Sunflag Iron & Steel Co. Ltd. (SUNFLAG) AI Stock Analysis

• Market Cap: ₹46.97B
• Dividend Yield: 0.29%
• Average Volume (3M): 13.99K
• Price to Earnings (P/E): 23.9
• Beta (1Y): 1.60
• Revenue Growth: 3.63%
• EPS Growth: 35.18%
• Country: IN
• Employees: 1,216
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Steel
• EPS (TTM): 3.47
• Shares Outstanding: 180,219,450
• 10 Day Avg. Volume: 8,707
• 30 Day Avg. Volume: 13,993
• PEG Ratio: 2.05
• Price to Book (P/B): 0.49
• Price to Sales (P/S): 1.20
• P/FCF Ratio: 110.13
• 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: ₹277.00
• Price Target Upside: 7.66% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 60 Neutral
• Price Target: ₹277.00 ▲(7.66% Upside)

Sunflag Iron & Steel Co. Ltd. scores moderately due to strong financial performance, despite concerns about debt and cash flow management. Technical analysis shows mixed signals, with short-term bearish trends. The valuation suggests potential overvaluation, with a high P/E ratio and low dividend yield.

Sunflag Iron & Steel Co. Ltd. Business Overview & Revenue Model

Company Description

Sunflag Iron and Steel Company Limited manufactures and sells steel rolled products in India. The company offers bearing, cold forging, engine valve, micro alloyed, forging, free and semi-free cutting, stainless, spring, and tool steels, as well as carbon, valve, alloy, cold heading, and high strength steel; and forging ingots and super alloys. It also provides round bars, round cornered squares in straight bars, round and hexagonal wire rods, and hexagonal and flat sections straight bars, as well as bright bars, such as peeled/drawn/ground bars. The company's products are used for the manufacture of automotive transmission gears, drive shafts, steering systems, bearings, exhaust systems, engine components, suspension systems, gear boxes, drive trains, and steering systems. It serves railways, ordnance factories, power sectors, and other general engineering areas. The company exports its products to South East Asia, North America and South America, East Africa, Europe, Japan, Taiwan, and China. Sunflag Iron and Steel Company Limited was incorporated in 1984 and is headquartered in Nagpur, India.

How the Company Makes Money

SUNFLAG generates revenue primarily through the sale of its steel products, which are in high demand across multiple sectors including construction, automotive, and manufacturing. The company's revenue model is based on direct sales to customers, long-term contracts with industrial clients, and distribution through a network of dealers and retailers. Key revenue streams include the production and sale of wire rods, bars, and other steel products, which contribute significantly to its earnings. Additionally, SUNFLAG may engage in partnerships with construction firms and manufacturing companies, providing them with tailored steel solutions that further enhance sales and market reach. Fluctuations in global steel prices, operational efficiency, and the ability to meet customer demands also play crucial roles in the company’s profitability.

Sunflag Iron & Steel Co. Ltd. Financial Statement Overview

Summary

Sunflag Iron & Steel Co. Ltd. demonstrates strong financial health with robust revenue growth and solid equity positioning. Operational efficiency is evident, but there are concerns regarding debt levels and cash flow management.

Income Statement

Sunflag Iron & Steel Co. Ltd. has shown a strong revenue growth trend with a significant increase in total revenue from 2022 to 2025. The gross profit margin is healthy, indicating efficient production processes, and both EBIT and EBITDA margins reflect solid operational efficiency. However, the net profit margin has experienced some fluctuations, suggesting potential cost management issues in certain years.

Balance Sheet

The balance sheet reflects a strong equity position, with a consistent increase in stockholders' equity over the years. The debt-to-equity ratio remains moderate, showcasing a balanced leverage strategy. However, there is a noticeable increase in total debt in recent years, which could pose a risk if not managed carefully.

Cash Flow

The cash flow statement reveals some volatility in free cash flow, with significant growth in recent years. The operating cash flow to net income ratio is generally positive, indicating good cash generation relative to net income. However, the free cash flow to net income ratio shows inconsistency, which could point to challenges in capital expenditure management.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	36.54B	35.36B	34.12B	34.88B	26.93B	18.91B
Gross Profit	12.94B	10.86B	6.47B	7.18B	6.22B	4.48B
EBITDA	4.52B	4.06B	3.81B	16.46B	4.03B	2.57B
Net Income	1.97B	1.62B	1.44B	11.15B	2.17B	1.41B
Balance Sheet
Total Assets	0.00	111.87B	70.22B	49.42B	30.87B	23.98B
Cash, Cash Equivalents and Short-Term Investments	1.58B	1.58B	1.94B	114.90M	159.40M	741.10M
Total Debt	0.00	6.24B	7.27B	6.09B	5.87B	2.68B
Total Liabilities	-87.68B	24.19B	18.57B	15.99B	13.36B	8.64B
Stockholders Equity	87.68B	87.66B	51.64B	33.42B	17.49B	15.33B
Cash Flow
Free Cash Flow	0.00	386.20M	1.19B	1.09B	-2.96B	1.69B
Operating Cash Flow	0.00	1.19B	2.44B	2.78B	431.90M	2.23B
Investing Cash Flow	0.00	-1.03B	-832.60M	-2.19B	-3.35B	-603.20M
Financing Cash Flow	0.00	-1.09B	212.10M	-632.60M	2.89B	-1.50B

Sunflag Iron & Steel Co. Ltd. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 257.30
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:SUNFLAG, the sentiment is Negative. The current price of 257.3 is below the 20-day moving average (MA) of 264.83, below the 50-day MA of 273.50, and below the 200-day MA of 263.43, indicating a bearish trend. The MACD of -3.11 indicates Positive momentum. The RSI at 40.28 is Neutral, neither overbought nor oversold. The STOCH value of 13.95 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for IN:SUNFLAG.

Sunflag Iron & Steel Co. Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
KSL	73 Outperform	₹36.18B	13.62	―	1.22%	2.03%	10.83%
IMFA	68 Neutral	₹58.99B	16.48	―	1.73%	-7.18%	-9.88%
VSSL	68 Neutral	₹26.84B	26.12	―	1.10%	6.99%	-12.58%
SSWL	66 Neutral	₹33.98B	16.82	―	0.58%	5.82%	-69.82%
JAYNECOIND	63 Neutral	₹65.92B	17.50	―	―	20.00%	1413.14%
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
SUNFLAG	60 Neutral	₹46.97B	23.87	―	0.29%	3.63%	35.18%