• 繁

    • -+ 0.00%
    -+ 0.00%
    -+ 0.00%

    Market Participants Recognise Shiv Aum Steels Limited's (NSE:SHIVAUM) Revenues Pushing Shares 26% Higher

    Simply Wall St·01/08/2026 00:22:50
    語音播報

    Shiv Aum Steels Limited (NSE:SHIVAUM) shares have had a really impressive month, gaining 26% after a shaky period beforehand. The last 30 days bring the annual gain to a very sharp 42%.

    In spite of the firm bounce in price, you could still be forgiven for feeling indifferent about Shiv Aum Steels' P/S ratio of 0.9x, since the median price-to-sales (or "P/S") ratio for the Trade Distributors industry in India is also close to 1.2x. However, investors might be overlooking a clear opportunity or potential setback if there is no rational basis for the P/S.

    This technology could replace computers: discover the 20 stocks are working to make quantum computing a reality.

    See our latest analysis for Shiv Aum Steels

    ps-multiple-vs-industry
    NSEI:SHIVAUM Price to Sales Ratio vs Industry January 8th 2026

    What Does Shiv Aum Steels' Recent Performance Look Like?

    For example, consider that Shiv Aum Steels' financial performance has been pretty ordinary lately as revenue growth is non-existent. One possibility is that the P/S is moderate because investors think this benign revenue growth rate might not be enough to outperform the broader industry in the near future. Those who are bullish on Shiv Aum Steels will be hoping that this isn't the case, so that they can pick up the stock at a lower valuation.

    Want the full picture on earnings, revenue and cash flow for the company? Then our free report on Shiv Aum Steels will help you shine a light on its historical performance.

    What Are Revenue Growth Metrics Telling Us About The P/S?

    There's an inherent assumption that a company should be matching the industry for P/S ratios like Shiv Aum Steels' to be considered reasonable.

    Retrospectively, the last year delivered virtually the same number to the company's top line as the year before. Regardless, revenue has managed to lift by a handy 17% in aggregate from three years ago, thanks to the earlier period of growth. Accordingly, shareholders probably wouldn't have been overly satisfied with the unstable medium-term growth rates.

    It's interesting to note that the rest of the industry is similarly expected to grow by 5.5% over the next year, which is fairly even with the company's recent medium-term annualised growth rates.

    With this in consideration, it's clear to see why Shiv Aum Steels' P/S matches up closely to its industry peers. It seems most investors are expecting to see average growth rates continue into the future and are only willing to pay a moderate amount for the stock.

    The Final Word

    Shiv Aum Steels appears to be back in favour with a solid price jump bringing its P/S back in line with other companies in the industry Generally, our preference is to limit the use of the price-to-sales ratio to establishing what the market thinks about the overall health of a company.

    It appears to us that Shiv Aum Steels maintains its moderate P/S off the back of its recent three-year growth being in line with the wider industry forecast. With previous revenue trends that keep up with the current industry outlook, it's hard to justify the company's P/S ratio deviating much from it's current point. If recent medium-term revenue trends continue, it's hard to see the share price moving strongly in either direction in the near future under these circumstances.

    It's always necessary to consider the ever-present spectre of investment risk. We've identified 5 warning signs with Shiv Aum Steels (at least 1 which is significant), and understanding these should be part of your investment process.

    Of course, profitable companies with a history of great earnings growth are generally safer bets. So you may wish to see this free collection of other companies that have reasonable P/E ratios and have grown earnings strongly.