.

S.A.L. Steel Ltd. Financial Statement Overview

Summary

S.A.L. Steel Ltd. faces substantial financial challenges, with declining revenues and profits, high leverage, and liquidity concerns. The income statement shows a negative net income and declining gross profit margin. The balance sheet reveals a high debt-to-equity ratio, and cash flow analysis highlights negative free cash flow, indicating potential liquidity issues.

Income Statement

The income statement reveals significant challenges, with a negative net income in the most recent year and declining gross profit margin from 19.89% to 16.16%. Revenue decreased by 5.62% from the previous year, indicating a contraction in business activity. The EBIT margin remains low, showing operational inefficiencies.

Balance Sheet

The balance sheet shows a high debt-to-equity ratio of 4.58, indicating significant leverage and potential financial risk. The equity ratio of 11.44% suggests low asset backing by equity, which may concern investors. ROE has turned negative due to the net loss, impacting overall shareholder returns.

Cash Flow

Cash flow analysis highlights negative free cash flow, with a substantial decline from the previous year, signaling potential liquidity issues. The operating cash flow to net income ratio is negative, showing operational cash inefficiencies, further compounded by negative free cash flow to net income.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	5.61B	5.44B	5.77B	4.96B	5.05B	3.01B
Gross Profit	728.70M	879.10M	1.15B	974.95M	969.40M	816.68M
EBITDA	86.30M	199.30M	229.94M	228.76M	255.89M	216.73M
Net Income	-162.70M	-64.30M	4.70M	35.46M	115.43M	115.54M
Balance Sheet
Total Assets	0.00	3.38B	2.84B	2.77B	2.91B	2.95B
Cash, Cash Equivalents and Short-Term Investments	1.90M	5.10M	2.07M	9.00M	9.87M	8.72M
Total Debt	0.00	1.78B	1.25B	1.25B	1.24B	1.46B
Total Liabilities	-387.30M	3.00B	2.43B	2.36B	2.54B	2.70B
Stockholders Equity	387.30M	387.30M	409.77M	405.35M	371.36M	257.20M
Cash Flow
Free Cash Flow	0.00	-393.00M	125.86M	61.71M	222.40M	226.08M
Operating Cash Flow	0.00	-206.80M	262.21M	83.56M	223.54M	235.00M
Investing Cash Flow	0.00	-182.00M	-134.59M	-21.21M	800.00K	-8.34M
Financing Cash Flow	0.00	388.60M	-127.29M	-69.72M	-221.18M	-219.57M

S.A.L. Steel Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 41.13
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:SALSTEEL, the sentiment is Positive. The current price of 41.13 is below the 20-day moving average (MA) of 41.97, above the 50-day MA of 35.51, and above the 200-day MA of 22.95, indicating a neutral trend. The MACD of 1.73 indicates Positive momentum. The RSI at 47.04 is Neutral, neither overbought nor oversold. The STOCH value of 8.55 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for IN:SALSTEEL.

S.A.L. Steel Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
CUBEXTUB	60 Neutral	₹1.31B	18.77	―	―	29.24%	75.16%
SALSTEEL	57 Neutral	₹3.43B	-21.08	―	―	0.19%	-2962.74%
SHAHALLOYS	52 Neutral	₹1.59B	-8.47	―	―	-76.23%	―
MCL	47 Neutral	₹1.32B	28.60	―	―	119.41%	-35.45%
SHYAMCENT	47 Neutral	₹1.31B	-17.41	―	―	-41.73%	-37.19%

S.A.L. Steel Ltd. Corporate Events

S.A.L. Steel Ltd. Announces Preferential Allotment to Sree Metaliks

S.A.L. Steel Ltd. announced a preferential allotment of 1,92,50,000 equity shares and 3,57,50,000 warrants to Sree Metaliks Limited, as disclosed under the SEBI (Prohibition of Insider Trading) Regulations, 2015. This strategic move, approved by the Board of Directors, could potentially enhance the company’s capital structure and market positioning, impacting stakeholders positively by expanding its equity base.

S.A.L. Steel Ltd. Announces Major Share Acquisition by Sree Metaliks

S.A.L. Steel Ltd. has announced a significant acquisition of shares by Sree Metaliks Limited, which involves the acquisition of 1,92,50,000 equity shares and 3,57,50,000 warrants. This acquisition represents a substantial 39.30% of the expanded share capital and 37.99% of the fully diluted share capital of S.A.L. Steel Ltd. This move is expected to have a notable impact on the company’s ownership structure and could influence its strategic direction and market positioning.

SAL Steel Ltd. Faces Potential Shareholding Changes

SAL Steel Ltd. is the target company in an open offer public announcement submitted by Vivro Financial Services Private Limited to the Exchange. This announcement is made under the SEBI (Substantial Acquisition of Shares and Takeovers) Regulations, 2011, indicating a potential change in the company’s shareholding structure, which could impact its market positioning and stakeholder interests.

S.A.L. Steel Ltd. Releases Q2 2025 Financial Results

S.A.L. Steel Ltd. announced the publication of its unaudited standalone financial results for the quarter ending June 30, 2025, in major newspapers. This disclosure aligns with regulatory requirements and provides stakeholders with insights into the company’s financial performance for the specified period.