Surya Roshni
Stock Snapshot
Price Performance
Vista Outlook
View Technicals Analysis →Basis of our Recommendation
Surya Roshni is currently navigating a mixed operational landscape, with strong demand in its lighting and consumer durables segment countered by logistical challenges in its steel pipe business. Management's focus on expanding steel pipe capacity to 2 million tonnes by FY29, alongside a strategic shift towards high-margin Value Added Products, positions the company for future growth. Despite near-term headwinds from rising freight costs and container shortages, Vista's forecast anticipates accelerating revenue growth beyond historical levels, supported by improving pricing power in the pipes industry. The company's stable profit margins and conservatively financed balance sheet further bolster its financial outlook. However, execution risks related to global trade stability and fluctuating input costs remain critical watchpoints. Over the next 12-24 months, opportunities include the expansion into the US market and the potential for margin recovery, while headwinds may arise from ongoing geopolitical challenges and competition from alternative materials. Overall, Vista's investment outlook reflects a cautious optimism, with a target price of approximately INR 273 for the next 12 months, indicating an expected upside of around 15.77%
Why We Like This Stock
- Strong demand in the lighting and consumer durables segment is driving revenue growth
- Management's strategic focus on high-margin Value Added Products and US market expansion enhances long-term growth prospects
- A conservatively financed balance sheet supports financial stability amid operational challenges
Things To Watch Out For
- Logistical challenges and rising freight costs are impacting the steel pipe business
- Execution risks related to global trade stability could hinder growth targets
- Competition from alternative materials poses a threat to market share
Key Parameters
Financial Snapshot
| Actuals | Forecast | ||||
|---|---|---|---|---|---|
| FY24 | FY25 | FY26 | FY27 | FY28 | |
| Revenue (Cr.) | 7,809 | 7,436 | 7,540 | 8,446 | 9,103 |
| Profit Before Tax (Cr.) | 440 | 459 | 384 | 434 | 491 |
| PBT Margin | 5.6% | 6.2% | 509.3% | 5.1% | 5.4% |
| Net Profit (Cr.) | 315 | 330 | 276 | 310 | 351 |
| Earnings Per Share | 14.5 | 15.2 | 12.7 | 14.2 | 16.1 |
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; 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 LED lamps, downlighters, street lights, and battens and luminaires; LED lighting; value-added offerings, such as colour changers, lighting, auto-dimming, app-based lights, COB downlights, track spot lights, power tracks, LED strips, radar LED lamps, and wall washer LEDs; and indoor commercial, industrial, roadway, flood, landscape, façade, and solar lightening products, as well as accessories, HID lamps, and light sources. In addition, the company offers celling, table, pedestal, wall, and domestic and industrial exhaust fans; and home appliances, including juicers, mixers, grinders, vegetable choppers, infrared induction and other cooktops, sandwich makers, electric kettles, dry and steam irons, gas cook tops, storage and instant water heaters, immersion water heaters, air coolers, and halogen and quartz heaters. Further, it provides PVC pipes and fitting for water pipelines, housing sectors, domestic and industrial drainage systems, industrial process lines, swimming pools, salt-water lines, and agriculture/irrigation systems. 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.