Prakash Steelage Share Price Target 2024, 2025, 2030: Prakash Steelage is a “Prakash Group” company founded in 1996 by Shri Prakash Kanugo, the founder of Prakash Group.
The company manufactures and exports stainless steel, welded pipes and tubes. Their products are used in chemical & fertilizer, pulp & paper, refrigeration, pharmaceutical and railway coaches etc.
Prakash Steelage buys raw materials from Salem Steel Plant of SAIL and Shah Alloys Limited and makes the finished products for domestic as well as foreign countries like Norway, Belgium, the UK, Singapore, etc.
Visit Prakash Steelage website to find their product details.
| Attribute | Details |
|---|---|
| Company Name | Prakash Steelage Limited |
| Company Website URL | Prakash Steelage Ltd |
| Market Cap | ₹ 257 Cr. |
| Current Price | ₹ 15.45 |
| 52-Week High / Low | ₹ 16.20 / ₹ 3.20 |
| Stock P/E (Price-to-Earnings Ratio) | 10 |
| Dividend Yield | 0.00% |
| ROE (Return on Equity) | -8.26% |
| Promoter Holding | 33.5% |
| EPS (Earnings Per Share) | ₹ 1.35 |
| Company Sector | Metals |
| Company Industry | Manufacturing and Export |
Prakash Steelage share price target
If you want to avoid reading the complete post about why and how we determine the share price targets, refer to the table below to see what we think Prakash Steelage will achieve.
| Prakash Steelage share price Target | 1st target (INR) | 2nd target (INR) |
|---|---|---|
| Prakash Steelage share price Target 2024 | 22.50 | 24.78 |
| Prakash Steelage share price Target 2025 | 32.45 | 34.85 |
| Prakash Steelage share price Target 2030 | 51.26 | 54.96 |
Prakash Steelage share price target 2024
| Prakash Steelage share price target | 1st | 2nd |
|---|---|---|
| 2024 | ₹22.50 | ₹24.78 |
Now, let’s talk about Prakash Steelage Limited shares. Should you buy it ?. Prakash Steelage is a small-cap company with a market cap of only 257 crores.
When we speak about small-cap companies, the first thing that pops up is the risk factor. Always be cautious while investing in such companies because these companies have the potential to turn dust into gold and gold into dust.
When writing this post, Prakash Steelage share price is Rs 15.45. This share had once fallen to the lowest price of Rs 0.25 only.
The 52-week high for Prakash Steelage’s share price was Rs 16.20, and the 52-week low was Rs 3.20, which means that big investors heavily influenced this stock.
This is a perfect time for exit if you are a long investor in Prakash Steelage.
If you have not bought this share, we suggest you hold your horses and wait for the fall in price. Always use stop loss to keep the risk bare minimum.
Considering the above pointers, we estimate that Prakash Steelage share price target for 2024 could reach Rs. 22.50 and second target would be Rs 24.78.
Prakash Steelage share price target 2025
| Prakash Steelage share price target | 1st | 2nd |
|---|---|---|
| 2025 | ₹32.45 | ₹34.85 |
When we look at the recent annual performance of Prakash Steelage, we can see that the company has performed decently well.
In the last year, only the Prakash Steelage share price has increased by 203.09%, whereas the other steel companies’ share prices have risen by only 138.57%, which shows that the investor’s faith is growing.
Income for this company has increased 101% between March 2022 and 2023 – rising from 46 crore to 95 crore, an astounding jump that suggests that the company is outpacing competitors and selling more steel despite fluctuating steel prices. The net profit is only Rs 4 crores though.
In our estimate, the company’s share is due for a price fall in 2024 and should rise in 2025. We and the leading brokerage house Sharekhan expect that Prakash Steelage share price target for 2025 will be Rs. 32.45 and second target should be around Rs 34.85
Prakash Steelage share price target 2030
| Prakash Steelage share price target | 1st | 2nd |
|---|---|---|
| 2030 | ₹51.26 | ₹54.96 |
In the last three years, the company has given its investors a total of 1,445.00% returns. In the previous year only, Prakash Steelage has more than doubled the investor’s money with 218% returns.
If you look at the company’s results, it is performing well. Looking at the yearly sale, it is pretty good.
The company made sales of Rs 25.14 crore in September 2023, whereas last year, in September 2022, it made only Rs.19.57 crore sales. That is a sales growth of 28.49% compared to the previous year.
Prakash Steelage used to perform well at one time but had poor performance in the middle. However, the company is returning to business again.
India is moving towards infrastructure growth, and such small companies will also receive orders. Talking about net profit, the company is generating good profit here.
If we trust the trends and assume that the company will not make a super foolish move in its operations or clients, we should see very good growth in Prakash Steelage share price.
Prakash Steelage share price target for 2030 should be Rs 51.26, and the second target should be Rs. 54.96.
Also Read : Manali Petro share price target
SWOT analysis
STRENGTHS
- The stock’s on a roll, staying above all its average prices from short to long-term.
- The value you get per share has been on the up for two years straight.
- It jumped over 20% in just a month, but watch out, it just dipped below its first support level.
WEAKNESSES
- Despite the boost, the company’s net profit and profit margin are both on a downslide quarter over quarter.
- Same goes for its revenue, which has been dropping for two consecutive quarters.
- There’s been a hefty drop in the net profit over the last twelve months too.
OPPORTUNITIES
- The stock has jumped back big time from its lowest point in the past year.
THREATS
- None
Prakash Steelage performance in 2023
Prakash Steelage’s recent performance gives investors a fair idea of where the company is heading. Fortunately for Prakash Steelage, performance in 2023 has been decent. Let’s have a look at company’s financials in 2023.
Return on Equity
Return on Equity (ROE) at this company was negative at -8.26 for 2023, which should serve as a warning sign to investors that operations or internal issues are creating negative returns and not providing positive returns to them.
P/E ratio
Regarding the P/E ratio, the industry’s P/E is 21, and Prakash Steelage’s P/E is 9, so this stock is still relatively cheap.
Net profits
Unfortunately, on closer examination, net profit fell significantly – from 164 crore in 2022 down to only 4 crores, suggesting production costs may have cut into profits.
Their 4.36% net profit indicates they’re turning revenue into profit, yet they still need to increase it further. We hope that the net profits will rise and the company will come back stronger.
Dividend payouts
The company has not paid dividends after 21 Sep 2015, which is not a positive sign and is common with such small-cap companies.
Debt-to-Equity Ratio
On a positive note, the Debt-to-Equity Ratio stands at 0.58, which suggests the company has no debts.
Earning per Share
Earning per Share stands at 0.24, which shows strong earnings growth for investors and displays promising prospects of return for them.
Assets
One positive indicator is a total asset base worth Rs 37 crores.
Cash flow
Annual cash flow is zero. Most cash is utilized by financing activities instead.
Prakash Steelage shareholdings
| Shareholding Pattern | Dec 2023 (Numbers in percentages) |
|---|---|
| Promoters | 33.51% |
| FIIs | 0.00% |
| DIIs | 0.00% |
| Government | 0.15% |
| Public | 66.34% |
| No. of Shareholders | 1,19,612 |
As per the current data, Promoters hold one-third of the company at 33.51%, and the majority lies with the public at 66.34%.
Foreign institutional investors are not interested in this company right now, which is not a confidence booster for future investors. FII’s holding suggests that the company’s fundamentals are strong.
Domestic Institutional investors (DII) are also negligible, with a holding of only 0.15%.
Also Read: 20 Microns share price target
Conclusion: Should you buy Prakash Steelage share?
Prakash Steelage is an excellent buy considering the financials, ROE, ROCE, Net assets, and other industry factors, but not right now. It has domestic as well as foreign clients with frequent orders. Buying Prakash Steelage might not be a good idea right now because currently the stock is trading near the 52-week high price of Rs 16. Please buy the stock at around Rs 10 to make good profits.
If you are already invested, please book your profits because we have already started seeing some dip in the price. Even after providing the analysis, we suggest you do your research and analysis before investing in Prakash Steelage.
Prakash Steelage FAQ’s
What does Prakash Steelage do?
Prakash Steelage manufactures and exports stainless steel, welded pipes, and tubes. The company sells its products to industries like chemical & fertilizer, pulp & paper, refrigeration, pharmaceutical and railway coaches, etc.
What is the history of Prakash Steelage Company?
Prakash Steelage, founded in 1996, is a part of the Prakash Group, which Sh Prakash Kanugo leads. Prakash Steelage procures materials from Salem Steel Plant of SAIL and Shah Alloys, then produces goods for sale in countries including Norway, Belgium, the UK, and Singapore.
What is the 52-week high low of Prakash Steel’s share?
The 52-week high of Prakash Steel is Rs 16.20, and the 52-week low is 3.20.
What is the PE ratio of Prakash Steelage?
Prakash Steelage’s Price to Earning Ratio is 10.39, lower than its sector PE ratio of 20. A low P/E ratio could be because the stock is undervalued and the market has overlooked its potential, or it could be facing challenges. More often than not, a Low P/E ratio is a positive sign.
What is the Piotroski score of Prakash Steelage?
Prakash Steelage’s Piotroski score is 6, which indicates average financials. Usually, a Piotroski score of 9 suggests strong financials, and a score of 0 means weak financials.
How to invest in Prakash Steelage Limited?
You need to set up a Demat account with brokerage firms affiliated with the Securities and Exchange Board of India (SEBI) to hold your shares. You can open a Demat account using apps like Groww, Zerodha Kite, etc.
Disclaimer: Dear Readers, please be aware that we are not associated with SEBI (Securities and Exchange Board of India). The information found on this site should only be considered educational and should not be seen as financial advice or stock recommendations. Share price predictions should only be taken as an estimate and considered valid when there are positive market signals present; any uncertainty concerning either your company or market status won't be taken into consideration in this study. Though our informational site serves educational purposes, we cannot be held liable for any financial losses you might experience as a result of using it. Instead, it serves only to keep you up to date about the stock market and financial products so you can make better investment choices - please do your own research prior to any investment decisions being made by yourself or through third parties.