Steelcast Ltd
Stock Snapshot
Price Performance
Vista Outlook
Basis of our Recommendation
Steelcast Ltd is navigating a multi-year growth phase, driven by strong demand in the mining, earthmoving, and infrastructure sectors. Management's strategic pivot towards becoming a co-engineering partner for global OEMs, particularly in high-barrier segments like Defence and Railroads, positions the company favorably for revenue growth. The focus on enhancing technical capabilities and investing in digital infrastructure supports Vista's forecast of stable revenue growth and margins. Despite facing inflationary pressures and supply chain variability, Steelcast's robust price-variation formulas are expected to protect margins. The company's disciplined capital allocation and commitment to a debt-free balance sheet further bolster its financial outlook. Industry trends indicate improving pricing power and stable demand, which align with Vista's expectations of a 16.98% upside potential. However, geopolitical risks and economic fluctuations remain watchpoints. Over the next 12-24 months, Steelcast's opportunities lie in expanding its capacity through a new Greenfield Foundry and leveraging renewable energy projects, while headwinds include potential supply chain disruptions and raw material price volatility
Why We Like This Stock
- Strong demand in mining and infrastructure sectors supports revenue growth
- Strategic pivot to co-engineering partnerships enhances competitive positioning
- Robust price-variation formulas are expected to protect margins amid inflation
Things To Watch Out For
- Geopolitical risks and supply chain variability could impact operations
- Inflationary pressures may squeeze margins despite protective measures
- Potential fluctuations in raw material prices pose a risk to profitability
Key Parameters
Financial Snapshot
View Technicals Analysis →| Actuals | Forecast | ||||
|---|---|---|---|---|---|
| FY24 | FY25 | FY26 | FY27 | FY28 | |
| Revenue (Cr.) | 410 | 373 | 423 | 489 | 530 |
| Profit Before Tax (Cr.) | 100 | 97 | 116 | 134 | 145 |
| PBT Margin | 24.5% | 26.0% | 27.3% | 27.4% | 27.4% |
| Net Profit (Cr.) | 76 | 73 | 87 | 101 | 109 |
| Earnings Per Share | 7.5 | 7.2 | 8.6 | 10.0 | 10.8 |
Analyst Recommendations
No analyst recommendations available.
Company Overview
Show Company Profile
Steelcast Limited manufactures and sells steel and alloy castings in India. The company offers adapter and tooth point, front axle spindle, axle housing, component for backhoe loader, track shoe, cross member, tilt lever, spindle, sprocket, steering case, lift arm, drive tube, saddle, and support; apron pan assembly, cutting edge, idler, rack and pinion, fork type corner tooth, box type tooth point, tooth point and adapter, countinuos drag chain, deck panel, jaw plate, bowl liner, cutter, track shoe assembly, hammer, ring hammer, linkage, bearing support, tri power hub, track link, and bowl and mantle; and side frame, coupler body, and bolster. It also provides grate bar; blow bar, cooler grate plate, zet ring, drag chain link, hammer, chamber shell liner, diaphragm plate, cement mill liner, inside view of cement mill, and cooler plate and segmental tip, as well as grinding segment, roller, tyre, and table segment; and guide vane, hollow ball, plain and toothed ring hammer, turbine body casing, and grinding roller. In addition, the company offers valve body, bonnet, yoke, wedge, and pump-body casing and impeller, and wedge; pressure plate, support coil, bearing housing, cylinder head, and commercial chamber; centre wheel; body casing equipment; anchor and shank assembly, and segment feeder; and car shredding hammer, gate valve, valve and bonnet, deflector, fifth wheel, impeller, plastic injection mold plate, steel back tyre, and suction guide. It serves its products for earth moving, mining and mineral processing, railway, steel plants, cement, energy, valves and pumps, electro locomotive, aerobridge, oil exploration, shipping, and general engineering industries. It also exports its products in Germany, the United States, Thailand, Singapore, Mexico, Brazil, Denmark, Slovakia, Poland, South Korea, Japan, China, Australia, Israel, and Canada. The company was founded in 1960 and is headquartered in Bhavnagar, India.