Vraj Iron & Steel Ltd. (VRAJ) AI Stock Analysis

Vraj Iron & Steel Ltd.

(NSE:VRAJ)

Select Model

Rating:63Neutral

Price Target:INR 133.00▲(9.65% Upside)

Action:reiterated

Date:10/18/26

The overall score is supported by a strong, low-leverage balance sheet and relatively favorable valuation. However, weaker margins, persistently negative free cash flow, and subdued technical momentum limit the score.

Positive Factors

Multi-year revenue expansionMaterial revenue expansion over the multi-year period indicates that Vraj Iron & Steel has increased its business scale and customer activity. Even with uneven annual growth, a larger revenue base can support better operating leverage and provide a platform for future volume development.

Negative Factors

Sharp margin compressionThe sharp decline in gross and net margins shows that profitability has weakened materially despite the company’s larger revenue base. Persistent margin pressure reduces earnings resilience, limits internal funding capacity, and makes future results more sensitive to pricing and cost conditions.

Vraj Iron & Steel Ltd. (VRAJ) vs. iShares MSCI India ETF (INDA)

Market Cap: INR 4.00B
Dividend Yield: ―
Average Volume (3M): 2,908
Price to Earnings (P/E): 11.1
Beta (1Y): 1.65
Revenue Growth: 29.01%
EPS Growth: -0.59%
Country: India
Employees: 492
Sector: General
Sector Strength: 55
Industry: Steel

Vraj Iron & Steel Ltd. Business Overview & Revenue Model

Company Description

Vraj Iron and Steel Limited, an Indian company established in Raipur in 2004, specializes in the production and distribution of diverse iron and steel materials. Their core product line, marketed under the 'Vraj' brand, encompasses sponge iron, MS bi...

How the Company Makes Money

Vraj Iron & Steel Ltd. primarily makes money by manufacturing iron and steel intermediates and selling them to customers in the steel value chain. Key revenue streams include: (1) sale of sponge iron (direct reduced iron), typically sold to steelmake...

Vraj Iron & Steel Ltd. Financial Statement Overview

Summary

The balance sheet is strong and conservatively financed, but profitability has weakened and sustained negative free cash flow is a significant risk. The score reflects the combined Income Statement score of 58, Balance Sheet score of 82, and Cash Flow score of 41.

Income Statement

58Neutral

Balance Sheet

82Very Positive

Cash Flow

41Neutral

Financial statement breakdown
Breakdown	TTM	Mar 2026	Mar 2025	Mar 2024	Mar 2023	Mar 2022
Income Statement
Total Revenue	6.43B	5.88B	4.75B	4.20B	5.16B	4.14B
Gross Profit	1.00B	945.94M	1.32B	1.35B	749.15M	446.70M
EBITDA	693.70M	678.83M	683.02M	764.37M	813.15M	496.62M
Net Income	359.26M	320.05M	440.87M	574.08M	539.97M	287.04M
Balance Sheet
Total Assets	0	4.96B	4.17B	2.81B	1.92B	1.51B
Cash, Cash Equivalents and Short-Term Investments	59.77M	56.86M	401.42M	369.59M	52.64M	2.78M
Total Debt	0	426.38M	22.81M	632.67M	245.55M	440.85M
Total Liabilities	-4.30B	657.32M	203.96M	801.81M	506.24M	636.35M
Stockholders Equity	4.30B	4.30B	3.97B	2.00B	1.41B	871.39M
Cash Flow
Free Cash Flow	-324.72M	-744.22M	-812.82M	-449.47M	601.20M	39.63M
Operating Cash Flow	3.50M	307.23M	136.35M	192.20M	616.81M	87.44M
Investing Cash Flow	-247.26M	-716.69M	-1.03B	-555.13M	-420.07M	-13.59M
Financing Cash Flow	239.35M	402.00M	900.64M	362.80M	-196.88M	-72.15M

Vraj Iron & Steel Ltd. Technical Analysis

Technical Analysis SentimentNegative

Last Price121.30

Price Trends

50DMA123.50Negative

100DMA123.38Negative

200DMA123.67Negative

Market Momentum

MACD-0.06Negative

RSI45.56Neutral

STOCH57.56Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:VRAJ, the sentiment is Negative. The current price of 121.30 is below the 20-day moving average (MA) of 122.08, below the 50-day MA of 123.50, and below the 200-day MA of 123.67, indicating a bearish trend. The MACD of -0.06 indicates Negative momentum. The RSI at 45.56 is Neutral, neither overbought nor oversold. The STOCH value of 57.56 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for IN:VRAJ.

Vraj Iron & Steel Ltd. Peers Comparison

Overall Rating

UnderperformOutperform

Sector (55)

Financial Indicators

IN:VRAJ against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
IN:MANAKSTEEL	69Neutral	INR 7.14B	9.25	―	―	80.77%	283.94%
IN:VRAJ	63Neutral	INR 4.00B	11.15	―	―	29.01%	-0.59%
Sector *	55Neutral	$6.65B	3.83	-15.92%	6.20%	10.91%	7.18%
IN:BEDMUTHA	55Neutral	INR 3.48B	20.44	―	―	51.93%	45.78%
IN:SURAJLTD	51Neutral	INR 3.67B	44.10	―	0.75%	-10.28%	127.94%
IN:VSTL	45Neutral	INR 1.83B	24.11	―	―	20.90%	-36.24%

* General Sector Average

Performance Comparison

IN:VRAJ and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
IN:VRAJ	Vraj Iron & Steel Ltd.	121.30	-24.95	-17.06%
IN:BEDMUTHA	Bedmutha Industries Limited	108.00	-20.50	-15.95%
IN:MANAKSTEEL	Manaksia Steels Ltd	108.95	52.10	91.64%
IN:SHIVAUM	Shiv Aum Steels Ltd.	545.30	245.30	81.77%
IN:SURAJLTD	Suraj Limited	200.00	-77.79	-28.00%
IN:VSTL	Vibhor Steel Tubes Ltd.	96.50	-46.80	-32.66%

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: Oct 18, 2026

Vraj Iron & Steel Ltd. AI Stock Analysis