Abha Power and Steel Ltd: Latest Share Price Update and Financial Insights – September 2025
Introduction
Abha Power and Steel Ltd, a prominent player in the Indian foundry and steel manufacturing sector, has garnered attention in the stock market due to its recent financial performance and stock price movements. As of September 5, 2025, the company's share price stood at ?43.00 on the NSE, reflecting a decline of 3.91% from the previous close of ?44.75. This blog delves into the latest share price trends, financial performance, and key metrics of Abha Power and Steel Ltd, providing investors with comprehensive insights.
Company Overview
Incorporated in 2004 and based in Bilaspur, Chhattisgarh, Abha Power and Steel Ltd specializes in the casting and manufacturing of customized iron and steel products. The company operates two foundries—an SG iron foundry and a steel foundry—at its manufacturing facility in Silpahri Industrial Area. With an installed capacity of 14,400 metric tonnes per annum, Abha Power and Steel caters to various industries, including steel, power, cement, and railways.
Share Price Performance
The share price of Abha Power and Steel Ltd has experienced notable fluctuations over the past year. The 52-week high is ?81.90, while the 52-week low is ?26.45. As of September 5, 2025, the stock is trading approximately 47% below its 52-week high, indicating potential volatility and investor caution.
Financial Highlights
Revenue Growth:
In the fiscal year 2024-25, Abha Power and Steel reported a total revenue of ?70.83 crore, marking a significant growth of 36.67% compared to ?51.83 crore in the previous year. This outperformance surpasses the company's 3-year revenue CAGR of 8.72%, showcasing robust business expansion.
Net Profit:
The company achieved a net profit of ?6.23 crore in FY 2025, reflecting a substantial increase of 64.69% from ?3.78 crore in FY 2024. This growth underscores effective cost management and operational efficiency.
Operating Margin:
Abha Power and Steel's operating profit margin stood at 14.77% in FY 2025, indicating a healthy profitability level. The net profit margin improved to 8.87%, up from 7.30% in the previous year.
Earnings Per Share (EPS):
The basic EPS for FY 2025 was ?3.94, up from ?2.62 in FY 2024, highlighting enhanced earnings attributable to shareholders.
Key Financial Ratios
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Price-to-Earnings (P/E) Ratio: 13.36
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Price-to-Book (P/B) Ratio: 1.57
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Return on Equity (ROE): 12.25%
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Return on Capital Employed (ROCE): 16.46%
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Debt-to-Equity Ratio: 0.42
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Interest Coverage Ratio: 6.09
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Operating Profit Margin: 14.77%
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Net Profit Margin: 8.87%
These ratios indicate a well-capitalized company with strong profitability metrics and efficient use of equity capital.
Cash Flow and Investment Activities
Abha Power and Steel reported a net cash flow of ?15.11 crore in FY 2025, a significant improvement from ?0.11 crore in FY 2024. The company utilized ?10.09 crore for investing activities, marking a year-on-year increase of over 3,600%. This surge in investment reflects the company's strategic initiatives to expand its operations and enhance production capabilities.
Shareholding Pattern
As of March 2025, the promoter holding in Abha Power and Steel Ltd decreased to 72.35% from 100% in July 2024, indicating a dilution of ownership. Public shareholding increased to 27.50%, reflecting growing investor interest and participation in the company's equity.
Market Capitalization and Valuation
Abha Power and Steel Ltd has a market capitalization of approximately ?80 crore, placing it in the small-cap category. The company's valuation metrics, including the P/E and P/B ratios, suggest a moderate valuation compared to industry peers, potentially offering investment opportunities for value-focused investors.
Technical Indicators
The stock's performance over various time frames reveals the following:
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1-Day Return: -3.97%
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1-Month Return: -0.78%
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3-Month Return: 40.72%
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1-Year Return: -42.48%
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3-Year Return: -16.84%
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5-Year Return: -10.47%
These figures indicate short-term volatility with potential for long-term growth, depending on market conditions and company performance.
Investment Considerations
Investors considering Abha Power and Steel Ltd should evaluate the following factors:
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Revenue and Profit Growth: The company has demonstrated strong revenue and profit growth, indicating effective business strategies and market demand for its products.
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Financial Health: Robust financial ratios, including low debt levels and high profitability margins, suggest a solid financial foundation.
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Market Conditions: The steel industry is subject to cyclical demand and global economic factors, which can impact the company's performance.
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Valuation: The current stock price offers a potential entry point for investors seeking exposure to the steel and foundry sector.
Conclusion
Abha Power and Steel Ltd presents a compelling case for investors interested in the Indian manufacturing sector. With strong financial performance, strategic investments, and a growing market presence, the company is well-positioned for future growth. However, potential investors should consider market volatility and conduct thorough due diligence before making investment decisions.
