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

• Market Cap: ₹39.28B
• Dividend Yield: 0.28%
• Average Volume (3M): 13.67K
• Price to Earnings (P/E): 20.4
• Beta (1Y): 1.59
• Revenue Growth: 6.44%
• EPS Growth: 36.54%
• Country: IN
• Employees: 1,216
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Steel
• EPS (TTM): 3.33
• Shares Outstanding: 180,219,450
• 10 Day Avg. Volume: 7,862
• 30 Day Avg. Volume: 13,671
• 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: 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: 62 Neutral
• Price Target: ₹231.00 ▼(-15.45% Downside)
• Action: Reiterated Date: 10/25/25
• Date: Action: Reiterated 10/25/25

Sunflag Iron & Steel Co. Ltd. scores a 62, primarily driven by strong financial performance and moderate valuation. The technical analysis presents mixed signals, with bearish momentum offset by neutral RSI. The lack of earnings call and corporate events data limits further insights.

Positive Factors

Integrated operations

Sunflag’s vertical integration across steelmaking, rolling and manufacturing gives durable control over production, quality and input flows. Over a 2–6 month horizon this reduces supply disruption risk, improves raw material coordination and helps preserve margins versus non-integrated peers.

Sustained revenue growth

A multi-year increase in revenue signals improving market penetration for its long-product portfolio and stronger demand. Sustained top-line growth supports fixed-cost absorption, better utilization and the ability to reinvest in capacity, which underpins medium-term earnings durability.

Solid equity & margins

A strong equity base combined with healthy gross and EBITDA margins indicates operational efficiency and financial resilience. This structural strength gives the company capacity to withstand cyclical downturns, fund selective capex internally, and maintain supplier/customer confidence.

Negative Factors

Rising total debt

The recent increase in total debt raises leverage and interest-service risk. Higher leverage can constrain strategic flexibility, force prioritization between capex and debt repayment, and increase vulnerability to interest-rate or demand shocks over the medium term.

Volatile free cash flow

Inconsistent free cash flow reduces the reliability of internally generated funding for capex, debt reduction or distributions. This volatility complicates planning and may necessitate external financing at unfavorable times, weakening financial stability across upcoming quarters.

Net margin fluctuations

Fluctuating net margins indicate periodic cost pressures or limited ability to fully pass through input-cost changes. This undermines earnings predictability and highlights exposure to raw material, energy and freight variability important for medium-term profitability management.

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 primarily makes money by manufacturing steel and selling finished steel products to customers, generating revenue from the sale of its steel product portfolio (typically long products and other steel outputs produced through its integrated operations). Its earnings are driven mainly by (i) sales volumes shipped, (ii) realized selling prices linked to domestic and global steel demand/supply conditions, and (iii) the spread between input costs (such as iron ore, coal/coke, power, and freight) and realized steel prices. Additional revenue may come from sales of by-products generated during steelmaking and processing, but specific by-product categories and contribution are null. Information on material partnerships, long-term offtake agreements, or customer concentration that would significantly shape its revenue model is null.

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, which could impact future stability.

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	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	37.61B	35.36B	34.12B	34.88B	26.93B	18.91B
Gross Profit	12.43B	10.86B	6.47B	7.18B	6.22B	4.48B
EBITDA	4.49B	4.06B	3.81B	16.46B	4.05B	2.57B
Net Income	2.02B	1.62B	1.44B	11.15B	2.17B	1.41B
Balance Sheet
Total Assets	108.71B	111.87B	70.22B	49.42B	30.87B	23.98B
Cash, Cash Equivalents and Short-Term Investments	1.84B	1.58B	1.94B	114.90M	159.40M	741.10M
Total Debt	5.80B	6.24B	7.27B	6.09B	5.87B	2.68B
Total Liabilities	23.28B	24.19B	18.57B	15.99B	13.36B	8.64B
Stockholders Equity	85.42B	87.66B	51.64B	33.42B	17.49B	15.33B
Cash Flow
Free Cash Flow	933.60M	386.20M	1.19B	1.09B	-2.96B	1.69B
Operating Cash Flow	1.74B	1.19B	2.44B	2.78B	431.90M	2.23B
Investing Cash Flow	-506.60M	-1.03B	-832.60M	-2.19B	-3.35B	-603.20M
Financing Cash Flow	-823.80M	-1.09B	212.10M	-632.60M	2.89B	-1.50B

Sunflag Iron & Steel Co. Ltd. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 273.20
• 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:SUNFLAG, the sentiment is Negative. The current price of 273.2 is above the 20-day moving average (MA) of 230.93, above the 50-day MA of 241.93, and above the 200-day MA of 266.03, indicating a bearish trend. The MACD of -8.66 indicates Positive momentum. The RSI at 38.96 is Neutral, neither overbought nor oversold. The STOCH value of 40.19 is Neutral, 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	76 Outperform	₹28.55B	13.58	―	1.36%	-0.46%	4.85%
VSSL	75 Outperform	₹22.64B	20.43	―	1.03%	-1.47%	-15.20%
IMFA	68 Neutral	₹66.82B	15.33	―	1.05%	-6.18%	-23.70%
SSWL	65 Neutral	₹29.23B	16.33	―	0.65%	9.22%	-71.14%
SUNFLAG	62 Neutral	₹39.28B	20.39	―	0.28%	6.44%	36.54%
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
JAYNECOIND	59 Neutral	₹72.25B	28.77	―	―	20.00%	1413.14%

Sunflag Iron & Steel Co. Ltd. Corporate Events

Sunflag Iron & Steel Closes Trading Window Ahead of FY26 Results

Sunflag Iron & Steel Co. Ltd. has announced closure of its trading window for dealings in the company’s securities starting 1 April 2026, in line with SEBI’s Prohibition of Insider Trading Regulations and its internal code of conduct. The restriction will remain in force until 48 hours after the Board approves and publicly announces the financial results for the fourth quarter and full financial year ending 31 March 2026, and the company has notified all designated persons, including directors, officers, and employees, of this compliance measure.

The move reflects a standard governance practice aimed at preventing insider trading during a sensitive results-preparation period, reinforcing transparency and regulatory adherence for investors and other market participants. By formally informing both BSE and NSE of the trading window closure, Sunflag underscores its commitment to market discipline and timely disclosure around its upcoming quarterly and annual financial performance.

Sunflag Iron & Steel Closes Trading Window Ahead of Q3 FY2025 Results

Sunflag Iron & Steel Co. Ltd. has announced that its trading window for dealing in company securities will be closed from 1 January 2026 until 48 hours after the public announcement of its financial results for the third quarter ending 31 December 2025. The company stated that this measure, implemented under SEBI (Prohibition of Insider Trading) Regulations, 2015 and its own code of conduct, has been communicated to all designated persons, including directors, officers and employees, underscoring its compliance focus and efforts to prevent insider trading ahead of quarterly earnings disclosure.