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Welcast Steels Ltd

NSE: BSE: 504988

708.65

(0.23%)

Tue, 03 Mar 2026, 00:36 pm

Welcast Steels Analysis

dividend

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Pros

  • Dividends per share have increased over the past 10 years.
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Cons

  • The company is paying a dividend however it is incurring a loss.
  • Dividends per share have been volatile in the past 10 years (annual drop of over 20%).
  • Welcast Steels's pays a lower dividend yield than the bottom 25% of dividend payers in India (0.76%).
  • Welcast Steels's dividend is below the markets top 25% of dividend payers in India (3.08%).

health

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Pros

  • Welcast Steels is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • Welcast Steels has been profitable on average in the past, therefore cash runway is not a concern.
  • Welcast Steels has been profitable on average in the past, therefore cash runway is not a concern.
  • Debt is covered by short term assets, assets are 8.7x debt.
  • Welcast Steels's cash and other short term assets cover its long term commitments.
  • The level of debt compared to net worth has been reduced over the past 5 years (29.4% vs 11.6% today).
  • Welcast Steels's level of debt (11.6%) compared to net worth is satisfactory (less than 40%).
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Cons

  • Operating cash flow is negative therefore debt is not well covered.
  • Welcast Steels is making a loss, therefore interest payments are not well covered by earnings.
  • High level of physical assets or inventory.

management

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Pros

  • The average tenure for the Welcast Steels board of directors is over 10 years, this suggests they are a seasoned and experienced board.
  • V. V. R.'s remuneration is about average for companies of similar size in India.
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Cons

    misc

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    Pros

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      Cons

      • Welcast Steels is not covered by any analysts.

      past

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      Pros

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        Cons

        • Unable to compare Welcast Steels's 1-year earnings growth to the 5-year average as it is not currently profitable.
        • Welcast Steels does not make a profit even though their year on year earnings growth rate was positive over the past 5 years.
        • Welcast Steels used its assets less efficiently than the IN Metals and Mining industry average last year based on Return on Assets.
        • It is difficult to establish if Welcast Steels improved its use of capital last year versus 3 years ago (Return on Capital Employed) as it is currently loss-making.
        • It is difficult to establish if Welcast Steels has efficiently used shareholders’ funds last year (Return on Equity greater than 20%) as it is loss-making.
        • Unable to compare Welcast Steels's 1-year growth to the IN Metals and Mining industry average as it is not currently profitable.

        value

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        Pros

        • BSE:504988 is up 7.3% along with the Metals and Mining industry (7.5%) over the past month.
        • BSE:504988 is up 7.3% along with the India market (8%) over the past month.
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        Cons

        • Welcast Steels's share price is above the future cash flow value, it's not available at a moderate discount (< 20%).
        • Welcast Steels's share price is above the future cash flow value, it's not available at a substantial discount (< 40%).
        • Welcast Steels is overvalued based on assets compared to the IN Metals and Mining industry average.
        • Welcast Steels is loss making, we can't compare its value to the IN Metals and Mining industry average.
        • Welcast Steels is loss making, we can't compare the value of its earnings to the India market.
        • 504988 underperformed the Metals and Mining industry which returned -28.6% over the past year.
        • 504988 underperformed the Market in India which returned -14.5% over the past year.

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