Sunflag Undervalued By Over 55%, Says SEBI RA Kapil Aggarwal After Lloyds Stake Reassessment

After adjusting for net debt and applying a discount to the holding, the analyst estimates a fair market cap of ₹8,412 crore.

Sunflag Iron & Steel is potentially undervalued, supported by the value of its 11.47% stake in Lloyds Metals and Energy, according to SEBI-registered analyst Kapil Aggarwal. 

At the time of writing, Sunflag Iron & Steel shares were trading at ₹287.75, down 1% on the day.

The analyst noted that the stake, valued at approximately ₹8,800 crore as of June 8, was acquired through the conversion of optionally fully convertible debentures following a tribunal settlement.

Aggarwal estimates Sunflag’s core steel business to be worth ₹2,565 crore based on a 9x multiple to FY25 EBIT. 

After applying a 30% discount to the Lloyds Metals stake and deducting net debt of ₹413 crore, he calculates Sunflag’s fair market capitalization at ₹8,412 crore, suggesting an upside of over 55% from current levels.

The stock is trading near its all-time high and may benefit from ongoing buying momentum. 

With limited downside risks and valuations below the value of its Lloyds holding, the analyst has set a one-year target of ₹450 for the stock.

On Stocktwits, retail sentiment was ‘bullish’ amid ‘normal’ message volume.

The stock has risen 9% so far in 2025.

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