Steel City Securities Ltd. (STEELCITY) AI Stock Analysis

• Market Cap: ₹1.50B
• Dividend Yield: 4.25%
• Average Volume (3M): 7.43K
• Price to Earnings (P/E): 8.8
• Beta (1Y): 0.98
• Revenue Growth: -8.60%
• EPS Growth: -9.89%
• Country: IN
• Employees: 323
• Sector: Financial
• Sector Strength: 70
• Industry: Financial - Capital Markets
• EPS (TTM): 2.07
• Shares Outstanding: 15,107,095
• 10 Day Avg. Volume: 5,973
• 30 Day Avg. Volume: 7,426
• PEG Ratio: 0.21
• Price to Book (P/B): 1.21
• Price to Sales (P/S): 2.24
• P/FCF Ratio: 537.08
• 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: Moderate Buy
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 68 Neutral
• Price Target: ₹99.00 ▲(3.32% Upside)

Steel City Securities Ltd. has a strong valuation with a low P/E ratio and high dividend yield, making it attractive for value investors. However, bearish technical indicators suggest caution, and financial performance shows mixed results with declining revenue growth and cash flow challenges. Investors should monitor these factors closely.

Positive Factors

Strong Margins

Strong profit margins indicate efficient operations and pricing power, supporting long-term profitability and competitive positioning.

Low Leverage

Minimal leverage enhances financial stability and flexibility, reducing risk and enabling strategic investments without significant debt burden.

Healthy Return on Equity

A strong return on equity reflects efficient use of capital, indicating effective management and potential for sustainable growth in shareholder value.

Negative Factors

Declining Revenue Growth

A decline in revenue growth could signal challenges in market expansion and customer acquisition, potentially impacting future earnings potential.

Mixed Cash Flow Performance

Limited cash conversion efficiency may hinder the company's ability to reinvest in growth opportunities and manage financial obligations effectively.

Revenue Expansion Challenges

Challenges in expanding revenue streams could affect long-term growth prospects, necessitating strategic adjustments to sustain financial performance.

Steel City Securities Ltd. Business Overview & Revenue Model

Company Description

Steel City Securities Limited provides retail stock broking services in southern parts of India. It provides a trading platform of capital market, futures and options, commodities, and currency derivatives; acts as a depository participant; offers margin trading facility for stocks or derivatives traded on NSE and BSE; and distributes mutual funds, credit cards, corporate fixed deposits, bonds, and IPOs. The company also promotes pension schemes for the retirement benefits of employees and business people; offers insurance agency services, and online payment system for online and offline trading clients; and provides non-banking financial services, such as project finance loans, housing loans, personal loans, gold loans, and loans against securities, as well as a mobile trading application. In addition, it offers e-governance products, such as PAN, TAN, e-TDS and e-TCS returns/statements, E- sign, annual information return, GST returns, and form 24G, as well as change requests of PAN and TAN. The company was incorporated in 1995 and is headquartered in Visakhapatnam, India.

How the Company Makes Money

Steel City Securities Ltd. generates revenue through multiple streams, primarily including commissions from trading activities, management fees from asset management services, and advisory fees from financial consulting. The company earns commissions on both buy and sell transactions executed on behalf of clients in various markets. Additionally, STEELCITY charges management fees based on a percentage of assets under management (AUM) for its investment funds, which contribute significantly to its recurring revenue. The firm also provides strategic advisory services for mergers and acquisitions, earning fees for facilitating these transactions. Partnerships with technology providers enhance its trading platforms, allowing for better execution and analytics, which can attract more clients and increase revenue. Furthermore, the company may engage in proprietary trading, generating profits from its own investments in various securities.

Steel City Securities Ltd. Financial Statement Overview

Summary

Steel City Securities Ltd. demonstrates solid profitability and financial stability, supported by strong margins and low leverage. However, the recent decline in revenue growth and mixed cash flow performance could pose challenges. Continued focus on revenue expansion and cash flow management will be crucial for sustaining growth.

Income Statement

Steel City Securities Ltd. shows strong profitability with a consistent gross profit margin above 58% and a net profit margin improving to 24.5% in the latest year. However, the revenue growth rate has declined by 3.1% in the most recent year, indicating potential challenges in expanding revenue streams.

Balance Sheet

The company maintains a robust balance sheet with a low debt-to-equity ratio of 0.03, indicating minimal leverage. Return on equity is healthy at 13.2%, reflecting efficient use of equity capital. The equity ratio is strong, highlighting financial stability.

Cash Flow

Cash flow performance is mixed, with a significant improvement in free cash flow growth but a low operating cash flow to net income ratio of 0.045. The free cash flow to net income ratio is modest at 0.084, suggesting limited cash conversion efficiency.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	635.58M	652.83M	591.79M	546.06M	636.33M	524.02M
Gross Profit	406.68M	427.08M	376.03M	343.48M	380.11M	319.46M
EBITDA	234.94M	239.92M	167.97M	157.06M	187.32M	144.17M
Net Income	169.93M	171.52M	118.63M	112.09M	138.19M	105.74M
Balance Sheet
Total Assets	0.00	2.14B	2.09B	1.83B	1.82B	1.65B
Cash, Cash Equivalents and Short-Term Investments	0.00	34.05M	87.22M	281.68M	212.87M	57.21M
Total Debt	0.00	40.79M	50.83M	7.78M	843.00K	8.46M
Total Liabilities	-1.30B	841.98M	910.96M	718.95M	770.09M	690.86M
Stockholders Equity	1.30B	1.30B	1.18B	1.12B	1.05B	955.39M
Cash Flow
Free Cash Flow	0.00	2.92M	-190.21M	22.49M	212.22M	-3.23M
Operating Cash Flow	0.00	34.67M	-185.50M	162.40M	275.14M	16.07M
Investing Cash Flow	0.00	9.68M	32.79M	-105.35M	-31.82M	25.18M
Financing Cash Flow	0.00	-82.70M	-8.32M	-29.52M	-57.87M	-27.51M

Steel City Securities Ltd. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 95.82
• 50DMA: Negative
• 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:STEELCITY, the sentiment is Negative. The current price of 95.82 is below the 20-day moving average (MA) of 96.38, below the 50-day MA of 99.33, and below the 200-day MA of 100.39, indicating a bearish trend. The MACD of -1.56 indicates Positive momentum. The RSI at 41.74 is Neutral, neither overbought nor oversold. The STOCH value of 59.80 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for IN:STEELCITY.

Steel City Securities Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
KEYFINSERV	75 Outperform	₹2.54B	10.48	―	0.35%	-57.76%	-68.83%
STEELCITY	68 Neutral	₹1.50B	8.80	―	4.25%	-8.60%	-9.89%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
SMCGLOBAL	63 Neutral	₹14.04B	14.36	―	1.01%	-5.03%	-54.73%
ALMONDZ	57 Neutral	₹3.13B	17.04	―	―	7.76%	-48.14%
INVENTURE	46 Neutral	₹1.53B	119.67	―	―	-53.21%	-78.00%
RHFL	42 Neutral	₹1.63B	6.71	―	―	1057.49%	―