Sunflag Iron & Steel Company Ltd: Why Is It Outperforming Nifty 500?

Sunflag Iron & Steel Company Ltd's latest quarterly results (Dec 2025) show

• PAT Growth YoY: +20.0% (stable)
• Revenue Growth YoY: +5.6%
• Operating Margin: 14.0% (stable)

Sunflag Iron & Steel Company Ltd's profit is growing with an stable trend.

• PAT Growth YoY: +20.0% (latest quarter)
• PAT Growth QoQ: +30.4% (sequential)
• 3-Year PAT CAGR: -9.3%
• Trend: Stable — consistent growth pattern

Sunflag Iron & Steel Company Ltd's revenue growth trend is turning around (inflection up).

• Revenue Growth YoY: +5.6%
• Revenue Growth QoQ: -3.2% (sequential)
• 3-Year Revenue CAGR: +9.4%

Sunflag Iron & Steel Company Ltd's operating margin is stable.

• Current OPM: 14.0%
• OPM Change YoY: +2.0% basis points
• OPM Change QoQ: +4.0% basis points

Sunflag Iron & Steel Company Ltd's long-term compounding rates

• 3-Year Profit CAGR: -9.3%
• 3-Year Revenue CAGR: +9.4%

Sunflag Iron & Steel Company Ltd's earnings growth is stable with mixed signals on a sequential basis.

• YoY Acceleration: +7.8% bps
• Sequential Acceleration: +57.4% bps

Sunflag Iron & Steel Company Ltd's trailing twelve month (TTM) performance

• TTM PAT: ₹212 Cr
• TTM PAT Growth: +30.9% YoY
• TTM Revenue: ₹4,000 Cr
• TTM Revenue Growth: +7.0% YoY
• TTM Operating Margin: 11.8%

Sunflag Iron & Steel Company Ltd appears significantly overvalued based on our fair value analysis.

• Valuation Signal: Significantly Overvalued
• Current PE: 24.2x
• Price-to-Book: 0.6x

Sunflag Iron & Steel Company Ltd's current PE ratio is 24.2x.

• Current PE: 24.2x
• Market Cap: 5.3K Cr
• Dividend Yield: 0.26%

Sunflag Iron & Steel Company Ltd's current PE is 24.2x.

• Current PE: 24.2x
• Valuation Assessment: Significantly Overvalued

Sunflag Iron & Steel Company Ltd's price-to-book ratio is 0.6x.

• Price-to-Book (P/B): 0.6x
• Book Value per Share: ₹474
• Current Price: ₹293

Sunflag Iron & Steel Company Ltd is rated Average with a fundamental score of 46.01/100. This score is calculated from objective financial metrics

• Revenue Growth YoY: +5.6% (10% weight)
• PAT Growth YoY: +20.0% (10% weight)
• PAT Growth QoQ: +30.4% (10% weight)
• Margins stable (10% weight)

Sunflag Iron & Steel Company Ltd has a debt-to-equity ratio of N/A.

• Total Debt: ₹624 Cr

Sunflag Iron & Steel Company Ltd's return ratios over recent years

• FY2023: ROCE 12.0%
• FY2024: ROCE 6.0%
• FY2025: ROCE 4.0%

Sunflag Iron & Steel Company Ltd's operating cash flow is positive (FY2025).

• Cash from Operations (CFO): ₹187 Cr
• Free Cash Flow (FCF): ₹100 Cr
• CFO/PAT Ratio: 115% (strong cash conversion)

Sunflag Iron & Steel Company Ltd's current dividend yield is 0.26%.

• Dividend Yield: 0.26%
• Current Price: ₹293

Sunflag Iron & Steel Company Ltd's shareholding pattern (Mar 2026)

• Promoters: 51.2%
• FII (Foreign): 0.5%
• DII (Domestic): 0.0%
• Public: 48.3%

Sunflag Iron & Steel Company Ltd's promoter holding has remained stable recently.

• Current Promoter Holding: 51.2% (Mar 2026)
• Previous Quarter: 51.2% (Dec 2025)
• Change: 0.00% (stable)

Sunflag Iron & Steel Company Ltd has been outperforming Nifty 500 for 4 consecutive weeks, indicating building momentum.

Sunflag Iron & Steel Company Ltd is an established outperformer with 4 weeks of consecutive Nifty 500 outperformance.

Sunflag Iron & Steel Company Ltd has 2 key growth catalysts identified from recent earnings analysis

• Value Added Product Mix Shift — Entry into aerospace and defence provides a high-margin alternative to cyclical auto-sector exposure.
• Management Or Ownership Change — New leadership often precedes operational efficiency drives or strategic pivots.

Sunflag Iron & Steel Company Ltd has 3 key risks worth monitoring

• [MEDIUM] Implementation of new labor codes resulted in an exceptional charge of ₹8 — Implementation of new labor codes resulted in an exceptional charge of ₹8.70 Cr.
• [MEDIUM] Blended sales realizations declined from ₹80,226/tonne in FY24 to ₹76,713/tonne — Blended sales realizations declined from ₹80,226/tonne in FY24 to ₹76,713/tonne in H1FY25.
• [LOW] PIL filed by an NGO regarding pollution concerns — PIL filed by an NGO regarding pollution concerns; notices issued by Bombay High Court.

Sunflag Iron & Steel Company Ltd's management has provided the following forward guidance for FY26 onwards

• Revenue outlook: Major revenues expected to kick start from super alloy segment in FY26.
• Margin outlook: Operating margins in the super alloy segment are expected to be healthy.
• Management tone: bullish

Sunflag Iron & Steel Company Ltd's most important sub-sector-specific KPIs from the latest concall

• Blended Sales Realization: ₹76,713 (YoY -4.38%) — Declining in accordance with current industry scenario and falling price realisations for steel players.
• Rolled Products Sales Volume: 3.55 Lakh (YoY 0%) — Volumes remained flattish as the company had carried out blast furnace relining activity in Q1FY24.
• Auto Industry Sales Contribution: 70-75% — Primary focus remains on supplying alloy and carbon steel products to major automobile OEMs.
• Non-Auto Segment Contribution: 25-30% — Strategic diversification to reduce reliance on the cyclical automotive sector.
• Market Value of LMEL Investment: ₹7,724 Cr — Mark-to-market gains associated with the 11.48% stake in Lloyds Metals and Energy Limited.
• Interest Expense to Revenue: 2.54% — Company has maintained disciplined interest spending relative to its operating revenues.

Based on quantitative research signals, here is why Sunflag Iron & Steel Company Ltd may be worth studying

• Earnings growing at +20.0% YoY
• Cash flow is positive — CFO ₹187 Cr

Sunflag Iron & Steel Company Ltd investment thesis summary:

Sunflag Iron & Steel Company Ltd's forward outlook based on current data signals

• Earnings Trend: stable
• Revenue Trend: turning around (inflection up)
• Margin Trend: stable
• Valuation: Significantly Overvalued
• Key Catalyst: Value Added Product Mix Shift
• Key Risk: Implementation of new labor codes resulted in an exceptional charge of ₹8