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India Steel Works Ltd. Stock Analysis

Small Cap
Evaluated by 173 users | BSE: 513361 | NSE: ISIBARS |
Steel & Iron Products
India Steel Industries, previously called Isibars, has been producing bright bars since 1957. In addition to its bright bar plant in Central Mumbai, in 1990 it set up another plant in Turbhe, Navi Mumbai for the manufacture of stainless steel bright bars. Soon thereafter, the company...

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 -6.57%-4.02%1.6%-0.32%-4.24%2.98%3.15%3.88%7.01%2.28%
Growth Parameters
Growth Parameters Colour Code Guide
Net Sales (Rs. Cr.) 1023006017256135135841,086949532
Y-o-Y Gr. Rt.-193.2%100.7%20.5%-15.4%-16.4%13.8%86%-12.6%-44%
Adjusted EPS (Rs.) -0.9-0.58-0.3-0.46-0.4900.07-0.050.2-0.08
Y-o-Y Gr. Rt.-NANANANANANA-171.4%NA-140%
Book Value per Share (Rs.) 0.240.470.21-0.212.324.244.344.394.524.37
Adjusted Net Profit -18.4-13.6-7.1-10.8-19.50.22.7-1.88.1-3.1
Net Op. Cash Flow (Rs. Cr.) 18-9.227.823.5-28.8233719.322.1-3.7
Debt to Cash Flow from Ops 7.34-14.34.625.88-2.283.231.775.984.37-25.09
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.
India Steel Works Ltd. should be analysed on a Standalone basis
CAGR
CAGR Colour Code Guide
  9 yrs 5 yrs 3 yrs 1 yr
Net Sales 20.1%-2.8%-3.1%-44%
Adjusted EPS NANA-204.6%-140%
Book Value per Share 38.113.50.2-3.3
Share Price -25.1% -31% -48.9% -12.2%
Key Financial Parameter
Performance Ratio Colour Code Guide
 Mar'10Mar'11Mar'12Mar'13Mar'14Mar'15Mar'16Mar'17Mar'18Mar'19
Return on Equity (%) -27.18-19.14-9.95-16.89-18.080.091.16-0.884.58-1.75
Operating Profit Margin (%) -6.831.673.41.730.994.523.362.210.57-0.65
Net Profit Margin (%) -18-4.53-1.18-1.49-3.190.030.47-0.170.86-0.58
Debt to Equity 1.991.811.932.330.420.320.280.660.540.53
Working Capital Days 346158968110913915395116226
Cash Conversion Cycle 37-6-5-2-32-3-40-5
Entity Percentage Holding
Promoters 50.11%
Institutions 1.33%
Non-Institutions 48.56%
Pledged *28.5822.8622.8322.8022.8022.8022.8022.8022.8022.80
* Pledged shares as % of Promoter's holding (%)
Data is not available for this company.

The 5-year analysis of India Steel Works Ltd.'s performance infers:

India Steel Works Ltd. earnings have grown by 0%, whereas share price has depreciated -31% CAGR over the past five years, indicating the company's share price is likely undervalued. However, for specific investment actions please connect with your investment advisor.

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

India Steel Works Ltd. share price has depreciated -21.6% annually over the past ten years.

India Steel Industries, previously called Isibars, has been producing bright bars since 1957. In addition to its bright bar plant in Central Mumbai, in 1990 it set up another plant in Turbhe, Navi Mumbai for the manufacture of stainless steel bright bars. Soon thereafter, the company was listed on the Bombay Stock Exchange with an initial public offer of Rs.16.7 million, which was heavily oversubscribed.

The company integrated backwards into steel melting and hot-rolling by

India Steel Industries, previously called Isibars, has been producing bright bars since 1957. In addition to its bright bar plant in Central Mumbai, in 1990 it set up another plant in Turbhe, Navi Mumbai for the manufacture of stainless steel bright bars. Soon thereafter, the company was listed on the Bombay Stock Exchange with an initial public offer of Rs.16.7 million, which was heavily oversubscribed.

The company integrated backwards into steel melting and hot-rolling by acquiring a plant in Khopoli, and expanded capacity, upgraded technology and increased product range. It then started a wire division by setting up a wire-drawing plant at Savroli under the name Isinox Steels. In 1998 it acquired a state-of-the-art bar & rod rolling mill from Pomini S.p.A. of Italy.

Through continuous process and product improvement, and a commitment to customer satisfaction, India Steel is well on its way to becoming a leading global player in stainless steel long products

Products:

1. Grades Of Steel-• Austenitic Stainless Steels• Ferritic and Martensitic Stainless Steels• Carbon Alloy Steels

2. Hot Rolled Products-• Wire Rods• Round Bars• Cast Billets• Rolled Billets

3. Bright Bar Products

4. Wires

Divisions:

1. STEEL MELT SHOP

The steel melt shop at Khopoli has two melting furnaces, an Induction Furnace and an Electric Arc Furnace. After melting, the steel is refined in the Ladle Furnace or AOD Converter and sent forward to the Continuous Casting Machine which casts the liquid metal into billets of required dimensions.

2. ROLLING MILLS

The company runs two mills – a Continuous Bar & Rod Mill and a Cross-country Bar Mill. A wide range of hot-rolled long products is available to its customers from these two mills. The Continuous Bar and Rod Rolling Mill, supplied by M/s. Pomini S.P.A of Italy (now VAI), was commissioned in the year 1998. One of the most technologically advanced Bar and Rod Mills in India, it is equipped with sophisticated ABB automation systems and is capable of making wire rods and rounds to precise specifications.  The Cross-country Bar Mill has been fully renovated and produces round bars and utensil-grade wide-flats. 

3. BRIGHT BAR DIVISION

The Bright Bar Division manufactures a wide range of bright bars, specialising in stainless steel, through different processes like heat treatment, quenching and tempering, pickling, cold drawing, peeling, smooth turning, centreless grinding and polishing.

4. WIRE FACILITY

Its wire drawing facility is capable of manufacturing stainless steel wires of different sizes, finishes, conditions and coil weights.  It makes wires from diameter 1mm to 8mm with coil-diameters, weights and packing as per the customer’s requirements.

 Awards and achievements:

• India Steel’s facilities and machinery are ISO 9001 certified by IRQS.

Puchho Befikar
SEBI Registered: Investment Adviser - INA000013323
Research Analyst - INH000000719

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