NATIONAL STEEL &AGRO IND
Printed From: The Equity Desk
Category: Investment Ideas - Creating winning portfolios!
Forum Name: Stock Synopsis
Forum Discription: A bried discussion of companies on very specific matters. Normally this is the prelude for further research as always members would be discussing quality companies with good management only
URL: http://www.theequitydesk.com/forum/forum_posts.asp?TID=3033
Printed Date: 20/Apr/2025 at 6:25am
Topic: NATIONAL STEEL &AGRO IND
Posted By: EMANI
Subject: NATIONAL STEEL &AGRO IND
Date Posted: 13/Oct/2010 at 8:04am
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National Steel
and Agro Industries Ltd., an ISO 9001:2000 company, is a member
of the Ruchi Group of Industries. They rank amongst the front-runners
in the Indian Galvanized Steel industry commanding a significant
market share.
With sales of over USD 300 millions and total tonnage shipment of 300,000 MT, They service customers across continents. Their products are well established in the USA, EU, UAE and African markets. With consistent export achievements, They have gained the status of Star Trading House in exports. They produce flat steel products - http://www.nsail.com/rolled.htm - CR Coils , http://www.nsail.com/galvanized.htm - Galvanized steel and http://www.nsail.com/colourcoated.htm - Galvanized Color Coated steel products in various grades ranging from LFQ, DD, EDD as per ASTM, JIS and other standards.It has also got Agri. trading busines in pulses, beans and others with strong presence in Mynmar and Singapore. FINANCIALS: Eq. cap..................32.60 cr Sales....................492 cr (JUNE 2010) vs. 419cr(JUNE 2009) N.P.......................7.81cr (JUNE2010) vs. 1.82 cr(JUNE2009) EPS.......................7.50(MAR2010) D/E Ratio..............1.47 RONW...................19.41 ROCE.....................23.55 The shares of the company are listed on both NSE &BSE and have a F.V of 10. The shares are availble at CMP of 30 at a PE of 3.15 and the book value of the share is 45. I hope that the companies shares offer a good investment opportunity. ------------- esn |
Replies:
Posted By: EMANI
Date Posted: 13/Oct/2010 at 9:04am
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2008 2009 2010 Rupees in crores-------------------------- Sales 2264 2223 2312 N P 27.82 ( -)89 25 PromoterHolding (INDIAN)..............................................48% " (FOREIGN)...............................................10% I invite all the ted members to express their views. ------------- esn |
Posted By: Jaishrikrishna
Date Posted: 13/Oct/2010 at 9:59am
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288 CRS of debt which is higher than the M.CAP which is about 100 crs, reserves going down,Sales flat for last 3 years, so are the profits, margins are thin, any specific measures you applied for picking up this one?
------------- Don't Buy and Hold, Buy and Homework / Fish see the bait,but not the hook; Men see the profit, but not the peril. |
Posted By: EMANI
Date Posted: 13/Oct/2010 at 10:04am
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The main reason is turnaround , as seen plus bouyancy insteel industry.The debt of 288cr is against a networth of 202cr. ------------- esn |
Posted By: go4sheel
Date Posted: 14/Oct/2010 at 4:05pm
| how about Ramsarup Industries...? |
Posted By: subu76
Date Posted: 14/Oct/2010 at 1:02am
Ok...since you asked....I'll proffer my "considerable" wisdom
 If you're an expert on this company or on this sector....please do not read further....
If you're an aam aadmi like me...then one question that you might want to ask is if you're looking at peak earning or not......
These cycles etc are hard to guess and even the so called experts get it wrong all the time
My suggestion is that for such very marginal players in a very cyclical industry just average the earnings over a cycle (right now the last 5 years would do) and apply a sensible multiple where you can't lose at all...... (maybe 2-3 times average earning or 1 time highest earning). Please sell after a 50%-100% rise or after 2 years and move to other such cheap offerings from the market.
Also, please diversify across companies....
It's important to buy such companies like you buy vegetables.....
I got good results when i followed that policy.
The biggest mistakes i made were when i mistook peak earnings and thought the multiple seems low. Also, i had underestimated the impact of a lot of debt in the balance sheet.
Also, it might be a good idea to offer an even lower multiple for a debt laden company in a cyclical industry
This is what i read in books and what seems to have worked somewhat for me. Buying cheap works but it gets so boring and is so mundane that we all try to innovate.
 Wish you all the best
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Posted By: excel_monkey
Date Posted: 11/Nov/2010 at 7:24am
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The larger steel products players like Bhushan Steel have zoomed
I think that National Steel could be a takeover target as steel is not the core business of Ruchi group and would be sold out eventually
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Posted By: pkumar
Date Posted: 11/Nov/2010 at 11:23am
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Great Suggesstions. I also recommend staying away from cyclicals especially Steel and cement for making short term profits ------------- "The news is always a mix of positive and negative. When markets decline, people point to the negative news; and when it increases, the positive news is emphasized." - Bob Farrell |
Posted By: EMANI
Date Posted: 15/Nov/2010 at 12:04pm
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The company earned a NP of 8.14cr for the quarter ended Sept2010 against 2.27cr in Sept 2009. I sincerely thank the members for their valuable comments/opinions ------------- esn |