Steelcast Ltd

Price story Before the numbers, the tape. A stock price moves through four repeating seasons: a flat base (stage 1), an advance (2), a top (3), a decline (4). Where the price sits in that cycle frames everything below.

Steelcast Ltd trades at ₹323, in a confirmed uptrend and 31 weeks into that stage. That is +15.8% against its own 200-day average. It sits at 81% of a 52-week range of ₹184 to ₹357. On relative strength it has been ahead of the NIFTY 500 on a trailing-13-week view for 14 straight weeks.

Today the stock is in a confirmed uptrend — week 31 of stage 2, confirmed. At ₹323 it trades +15.8% versus its 200-day average and sits at 81% of its 52-week range (₹184–₹357).

Against the market, two honest reads. Cumulative: over the last 10.5 years the stock moved +2,595% while the NIFTY 500 moved +273% — ahead of the index over the full window. Recent form: on a trailing-13-week view the stock has been ahead for 14 straight weeks — the ribbon below is that same metric, week by week.

What would end the trend, mechanically: two Friday closes in a row below the 200-day line. That is the exit rule — no debates.

Story check

Steelcast Ltd's story is not scored yet against the markers our research file set on 22 August 2026. Where it sits in its own cycle: MID_EXPANSION. Our fortnightly research layers last read it on 22 August 2026.

Our read, 22 August 2026. Capacity-led volume unlock and new 8,500-ton greenfield foundry offset tariff headwinds as the company scales toward 90% utilization.

From the numbers. PE ratio stands at 36.1x (78th percentile of 10-year band vs 23.8x median) with trailing PE at 39.8x (83rd percentile). The deterministic cycle verdict is RE_RATED_EXPENSIVE: normalized PE is 52.3x (89th percentile)…

From the price. Price stage 2, week 31 — above its 200-day line, relative strength rising.

From the research. Capacity-led volume unlock and new 8,500-ton greenfield foundry offset tariff headwinds as the company scales toward 90% utilization.

🚨 Where they disagree. PE ratio stands at 36.1x (78th percentile of 10-year band vs 23.8x median) with trailing PE at 39.8x (83rd percentile). The deterministic cycle verdict is RE_RATED_EXPENSIVE: normalized PE is 52.3x (89th percentile) against mid-cycle OPM of 21.2%, meaning current OPM of 25.6%-26.0% is not depressed (74th percentile), confirming a genuine re-rating rather than a trough-margin artifact. Normalizing margins barely alters the valuation percentile, indicating no hidden cheapness and showing that PE has re-rated ahead of EPS. The multiple expanded from 24.8x to 39.8x over the past 4 quarters as the market priced in volume recovery and the 100-part pipeline ramp. Institutional ownership shows…

What is proven. Capacity-led volume unlock and new 8,500-ton greenfield foundry offset tariff headwinds as the company scales toward 90% utilization.

What is not proven yet. Failure of quarterly revenue to exceed ₹125 Cr across Q2 and Q3 FY27, or a reversal in capacity utilization below 60%, which would indicate that the 100-part pipeline is failing to translate into serial production orders.

🚨 What would change our mind. Failure of quarterly revenue to exceed ₹125 Cr across Q2 and Q3 FY27, or a reversal in capacity utilization below 60%, which would indicate that the 100-part pipeline is failing to translate into serial production orders.

Layer 1 read, 22 August 2026 — KEEP. An excellent foundry — debt-free, 32% returns, real order book — at the dearest multiple of its own decade. The June quarter was the strongest in three years: sales 125 crore and profit 24 crore, up 16.8% and 20%, with 4,700 tons produced, an order book of 140 crore and 100-plus newly developed parts starting serial supply. The trouble is the price. The shares change hands at the 87th percentile of their own ten-year valuation range against a median of about half that, sitting exactly at their all-time high after quadrupling, and over the last two years the valuation rose 62% while profit per share rose 42% - so more of the gain came from re-pricing than from earning. Underneath, total profit has been flat at 87-91 crore for five quarters while the operating margin has drifted from 28% to 26%.

What would change Layer 1’s mind. Quarterly revenue failing to hold at or above 125 Cr across Q2 and Q3 FY27, or utilisation falling back below 60% - the timeline's own falsification line, and the direct test of whether the 100-part pipeline is converting into serial orders. I sharpen it with a second, earlier tell at my level: operating margin printing below 26% in Q2 FY27 while natural gas stays 50-55% above February levels and the captive power projects slip past their 31 December 2026 date - that combination would mean the…

Layer 2 read, 22 August 2026 — ADVANCE. Steelcast is proving pricing power before its factories are full, but the share price already expects success. Steelcast reported Rs 125 Cr revenue and Rs 24 Cr profit while the call placed utilisation at 66% with a Rs 140 Cr order book. The external sector record confirms its margin rose to 28.2% during the common cost shock and says the sector turn is broadening. The modelled value gap is severe and management cut the export mix, so ADVANCE means further review or continued hold, not an add.

What would change Layer 2’s mind. Move ADVANCE to DROP if either Q2 or Q3 FY27 reports utilisation below 60%, showing that the Rs 140 Cr order book and serial-supply pipeline did not convert.

Layer 3 read, 22 August 2026 — BENCH. Tariff risk is manageable, but the price already assumes the new-part ramp works. The targeted call reduces the export threat because Steelcast remains competitive and customers have not switched, but the US and Germany still make up about 70% of exports. Gas costs were 50-55% higher and recovery takes one quarter; with the ⚠ model MoS at -71.6% and margins already at 26%, those managed risks do not justify DEPLOY.

What would change Layer 3’s mind. Two consecutive quarters with revenue below Rs 125 Cr or capacity use below 60% would show the 100-part pipeline is not converting and escalate execution risk to HIGH.

The test written in advance. Failure of quarterly revenue to exceed ₹125 Cr across Q2 and Q3 FY27, or a reversal in capacity utilization below 60%, which would indicate that the 100-part pipeline is failing to translate into serial production orders. — the thesis as written as stated by the next result.

The test written in advance. Export Customer Concentration and Tariff Friction — Export Customer Concentration and Tariff Friction Quarterly export revenue mix and monthly order book replenishment rates below ₹120 Cr by the next result.

The test written in advance. Input Fuel and Energy Inflation Pressure — Input Fuel and Energy Inflation Pressure Quarterly OPM declining below 25.0% for two consecutive quarters by the next result.

What the company does. Q1 FY27 revenue grew 16.8% YoY to ₹125 Cr and PAT reached ₹24 Cr, confirming volume acceleration with order book expanding to ₹140 Cr, though valuation sits in a RE_RATED_EXPENSIVE regime at 36.1x PE. Board approved ₹120 Cr debt-free greenfield foundry adding 8,500 tons by March 2028 with ₹300 Cr peak revenue potential, backed by ₹120 Cr internal reserves. Over 100 developed parts entering serial supply support the 25% FY27 volume growth target and path to 90% utilization by FY29 across non-US export and domestic OEM markets.

Lever 2 · Value-added mix — BUILDING. Production reached 4,700 tons (66% utilization) in Q1 FY27, targeting 90% utilization by FY29 on existing 29,000-ton capacity. What proves it keeps working: Capacity Utilization Ramp on Existing 29,000-Ton Asset Base. It stops working if Failure of quarterly revenue to exceed ₹125 Cr across Q2 and Q3 FY27, or a reversal in capacity utilization below 60%, which would indicate that the 100-part pipeline is failing to translate into serial production orders.

Lever 1 · Operating leverage — BUILDING. Board-approved ₹120 Cr greenfield foundry in Gujarat adding 8,500 tons by March 31, 2028 with ₹300 Cr peak revenue potential. What proves it keeps working: Greenfield 8,500-Ton Foundry Expansion. It stops working if Failure of quarterly revenue to exceed ₹125 Cr across Q2 and Q3 FY27, or a reversal in capacity utilization below 60%, which would indicate that the 100-part pipeline is failing to translate into serial production orders.

Lever 10 · New geographies — BUILDING. Export reach across 16 countries with non-US markets expanding, while domestic OEM share scales toward 53% next year. What proves it keeps working: Geographic and Sector Diversification Reducing US Concentration. It stops working if Failure of quarterly revenue to exceed ₹125 Cr across Q2 and Q3 FY27, or a reversal in capacity utilization below 60%, which would indicate that the 100-part pipeline is failing to translate into serial production orders.

Lever 4 · Paying down debt — BUILDING. 2.4 MW hybrid and 1.4 MW solar projects commissioning before December 31, 2026 to offset natural gas price inflation. What proves it keeps working: Captive Renewable Power Build-out for Cost Efficiency. It stops working if Failure of quarterly revenue to exceed ₹125 Cr across Q2 and Q3 FY27, or a reversal in capacity utilization below 60%, which would indicate that the 100-part pipeline is failing to translate into serial production orders.

Sources: our stock research file (22 August 2026) · quarterly results through Jun 26 · the company’s own earnings calls. The story check is re-scored every results season; the record below never changes.

Revenue Revenue is the top line: everything the company billed its customers in the period.

Steelcast Ltd reported ₹125 Cr of revenue in the Jun 26 quarter, +16.8% year on year. Over 10 years it has compounded at 11.9% a year. The last full year, FY26, came in at ₹423 Cr. The last four reported quarters add to ₹441 Cr.

Why this happened. Steelcast is balancing export exposure by serving 16 countries and expanding non-US OEM business across Europe and Latin America. Expected FY27 export mix is 49-50% with domestic share rising to 53% next year, mitigating single-country tariff vulnerability.

FY26 revenue came in at ₹423 Cr (+13.4% on the year), capping 10 years at 11.9% compound. The latest quarter (Jun 26) printed ₹125 Cr, +16.8% year on year.

Pace check: the last four quarters averaged +12.0% growth against the decade's 11.9% — the current year is running in line with its own long-run rate.

Acceleration check: trailing-twelve-month revenue grew +9.2% over the last 4 quarters against +9.6%/yr over the last 8 — stabilising; TTM profit +15.2% vs +15.7%/yr — stabilising.

Operating margin Operating margin is what is left of every ₹100 of sales after running the business, before interest and tax. It is the cleanest read on pricing power and cost control.

Steelcast Ltd's operating margin is 26.0% in the Jun 26 quarter, +0.0 percentage points against the same quarter a year ago. Across 13 fiscal years the operating margin has ranged −1.6% to 29.0%. The current quarter sits inside that band.

Why this happened. Utilization improved to 66% in Q1 FY27 with 4,700 tons produced. Management guided for 63% utilization across full-year FY27, scaling toward 90% by FY29 as new parts enter serial production. Operating leverage over fixed overheads supports margins as volumes expand.

The latest quarter's operating margin is 26.0%, +0.0 pp against the same quarter a year ago. Across 13 fiscal years the operating margin has ranged −1.6%–29.0%.

Why the margin moved: operating margin went +0.0 pp year on year while gross margin went +2.0 pp — the gain came mostly from the gross line: input costs and pricing.

Net profit Net profit is what survives every cost, interest and tax — the number EPS, dividends and book value all grow from.

Steelcast Ltd earned ₹24.0 Cr of net profit in the Jun 26 quarter, +20.0% year on year. Full-year FY26 profit was ₹87.0 Cr. That is 19.2% of the quarter's revenue. The same quarter a year earlier earned ₹20.0 Cr.

Jun 26 profit was ₹24.0 Cr, +20.0% year on year. On the full year, FY26 printed ₹87.0 Cr (+20.8%).

Why profit moved: revenue contributed +16.8% and the margin +0.0 pp — the quarter was revenue-led, with the margin roughly flat.

Pace comparison, last four quarters: profit +23.2% vs revenue +12.0%. Profit is growing faster than sales — fixed costs are being spread over a bigger base, and each extra rupee of revenue drops more to the bottom line.

Cash flow — the router The P&L says what was earned; the cash-flow statement says what actually arrived. Operating cash flow (CFO) against profit is the cleanest lie detector in the accounts.

Over the last 3 fiscal years 104% of Steelcast Ltd's reported profit arrived as operating cash — the cash follows the profit. In FY26 that was ₹86.0 Cr of operating cash against ₹87.0 Cr of profit. After ₹28.0 Cr of capital spending, ₹58.0 Cr was left as free cash.

FY26: operating cash of ₹86.0 Cr against reported profit of ₹87.0 Cr, leaving free cash of ₹58.0 Cr after ₹28.0 Cr of capital spending. Across the last 3 fiscal years the conversion rate is 104% of profit.

Cash-flow readings here are annual — that is the resolution our series carries, so this section moves once a year.

Why conversion sits at 104%: the cash cycle tightened 86 days between FY21 and FY26 — cash that used to wait in the cycle now reaches the bank sooner.

Router verdict: no single sink dominates — the next section checks both the working-capital cycle and the capital spending.

Where the cash goes Working capital is the cash tied up between paying suppliers and getting paid: debtor days (customers owe), inventory days (stock waits), and the cash conversion cycle (the whole loop, in days of sales).

Steelcast Ltd's cash conversion cycle runs 158 days in FY26, down from 244 days in FY21. Capital spending ran ₹61.0 Cr over the last 3 years. At FY26 sales of ₹423 Cr each day of that cycle holds about ₹1.2 Cr, so roughly ₹183 Cr sits inside the business at any moment.

FY26: debtors at 93 days, inventory at 171 days — roughly 5.6 months of stock waiting to sell; that is where the cash sits while it waits — for a full cycle of 158 days, tighter than FY21's 244.

The full loop: cash goes out to suppliers and production on day 0; stock waits 171 days to sell; customers pay about 93 days after that; and suppliers themselves are paid at 106 days — netting out to the 158-day cycle.

In money terms: at FY26 sales of ₹423 Cr, each day of the cycle holds about ₹1.2 Cr — so the 158-day loop keeps roughly ₹183 Cr sitting inside the business at any moment.

On the investment side: capital spending of ₹61.0 Cr over the last 3 fiscal years against ₹44.0 Cr of depreciation — building somewhat ahead of wear-and-tear. Capital work-in-progress stands at ₹1.0 Cr (FY26) — capacity paid for but not yet earning.

The synthesis: neither the cycle nor the build-out is hoarding the cash — the machine is reasonably clean.

Return on capital Return on capital employed (ROCE) is the profit the whole business earns on all the money in it — equity and debt together. It is the single best test of whether growth creates value or just size.

Steelcast Ltd earns a ROCE of 32% in FY26. That is up from a trough of −5% in FY15. Return on invested capital clears the cost of that capital by +14.6 percentage points, so growth here adds value rather than only size. The wiring behind it is 20.6% net margin on 0.92× asset turns.

FY26 ROCE is 32%, recovered from a FY15 trough of −5% — the full ladder below shows the fall and the climb, undoctored.

Why the return is what it is — the wiring (FY26): 20.6% net margin × 0.92× asset turns × 1.16× balance-sheet leverage ≈ 22.0% on equity. Margin is doing the heavy lifting; leverage is modest — this is an earned return, not a borrowed one.

The capstone test — ROIC − WACC: 26.6% − 12.0% = a +14.6 pp spread. The 12.0% is a standing assumption for the cost of capital in India, not a per-stock estimate — read the sign and the size of the spread, not the decimals. A spread this wide means every rupee reinvested creates more than a rupee of value — the engine compounds.

Debt Debt-to-equity says how much of the business is funded by borrowings. Low is the safe corner; the trend matters as much as the level.

Steelcast Ltd carries total debt of ₹0.0 Cr against shareholder equity of ₹326 Cr as of Jun 25, a debt-to-equity of 0.00 — effectively unlevered. On the annual view that ratio went from 0.40 in FY22 to 0.00 in FY25. The returns elsewhere on this page are therefore earned rather than borrowed.

Why this happened. Two renewable power projects totaling 3.8 MW are under implementation for commissioning before December 31, 2026. This captive green power generation lowers dependency on grid power and natural gas, supporting energy cost control and sustainability.

Jun 25: total debt of ₹0.0 Cr against shareholder equity of ₹326 Cr — a debt-to-equity of 0.00. On the annual view, debt-to-equity went from 0.40 (FY22) to 0.00 (FY25). The returns on this page are earned, not borrowed.

Ownership Who owns the stock, quarter by quarter: promoters (the controlling owners), foreign and domestic institutions, and the public. Steady accumulation by people close to the numbers is a signal; a quiet register is also an answer.

Domestic institutions added 2.3 points of Steelcast Ltd over 8 quarters, the biggest move on the register. That takes domestic institutions to 2.5% of the company. Foreign institutions moved +0.2 points over the same window, to 0.3%. The register is read on the four disclosed classes only; nothing is inferred between filings.

The register over the last two years — Domestic institutions: +2.3 points over 8 quarters to 2.5%; Foreign institutions: +0.2 points over 8 quarters to 0.3%; Promoters: +0.0 points over 8 quarters to 45.0%.

Why the register moved: domestic institutions drove it (+2.3 points) — steady accumulation by institutions reading the same numbers this page reads.

Safety line The Z-score estimates how far a company sits from balance-sheet distress — above roughly 3 is safe, below roughly 1.8 is the danger zone. It was built for manufacturers, so it is not applied to banks and lenders.

Steelcast Ltd: the Z-score is not available for this stock, so we say so rather than invent one. It is a distance-to-distress estimate from the balance sheet, not a forecast of failure. The debt, cash-flow and return sections above carry the balance-sheet evidence this page does hold, and each of them states its own reporting date.

The safety line in one sentence: the Z-score is not available for this stock, so we say so rather than invent one.

Valuation P/E is the price of ₹1 of annual profit: how many rupees the market pays for each rupee the company earns in a year.

Steelcast Ltd trades at 36.3× P/E, at the pricey end of its own range (81st percentile). Its long-run median P/E is 23.9×, measured across 10.2 years of weekly readings. This places the multiple against the stock’s own record, and says nothing about what the business is worth.

Today's P/E of 36.3× is at the pricey end of its own range (81st percentile), against a long-run median of 23.9× measured over 10.2 years of weekly readings. This is a comparison against the stock's own history — not a claim about what it is worth.

🚨 Why the multiple sits where it does: over the past year annual EPS moved +20.3% against a +52.8% price move — the price outran earnings, pushing the multiple UP its own range.

The price move, decomposed: over 5y, of the +49.0%/yr price move, ~+39.8%/yr came from earnings growth and ~+9.2 pp from the multiple (expanding); over 10y, of the +36.9%/yr price move, ~+52.7%/yr came from earnings growth and ~−15.8 pp from the multiple (compressing). The split is the honest approximate (price return minus earnings growth); it makes the rally itself visible instead of hiding it behind the percentile.

Put together: the multiple is full against its own past, so the story rests on the earnings line underneath it, not the multiple.

Stage: Topping out Every business sits somewhere on a fundamental arc, and this page names the spot before anything else. The last twelve quarters of revenue, profit and EPS growth — plus the return the business earns on its capital — are read as curves: Deteriorating (the curves are falling), Turning around (a trough has just formed and the last few quarters lift off it), Improving (the climb off the trough is sustained), Consistent (steadily positive with healthy returns), Topping out (still high but decelerating from the peak). When the curves genuinely disagree the read is Mixed; too little history is No read. CAGR (compound annual growth rate) is the smooth yearly pace that turns the starting value into the latest one — the fairest way to compare growth across different time spans. Read the columns together: if the 1-year number towers over the 10-year, recent growth is running hotter than the long-run trend. A dash means that window is not held, or the base year was a loss (where a growth rate is not meaningful).

Steelcast Ltd reads as topping out on its fundamental arc. Topping out — revenue, profit and EPS growth have decelerated hard (revenue growth +22.4% at its peak → +9.2% latest) while ROCE still reads 31.4%. The read is built from 12 quarters across 4 curves, on full evidence.

Why it matters: decelerating from a peak is where good stories quietly end — the multiple usually notices late.

4-Factor Sector Score

52.0/100 — rank 10 of 20 in Castings, Forgings & Fastners · 100% evidence confidence

Steelcast Ltd scores 52.0 out of 100 against the 20 companies it is compared with in Castings, Forgings & Fastners, ranking 10. Balanced evidence: keep at normal research priority and require another comparable period before raising conviction.

The four contributions add to the total exactly: 15.2 + 18.6 + 8.8 + 9.4 = 52. This is the SAME number shown on the sector comparison — it is computed once, for the whole peer set, and read here.

What would change it: The read weakens if profit growth turns negative or margin improvement reverses while sector-relative strength deteriorates.

Said versus delivered

What Steelcast Ltd's management promised, set against what actually arrived — 4 tracked promises on the record. Read straight from the company’s own earnings calls. A promise that slipped stays on this page after it is met.

FY27 Export Mix Reversal · 30 July 2026. In January 2026, management guided FY27 exports at 60% of the mix. In July 2026, management revised the FY27 export outlook to approximately 49-50%, a reduction of roughly 10-11 percentage points, without explaining why the earlier FY27 mix expectation had changed.

🚨 Renewable Project Commissioning Delay · 30 July 2026. Management had repeatedly indicated that the 2.4 MW hybrid power project would be commissioned by June 2026. In July 2026, the hybrid project was still described as under implementation, with commissioning for both the hybrid and newly mentioned 1.4 MW solar projects pushed to before December 31, 2026, implying a material delay with no explanation.

Defense Program Status Reversal · 30 July 2026. In January and June 2026, management said the overseas defense prototypes or parts had been approved and that the company was awaiting serial orders, with sales expected in the near term. In July 2026, management said trials were still ongoing and only expected an update in the coming months, representing a backward shift in program status without explanation.

Complete Shift in Principal Business Activity · 1 June 2026. In the prior calls from October 2025 and January 2026, management described the company as a steel casting manufacturer catering to heavy industrial sectors. However, in the June 2026 call, a brand new management team presented the company as a clean energy firm focusing on solid biomass fuels, even classifying it as their maiden conference call.

Every quote above is taken word for word from the company’s own earnings calls.

Frequently asked questions