Dashboard/VRAJ

VRAJ

FAIRLY_VALUED

Vraj Iron and Steel Limited

Metals · NSE

↑ 6.7% vs fair value

52W Low

₹93

+14.0% from low

52W High

₹194

-45.4% from high

News sentiment (2 articles)

0 bull0 neutral2 bear

✦

Analyst Note

Today

Vraj Iron and Steel trades at ₹106.03, representing a 9.3% discount to its fair value of ₹113.61, though valuation confidence remains low. The company faces significant headwinds: earnings collapsed 87.9% year-on-year despite 22.1% revenue growth, negative free cash flow of ₹81 Cr, and deteriorating ROCE, with earnings quality marked as paper profits. A weak ROE of 6.4% and Piotroski score of 6 highlight operational challenges, though the stock benefits from a conservative debt-to-equity of 0.07 and sector-wide valuation weakness. Sentiment has remained consistently bearish across both weekly and monthly periods. This stock suits investors comfortable with turnaround potential in a cyclical metals business, not those seeking near-term stability.

Valuation Gauge

FAIRLY_VALUED+6.7% Margin of Safety

OVERVALUEDFAIRLY VALUEDUNDERVALUED

Current Price

₹106

Fair Value

₹114

Fair Value Analysis

₹114

Based on balance sheet strength analysis and earnings multiple (EV/EBITDA) for Metals sector companies | Sector-cheap: P/E at 22th percentile vs sector peers. | CAUTION: ROCE declining (latest 15.8%) — returns on capital are falling; verify this isn't a value trap. | Growth capped at 7.4% (ROE 6.4%×1.15) — historical CAGR exceeds sustainable rate or COVID period unverifiable.

Low confidence

Balance Sheet Value

40% weight

₹68

EV/EBITDA Multiple

60% weight

₹144

Price vs Market

VRAJ

Nifty 50

Shareholding Pattern

Stock Health Score

Solid Fundamentals

6.8 / 10

Profitability

8/10

ROE of 6.4% is acceptable for Metals sector (benchmark: 12%)

Debt & Leverage

10/10

D/E ratio of 0.1x is well within the Metals sector norm of 0.8x — strong balance sheet

Valuation vs Peers

10/10

P/E of 12.9x trades at a 79% discount to Metals sector median (61x) — attractively valued

Cash Flow

1/10

Negative FCF of ₹-81 Cr — company is consuming more cash than it generates

Earnings Growth

8/10

5yr EPS CAGR of 15.4% is in line with the Metals sector average of 13.8%

Dividend

4/10

No dividend — typical for growth-stage companies

Sentiment Trend — Last 30 Days

Historical Returns

Key Ratios & Growth

FCF Yield

-25.9%

Free cash flow / market cap

Revenue Growth (YoY)

+22.1%

Year-on-year revenue change

Profit Growth (YoY)

-86.7%

Year-on-year PAT change

Operating Cash Flow

₹14 Cr

TTM cash from operations

Key Financials

EPS (TTM)

₹8

P/E Ratio

12.9x

P/B Ratio

0.8x

ROE

6.4%

ROCE

14.9%

Debt / Equity

0.07x

Beta

—

Div Yield

—

FCF (Cr)

₹-81 Cr

Revenue (Cr)

₹475 Cr

EPS Growth 5Y

15.4%

Mkt Cap (Cr)

₹343 Cr

52W High

₹194.2

52W Low

₹93

Book Value/Share

₹123.9

Financial History

Period	Revenue	Op Profit	OPM%	PAT	EPS
TTM	₹571 Cr	₹48 Cr	8.0%	₹26 Cr	₹8.01
2025-03-31	₹475 Cr	₹63 Cr	13.0%	₹44 Cr	₹13.37
2024-03-31	₹420 Cr	₹77 Cr	18.0%	₹57 Cr	₹23.22
2023-03-31	₹516 Cr	₹77 Cr	15.0%	₹54 Cr	₹109.21
2022-03-31	₹414 Cr	₹48 Cr	12.0%	₹29 Cr	₹58.05
2021-03-31	₹291 Cr	₹28 Cr	10.0%	₹11 Cr	₹22.23

Compounded Growth Rates

Sales Growth

3Y+3.4%

5Y+14.4%

10Y—

Profit Growth

3Y-21.6%

5Y+18.8%

10Y—

EPS Growth

3Y-58.1%

5Y-18.5%

10Y—

Peer Comparison

Metals

Stock	Price	Fair Value	MoS%	P/E	ROE	Signal
JINDALSAW Jindal Saw	₹195	₹436.2	+55.3%	10.9	16.0%	UNDERVALUED
STEELCITY Steel City Securities Limited	₹80.6	₹130.7	+38.4%	6.9	12.1%	UNDERVALUED
VSTL Vibhor Steel Tubes Limited	₹109.4	₹143.4	+23.7%	19.3	7.0%	FAIRLY_VALUED
HISARMETAL Hisar Metal Industries Limited	₹143.9	₹186.5	+22.9%	30.5	7.1%	FAIRLY_VALUED
SSWL Steel Strips Wheels Limited	₹190	₹213.8	+11.1%	15.7	13.0%	FAIRLY_VALUED
HINDALCO Hindalco Industries	₹926.8	₹1,039.1	+10.8%	12.7	11.9%	FAIRLY_VALUED
MAHSEAMLES Maharashtra Seamless Limited	₹595	₹656.6	+9.4%	9.4	14.0%	FAIRLY_VALUED
VRAJ Vraj Iron and Steel Limited	₹106	₹113.6	+6.7%	13	6.4%	FAIRLY_VALUED