If you’re curious about the potential future of Steel Exchange Limited’s share price and how it might perform in the coming decades, you’re in the right place.
In this article, we will analyze Steel Exchange Limited’s past performance, current financial position, and future growth potential.
The insights shared are based on detailed fundamental and technical analyses, supported by financial data to help investors make informed decisions.
About Steel Exchange Limited
Steel Exchange Limited was established in 1999 and is a leading producer of steel and steel products. The company also has a significant presence in power generation. Its key steel products include:
- TMT bars
- Billets
- Ingots
- Sponge iron
Additionally, Steel Exchange operates three steel plants and owns a 11.84 MW gas power plant and a 60 MW thermal power plant, contributing to its diversified operations.
Current Financial Overview
Understanding Steel Exchange’s current financial standing is essential before delving into future projections. Below are the key financial ratios:
| Metric | Value |
|---|---|
| Market Cap | ₹ 1,547 Cr |
| Face Value | ₹ 1 |
| Book Value | ₹ 5.38 |
| PE Ratio | 81.8 |
| ROCE (Return on Capital Employed) | 8.31% |
| ROE (Return on Equity) | 1.90% |
| Dividend Yield | 0% |
| 52-week High | ₹ 18.4 |
| 52-week Low | ₹ 7.8 |
Steel Exchange Share Price History
Analyzing past performance provides insights into the company’s trends:
- 2012-2016: Share price ranged between ₹ 8 to ₹ 10.
- 2016-2017: Bullish phase saw prices climb above ₹ 12 by November 2017.
- 2017-2020: Significant decline in share price.
- 2020-2022: Recovery phase, with prices reaching above ₹ 25 by April 2022.
- 2022-2024: Price fluctuated between ₹ 8 and ₹ 25. Currently, it trades at approximately ₹ 13.
Steel Exchange Share Price Target Analysis
Steel Exchange Share Price Target 2025
Steel Exchange has delivered a 9% CAGR over the last decade and 65% CAGR in the past five years. With compound profit growth of 18% in the past five years, the company’s future potential appears promising. Based on these metrics:
| Year | Share Price Target (₹) |
| 2025 | 15-25 |
Steel Exchange Share Price Target 2026
While the company’s financial ratios highlight growth potential, certain weaknesses, such as a high price-to-book ratio (2.52x) and reduced interest coverage, need improvement. Assuming improvements are made:
| Year | Share Price Target (₹) |
| 2026 | 27-40 |
Steel Exchange Share Price Target 2027
The company’s operating profit decreased slightly from ₹ 97 Cr (2023) to ₹ 96 Cr (2024), and sales dropped from ₹ 1,375 Cr to ₹ 1,086 Cr. These declines could limit share price growth unless corrective actions are taken.
| Year | Share Price Target (₹) |
| 2027 | 42-65 |
Steel Exchange Share Price Target 2030
Despite no dividends, operating profit increased from ₹ 23.37 Cr (2023) to ₹ 33.62 Cr (2024). If growth continues, the share price could achieve:
| Year | Share Price Target (₹) |
| 2030 | 110-230 |
Steel Exchange Share Price Target 2040
Steel Exchange has maintained a balance between assets and liabilities, although both decreased slightly in 2024. Assuming expansion in production and sales:
| Year | Share Price Target (₹) |
| 2040 | 450-730 |
Steel Exchange Share Price Target 2050
India’s economy is projected to grow significantly by 2050, potentially benefiting companies like Steel Exchange. If it capitalizes on international opportunities:
| Year | Share Price Target (₹) |
| 2050 | 1,850-2,280 |
Summary of Price Targets
| Year | Target Range (₹) |
| 2025 | 15-25 |
| 2026 | 27-40 |
| 2027 | 42-65 |
| 2030 | 110-230 |
| 2040 | 450-730 |
| 2050 | 1,850-2,280 |
Steel Exchange Shareholders (2024)
| Category | Percentage |
| Promoters | 49.57% |
| FIIs | 0.69% |
| DIIs | 1.26% |
| Public | 48.23% |
| Government | 0.26% |
FAQs
- What is the Steel Exchange share price target for 2025?
- Between ₹ 15 and ₹ 25.
- What is the Steel Exchange share price target for 2026?
- Between ₹ 27 and ₹ 40.
- Can Steel Exchange reach ₹ 100 by 2027?
- While optimistic, this depends on significant improvements in sales and profitability.
- Does Steel Exchange pay dividends?
- Currently, Steel Exchange does not pay dividends.
- What is the long-term potential of Steel Exchange?
- By 2050, the share price could range between ₹ 1,850 and ₹ 2,280, assuming steady growth.
Conclusion
Investing in Steel Exchange Limited requires thorough consideration of its financial position and growth potential. This analysis provides an overview of possible future share prices based on historical trends and current data.
While the company has growth potential, improvements in financial stability and profitability are essential for achieving these targets.
Disclaimer: This article is for educational purposes only and not investment advice. Consult a SEBI-registered financial advisor before making investment decisions.
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