Shah Alloys Limited (SHAHALLOYS) AI Stock Analysis

• Market Cap: ₹1.32B
• Dividend Yield: N/A
• Average Volume (3M): 18.75K
• Price to Earnings (P/E): 99.7
• Beta (1Y): 1.67
• 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: ₹67.00 ▼(-7.33% Downside)

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

In-house manufacturing and processing

Owning manufacturing and processing capabilities provides a durable competitive edge versus pure traders: it enables value capture across the production chain, control of quality/specs, and flexibility to shift output with demand—supporting margins and customer retention over months.

Product form diversification

Offering both semi-finished and finished products lets the company serve OEMs, distributors, and industrial users, reducing dependence on a single end-market. This structural mix improves resilience to demand shifts and enables long-term revenue stabilization across customer segments.

Domestic and export sales channels

Having both domestic and export revenue streams provides market diversification and currency/pricing levers. Access to overseas markets can smooth domestic cyclicality and enable scale in higher‑demand regions, supporting longer-term revenue opportunities if maintained.

Negative Factors

Negative equity / high leverage

Negative shareholder equity signals liabilities exceed assets and a highly leveraged capital structure. This structural weakness restricts financing options, raises insolvency risk, and limits capacity for capex or restructuring, undermining medium-term operational stability.

Persistent negative cash generation

Negative operating and free cash flow indicate the business cannot self-fund operations or investments. Over a 2–6 month horizon this necessitates external funding, increasing refinancing risk and potentially forcing asset sales or cutbacks that impair long-term competitiveness.

Falling revenue and unprofitable operations

Material revenue decline alongside negative EBIT/EBITDA margins reflects structural cost or pricing pressures and poor margin sustainability. Without clear operational fixes, these trends erode ability to invest in product, capacity, or sales, damaging medium-term market position.

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: Neutral
• Last Price: 72.30
• 50DMA: Negative
• 100DMA: Negative
• 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 Neutral. The current price of 72.3 is above the 20-day moving average (MA) of 66.69, above the 50-day MA of 68.94, and above the 200-day MA of 65.18, indicating a neutral trend. The MACD of -1.42 indicates Negative momentum. The RSI at 48.80 is Neutral, neither overbought nor oversold. The STOCH value of 58.56 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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	₹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%
SHAHALLOYS	52 Neutral	₹1.32B	99.73	―	―	-76.23%	―
JOCIL	51 Neutral	₹904.55M	18.43	―	0.34%	―	―
ZENITHSTL	43 Neutral	₹731.32M	17.20	―	―	-36.62%	-37.94%

Shah Alloys Limited Corporate Events

Shah Alloys Files SEBI Dematerialisation Compliance Certificate for December Quarter

Shah Alloys Limited has submitted to the stock exchanges a compliance certificate under Regulation 74(5) of the SEBI (Depositories and Participants) Regulations, 2018 for the quarter ended 31 December 2025, as issued by its registrar and share transfer agent, Bigshare Services Pvt. Ltd. The certificate confirms that all securities received for dematerialisation during the quarter were duly processed, listed on the appropriate exchanges, and that physical certificates were mutilated, cancelled, and replaced in the company’s register of members within the prescribed timelines, underscoring the company’s adherence to regulatory requirements in handling its shareholders’ dematerialised securities.

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.