CRISIL Research has assigned a CRISIL IER fundamental grade of 3/5 to ISMT. The grade indicates that the company’s fundamentals are good relative to other listed equity securities in India. CRISIL Research has also assigned a valuation grade of 5/5, indicating that market price has strong upside from the current levels.
The grade is constrained by ISMT’s exposure to cyclicality of the end-user industries as well as overcapacity in the industry. Additionally, aggressive imports of seamless tubes from China have lowered the profitability of domestic manufacturers.
CRISIL IER (Independent Equity Research) is an independent, unbiased opinion on fundamentals and fair valuation of the company.
ISMT is engaged in manufacturing of specialized seamless tubes, alloy steel and proves engineering services. The company also manufactures products such as bearing rings, gear blanks, shifter sleeves, cages for constant velocity joints, swaged and machined axles, threaded and coupled casings, couplings and a host of similar products.
