Metals & Mining / Steel
₹00.944
SHAHALLOYS
Shah Alloys Limited stands as one of the leading Alloy Steel and Stainless Steel producers in Asia, incorporated in November 1990. The company went public in 1992 and was promoted by Rajendrabhai V Shah and Rajiniben R Shah. SAL is an ISO 9001:2008 accredited company which manufactures a complete range of stainless steel in India and operates as a Government recognized Star-Export House.
Based in Gandhinagar, Gujarat, the company has established itself as a significant player in the steel manufacturing sector. It sells in India and also exports to 50+ countries, demonstrating its global reach and market presence. The company's registered office is located at 5/1 Shreeji House, 5th Floor, Behind M J Library, Ashram Road, Ahmedabad, Gujarat-380006.
Shah Alloys Ltd has a market capitalisation of ₹123 crore as per recent data, positioning it as a small-cap company in the Indian equity markets. Promoter holding in Shah Alloys Ltd has gone up to 53.78 per cent as of Dec 2024 from 53.78 per cent as of Mar 2024, showing stable promoter commitment.
The company's recent financial performance has shown mixed results. On a consolidated basis, Shah Alloys Ltd reported a profit of ₹15.34 crore on a total income of ₹88.11 crore for the quarter ended 2024. However, for the year ended Sep 2024, Shah Alloys Ltd had posted a loss of ₹-6.41 crore on a total income of ₹66.36 crore.
The company's quarterly performance has been volatile. A net loss of Shah Alloys was reported at ₹6.38 crore in the quarter ended September 2024, as against a net profit of ₹0.35 crore during the previous quarter ended September 2023. Sales declined 63.10% to ₹66.31 crore in the quarter ended September 2024, as against ₹179.72 crore during the previous quarter ended September 2023.
Similarly, a net loss of Shah Alloys was reported at ₹6.69 crore in the quarter ended June 2024, as against a net profit of ₹0.70 crore during the previous quarter ended June 2023. Sales declined 16.50% to ₹118.55 crore in the quarter ended June 2024, as against ₹141.97 crore during the previous quarter ended June 2023.
- Q3 FY2024 Performance (Ended Sep 2024): Net Loss of ₹6.38 crore, Total Income of ₹66.31 crore
- FY2024 Performance (Ended Sep 2024): Net Loss of ₹-6.41 crore, Total Income of ₹66.36 crore
- Market Capitalization: ₹123 crore (As of recent data)
- Promoter Holding: 53.78% (As of Dec 2024)
The Company is engaged in the manufacture of Stainless Steel Alloy & Special Steel Carbon/ Mild Steel and Armour Steel in Flat and Long products. The comprehensive product range includes hot rolled coils, sheets and plates, cold rolled coils and sheets, hot rolled round bars, bright round bars, hot rolled flat bars, angles, and beams.
Its alloy and special steel product range includes chrome molybdenum steel, abrasion/wear resistant steel, quenched and tempered steel, high tensile steel, corrosion-resistant steel, tool steel, pressure vessel steels, and other alloy steels. This diverse portfolio positions the company to serve various industrial sectors requiring specialized steel products.
The company has made significant investments in manufacturing capabilities over the years. Historical expansion includes the implementation of a hot plate rolling mill costing Rs 36.75 crore and a captive power plant with 20 MW capacity during 1998-99. In 2000-01, the company commissioned India's first 1800mm width Stainless Steel Slab Caster, marking a significant technological milestone in the industry.
Shah Alloys offers a complete range of Alloys and Special steel, Stainless steel and Mild steel products. The company's product categories include:
- Hot Rolled Coils, Sheets & Plates
- Cold Rolled Coils & Sheets
- Hot Rolled Round Bars
- Bright Round Bars
- Hot Rolled Flat Bars, Angles, and Beams
- Chrome Molybdenum Steel
- Abrasion/Wear Resistant Steel
- Quenched and Tempered Steel
- High Tensile Steel
- Corrosion-Resistant Steel
- Tool Steel
- Pressure Vessel Steels
The company sells its products in India and exports to over 50 countries, showcasing its broad market reach and strategy to cater to both domestic and international demands for specialized steel products.
The company received the Dhatu Nayak Award for best performance in the stainless steel industry, highlighting its excellence in manufacturing and quality standards. This recognition underscores the company's commitment to maintaining high-quality production standards in the competitive steel manufacturing sector.
As a Government recognized Star-Export House, Shah Alloys demonstrates its strong export credentials and contribution to India's foreign exchange earnings through international trade.
The Shah Alloys Ltd's 52-week high share price is ₹112.80 and 52-week low share price is ₹52.79, indicating significant price volatility over the past year. Shah Alloys Ltd has given a return of -22.34% in the last 3 years, reflecting challenging market conditions and operational difficulties.
The P/B ratio of Shah Alloys Ltd is -27.46 times as on 07-Apr-2025, a 1494% discount to its peers' median range of 1.97 times. Since TTM earnings of Shah Alloys Ltd are negative, the P/E ratio is not available. These metrics indicate the company is currently trading at distressed valuations due to negative earnings.
The shareholding structure of Shah Alloys demonstrates strong promoter commitment. The shareholding pattern of Shah Alloys Ltd is as follows:
- Promoters: 53.78 %
- Institutions: 0.00 %
- Public: 46.22 %
The absence of institutional holding suggests limited institutional interest in the stock. The company's board comprises experienced professionals including Chairman Rajendra V Shah and Company Secretary Narayanlal Shah, along with independent directors including Shri Bipinbhai A. Gosalia and Shri Mitesh V. Jariwala.
Shah Alloys Ltd's top 5 peers in the Metals & Mining sector are Prakash Steelage, KIC Metaliks, Garg Furnace, Shah Alloys, Dhatre Udyog, Tulsyan NEC, Bansal Roofing. The company operates in a competitive landscape with several specialized steel manufacturers.
The company has delivered a poor sales growth of -11.4% over the past five years and has a low return on equity of -58.9% over the last 3 years. These performance indicators highlight operational challenges the company has faced in recent years.
Recent corporate activities include board meetings for quarterly results and regulatory compliance. A Board Meeting Intimation to consider and approve un-audited standalone and consolidated financial results of the Company for the quarter ended on 31.12.2024 shows ongoing regular reporting and transparency measures.
The company maintains its focus on meeting regulatory requirements and maintaining transparency with stakeholders through regular disclosures and compliance with SEBI regulations.
Shah Alloys Limited, despite facing recent operational challenges, maintains its position as an established player in India's stainless steel and alloy manufacturing sector. The company's extensive product portfolio, export capabilities, and manufacturing infrastructure provide a foundation for potential recovery, though investors should carefully consider the recent financial performance and market conditions before making investment decisions.
Clients/Investors to abstain them from dealing in any schemes of unauthorised collective investments / portfolio management, indicative/ guaranteed/fixed returns / payments etc.
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Name of KMP
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Mobile Number
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2.
Mr. Amit Bansal
Designated Director /
Compliance Officer