Micro Steel
Market Cap
₹1,464 ₹1,464 Cr.
P/E
46.07
PEG
1.73
PEG = P/E ÷ 5yr forward EPS CAGR
5yr forward EPS CAGR thesis · Base case

The thesis goes live if the reheating furnace commissions on schedule and converts added input capacity into saleable TMT volumes, with RINL conversion volumes serving as the nearest catalyst.

The bull path depends on earlier RINL conversion and higher utilization, while the bear path reflects commissioning or conversion delays, weaker steel pricing, and cyclicality-related pressure.

Key Ratios

Debt to Equity
Debt to Equity
0.77
Div Yield (%)
Div Yield (%)
-
Individual < 2 lac
Individual < 2 lac
18.69 %
Institutions
Institutions
2.89 %
Market cap
Market cap
1,464 Cr
No. of Shareholders
No. of Shareholders
2.88 L
OPM (%)
OPM (%)
13.01 %
PE
PE
46.07
Prom Holding
Prom Holding
49.67 %
ROCE (%)
ROCE (%)
10.58
ROE (%)
ROE (%)
3.52
Sales
Sales
1,029 Cr
  • Steel Exchange India
  • BMW Industries
  • Rhetan TMT
Last updated on 6 Oct 2026
  • Steel Exchange India makes TMT rebars — reinforcing bars for construction — under its Simhadri TMT brand, at an integrated Vizianagaram plant spanning sponge iron, billets and rolling mills with 60MW captive power.
  • Sales are about 70% direct-to-customer and 30% business-to-business, with ~90% of revenue from Andhra Pradesh. TMT rebars are the sole product today; specialty and green alloy steels, round bars and wire rods remain proposed.
  • It returned from a FY23 loss to profit after refinancing high-cost debt. IMR Group came in as a strategic investor through warrants.
  • Steel manufacturing, mainly TMT rebars, is ~85% of revenue. Output is the earnings lever. A furnace commissioned in August lifted September production to a record.
  • Per management, its defense-grade steel has a five-year approval few Indian brands hold and a ~₹3,000/t premium. It supplies the Armed Forces and critical infrastructure.
  • Management proposes a three-phase expansion from 0.5Mt to 1.5Mt with over ₹5,000Cr investment, pending approvals. Profitability of Phase 1 will be assessed before later phases.
  • Debt-to-equity fell from 0.48 in FY25 to 0.27 by Q1FY27. Infomerics upgraded its ratings two notches to BBB+/Stable in September 2026, lowering incremental borrowing cost.
  • Near-term profit hinges on converting output into sales and cash without a renewed working-capital stretch. Management guides 250–260kt FY27 output at ~₹7,000 EBITDA/t.
  • Promoter holding of 99.95% is pledged to lenders as a non-disposal undertaking. A ₹2.35Cr SEBI penalty and disclosure inconsistencies keep compliance risk alive.
  • Three-phase steel expansion approvals ~Oct 2026
    Management said government approvals were 15–30 days away from its 30 September call. Approved scope and funding would settle the >₹5,000Cr programme.
  • Q2 sales versus record output ~Oct–Nov 2026
    Production of 69,617 MT awaits sales conversion. The print settles whether the ~₹7,000 EBITDA/t guide and cash collection hold.
  • Data-centre supply Nov–Dec 2026
    Management reports empanelment with Adani for the Google Visakhapatnam data centre. Project start is expected in this window, and an order would be new demand.
  • ₹700Cr fundraise ~Dec 2026
    Board approval came in December 2025 with no shareholder vote yet as of September. A ballot would set form and pricing for expansion funding.
  • Strategic-investor warrant inflows ~Dec 2026–Mar 2027
    Management expects the remaining ₹215Cr from IMR Group warrants within 3–6 months. The equity funds deleveraging and working capital.
Price Range

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Low
7
52W Range
High
14
Timeline

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Forensics

6 Yes

Positive for this company

2 Neutral

Neutral for this company

9 No

Negative for this company

0 No Data

Insufficient data to analyse

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    • Manufacturing Capacity - Rolling Mill (MTPA)

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    Suppliers

    • NMDC Ltd.

    FAQs on Steel Exchange India Ltd. Business

    Steel Exchange India Ltd, AP's largest private integrated steel plant, aims to become a quality steel product hub while expanding its customer base.

    Steel Exchange India major competitors are Rhetan TMT, BMW Industries, Kamdhenu, MSP Steel & Power, Electrotherm (India), Mahamaya Steel Inds., Beekay Steel Inds..
    Market Cap of Steel Exchange India is ₹1,431 Crs.
    While the median market cap of its peers are ₹1,196 Crs.

    Steel Exchange India seems to be less financially stable compared to its competitors.
    Altman Z score of Steel Exchange India is 3.0 and is ranked 7 out of its 8 competitors.

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    Earnings Release May Jul Aug
    Investor Presentation Aug Mar Dec
    Conference Call Jun Aug
    Conference Call SummaryCon Call Summary

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