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ISMT Ltd. Stock Analysis

Small Cap
Evaluated by 226 users | BSE: 532479 | NSE: ISMTLTD |
Steel & Iron Products
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,...

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'11Mar'12Mar'13Mar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20
Return on Capital Employed 8.66%7.88%3.26%-1.48%-2.38%-7.87%-4.8%-3.03%-1.52%-4.32%
Growth Parameters
Growth Parameters Colour Code Guide
Net Sales (Rs. Cr.) 1,6481,9441,5921,5611,5059921,1621,4901,8251,304
Y-o-Y Gr. Rt.-18%-18.1%-1.9%-3.6%-34.1%17.2%28.2%22.5%-28.5%
Adjusted EPS (Rs.) 5.273.46-3.38-10.58-14.29-23.94-19.12-16.68-14.75-16.69
Y-o-Y Gr. Rt.--34.4%-197.7%NANANANANANANA
Book Value per Share (Rs.) 42.239.7433.4320.784.71-18.44-37.89-54.06-69.6-85.8
Adjusted Net Profit 77.250.7-49.5-155-209-351-280-244-216-245
Net Op. Cash Flow (Rs. Cr.) 24718913179.168-275-92.53242.4118
Debt to Cash Flow from Ops 4.256.259.6419.1124.27-7.49-23.5468.4251.517.98
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.
ISMT Ltd. should be analysed on a Standalone basis
CAGR
CAGR Colour Code Guide
  9 yrs 5 yrs 3 yrs 1 yr
Net Sales -2.6%-2.8%3.9%-28.5%
Adjusted EPS -213.7%NANANA
Book Value per Share -208.2-278.700
Share Price -9.7% 8.4% -8.2% 159%
Key Financial Parameter
Performance Ratio Colour Code Guide
 Mar'11Mar'12Mar'13Mar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20
Return on Equity (%) 12.888.43-9.24-39.01-71.82-326.14135.452.0330.6825.99
Operating Profit Margin (%) 15.4712.159.975.592.311.223.715.16.196.08
Net Profit Margin (%) 4.682.6-3.11-9.92-13.92-35.36-24.1-16.4-11.84-18.75
Debt to Equity 1.692.032.584.9623.92-7.62-3.92-2.77-2.14-1.69
Working Capital Days 145144170162164241229178126159
Cash Conversion Cycle 7676796765100947666102
Entity Percentage Holding
Promoters 51.71%
Institutions 2.11%
Non-Institutions 46.18%
Pledged *72.7772.7772.7791.2391.2390.9490.9490.9490.9490.94
* Pledged shares as % of Promoter's holding (%)
Data is not available for this company.

The 5-year analysis of ISMT Ltd.'s performance infers:

ISMT Ltd. earnings have grown by 0%, whereas share price has appreciated 8.4% 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 ISMT Ltd. share prices over the last 10 years. Here is what we found out:

ISMT Ltd. share price has appreciated -16.3% annually over the past ten years.

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.

ISMT is largest manufacturer of specialized seamless tubes in the Asia Pacific Region. Currently the company has installed capacity of 155,000 tpa and 250,000

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.

ISMT is largest manufacturer of specialized seamless tubes in the Asia Pacific Region. Currently the company has installed capacity of 155,000 tpa and 250,000 tpa for seamless tubes and alloy steel, respectively.

The company manufactures all its tubes through the Assel Mill route. This process yields tubes of very high dimensional accuracy and excellent concentricity thus minimizing the requirements of final machining. Due to this. the resultant tubes are use for various applications such as the manufacture of bearings, automobile parts, drill rods, hydraulic cylinders, gas cylinders, boilers, etc.

The company has received various certifications such as ISO / TS 16949: 2002, ISO 14001: 2004 and OHSAS 18001:1999 for its quality management.

Products and services

Steel- It manufactures a range of products such as alloy and alloy spring steels, high alloy steels, micro alloyed and boron steels, ball bearing steels, free cutting / semi free cutting steels and carbon and carbon spring steels. These products are used by industries such as forging, seamless tube making, automobile and auto-ancillaries, textile machinery, fasteners and other engineering applications.

Tubes- Under this the company manufactures range of seamless tubes and value added products such as starter gears, Spindle axles, Cages, multi-track sleeves, shaped tubes, OCTG Couplings and inner races.

Engineering solutions- TAAL Technologies is engineering solution arm of the company. The company caters to segment such as aerospace, energy, industrial and transportation.

Milestones

  • 1977 -- Indian Seamless Metal Tubes was incorporated.  
  • 1980 -- The company started commercial production of specialized seamless tubes. 
  • 1988 -- Taneja Aerospace & Aviation was incorporated.  
  • 1989 -- Indian Seamless Steels & Alloys was incorporated.  
  • 1994 -- Taneja Aerospace & Aviation received its first certification of airworthy flight/ commercial production. Indian Seamless Steels & Alloys started its commercial production. 
  • 1999 -- Kalyani Seamless Tubes was merged with Indian Seamless Metal Tubes.  
  • 2005 -- Indian Seamless Metal Tubes and Indian Seamless Steels and Alloys Ltd were merged to form ‘ISMT’. 
  • 2007 -- ISMT acquired a 100% stake in Structo Hydraulic AB, Sweden.

Outlook

The company is setting up an expansion project at Baramati, which will increase its production from 155,000 MT per annum to 475,000 MT per annum.

Puchho Befikar
SEBI Registered: Investment Adviser - INA000013323

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