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HomeStocksTechno-fundamental analysis of Steelcast Ltd

Techno-fundamental analysis of Steelcast Ltd

The Steelcast Ltd is currently trading above its 200-day Exponential Moving Average (EMA) by bouncing from the same, suggesting a potential investment opportunity due to impressive fundamentals. The stock boasts a Piotroski score of 9 and a G factor of 4, with an 18.02% decline from its all-time high. Analysing the chart, it’s evident that the stock is near the 200-day EMA and a previous resistance level, potentially acting as a strong support. We expect it to rebound from these levels, given its historical respect for these points. Notably, the Investor Education and Protection Fund Authority, Ministry of Corporate Affairs, has invested in this stock. 

Piotroski score is a financial metric used to assess the overall financial health and strength of a company. Comprising nine criteria that focus on various aspects of a firm’s financial statements, the Piotroski Score helps investors identify companies with strong fundamentals and sound financial performance. A higher score indicates better financial health, making it a valuable tool for investors seeking to evaluate the quality and potential of a company. 

G factor – It is based on the recent quarterly growth of the company as well as the quality of the earnings. 

Regarding financials, Steelcast Ltd has significantly reduced its debt, positioning itself as nearly debt-free. The company has demonstrated remarkable profit growth, boasting a 27.4% Compound Annual Growth Rate (CAGR) over the past 5 years. Investors seeking stability and returns will find comfort in the company’s robust Return on Equity (ROE) track record, standing at an impressive 25.4% over the last 3 years. Additionally, Steelcast Ltd has consistently paid out healthy dividends, with a payout ratio of 23.4%.

Check: ROE Vs ROCE

Steelcast Valuation 

From a valuation perspective, the stock appears undervalued with a P/E ratio of 15.9, compared to the industry average of 27.9. This presents an attractive opportunity for investors looking for growth at a reasonable price. With a market capitalization of Rs 1,237 crore and a current price of Rs 612, this Small-Cap company stands as a symbol of financial strength, poised for further success. 

Stock Performance 

Examining the Steelcast stock performance, the one-year return is a steady 32.21%, reflecting positive momentum. Over three years, it has delivered multi-bagger returns of 381.6%, and the five-year return of 302.98% solidifies the company’s position as a formidable player in the market.

About the company

Steelcast Limited (SCL) manufactures Steel and Alloy Steel Castings, catering to various Original Equipment Manufacturers (OEMs) across diverse industrial sectors.

Learn: TechnoFunda Investing

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. The information is based on various secondary sources on the internet and is subject to change. Please consult with a financial expert before making investment decisions. 
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