As of Mar 28, 2026, Surya Roshni Ltd (Steel - Tubes/Pipes) has a deep value score of 45/100 (rated Average). Earnings are accelerating. 1Y return vs Nifty 500: -19%.
Deep value thesis based on recent earnings • Updated Mar 28, 2026
Surya Roshni is strategically pivoting toward higher-margin lighting business while steel segment stabilizes, with net cash position enabling growth and potential shareholder returns.
Verdict
TURNAROUND_IN_PROGRESS
Re-rating catalysts over the next 2-4 quarters • Updated Mar 28, 2026
Steel division targeting 11 lakh tonnes production by Q4 FY26 with ₹540-550 crore EBITDA guidance for FY27
Impact: +₹540 Cr revenue
“Management guidance in Q3 FY26 earnings call”
LED product mix improvement driving lighting segment margins toward 10%+ from current 8.8% (42/476)
Impact: +₹150 Cr revenue
“6% YoY revenue growth in lighting segment with strong traction in LED bulbs and professional lighting”
First approval from ONGC for ERW casing pipes opening ₹200+ crore high-margin order pipeline
Impact: +₹200 Cr revenue
“Milestone achievement mentioned in Q3 FY26 earnings call”
Risks that could prevent re-rating or deepen the value trap
Steel prices fluctuating >15% quarterly
Impact: -300 bps margin impact
Management view: Management acknowledges steel price volatility but cites improved hedging strategies in Q3 call
Monitor: Steel inventory turnover ratio
Market share loss >5% in key LED categories
Impact: -200 bps margin impact
Management view: Management cites product differentiation and professional lighting focus as competitive advantages
Monitor: Lighting segment market share data
Forward-looking targets from management for FY27
Revenue Growth Target
17.5%
Implied PAT Growth
40%
OPM Guidance
9.5%
Capex Plan
₹150 Cr
Key Milestones
• 11 lakh tonnes steel production
• ₹540-550 crore EBITDA
• Lighting segment market share growth
Revenue, profit and margin growth rates
| Metric | YoY | 3Y CAGR | Trend |
|---|---|---|---|
| Revenue | +3% | -1% | Stable |
| PAT (Net Profit) | -11% | +19% | Inflection Down |
| OPM | 8.0% | 0 bps | Volatile |
The above analysis is AI-generated from publicly available financial data. This is educational research only — not investment advice. Last updated Mar 28, 2026.
Based on publicly available financial data. This is educational research, not investment advice.
Surya Roshni Ltd has a deep value score of 45/100 (rated Average). This score is calculated from three components
Surya Roshni Ltd's quarterly profit (PAT) growth trajectory
Surya Roshni Ltd is underperforming the market despite improving earnings — this is the core deep value thesis
Surya Roshni Ltd's earnings momentum is Steady — consistent growth.
Surya Roshni Ltd's valuation metrics
Surya Roshni Ltd's revenue and margin trends
Surya Roshni Ltd's trailing twelve month (TTM) performance
Surya Roshni Ltd key facts
Surya Roshni Ltd shows limited deep value signals currently — score is 45/100 (Average). Monitor for improvement.
Other deep value stocks in Steel - Tubes/Pipes
Steel - Tubes/Pipes deep value sector overview
Deep value investing studies stocks that are underperforming the market despite showing improving fundamentals. The thesis is that the market has not yet recognized the earnings recovery, creating a potential valuation gap. It requires patience — recovery can take several quarters.
The deep value score (0-100) combines three factors:
- Earnings (0-40 pts): PAT growth across last 3 quarters, acceleration, and consecutive growth - Underperformance (0-35 pts): How much the stock trails Nifty 500 over 1Y, 6M, 3M (deeper underperformance = higher score) - Quality (0-25 pts): Revenue growth, margin trends, and valuation metrics (PEG, P/B)
Higher score indicates a stronger contrarian research signal.
Surya Roshni Ltd has 3 key growth catalysts identified from recent earnings analysis
Surya Roshni Ltd has 2 key risks worth monitoring
The above FAQs are generated from publicly available earnings data. This is educational research only. Sector Alpha is not SEBI registered and does not provide investment advice.
