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Vraj Iron and Steel Ltd (VRAJ) Fair Value & Analysis

Basic Materials · IN · Market cap ₹3.8B

VI Vraj Iron and Steel Ltd VRAJ · NSE
Price₹121.50
Fair Value₹164.92
Upside+35.7%
Quality30/100
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Expensive Growth
Thin margins · 5.4% net margin
Low debt · negative free cash flow
Ranks above peers (10/12)
Narrow moat 39/100
Evidence: Medium Range ₹123.69 – ₹206.16 Share as image

Fair value as of: Aug 13, 2026

From 14 valuation models · updated 4 days ago

Fair value updated Aug 13, 2026, revised from ₹173.57 to ₹164.92 (−5.0%) since Aug 8, 2026. Share price −10.1% over the past month.

Below-average quality, screening 36% undervalued on our models.

What matters now

  • The large discount to fair value meets weak quality (30/100). That raises the risk this is a value trap rather than a bargain.
  • Our model range runs from ₹123.69 (bear) to ₹206.16 (bull), base ₹164.92. The closer the price sits to the lower half, the larger the margin of safety.
  • Quality 30/100 (below-average quality) with medium evidence: read the verdict with care.
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Price vs Fair Value (2 years)

₹282.27 ₹94.67 Fair Value ₹164.92 Jul 2024 Aug 2026

White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Aug 13, 2026.

How to read this chart

25‑month range ₹94.67 – ₹282.27 · fair‑value band ₹123.69 – ₹206.16 · the ₹121.50 price screens below the ₹164.92 fair value. Dashed = 300-day average. As of Aug 13, 2026.

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Analysis

Vraj Iron and Steel Ltd (VRAJ) currently trades at ₹121.50, while our model-based Fair Value estimate is ₹164.92, implying the stock looks roughly 35.7% undervalued today. The Quality Score stands at 30/100 (below-average quality), in the Basic Materials sector. Bull case: trading below our estimate, it may offer upside if the fundamentals hold. Bear case: a low price can be a value trap when quality is weak or the data is thin (evidence: medium), always confirm before acting.

Over the trailing twelve months, Vraj Iron and Steel Ltd generated revenue of ₹5.9B at a net margin of 5.4%. Revenue grew 11.2% year over year. It earns a return on equity of 7.7%. Net debt stands at ₹370M. Fundamentals as of Aug 13, 2026

Our scenario range runs from ₹123.69 (bear case) to ₹206.16 (bull case); at ₹121.50, the current price sits below that range. Bear and bull are the same models run on conservative and optimistic assumptions (margins, growth, valuation multiples), so a plausible valuation range, not a price target. The share trades about 32% below its 52-week high and 31% above its 52-week low, currently below its 200-day average. For context, the median of 10 Basic Materials peers we cover trades at -22% fair-value upside, at 36%, VRAJ screens cheaper than that median.

Fair Value models

Each model estimates fair value its own way; the Fair Value above is the evidence-weighted blend. Evidence (0–100) measures how completely this model’s inputs are available: well-fed models carry more weight in the blend. The spread across models is intentional, each one stresses a different value driver; dividend models, for instance, come out structurally low when payout is small.

Model Bear Bear = the cautious scenario: the same model computed with conservative anchors (lower growth, margins and valuation multiples). Together with Bull it frames a plausible valuation range, not a price target.BaseBull Bull = the optimistic scenario: the same model computed with favourable anchors (higher growth, margins and valuation multiples). Together with Bear it frames a plausible valuation range, not a price target. Evidence
Highest evidence
ROIC Compounder ₹54.74 ₹64.74 ₹73.37 72
Growth-Adj P/E ₹173.74 ₹248.20 ₹322.66 68
P/E Multiple ₹123.72 ₹164.96 ₹206.20 63
All 14 models by family
Earnings-Based
Graham-Dodd ₹65.98 ₹460.17 ₹645.77 54
Lynch FV ₹139.25 ₹198.92 ₹258.60 50
PEG = 1.0 ₹139.25 ₹198.92 ₹258.60 46
EPV ₹54.74 ₹64.74 ₹73.37 59
Multiples
P/E Multiple ₹123.72 ₹164.96 ₹206.20 63
P/S Multiple ₹123.72 ₹164.96 ₹206.20 58
P/B Multiple ₹123.72 ₹164.96 ₹206.20 55
EV/EBIT ₹99.20 ₹135.13 ₹171.06 53
EV/EBITDA ₹120.41 ₹163.41 ₹206.41 54
EV/Revenue ₹84.83 ₹124.87 ₹164.90 43
Asset-Based
NCAV (Graham) ₹65.15 ₹87.31 ₹130.31 50
Economic Profit
Residual Income ₹105.26 ₹110.99 ₹119.47 61
ROIC Compounder ₹54.74 ₹64.74 ₹73.37 72
Growth Earnings
Growth-Adj P/E ₹173.74 ₹248.20 ₹322.66 68

Widest divergence: Growth Earnings (₹248.20) versus Economic Profit (₹64.74). Highest evidence: ROIC Compounder (72).

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Key figures & financial health

Revenue (TTM) ₹5.9B
Revenue growth (YoY) +11.2%
Net margin 5.4%
Return on equity 7.7%
Free cash flow −₹744M FY2026
P/E ratio 12.5
More key figures
Operating margin 10.5%
EPS (TTM) ₹9.71
EPS growth (YoY) +45.7%
Net debt ₹370M FY2026

Figures from reported company fundamentals · as of Aug 13, 2026. TTM = trailing twelve months.

Quality Score breakdown

Overall quality 30/100

Of which business quality 36 · Market factors (momentum, volatility) 37

Profitability 48
Margins and returns on capital today
Quality Growth 36
Are margins and returns improving?
Cashflow 15
Earnings quality: real cash, not paper profit
Fin. Strength 80
Balance sheet, leverage, solvency risk
Investment 4
Disciplined investing over empire-building
Low Volatility 56
Calm price path (market factor)
Momentum 34
Price trend over the last 3–12 months (market factor)
52W Momentum 21
Distance to the 52-week high (market factor)
Net Issuance 6
Buybacks instead of dilution

Non-valuation factor families (profitability, growth, cashflow, financial strength, momentum …), each academically grounded. Valuation itself sits in the Fair Value and is deliberately excluded here to avoid double-counting.

About the company

Vraj Iron and Steel Limited engages in the manufacture and sale of sponge iron, MS billets, TMT bars and others related items under the Vraj brand primarily in India. It sells its products directly, as well as through brokers and dealers to industrial customers and end-users. The company was incorporated in 2004 and is based in Raipur, India.

Full company description

Vraj Iron and Steel Limited engages in the manufacture and sale of sponge iron, MS billets, TMT bars and others related items under the Vraj brand primarily in India. It sells its products directly, as well as through brokers and dealers to industrial customers and end-users. The company was incorporated in 2004 and is based in Raipur, India. Vraj Iron and Steel Limited is a subsidiary of Gopal Sponge and Power Private Limited.

Company description, as reported by the company or data provider.

Revenue & earnings trend

FY2022 – FY2026 · reported fiscal years

Vraj Iron and Steel Ltd reported revenue of ₹5.9B in FY2026 versus ₹4.1B in FY2022, a compound +9.2%/yr. Reported net income was ₹320M in FY2026, compounding +2.8%/yr from FY2022.

Growth Quality 58/100
The company is growing, but growth may require heavy reinvestment or weak cash conversion.
Latest Revenue (FY 2026)
₹5.9B
Latest YoY
+23.8%
Avg. growth/yr (3Y) Measures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump.
+4.5%
Avg. growth/yr (5Y) Measures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump.
+15.1%
Avg. growth/yr (6Y) Measures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump.
+30.2%
Revenue +9.2%/yr
FY22 ₹4.1B
FY23 ₹5.2B
FY24 ₹4.2B
FY25 ₹4.8B
FY26 ₹5.9B
Net income +2.8%/yr
FY22 ₹287M
FY23 ₹540M
FY24 ₹574M
FY25 ₹441M
FY26 ₹320M

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Cite: Fair Value Calculator (2026). "Vraj Iron and Steel Ltd Fair Value". https://www.fairvalue-calculator.com/stock/VRAJ

Peer Group

Steel · 380 stocks

How this stock ranks against its industry: the green marker is this stock, the band is the typical 25–75% peer range, and the tick is the median.

Quality Score 30 · Bottom 25%
Fair Value upside +36% · Top 25%
Return on equity (TTM) 8% · Above median
Return on assets 5% · Top 25%
Net margin (TTM) 5% · Above median
Operating margin (TTM) 11% · Top 25%
Revenue growth 11% · Above median
Debt / equity 0.08× · Lower than median

Valuation Multiples vs Steel median · lower = cheaper

P/E (TTM) 12.5× · Cheaper than median
P/B 0.88× · Cheaper than median
P/S (TTM) 0.65× · Pricier than median
EV/EBITDA 7.2× · Cheaper than median

Snowflake

Five quick dimensions, each 0 to 100: VALUE (fair-value potential), FUTURE (revenue growth), PAST (return on equity), HEALTH (low debt), DIVIDEND (yield). Green = this stock, grey = typical sector peer.

VALUE 81 · sector 16
FUTURE 56 · sector 4
PAST 31 · sector 16
HEALTH 96 · sector 95
DIVIDEND 0 · sector 55

Values & ESG

Does this company touch areas you may want to avoid? The classification is inferred from sector and industry.

None of the checked exposures detected

ESG scores are not available for this stock yet. Values and ESG data are contextual and can differ between providers.

Similar stocks

10 more Steel stocks, each showing price versus our Fair Value estimate (as of Aug 13, 2026).

Stock Price Fair Value vs Fair Value
JSW Steel Limited JSWSTEEL ₹1,269 ₹1,140 -10%
Tata Steel Limited TATASTEEL ₹186.20 ₹145.39 -22%
China Steel Corporation 2002A 37.25 TWD 8.74 TWD -77%
POSCO Holdings 005490 325,000 KRW 155,270 KRW -52%
Companhia Siderúrgica Nacional, SID 13,670 ARS 15,838 ARS +16%
Jindal Steel Limited JINDALSTEL ₹1,112 ₹516.27 -54%
Lloyds Metals and Energy Limited LLOYDSME ₹1,894 ₹771.10 -59%
Gerdau S.A GGBN 83.50 MXN 39.22 MXN -53%
Ternium S.A TXR 17,780 ARS 27,472 ARS +55%
NMDC Limited NMDC ₹85.00 ₹112.98 +33%

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Frequently asked questions

Is Vraj Iron and Steel Ltd (VRAJ) overvalued or undervalued?
As of Aug 13, 2026, our model estimates a fair value of ₹164.92 versus a price of ₹121.50, about +36% (undervalued).
What is the fair value of VRAJ?
Our model-based fair value for Vraj Iron and Steel Ltd is ₹164.92 (as of Aug 13, 2026), built from audited fundamentals. The current price is ₹121.50.
What is the quality score of VRAJ?
Vraj Iron and Steel Ltd has a Quality Score of 30/100. It measures business quality (profitability, growth, cash flow, balance-sheet strength, investment discipline, share issuance). Market factors such as price momentum and volatility do not enter the number; they are shown separately in the detail view.
What is the revenue of Vraj Iron and Steel Ltd (VRAJ)?
Vraj Iron and Steel Ltd reported trailing-twelve-month revenue of about ₹5.9B (latest available figure, as of Aug 13, 2026).
What is the net profit margin of VRAJ?
The net profit margin of Vraj Iron and Steel Ltd is about 5.4%, meaning it keeps roughly 5.4% of revenue as net income. Based on the latest reported figures.

How we calculate Fair Value

Each company is valued through a stack of independent intrinsic-value models (DCF variants, residual-income, multiples and more), blended into one family-balanced consensus and weighted by how much trustworthy data backs it. A separate quality layer scores the fundamentals. Every input is real reported data, nothing guessed.

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