Sunflag Iron & Steel
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Price Performance
Vista Outlook
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Sunflag Iron & Steel's recent performance reflects a stable yet moderating growth trajectory, as indicated by management's commentary and the broader industry dynamics. The company is navigating a competitive landscape characterized by improving pricing power within the iron and steel sector, driven by rising demand for hot-rolled coil products and supportive government initiatives. This backdrop is crucial for Sunflag's revenue growth, which, while slowing compared to historical performance, remains underpinned by a strong balance sheet and stable profit margins. Vista's financial outlook anticipates a modest revenue increase, with margins expected to hold steady, aligning with the company's fair valuation. The anticipated recovery in HRC prices and ongoing domestic demand growth in India further bolster this outlook, despite potential headwinds from geopolitical tensions and input cost volatility. Over the next 12-24 months, key opportunities lie in capitalizing on domestic market growth and pricing recovery, while watchpoints include external economic factors and commodity price fluctuations that could impact margins. Overall, Sunflag's position within a fragmented market, combined with a stable financial profile, supports Vista's cautious yet optimistic investment stance
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Financial Snapshot
| Actuals | Forecast | ||||
|---|---|---|---|---|---|
| FY24 | FY25 | FY26 | FY27 | FY28 | |
| Revenue (Cr.) | 3,415 | 3,536 | 3,939 | 4,004 | 3,924 |
| Profit Before Tax (Cr.) | 183 | 212 | 310 | 356 | 339 |
| PBT Margin | 5.4% | 6.0% | 786.2% | 8.9% | 8.6% |
| Net Profit (Cr.) | 135 | 149 | 191 | 267 | 254 |
| Earnings Per Share | 7.5 | 8.3 | 10.6 | 14.8 | 14.1 |
Analyst Recommendations
No analyst recommendations available.
Company Overview
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Sunflag Iron and Steel Company Limited manufactures and sells steel rolled products in India and internationally. The company offers super alloys, tool steels, SSR 550, spring steels, free cutting steels, forging steels, forging ingots, microalloyed steels, engine value steels, cold forging steels, and bearing steels. It also provides flat steel, round bars and coils, rolled bars and wires, round cornered squares, and hexagonal steel products. The company's products are used for automobile, general engineering, machinery, projects, railway, defence, and construction applications. It exports its products to South East Asian, North American and South American Countries, South Africa, the European Union, Japan, Taiwan, Australia, Switzerland, the United Kingdom, and Ireland. Sunflag Iron and Steel Company Limited was incorporated in 1984 and is headquartered in Nagpur, India.