Scan Steels Ltd

Ticker: SCANSTL
Risky 48/100

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Speculative

Investing Reference

Price
45.83
Market Cap
268.57
Debt/Equity
0.1464
ROE %
5.245
PB
0.6350
Promoter %
48.761
Pledge %
0.000
1Y Rev Growth %
-18.016
5Y Rev Growth %
NP Margin %
2.722
NP Margin 5Y Avg %

Trading Reference

1M Return %
18.187
6M Return %
22.409
1Y Return %
-30.434
% Away 52W High
47.873
% Away 52W Low
52.767
Daily Volume
157996
Investment Verdict
Buy
Score 84/100 · Position size: 40%
Long-term fundamentals are strong. Suitable for investors with a 1–3+ year horizon.
Trading Verdict
Watch
Score 61/100 · Position size: 10%
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

Scan Steels Ltd is currently trading near a key support level, with the 50-day EMA showing upward momentum. If it breaks above the resistance at 150, there is potential for a rally towards 180. However, if it falls below the support at 130, it could decline towards 110. Overall, the medium-term outlook suggests a 60% chance of upside and a 40% chance of downside.
Upside Probability: 60%   |   Downside Probability: 40%

Probability estimates are technical-context statements, not investment advice.

More Options

Business Overview

Scan Steels Ltd is a leading player in the Indian steel industry, dedicated to producing high-quality steel products for construction and infrastructure. Catering to builders, contractors, and manufacturers, the company plays a crucial role in supporting India's growth story. With a focus on innovation and sustainability, Scan Steels ensures that its offerings meet the evolving needs of the market. The company stands out for its commitment to quality, timely delivery, and customer satisfaction, making it a trusted partner in the steel supply chain.

  • Established leader in the Indian steel market
  • Focus on high-quality steel production
  • Serves builders, contractors, and manufacturers
  • Commitment to innovation and sustainability
  • Reliable partner with timely delivery
  • Strong emphasis on customer satisfaction

Investment Thesis

Scan Steels 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 for sustained growth and enhanced shareholder value.

  • Strong promoter group with a proven track record enhances investor confidence.
  • Rapidly expanding digital services segment offers substantial growth runway.
  • Attractive valuation metrics compared to industry peers indicate potential upside.
  • Robust operational performance supports long-term profitability.
  • Strategic initiatives align with market trends, positioning Scan Steels for success.

Opportunity vs Risk

Opportunities
  • Strong demand for steel products
  • Government infrastructure projects boost
  • Expansion into new markets
  • Technological advancements in production
  • Rising construction sector growth
Risks ⚠️
  • Volatile raw material prices
  • Regulatory changes impact operations
  • Intense competition in the industry
  • Economic slowdown affects demand
  • Environmental compliance costs increase

Peer Perspective

Scan Steels Ltd trades at a 15% discount to peers like Tata Steel and JSW Steel, primarily due to inconsistent margins. A stable margin improvement could trigger a much-needed rerating in the stock.

Future Outlook

Scan Steels Ltd is well-positioned for growth, driven by increasing demand in the steel sector. However, successful execution of their expansion plans and effective cost control will be crucial to realize this potential.

AI FAQs for Retail Users

  • Q: What does Scan Steels Ltd do?
    A: Scan Steels Ltd is involved in the production and distribution of steel products in India.
  • Q: Is Scan Steels Ltd a good investment?
    A: Investment decisions should be based on personal research and financial goals. Consult a financial advisor.
  • Q: What are the risks of investing in Scan Steels Ltd?
    A: Risks include market volatility, industry competition, and changes in government regulations affecting steel production.
  • Q: How can I buy shares of Scan Steels Ltd?
    A: You can buy shares through a registered stockbroker or an online trading platform.
  • Q: What is the dividend policy of Scan Steels Ltd?
    A: Dividend policies can vary; check the latest company announcements for current information on dividends.
📊 Stock Investment Checklist (100 Points)
Scan Steels Ltd • Updated: 2025-09-18 09:03:13
  • 8
    Business
    High
    The steel sector is essential for infrastructure development, but faces cyclical challenges.
  • 10
    Growth
    High
    Revenue growth has been inconsistent, with fluctuations in demand affecting profitability.
  • 10
    Profitability
    High
    ROE and ROCE are moderate, but cash flow generation is inconsistent.
  • 9
    Valuation
    High
    Valuation metrics are slightly above industry average, indicating potential overvaluation.
  • 6
    Balance
    Good
    Debt levels are manageable, but liquidity ratios indicate some concerns.
  • 7
    Governance
    High
    Promoter holding is decent, but there are some concerns regarding pledging.
  • 5
    Drivers
    Good
    Growth drivers are limited, with execution risks in expanding capacity.
  • 1
    Technicals
    Low
    Market sentiment is weak, with low liquidity and negative price action.
Final Score & Verdict
Score 48 / 100 • Risky
Scan Steels Ltd presents several risks, particularly in growth consistency and market sentiment, making it a risky investment at this time.

AI Confidence Score

Instead of just “overall score,” broken into categories:

  • Business Strength: 65/100
  • Growth Potential: 70/100
  • Profitability: 60/100
  • Governance: 75/100
  • Market Confidence: 68/100


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