Surya Roshni
Stock Snapshot
Price Performance
Vista Outlook
Basis of our Recommendation
Surya Roshni's management has articulated a strategic pivot towards high-margin, value-added products, particularly in the Steel and Lighting segments, which is expected to enhance profitability and support revenue growth. The company's focus on expanding its footprint in the U.S. market and optimizing its product mix is crucial, especially as it aims to mitigate risks associated with raw material price volatility. Vista's financial outlook reflects an anticipated acceleration in revenue growth beyond historical trends, supported by a stable margin environment and a conservatively financed balance sheet. The expected upside of approximately 27.5% aligns with the company's strategic initiatives and market positioning. However, potential headwinds such as rising raw material costs and geopolitical challenges could impact margins and execution. The infrastructure sector's stable demand and improving pricing power provide a favorable backdrop for Surya Roshni's growth trajectory. Over the next 12-24 months, key opportunities include capturing growth from government infrastructure projects and expanding into higher-margin product lines, while watchpoints include managing supply chain disruptions and competitive pressures
Why We Like This Stock
- Strategic shift towards high-margin, value-added products is expected to enhance profitability
- Expansion into the U.S. market and government infrastructure projects provide significant growth opportunities
- Stable demand in the infrastructure sector supports a favorable revenue outlook
Things To Watch Out For
- Rising raw material costs may pressure profit margins
- Geopolitical challenges and logistical issues could impact execution and growth
- Increased competition in the market may affect pricing strategies
Key Parameters
Financial Snapshot
View Technicals Analysis →| Actuals | Forecast | ||||
|---|---|---|---|---|---|
| FY24 | FY25 | FY26 | FY27 | FY28 | |
| Revenue (Cr.) | 7,809 | 7,436 | 7,540 | 8,416 | 9,187 |
| Profit Before Tax (Cr.) | 440 | 459 | 384 | 415 | 477 |
| PBT Margin | 5.6% | 6.2% | 5.1% | 4.9% | 5.2% |
| Net Profit (Cr.) | 315 | 330 | 276 | 296 | 340 |
| Earnings Per Share | 14.5 | 15.2 | 12.7 | 13.6 | 15.6 |
Analyst Recommendations
| Broker | Recommendation | Target Price | Date |
|---|---|---|---|
| IDBI Capital | ► Hold | 225 | 12-Aug-2026 |
Company Overview
Show Company Profile
Surya Roshni Limited manufactures and sells steel pipes and strips, and lighting and consumer durables in India. The company offers GI pipes for agriculture and irrigation, casing and tubing, water transportation/plumbing and pipelines, green houses, firefighting, street light poles, and solar panels; API/3LPE coated spiral pipes for oil and gas, and water transportation, and city gas distribution; CR strips; hollow section pipes; spiral welded pipes; cold rolled strips and sheets; and black pipes for construction, fabrication, fencing, railway platforms and metros, airports, powder coating, sign boards, industrial application, and scaffoldings. It also provides various indoor commercial, retail lighting, industrial lighting, street lighting, flood lighting, facade lighting, landscape lighting, solar lighting, high mast lighting, and sensors; and consumer lighting products, including panels and LED downlighters, decorative lights, LED battens, LED lamps, street and flood lights, torches, extension boards, GLS, FTL fittings and ballast, and wires and cables. In addition, the company offers ceiling, designer, BLDC, pedestal, table, and exhaust fans; home appliances, including water heaters, room heaters, air coolers, steam irons, juicer-mixer-grinders, and induction cooktops; and domestic wires. Further, it provides PVC Pressure pipes and fittings for water supply and pressure applications; CPVC pipes and fittings for hot and cold-water transportation; UPVC plumbing pipes and fittings for residential and commercial plumbing; UPVC SWR pipes and fittings for soil, waste and rainwater drainage systems, and water storage tanks for safe and reliable water storage solutions. The company also exports its products to the United States, Australia, Canada, Mexico, the Middle East, Europe, Africa, and internationally. Surya Roshni Limited was incorporated in 1973 and is headquartered in New Delhi, India.