Shah Alloys Limited (SHAHALLOYS) AI Stock Analysis

• Market Cap: ₹1.39B
• Dividend Yield: N/A
• Average Volume (3M): 18.75K
• Price to Earnings (P/E): 103.4
• Beta (1Y): 1.74
• Revenue Growth: -76.23%
• EPS Growth: N/A
• Country: IN
• Employees: 539
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Steel
• EPS (TTM): 6.93
• Shares Outstanding: 19,797,540
• 10 Day Avg. Volume: 1,629
• 30 Day Avg. Volume: 18,755
• PEG Ratio: -0.86
• Price to Book (P/B): -12.66
• Price to Sales (P/S): 0.37
• P/FCF Ratio: -20.80
• 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: 52 Neutral
• Price Target: ₹76.00 ▲(5.12% Upside)

The overall stock score is primarily impacted by the company's poor financial performance, which poses significant risks. While technical indicators suggest positive momentum, the negative valuation metrics and lack of earnings call data or corporate events further weigh down the score.

Positive Factors

Market Position

A strong market position in both domestic and international markets provides Shah Alloys with a competitive edge and potential for growth.

Business Model

A diversified B2B business model across multiple industries helps mitigate risks and ensures stable demand for products.

Strategic Partnerships

Strategic partnerships expand market reach and support consistent sales, strengthening Shah Alloys' market presence and revenue potential.

Negative Factors

Financial Health

Ongoing financial challenges, including negative cash flow and high leverage, threaten long-term sustainability and require strategic restructuring.

Balance Sheet Health

Negative equity and high leverage indicate financial instability, limiting Shah Alloys' ability to invest in growth and weather economic downturns.

Revenue Decline

A significant decline in revenue highlights operational challenges and threatens long-term growth prospects, necessitating strategic changes.

Shah Alloys Limited Business Overview & Revenue Model

Company Description

Shah Alloys Limited manufactures and sells flat and long stainless steel, alloy and special steel, carbon/mild steel, and armor steel products in India. It offers hot rolled coils, hot rolled sheets/plates, cold rolled coils and sheets, hot rolled round bars, bright round bars, peeled bars, and hot rolled flat bars, as well as angles, beams, flats, slabs, billets, etc. The company also exports its products to approximately 50 countries. Shah Alloys Limited was incorporated in 1990 and is based in Gandhinagar, India.

How the Company Makes Money

Shah Alloys Limited generates revenue primarily through the manufacturing and sale of stainless steel and alloy steel products. The company operates on a B2B model, supplying its products to various industries, including construction, automotive, and engineering sectors. Key revenue streams include direct sales to large industrial clients, distribution through wholesalers, and contracts with government and private sector projects. Additionally, strategic partnerships with suppliers and distributors enhance its market reach and contribute to steady sales. The company also benefits from fluctuations in steel prices, which can impact revenue positively when market conditions are favorable.

Shah Alloys Limited Financial Statement Overview

Summary

Shah Alloys Limited is facing significant financial challenges, including declining revenues, negative profitability, high leverage, and negative cash flow generation. These factors indicate a need for strategic restructuring to improve financial health and stabilize operations.

Income Statement

Shah Alloys Limited has experienced significant revenue decline, with a noticeable drop from 2024 to 2025. The company reported negative EBIT and EBITDA margins, indicating operational challenges. Gross profit margin also decreased significantly, highlighting cost management issues. Overall, the company struggles with profitability and revenue growth.

Balance Sheet

The company has a negative stockholders' equity, indicating it is highly leveraged and potentially at financial risk. The debt-to-equity ratio is not meaningful due to negative equity, and the company's liabilities exceed its assets. These factors suggest a precarious financial position.

Cash Flow

Shah Alloys Limited has been generating negative free cash flow, indicating challenges in covering operational expenses and investments from cash generated by the business. Operating cash flow is also negative, raising 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	2.67B	2.67B	5.92B	6.26B	8.80B	5.02B
Gross Profit	115.20M	115.20M	1.07B	475.00M	2.18B	900.04M
EBITDA	-94.50M	-94.50M	-217.30M	57.41M	1.22B	570.72M
Net Income	-195.60M	-197.20M	-186.48M	-44.90M	821.06M	-557.96M
Balance Sheet
Total Assets	1.95B	1.95B	2.57B	3.01B	3.16B	3.05B
Cash, Cash Equivalents and Short-Term Investments	26.40M	26.40M	2.21M	2.30M	2.45M	16.01M
Total Debt	789.20M	789.20M	801.93M	737.00M	1.17B	1.84B
Total Liabilities	2.02B	2.02B	2.46B	2.70B	2.89B	3.59B
Stockholders Equity	-76.90M	-76.90M	112.45M	305.10M	330.69M	-546.80M
Cash Flow
Free Cash Flow	0.00	-46.80M	-119.10M	445.00M	679.32M	569.20M
Operating Cash Flow	0.00	-45.00M	-65.21M	445.00M	679.32M	569.20M
Investing Cash Flow	0.00	13.20M	37.69M	2.95M	3.39M	4.58M
Financing Cash Flow	0.00	56.00M	27.44M	-432.06M	-696.28M	-560.14M

Shah Alloys Limited Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 72.30
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:SHAHALLOYS, the sentiment is Negative. The current price of 72.3 is above the 20-day moving average (MA) of 70.57, below the 50-day MA of 72.93, and above the 200-day MA of 64.30, indicating a neutral trend. The MACD of 0.58 indicates Negative momentum. The RSI at 47.53 is Neutral, neither overbought nor oversold. The STOCH value of 45.64 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for IN:SHAHALLOYS.

Shah Alloys Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
HISARMETAL	63 Neutral	₹856.44M	33.89	―	0.61%	-1.81%	-45.95%
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
SALSTEEL	57 Neutral	₹3.48B	-27.10	―	―	0.19%	-2962.74%
SHAHALLOYS	52 Neutral	₹1.39B	103.42	―	―	-76.23%	―
JOCIL	51 Neutral	₹904.55M	63.08	―	0.34%	―	―
ZENITHSTL	48 Neutral	₹1.03B	23.79	―	―	-36.62%	-37.94%

Shah Alloys Limited Corporate Events

Shah Alloys Limited Publishes Q3 2025 Financial Results

Shah Alloys Limited announced the publication of its audited financial results for the quarter ending September 30, 2025, in compliance with SEBI regulations. This disclosure, made through newspaper advertisements in ‘The Indian Express’ and ‘Financial Express’, reflects the company’s commitment to transparency and regulatory adherence, potentially impacting its market perception and stakeholder confidence.