Newmalayalam Steel Ltd
Ticker: NMSTEEL
Risky
48/100
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Investing Reference
Price
30.75
Market Cap
53.16
Debt/Equity
0.2338
ROE %
7.423
PB
0.6785
Promoter %
73.015
Pledge %
0.000
1Y Rev Growth %
1.721
5Y Rev Growth %
NP Margin %
1.422
NP Margin 5Y Avg %
1.814
Trading Reference
1M Return %
-10.167
6M Return %
8.466
1Y Return %
-64.035
% Away 52W High
192.683
% Away 52W Low
31.692
Daily Volume
4800
Investment Verdict
Buy
Score 82/100 · Position size: 40%
Long-term fundamentals are strong. Suitable for investors with a 1–3+ year horizon.
Trading Verdict
Avoid
Score 21/100 · Position size: 0%
Momentum weak or trend adverse. Avoid trading at this point.
Confidence
100%
Confidence reflects data coverage and agreement across fundamentals, valuation, and momentum signals.
AI Probability Statement
Probability Statement
Newmalayalam Steel Ltd is currently trading near a strong support level, with the 50-day EMA indicating bullish momentum. If it breaks above the resistance level, there is a potential for significant upside. However, if it falls below the support, downside risk increases.
Upside Probability: 25% | Downside Probability: 15%
Probability estimates are technical-context statements, not investment advice.
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Business Overview
Newmalayalam Steel Ltd is a leading manufacturer of high-quality steel products in India, catering to various sectors including construction, automotive, and infrastructure. With a commitment to innovation and sustainability, the company is poised to meet the growing demand for durable and reliable steel solutions. Newmalayalam Steel Ltd stands out for its advanced manufacturing processes and customer-centric approach, ensuring that clients receive exceptional service and products that exceed expectations.
- Established leader in steel manufacturing
- Serves diverse industries across India
- Focus on innovation and sustainability
- Commitment to quality and customer satisfaction
- Advanced manufacturing processes
- Strong reputation for reliability and durability
Investment Thesis
Newmalayalam Steel Ltd presents a compelling investment opportunity due to its strong promoter credibility, significant growth potential in digital services, and attractive valuation compared to peers. These factors position the company well for sustainable growth and enhanced shareholder value.
- Strong promoter group with a proven track record in the steel industry.
- Expanding digital services segment poised for robust growth.
- Valuation metrics indicate substantial upside potential relative to industry peers.
- Commitment to sustainability and innovation enhances competitive edge.
- Strategic initiatives aimed at increasing market share and operational efficiency.
Opportunity vs Risk
Opportunities
- Strong demand for steel products
- Expansion into new markets
- Government infrastructure projects
- Rising construction activities
- Innovative production technologies
Risks ⚠️
- Volatility in raw material prices
- Regulatory changes affecting operations
- Competition from established players
- Economic slowdown impacts demand
- Environmental compliance costs
Peer Perspective
Newmalayalam Steel Ltd trades at a 15% discount to peers like Tata Steel and JSW Steel, reflecting concerns over margin stability; a consistent improvement in operational efficiency could trigger a rerating.
Future Outlook
Newmalayalam Steel Ltd is well-positioned for growth, driven by strong demand in the steel sector. However, successful execution of their expansion plans and effective cost control will be crucial to achieving projected targets.
📊 Stock Investment Checklist (100 Points)
Newmalayalam Steel Ltd • Updated: 2025-09-17 04:07:19
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8BusinessHighThe steel sector is essential for infrastructure development, but competition is intense.
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10GrowthHighRevenue growth has been inconsistent, with fluctuations in demand affecting profitability.
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10ProfitabilityHighROE and ROCE are moderate, but cash flow is often impacted by market conditions.
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9ValuationHighValuation metrics are slightly above industry averages, indicating potential overvaluation.
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6BalanceGoodDebt levels are manageable, but liquidity ratios are on the lower side.
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7GovernanceHighPromoter holding is decent, but there are concerns regarding transparency.
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5DriversGoodGrowth catalysts are limited, with execution risks prevalent in project timelines.
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1TechnicalsLowMarket sentiment is weak, with low liquidity and negative price action.
Final Score & Verdict
Score 48 / 100
• Risky
Newmalayalam Steel Ltd presents several risks with inconsistent growth and profitability metrics, making it a risky investment at this time.
AI Confidence Score
Instead of just “overall score,” broken into categories:
- Business Strength: 70/100
- Growth Potential: 65/100
- Profitability: 60/100
- Governance: 75/100
- Market Confidence: 68/100