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Balasore Alloys Ltd Stock Analysis

Small Cap
Evaluated by 555 users | BSE: 513142 | NSE: ISPATALLOY |
Ferro & Silica Manganese
Balasore Alloys was incorporated in the year 1984 at Balasore, Orissa. It was formerly Ispat Alloys and is part of the renowned Ispat group of companies which is a major business house in the country, promoted by the Mittals. The group’s companies are spread across six countries...

Analysis of Financial Track Record

Data adjusted to bonus, split, extra-ordinary income, rights issue and change in financial year end
Financial track record gives insight into the company's performance on key parameters over the past ten years. MoneyWorks4me’s proprietary colour codes make it easy for retail investors to gauge the company’s past performance.
Value Creation
 Mar'10Mar'11Mar'12Mar'13Mar'14Mar'15Mar'16Mar'17Mar'18Mar'19
Return on Capital Employed 4.1%5.2%5.72%4.53%6.6%6.85%4.15%9.42%8.9%4.07%
Growth Parameters
Growth Parameters Colour Code Guide
Net Sales (Rs. Cr.) 4156395916867838488381,0121,2101,258
Y-o-Y Gr. Rt.-53.9%-7.6%16.2%14.1%8.3%-1.2%20.8%19.6%3.9%
Adjusted EPS (Rs.) 0.774.35.063.398.377.262.858.227.341.61
Y-o-Y Gr. Rt.-458.4%17.7%-33%146.9%-13.3%-60.7%188.4%-10.7%-78.1%
Book Value per Share (Rs.) 37.5540.7445.0348.9355.3854.952.71100.68103.0699.62
Adjusted Net Profit 4.927.632.521.853.851.520.273.168.515
Net Op. Cash Flow (Rs. Cr.) 84.192.899.31159565.96389.513982.7
Debt to Cash Flow from Ops 2.772.221.492.73.081.762.12.41.32.16
Standalone financials take only the parent company into account while consolidated financials take into account financials of the parent company as well as of all its subsidiaries. In most companies consolidated financials should be used for analysis.
Balasore Alloys Ltd. should be analysed on a Standalone basis
CAGR
CAGR Colour Code Guide
  9 yrs 5 yrs 3 yrs 1 yr
Net Sales 13.1%10%14.5%3.9%
Adjusted EPS 8.5%-28.1%-17.3%-78.1%
Book Value per Share 11.512.523.6-3.3
Share Price -7.3% -11.1% -48.4% -5.1%
Key Financial Parameter
Performance Ratio Colour Code Guide
 Mar'10Mar'11Mar'12Mar'13Mar'14Mar'15Mar'16Mar'17Mar'18Mar'19
Return on Equity (%) 0.792.793.392.335.835.662.268.167.331.58
Operating Profit Margin (%) 11.4815.9118.1114.1517.1913.610.0617.7412.437.69
Net Profit Margin (%) 1.184.335.513.186.876.072.417.225.661.19
Debt to Equity 0.960.780.510.980.820.30.320.240.190.19
Working Capital Days 204132143173211165148185196195
Cash Conversion Cycle -25-5-4-9-38-45-46-53-33-34
Entity Percentage Holding
Promoters 61.44%
Institutions 2.47%
Non-Institutions 36.09%
Pledged *44.7344.7344.7344.7344.7344.7344.7344.7344.7341.28
* Pledged shares as % of Promoter's holding (%)
Data is not available for this company.

The 5-year analysis of Balasore Alloys Ltd's performance infers:

Balasore Alloys Ltd earnings have declined by -28.1%, whereas share price has depreciated -11.1% CAGR over the past five years, indicating the company's share price is likely overvalued. However, for specific investment actions please connect with your investment advisor.

We analysed the performance of Balasore Alloys Ltd share prices over the last 10 years. Here is what we found out:

Balasore Alloys Ltd share price has depreciated -8% annually over the past ten years.

Balasore Alloys was incorporated in the year 1984 at Balasore, Orissa. It was formerly Ispat Alloys and is part of the renowned Ispat group of companies which is a major business house in the country, promoted by the Mittals. The group’s companies are spread across six countries including Libya, Bosnia, Philippines, Azerbaijan and Uzbekistan.

Currently it operates 5 furnaces with total capacity of 57 MVA to produce 95,000 MT bulk ferro alloys per annum. With multiple furnaces of

Balasore Alloys was incorporated in the year 1984 at Balasore, Orissa. It was formerly Ispat Alloys and is part of the renowned Ispat group of companies which is a major business house in the country, promoted by the Mittals. The group’s companies are spread across six countries including Libya, Bosnia, Philippines, Azerbaijan and Uzbekistan.

Currently it operates 5 furnaces with total capacity of 57 MVA to produce 95,000 MT bulk ferro alloys per annum. With multiple furnaces of different capacities, the company has the flexibility to produce different types of ferro alloys as per market dynamics.

The company has captive mines in different locations like chromite ore mines in Sukinda Valley at Jajpur Road (Orissa), Manganese Ore Mines in Hathoda (Madhya Pradesh).

The other associate companies of Balasore Alloys are Ispat Industries, Ispat Metallics India, Ispat Profiles India, Gontermann Peipers India, etc.

Business area of the company:

  • Balasore alloys is one of the largest ferro alloys producer and suppliers in India.

The company is also exporting its products since 1991-92 and continues to supply to countries like Japan, China, Taiwan, Korea, USA, Canada, Brazil, Mexico etc. Its export base has increased from 4 countries in 1991-92 to 12 countries in 2007-08 to 26 countries in 2008.

Award/recognition:

Balasore Alloys has received ISO-9002, ISO-14001 certification for its plant and ISO-9002 for its mines in Jajpur, Orissa. It follows various modern management initiatives such as six sigma, TPM, supply chain management and performance management systems for improvement of overall efficiency of the company.

Puchho Befikar
SEBI Registered: Investment Adviser - INA000013323

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