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 The Equity Desk Forum :Investment Ideas - Creating winning portfolios! :Stock Synopsis
Message Icon Topic: Impex Ferro Tech Ltd- A commodity stock Post Reply Post New Topic
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PKB2000
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Quote PKB2000 Replybullet Topic: Impex Ferro Tech Ltd- A commodity stock
    Posted: 02/Aug/2008 at 10:43pm
Current Market Price= 31.60
A BSE stock
I was just searching my old portfolios or stocks with ZERO holding

And found this stock is performing very well over the years.

I think the following factors may have helped to keep faith on investor in this company

1. I have read that of Mittal steel position is substantially improved from the previous year (refernce http://money.cnn.com/magazines/fortune/global500/2007/full_list/index.html). So there is a need for upgrading of ferrous or non ferrous commodities also. It may be in the form of cycle

2. The product of IMPEX FERRO are ferro alloys and there may be a constant demand for SILICO MANGANESE in steel industry worldwide. I am not smart enough to predict the growth rate.

2. The stock has never performed very less compared to its issue price in any point of time.

3. The results are satisfactory

 

Type

Un-Audited

Un-Audited

Un-Audited

Period Ending

30-Jun-08

31-Mar-08

31-Dec-07

No. of Months

3

3

3

Description

 

Net Sales / Interest Earned / Operating Income

772.20

916.40

602.00

Other Income

2.60

6.10

2.80

Total Income

774.80

922.50

604.80

Expenditure

-645.10

-793.00

-554.60

Operating Profit

129.70

129.50

50.20

Interest

-17.70

-17.60

-19.50

Profit Before Depreciation and Tax

112.00

111.90

30.70

Depreciation

-5.50

-5.40

-5.40

Profit before Tax

106.50

106.50

25.30

Tax

-35.90

-39.00

-8.80

Profit after Tax

70.60

67.50

16.50

Extraordinary Items

-

-4.60

-

Net Profit

70.60

62.90

16.50

Equity Capital

250.00

250.00

250.00

Basic And Diluted EPS after Extraordinary item

-

-

0.66

Basic EPS after Extraordinary items

2.82

2.51

-

Diluted EPS after Extraordinary items

2.82

2.51

-

Nos. of Shares - Public

10,574,100.00

10,574,100.00

10,574,100.00

Percent of Shares-Public

42.30

42.30

42.30

Operating Profit Margin

16.80

14.13

8.34

Net Profit Margin

9.14

6.86

2.74

Cash EPS

3.04

2.73

-

 

Notes

Notes

Notes

 

Detailed

Detailed

Detailed

 

4. The company is in continuous mood of expansion

 

Impex Ferro Tech plans 4th furnace

 

(Reference –   http://www.projectsmonitor.com/detailnews.asp?newsid=7875)

 

The company may do well.

 
I am always doing that which I cannot do, in order that I may learn how to do it. ~Pablo Picasso
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TCSer
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Quote TCSer Replybullet Posted: 03/Aug/2008 at 9:51pm
Almost all ferro cos like rohit ferro,facor n imfa hv performed wonderfully what cud b the reasons behind it
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franklin
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Quote franklin Replybullet Posted: 06/Aug/2008 at 6:22pm
Well your stock an aggressive fund that is targeting high capital gains in the longer run. You say that it's market share is primarily based on Silicon Manganese in the entire steel industry market. So based on one Asset where is the Guarantee of this stock performing securely in the longer run. I mean without diversifying the Assets one cannot invest....
Growth Funds
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PKB2000
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Quote PKB2000 Replybullet Posted: 06/Aug/2008 at 8:37pm

 

Really nothing much is heard in recent days from management in regard to diversification.

There are three base products

  1. Ferro Manganese
  2. Silico Manganese
  3. Ferro Silicon

Company was in consideration of a coal based power project near Kalyaneshwari, west Bengal (30 MW) capacity. I am not sure of its progress. I have read once about their intension of diversification of other steel manufacturing product( I am not finding the reference at the moment)

I am always doing that which I cannot do, in order that I may learn how to do it. ~Pablo Picasso
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ZeeNut
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Quote ZeeNut Replybullet Posted: 12/Aug/2008 at 7:27pm
PKBji,
 
Ferro Alloys are used in the steel industry. RM for the ferro alloys are manganese ore, iron ore, ferro chrome, besides the requirement of coal/power.
 
FA manufacturers are generally able to pass on the price increases in RM quickly, but it helps if they have their own captive mines. Impex Ferro does not have any captive mines but i believe they would be starting the process of applying for the same in the current year.
 
These guys had come to Mumbai for an investor meet a few months ago & i think i have their ppt presentation with me somewhere. I belive their latest expansion would have gone on stream last quarter, and they have a captive power plant under construction which would be operational by the end of this financial year.
 
I have also heard that the company will post a smart double digit EPS for FY09 unless there is a sharp turn in the ferroalloys market.
 
I was invested in this scrip for some time, but exited as i found it very very difficult to track Ferro Alloy prices.  This is a problem all investors face with commodity stocks - insiders will come to know of any change in trend first & investors last of all. Hence one has to be on one's toes.
 
Also, Q1 numbers were not as per my expectations which were far higher.
 
Anyways, i believe the stock has a "champion" and as & when the champion decides to move it, the stock can move. But i am out of this champion's stocks & no longer tracking his moves. So i would not be able to advise further.
 
- ZeeNut
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