Risk factor
Very poor trading liquidity
Profitability factor
Greatly overvalued vs peers
About
S.A.L. Steel Limited, established in Gandhinagar, India in 2003, specializes in the production and global distribution of sponge iron and ferroalloys. The company operates through its dedicated Iron & Steel and Power divisions. Beyond its core offerings, it also supplies iron ore pellets and a range of finished steel items, primarily serving the needs of the iron and steel sectors. Furthermore, the company contributes to energy supply by generating and selling 40 megawatts of electricity, produced using waste heat recovery and fluidized bed combustion boiler technologies.
Company Valuation
Based on key historical and expected multiples, the stock is greatly overvalued relative to its peers. In particular, the stock is overpriced on P/E, 'expensive' on EV/EB