Sunflag Iron & Steel Co. Ltd. (SUNFLAG) AI Stock Analysis

Sunflag Iron & Steel Co. Ltd.

(NSE:SUNFLAG)

Select Model

Rating:55Neutral

Price Target:INR 402.00▲(2.42% Upside)

Action:reiterated

Date:09/29/26

The company's strong, debt-light balance sheet and stable revenue growth are offset by extremely overbought technical indicators and a stretched valuation. The high RSI and P/E ratio present significant near-term risk, despite underlying financial stability.

Positive Factors

Conservative LeverageVery low and improving leverage gives Sunflag financial flexibility through steel-cycle downturns. A conservative balance sheet can reduce financing pressure, support continued operations during weaker conditions, and preserve capacity for investment or other capital-allocation needs.

Negative Factors

Uneven Cash-Flow ConversionUneven cash conversion makes internally generated funding less predictable across the cycle. Periods of weak or negative free cash flow can constrain reinvestment and liquidity flexibility, even when reported earnings appear adequate.

Sunflag Iron & Steel Co. Ltd. (SUNFLAG) vs. iShares MSCI India ETF (INDA)

Market Cap: INR 70.64B
Dividend Yield: 0.25%
Average Volume (3M): 26.19K
Price to Earnings (P/E): 34.3
Beta (1Y): 1.58
Revenue Growth: 9.35%
EPS Growth: 4.58%
Country: India
Employees: 1,216
Sector: General
Sector Strength: 55
Industry: Steel

Sunflag Iron & Steel Co. Ltd. Business Overview & Revenue Model

Company Description

Sunflag Iron and Steel Company Limited, an Indian-based enterprise, specializes in the manufacturing and distribution of a wide array of rolled steel products. The company's extensive product portfolio encompasses various specialized steel grades, su...

Sunflag Iron & Steel Co. Ltd. Financial Statement Overview

Summary

Solid balance sheet with minimal debt (D/E 0.06) and improving profitability, though low ROE (2.3%) and modest net margins (5.1%) temper the score. Cash flow is adequate but not exceptional.

Income Statement

68Positive

Balance Sheet

82Very Positive

Cash Flow

62Positive

Financial statement breakdown
Breakdown	TTM	Mar 2026	Mar 2025	Mar 2024	Mar 2023	Mar 2022
Income Statement
Total Revenue	39.95B	39.39B	35.36B	34.12B	34.88B	26.93B
Gross Profit	13.15B	11.94B	10.86B	6.47B	7.18B	6.22B
EBITDA	4.76B	4.86B	4.06B	3.81B	16.46B	4.05B
Net Income	2.06B	2.02B	1.62B	1.44B	11.15B	2.17B
Balance Sheet
Total Assets	0	112.92B	111.87B	70.22B	49.42B	30.87B
Cash, Cash Equivalents and Short-Term Investments	1.82B	2.30B	1.58B	1.94B	114.90M	159.40M
Total Debt	0	5.24B	6.24B	7.27B	6.09B	5.87B
Total Liabilities	-88.74B	24.18B	24.19B	18.57B	15.99B	13.36B
Stockholders Equity	88.74B	88.73B	87.66B	51.64B	33.42B	17.49B
Cash Flow
Free Cash Flow	933.60M	2.10B	386.20M	1.19B	1.09B	-2.96B
Operating Cash Flow	1.74B	3.37B	1.19B	2.44B	2.78B	431.90M
Investing Cash Flow	-506.60M	-1.38B	-1.03B	-832.60M	-2.19B	-3.35B
Financing Cash Flow	-823.80M	-1.19B	-1.09B	212.10M	-632.60M	2.89B

Sunflag Iron & Steel Co. Ltd. Technical Analysis

Technical Analysis SentimentNeutral

Last Price392.50

Price Trends

50DMA385.42Positive

100DMA369.41Positive

200DMA323.28Positive

Market Momentum

MACD-0.94Positive

RSI46.27Neutral

STOCH47.72Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:SUNFLAG, the sentiment is Neutral. The current price of 392.50 is below the 20-day moving average (MA) of 421.80, above the 50-day MA of 385.42, and above the 200-day MA of 323.28, indicating a neutral trend. The MACD of -0.94 indicates Positive momentum. The RSI at 46.27 is Neutral, neither overbought nor oversold. The STOCH value of 47.72 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for IN:SUNFLAG.

Sunflag Iron & Steel Co. Ltd. Peers Comparison

Overall Rating

UnderperformOutperform

Sector (55)

Financial Indicators

IN:SUNFLAG against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
IN:WELCORP	74Outperform	INR 615.85B	26.07	―	0.21%	13.62%	9.05%
IN:RATNAMANI	71Outperform	INR 162.60B	37.55	―	0.43%	-16.30%	-24.14%
IN:APLAPOLLO	70Outperform	INR 600.02B	46.05	―	0.39%	15.83%	24.85%
IN:JSL	68Neutral	INR 555.86B	16.65	―	0.44%	11.65%	20.53%
IN:JINDALSAW	61Neutral	INR 146.03B	26.52	―	0.88%	-0.73%	-60.06%
Sector *	55Neutral	$6.65B	3.83	-15.92%	6.20%	10.91%	7.18%
IN:SUNFLAG	55Neutral	INR 70.74B	34.29	―	0.25%	9.35%	4.58%

* General Sector Average

Performance Comparison

IN:SUNFLAG and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
IN:SUNFLAG	Sunflag Iron & Steel Co. Ltd.	392.50	126.08	47.32%
IN:APLAPOLLO	APL Apollo Tubes Limited	2161.00	370.34	20.68%
IN:JINDALSAW	Jindal Saw Limited	228.35	55.59	32.18%
IN:JSL	Jindal Stainless Limited	674.25	-72.54	-9.71%
IN:RATNAMANI	Ratnamani Metals & Tubes Ltd.	2319.85	-150.56	-6.09%
IN:WELCORP	Welspun Corp Limited	2334.60	1384.76	145.79%

Sunflag Iron & Steel Co. Ltd. Corporate Events

Sunflag Iron & Steel Announces Scheduled Exit of Independent Director Anand Kapre

Sep 21, 2026

Sunflag Iron & Steel Co. Ltd., a Nagpur-based producer of iron and steel products, is listed on BSE and NSE and operates under India’s SEBI listing and disclosure framework. Its dual exchange presence positions the company as a notable part...

Sunflag Iron & Steel sets 40th AGM, proposes dividend and board changes

Sep 1, 2026

Sunflag Iron & Steel Co. Ltd. has convened its 40th Annual General Meeting for September 25, 2026, to be held via video conferencing and other audio-visual means, where shareholders will consider adoption of the FY 2025-26 standalone and consolid...

Sunflag Iron & Steel Publishes Q1 FY27 Results, Opens Window for Physical Share Demat

Aug 12, 2026

Sunflag Iron & Steel Co. Ltd., a Nagpur-based producer of iron and steel products listed on BSE and NSE, operates within India’s core metals sector and targets industrial and infrastructure demand. The company maintains detailed corporate g...

Glossary

BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.

Date of analysis: Sep 29, 2026

Sunflag Iron & Steel Co. Ltd. AI Stock Analysis