Sunflag Iron & Steel Company 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.

Sunflag Iron & Steel Company Ltd trades at ₹337, in a confirmed uptrend and 19 weeks into that stage. That is +6.8% against its own 200-day average. It sits at 63% of a 52-week range of ₹203 to ₹416. On relative strength it is currently behind the NIFTY 500 on a trailing-13-week view (5 weeks and counting).

Today the stock is in a confirmed uptrend — week 19 of stage 2, confirmed. At ₹337 it trades +6.8% versus its 200-day average and sits at 63% of its 52-week range (₹203–₹416).

Against the market, two honest reads. Cumulative: over the last 10.5 years the stock moved +1,491% while the NIFTY 500 moved +267% — ahead of the index over the full window. Recent form: on a trailing-13-week view the stock is currently behind (5 weeks and counting; last ahead the week of 2026-08-07) — 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.

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.

Sunflag Iron & Steel Company Ltd trades at 28.6× P/E, at the pricey end of its own range (91st percentile). Its long-run median P/E is 12.2×, measured across 10.5 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 28.6× is at the pricey end of its own range (91st percentile), against a long-run median of 12.2× measured over 10.5 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 +24.9% against a +28.1% price move — the price outran earnings, pushing the multiple UP its own range.

The price move, decomposed: over 5y, of the +32.3%/yr price move, ~−1.0%/yr came from earnings growth and ~+33.3 pp from the multiple (expanding); over 10y, of the +27.4%/yr price move, ~+14.2%/yr came from earnings growth and ~+13.2 pp from the multiple (expanding). 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.

What the price assumes This reading works the multiple backwards. It asks one question: what yearly rate of profit growth is a buyer at the market price already paying for? The number is the growth rate that makes eleven years of profit — six years growing, then five fading — add up to that day's market price, once each year is discounted at 11% a year.

Solved at its 13 June 2026 price, Sunflag Iron & Steel Company Ltd was paying for profit growth of about 21.2% a year. Profit itself has compounded 13.7% a year over the past 10 years. Today the market pays 28.6× P/E, the 91st percentile of its own 11-year range.

What the two numbers say together. The multiple is full against its own past, and the growth the price is paying for is above what this company has actually delivered.

How to hold this number: it is a reading of one day's price, taken on 13 June 2026, not a running figure — every other number on this page, the multiple included, is read off the live quote as of 11 September 2026. A higher price is paying for more growth and a lower price for less, so it moves whenever the price does, and this page does not restate it between measurements.

Stage: Mixed 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).

Sunflag Iron & Steel Company Ltd reads as mixed on its fundamental arc. Mixed — no clean majority across the growth curves, ROCE holding at 3.7% — the per-curve reads carry the story. The read is built from 12 quarters across 4 curves, on full evidence.

Why it matters: when the curves disagree, the per-curve reads above matter more than any single verdict.

4-Factor Sector Score

46.7/100 — rank 8 of 18 in Steel Products · 100% evidence confidence

Sunflag Iron & Steel Company Ltd scores 46.7 out of 100 against the 18 companies it is compared with in Steel Products, ranking 8. Balanced evidence: keep at normal research priority and require another comparable period before raising conviction.

The four contributions add to the total exactly: 18 + 8.6 + 11.2 + 8.9 = 46.7. 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.

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

Sunflag Iron & Steel Company Ltd reported ₹1,079 Cr of revenue in the Jun 26 quarter, +5.5% year on year. That is the 5th straight quarter of year-on-year growth. Over 10 years it has compounded at 10.0% a year. The last full year, FY26, came in at ₹3,939 Cr. The last four reported quarters add to ₹3,995 Cr.

FY26 revenue came in at ₹3,939 Cr (+11.4% on the year), capping 10 years at 10.0% compound. The latest quarter (Jun 26) printed ₹1,079 Cr, +5.5% year on year — the 5th consecutive quarter of year-over-year growth.

Pace check: the last four quarters averaged +9.2% growth against the decade's 10.0% — the current year is running in line with its own long-run rate.

Acceleration check: trailing-twelve-month revenue grew +9.0% over the last 4 quarters against +6.4%/yr over the last 8 — stabilising; TTM profit +4.6% vs +18.8%/yr — rolling over.

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.

Sunflag Iron & Steel Company Ltd's operating margin is 11.0% in the Jun 26 quarter, −1.0 percentage points against the same quarter a year ago. Across 13 fiscal years the operating margin has ranged 10.0% to 15.0%. The current quarter sits inside that band.

The latest quarter's operating margin is 11.0%, −1.0 pp against the same quarter a year ago. Across 13 fiscal years the operating margin has ranged 10.0%–15.0%.

🚨 Why the margin moved: operating margin went −0.7 pp year on year while gross margin went +4.0 pp — the loss 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.

Sunflag Iron & Steel Company Ltd earned ₹66.0 Cr of net profit in the Jun 26 quarter, +4.8% year on year. Full-year FY26 profit was ₹202 Cr. The 10-year compound rate is 13.7%. That is 6.1% of the quarter's revenue. The same quarter a year earlier earned ₹63.0 Cr.

Jun 26 profit was ₹66.0 Cr, +4.8% year on year. On the full year, FY26 printed ₹202 Cr (+24.7%), and the 10-year compound rate is 13.7%.

Why profit moved: revenue contributed +5.5% and the margin −1.0 pp — the quarter was revenue-led, with the margin roughly flat.

Pace comparison, last four quarters: profit +4.0% vs revenue +9.2%. Profit is growing slower than sales — costs are eating the growth before it reaches 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 163% of Sunflag Iron & Steel Company Ltd's reported profit arrived as operating cash — the cash follows the profit. In FY26 that was ₹390 Cr of operating cash against ₹202 Cr of profit. After ₹122 Cr of capital spending, ₹268 Cr was left as free cash.

FY26: operating cash of ₹390 Cr against reported profit of ₹202 Cr, leaving free cash of ₹268 Cr after ₹122 Cr of capital spending. Across the last 3 fiscal years the conversion rate is 163% 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 163%: the cash cycle tightened 29 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).

Sunflag Iron & Steel Company Ltd's cash conversion cycle runs 95 days in FY26, down from 124 days in FY21. Capital spending ran ₹327 Cr over the last 3 years. At FY26 sales of ₹3,939 Cr each day of that cycle holds about ₹10.8 Cr, so roughly ₹1,025 Cr sits inside the business at any moment.

FY26: debtors at 31 days, inventory at 144 days — roughly 4.7 months of stock waiting to sell; that is where the cash sits while it waits — for a full cycle of 95 days, tighter than FY21's 124.

The full loop: cash goes out to suppliers and production on day 0; stock waits 144 days to sell; customers pay about 31 days after that; and suppliers themselves are paid at 80 days — netting out to the 95-day cycle.

In money terms: at FY26 sales of ₹3,939 Cr, each day of the cycle holds about ₹10.8 Cr — so the 95-day loop keeps roughly ₹1,025 Cr sitting inside the business at any moment.

On the investment side: capital spending of ₹327 Cr over the last 3 fiscal years against ₹320 Cr of depreciation — building somewhat ahead of wear-and-tear. Capital work-in-progress stands at ₹214 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.

Sunflag Iron & Steel Company Ltd earns a ROCE of 4% in FY26. Return on invested capital clears the cost of that capital by −9.3 percentage points, so growth here is not yet paying for the capital it uses. The wiring behind it is 5.1% net margin on 0.35× asset turns.

FY26 ROCE is 4%.

🚨 Why the return is what it is — the wiring (FY26): 5.1% net margin × 0.35× asset turns × 1.27× balance-sheet leverage ≈ 2.3% on equity. Margin does its share; leverage is modest — this is an earned return, not a borrowed one.

The capstone test — ROIC − WACC: 2.7% − 12.0% = a −9.3 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. Negative — growth at these returns destroys value until the returns recover.

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.

Sunflag Iron & Steel Company Ltd carries total debt of ₹524 Cr against shareholder equity of ₹8,874 Cr as of Mar 26, a debt-to-equity of 0.06 — effectively unlevered. On the annual view that ratio went from 0.34 in FY22 to 0.06 in FY26. The returns elsewhere on this page are therefore earned rather than borrowed.

Mar 26: total debt of ₹524 Cr against shareholder equity of ₹8,874 Cr — a debt-to-equity of 0.06. On the annual view, debt-to-equity went from 0.34 (FY22) to 0.06 (FY26). 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.

No holder of Sunflag Iron & Steel Company Ltd moved a full percentage point over the last two years — the register is quiet. Promoters moved +0.0 points over the same window, to 51.2%. The register is read on the four disclosed classes only; nothing is inferred between filings.

The register over the last two years — Domestic institutions: +0.1 points over 8 quarters to 0.2%; Promoters: +0.0 points over 8 quarters to 51.2%; Foreign institutions: +0.0 points over 8 quarters to 0.9%.

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.

Sunflag Iron & Steel Company 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.

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