Annual reportMar 2026
Mar 2026 · Annual Report 2026
Source: Nse
Newmalayalam Steel Ltd. (NMSTEEL)
SME CapMetals stocks · SME cap · NSE
Newmalayalam Steel Ltd. (NMSTEEL) is a fast-growing manufacturer of Galvanised pipes, tubes, and sheets in Thrissur, Kerala. It caters to the construction and roofing sectors with a 72,000 MTPA capacity, operating under the 'Demac Steel' brand. Products are known for durability and corrosion resistance, ideal for Kerala's humid climate.
Data qualityFresh enough for analysisQuote updated 21 Oct, 03:31 pm ISTDetails
Quote21 Oct, 03:31 pm IST
Base fundamentals20 Oct 2026 · screener
Latest result01 Jun, 07:56 pm IST
Score21 Oct, 04:30 am IST · v4.3-runtime-valuation
Tags24 Apr 2026
Coverage13/14 · 93%
Valuation2026-07-20 · Rf 6.8% · Metals P/E 23.2 (n=92)
Technical timing lens
Trend score and candlestick chart
30Bearishfull bear SMA stack · SMA20 -2.7% / mo · MACD −
Stock trend: 21
Sector RS: 44
Sector 3M: -5.5% vs Nifty 500 -5.6%
Metals FPI tailwindNot confirmed
Latest mapped FPI equity flow was not positive. View sector evidence
Technical chart
NMSTEELD candles · FIT view-5.7%Latest close ₹22.35 on 2026-10-21
Bar
+0.2%
RSI
45
MACD hist
-0.03
52W pos
25%
2026-10-21O ₹22.30H ₹22.35L ₹22.30C ₹22.35Vol 3,200 sh
Up bar
Down bar
EMA 20
EMA 50
Volume + 20D avg
Result date
RSI(14)
MACD / signal
Market context
Relative performance and chart statistics
Adjusted completed-session prices, rebased to 100
NMSTEELNifty MetalNifty 500
- NMSTEEL
- -0.9%
- Nifty 500
- -6.5%
- Nifty Metal
- -6.1%
- Vs Nifty 500
- +5.6 pp
Chart stats
21 Oct 2026- From 52W high
- -42.9%
- 52W range position
- 23%
- ATR (14)
- 4.3%
- Volume vs 20D
- 0.35x
- Avg traded value
- ₹0 Cr
- 20D price channel
- ₹20 - ₹23.9
₹39.2
₹17.4 - ₹39.2
₹1
Latest completed session
20-session average
50.8% annualized volatility
Research snapshot
What the evidence says now
Weak fundamentals, management evidence is still limited to a financial-only Trust Lite signal, price trend argues for patience, and recent execution is mixed.
Suggested next step
Research, do not rush
The evidence is not strongly aligned. Compare peers and wait for a cleaner setup.
U-Score
Legacy · WATCHLIST37
Fundamental lens: valuation, quality, growth, balance sheet, and cash flow.
Latest result
Pending data—
Revenue NDF · PAT NDF YoY
Technical
Bearish30
Price trend and sector-relative-strength timing.
Valuation
Legacy model+3.9%
Legacy margin-of-safety estimate; the revised evidence label remains in shadow validation.
Trust
Limited evidence68
Financial-only signal; management claim evidence is not sufficient yet.
Financials
Fundamentals, quarterly history, margins, returns and balance-sheet evidence
Financials
Fundamentals, quarterly history, margins, returns and balance-sheet evidence
Latest result
Quarter ended 31 Mar 2026
Pending dataYoY comparison unavailable - result verdict pending data
Filed 31 Mar 2026
Open results browser →| Metric | This quarter | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹158 Cr | NDF | NDF |
| EBITDA | ₹6 Cr | NDF | +0.0% |
| Operating margin | 3.5% | NDF | -50 bps |
| PAT | ₹3 Cr | NDF | NDF |
| PAT margin | 1.9% | NDF | -57 bps |
NDF means not disclosed in the current structured filing feed. It is intentionally not treated as zero.
Fundamentals
Valuation
- P/E
- 7.09
- P/B
- 0.45
- EV/EBITDA
- 5.46
- Market Cap
- 38.60Cr
Profitability
- ROE
- 6.64%
- ROCE
- 8.27%
- ROA
- 4.17%
- Dividend Y
- —
Growth (CAGR)
- Revenue 5Y
- 5.26%
- EPS 5Y
- —
- Revenue 3Y
- 5.26%
- EPS 3Y
- —
Balance Sheet
- Debt/Equity
- 0.19
- Interest Coverage
- 2.67×
- Altman Z
- 4.60
- Book Value
- 49.40
Cash Flow
- FCF Yield
- 2.59%
- FCF Positive Y
- 2/5
- OCF
- 4.00 Cr
- EPS TTM
- 3.15
Shareholding
- Promoter Hold
- 73.02%
- Promoter Pledge
- 0.00%
- Momentum 52W
- 25%
Financial History
Updated 19/10/2026
Revenue
₹ CrLatest: 158-2.5% vs prev
Net Profit
₹ CrLatest: 3.0-25.0% vs prev
ROE is shown only in the Annual view — quarterly equity data isn't published.
Technicals
Trend interpretation, Stage 2, relative strength, volume and indicator evidence
Technicals
Trend interpretation, Stage 2, relative strength, volume and indicator evidence
Daily technical trend read
Bearish setupTrend is weak — long-term trend unclear. RSI 45.
- SMA20 falling (~2.8% over last month) — short-term momentum negative.
- RSI(14) at 45 — falling, no extreme reading.
- MACD below signal but histogram contracting — bearish momentum easing.
- 40% off 52W high · 28% above 52W low.
Mechanical read from the price + indicator series above. Not a recommendation — technical setups can reverse without warning, especially around earnings and macro events.
Nifty 500 leadership
Relative Strength & Trend Stage
38
RS percentile
Stage 4 Downtrend
1M return
-2.8%
3M return
-4.1%
6M return
-20.2%
1Y return
-21.4%
RS 1D
+6
RS 20D
+21
Sector rank
#6
Industry rank
#55
Stage evidence
- Price is 7.2% below the 30-week proxy.
- The 50-DMA is below the 30-week proxy and its slope is falling -4.9%.
- Both 3-month and 6-month returns are negative.
50-DMA
price below
200-DMA
price below
Sector
neutral
Industry
improving
Relative-strength line vs Nifty 500 (base 100)
190 observations
21 Oct 2026Value 75.07+1.16%
RS vs Nifty 50075
Valuation & peers
U-Score 37 · legacy U-Score band WATCHLIST · valuation evidence and comparable companies
Valuation & peers
U-Score 37 · legacy U-Score band WATCHLIST · valuation evidence and comparable companies
Deep Value
Fundamental score breakdown
U band · WATCHLISTValuation26/30
Growth2/25
Quality0/20
Balance Sheet10/15
Cash Flow4/10
Piotroski
5/9 (+3)
Penalties
-8
Raw sum
37
Why this score?
Top U-Score contributors and drags from the latest stored fundamentals.
37/100 · legacy band WATCHLIST
Positive drivers
- Valuation contributes 26/30 to the score.
- Balance sheet contributes 10/15 to the score.
- Cash flow contributes 4/10 to the score.
Main drags
- Penalty bucket subtracts 8 points.
- Quality is weaker at 0/20; verify the latest quarterly trend.
- Growth is weaker at 2/25; verify the latest quarterly trend.
Sector valuation model
Cyclical valuation: normalized earnings, not just trailing PE
Cyclical companies can look cheapest near peak profits, so IndiaPulse flags value-trap risk separately.
Primary lens
Mid-cycle PE/EV/EBITDA using multi-year average margins or earnings.
Secondary checks
Current margin versus 5-year average, balance sheet strength, commodity cycle.
Main risk check
A low trailing PE may mean peak-cycle earnings, not true cheapness.
PE
7.1
PB
0.5
EV/EBITDA
5.5
ROE
6.6%
ROCE
8.3%
FCF Yield
2.6%
Debt/Equity
0.2
MoS
+3.9%
Cyclical/value-trap warning
This sector can look cheap when profits are temporarily high. Check mid-cycle margins/earnings before relying on trailing PE. Current PE is low at 7.1, so peak-cycle earnings risk should be checked.
Score movement
Stored run vs live recompute
This shows the stored score trend when snapshots exist, and also compares the latest stored nightly score with a live recompute from current fundamentals and price.
Stored run: 21 Oct 2026
v4.3-runtime-valuation
Final score
37
Previous: 37
Legacy U-Score band
WATCHLIST
Previous: WATCHLIST
Margin of safety
+3.9%
Previous: +4.2%
Score history
12 stored score snapshots. Latest stored move: +0 points.
21 Oct 2026
v4.3-runtime-valuation
33
33
33
33
33
33
33
33
37
37
37
37
Factor attribution
No pillar movement versus the latest stored run. Historical score trend will appear after snapshot storage is enabled.
Modelled fair value
Graham Number
₹59.17
+62.2% MoS
Growth-justified P/E
7.4
Growth-justified Value
₹23.28
+3.9% MoS
PEG
—
Comparable companies
Peers
Business-comparable peers in Metals — ranked by industry, sub-sector, theme-tag overlap, market cap, and U-Score similarity. Green cells mark the best available peer metric in this table.
Ticker
Name
Why peer
Score
PE
ROE
MoS
Verdict
AUSL
SME
Aditya Ultra Steel Ltd.
Steel
match 88
21
14.5
4.0%
-147%
OVERVALUED
ASHOKAMET
Small
Ashoka Metcast Limited
Steel
match 87
50
2.9
8.4%
+92%
FAIR VALUE
KALANA
SME
Kalana Ispat Ltd.
Steel
match 86
36
23.3
2.2%
+31%
WATCHLIST
PSRAJ
SME
P S Raj Steels Ltd.
Steel
match 75
30
44.4
12.4%
-11%
OVERVALUED
CMNL
SME
Chaman Metallics Ltd.
Steel
match 74
15
—
-1.8%
—
OVERVALUED
Business, management & trust
Growth engines, risks, management commitments and evidence-backed delivery
Business, management & trust
Growth engines, risks, management commitments and evidence-backed delivery
Business and thesis
Where growth can come from, and what can break the case
Thesis intactReviewed 2026-08-21T07:18:31.450Z
Management commentary snapshot
H1 FY26 revenue grew 8.20% H-o-H to INR 16,224.2 Lacs, with EBITDA up 583.17% H-o-H to INR 609.7 Lacs. PAT surged 638.39% H-o-H to INR 421.7 Lacs, driven by significant margin recovery from H2 FY25 lows.
The company demonstrated strong sequential recovery in profitability in H1 FY26, with EBITDA and PAT margins significantly improving from H2 FY25. While YoY performance shows a decline in margins, the H-o-H rebound suggests operational improvements. Strategic focus on capacity utilization, market expansion, and higher-margin products like PEB could drive future growth.
Growth engines
Brand & Market Expansion
Investing in brand visibility and awareness to strengthen recall and capture greater market share.
Marketing Network Expansion
Widening dealer base and geographic reach through stronger marketing teams and strategic outreach.
Entry into Higher-Margin Products
Foray into Pre-Fabricated Steel Buildings (PEB) to move up the value chain and provide higher margins.
Higher Capacity Utilization
Ramp up production from existing capacity without major capex to improve operating efficiency.
Capacity and execution
Existing Manufacturing Capacity
Operates a modern facility with 3 ERW tube mills and a total capacity of 72,000 MTPA.
Capacity Utilization Strategy
Plan to ramp up production from existing capacity without major capex to improve operating efficiency.
Tailwinds
Expanding Indian Steel Market
India is the second-largest steel producer globally, with expanding demand driven by construction and infrastructure.
Growing Galvanised Steel Demand
Indian Galvanised steel market size FY25: ~₹52,000 crore; CAGR 8–9%, driven by roofing, prefabricated structures, solar, and water infra.
Regional Demand Drivers
Kerala's high humidity & coastal climate create preference for GI products; urbanization drives demand for roofing and structural steel.
ESG Edge
Government's focus on green steel aligns with NMSL's solar-powered operations (23% of electricity met via in-house solar).
Risk radar
Raw Material Cost Fluctuations
Company employs a flexible sourcing strategy with access to competitive international suppliers to manage raw material cost fluctuations.
Management accountability
What management said, and what results must prove
Issuer guidance and extracted claims are tracked against later reported outcomes. Treat these as management statements, not IndiaPulse forecasts.
Analyst reading lens
Compare BOTH
H1 FY26 results are presented with both H1 FY25 (YoY) and H2 FY25 (QoQ) comparisons. The significant sequential recovery in margins (EBITDA +316 bps H-o-H, PAT +312 bps H-o-H) is crucial for assessing momentum and operational turnaround, especially in the cyclical metals sector. YoY comparison provides a longer-term perspective but QoQ highlights recent performance trends.
Sector KPIs management disclosed
Manufacturing Capacity
72,000 MTPA
Capacity Utilization
67%
EBITDA Margin
3.76% in H1 FY26, up 316 bps H-o-H from 0.60% in H2 FY25.
PAT Margin
2.60% in H1 FY26, up 312 bps H-o-H from -0.52% in H2 FY25.
Management forward view
Geographic Expansion
Deepen penetration across Kerala and expand into Tamil Nadu, Karnataka & AP.
Value Chain Upgradation
Foray into Pre-Fabricated Steel Buildings (PEB) to move up the value chain, targeting higher margins and industrial/infrastructure customers.
Operational Efficiency
Ramp up production from existing capacity without major capex to improve operating efficiency and enhance margins.
Strategic Positioning
Aim to transition from a product-focused manufacturer to a steel solutions provider.
Thesis monitor
Numbers and claims to verify in the next filings
| Checkpoint | Current evidence | What to verify next |
|---|---|---|
| Capacity Utilization | 67% | Increase in utilization rate towards 72,000 MTPA capacity. |
| EBITDA Margin | 3.76% (H1 FY26) | Sustained improvement in margins, especially with new product segments like PEB. |
| Geographic Expansion | Primarily Kerala | Concrete steps and revenue contribution from new markets like Tamil Nadu, Karnataka, and Andhra Pradesh. |
| Debt-to-Equity | 0.23 | Continued prudent financial management and deleveraging trends. |
Verification checkpoints are IndiaPulse research interpretation, not investment advice.
Trust Score
68Limited evidence · low confidenceTrust Lite
Trust asks: does management behaviour match later outcomes? Higher is better, but confidence and evidence depth matter as much as the number.
Limited evidence: Claim history is still being built. It ranks around the 56th percentile of the scored universe and 46th percentile within Metals. Main check: cash conversion is weak at 53/100.
This is a financial-behaviour screen, not a claim-tested management reliability verdict.
Computed 05 Sept 2026
management-trust-v1
1 docs text-extracted · 0 concalls text-extracted
Score band
Limited evidence
Financial behaviour is scored, but management claims do not yet have enough outcome checks.
Relative rank
56th percentile
overall median 67 · Metals: 46th pctile, median 70 · SME: 70th pctile, median 64
Evidence depth
Financial-only
1 documents have extracted text, but claim history is not strong enough yet.
Claim delivery
Outcome history still building
0 claims extracted · No contradicted claim yet
How to read this Trust Score
Limited evidence · low confidenceWhat it measures
Reliability of management and financial delivery, using financial behaviour only.
Confidence
Treat this as an early read until more concalls and outcomes are matched.
Investor use
Acceptable, but check the weakest sub-score before increasing exposure.
Read Trust alongside U-Score, result consistency, and technical trend. A cheap stock with weak Trust needs a larger margin of safety; a high Trust score does not make an expensive stock attractive by itself.
Forensic breakdown
Read low sub-scores as due-diligence warnings, not automatic sell signals.
Promoter
86
strong · holding, pledge, alignment
Cash flow
53
watch · profit to cash conversion
Balance sheet
81
strong · leverage and solvency
Discipline
60
acceptable · capital discipline
Results
63
acceptable · quarterly consistency
Trust positives
- ▸Promoter holding is 73%.
- ▸Promoter pledge is zero.
- ▸FCF yield is positive at 2.4%.
- ▸OPM spread across recent quarters is 4%.
Trust risks
- ▸Only 1 years of positive FCF.
Trust Lite uses financial behaviour only. Prefer claim-tested Trust when enough concall claims have later outcomes.
Continue researching Newmalayalam Steel Ltd.
Important announcements & filings
Latest exchange and company disclosures found within the past two years.
Open source ↗
Investor presentationNov 2025
Nov 2025 · PPT
Source: Nse
Annual reportMar 2025
Mar 2025 · Annual Report 2025
Source: Nse
All information is for study purposes only. For investment decisions, consult your financial advisor. See Playbook for methodology.