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Tata Steel BSL Ltd. Stock Analysis

Small Cap
Evaluated by 1843 users | BSE: 500055 | NSE: TATASTLBSL |
Steel & Iron Products
Bhushan Steel (BSL), earlier known as Bhushan Steel & Strips was incorporated in the year 1983.It is a globally renowned company and is one of the leading prominent player in Steel Industry. Backed by more than two decades, of experience in Steel making, Bhushan Steel is now India’s...

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.
Tata Steel BSL Ltd. has not performed well majority of the past ten years indicating its past ten year financial track record is not good
Value Creation
 Mar'11Mar'12Mar'13Mar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20
Return on Capital Employed 6.79%7.06%5.44%3.04%1.09%-0.2%0.61%-11.19%7.59%1.38%
Growth Parameters
Growth Parameters Colour Code Guide
Net Sales (Rs. Cr.) 7,0009,94110,7449,67610,64611,80313,70617,01320,89218,199
Y-o-Y Gr. Rt.-42%8.1%-9.9%10%10.9%16.1%24.1%22.8%-12.9%
Adjusted EPS (Rs.) 45.1250.541.643.66-55.03-146.4-154.39-373.41-3.56-6.4
Y-o-Y Gr. Rt.-11.9%-17.5%-91.2%-1603.6%NANANANANA
Book Value per Share (Rs.) 270.36339.15407.7399.51342.1699.69-54.9-1,150.48167.48161.47
Adjusted Net Profit 9721,08891482.9-1,247-3,316-3,497-8,458-389-700
Net Op. Cash Flow (Rs. Cr.) 1,0092,852-2132,3112,1739237521,7895,8001,718
Debt to Cash Flow from Ops 16.417.49-134.1115.2417.9852.3666.4327.752.9410.22
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.
Tata Steel BSL Ltd. should be analysed on a Standalone basis
CAGR
CAGR Colour Code Guide
  9 yrs 5 yrs 3 yrs 1 yr
Net Sales 11.2%11.3%9.9%-12.9%
Adjusted EPS -180.5%NANANA
Book Value per Share -5.6-140-3.6
Share Price -21.6% -3.5% -20.4% 30.3%
Key Financial Parameter
Performance Ratio Colour Code Guide
 Mar'11Mar'12Mar'13Mar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20
Return on Equity (%) 19.6715.9210.860.91-14.64-65.42-689.4961.9610.05-3.89
Operating Profit Margin (%) 2931.330.9528.1520.4817.721.3213.0818.4612.84
Net Profit Margin (%) 13.8910.958.510.86-11.71-28.1-25.52-49.72-1.86-3.85
Debt to Equity 2.812.893.153.854.9621.4-40.17-1.90.930.99
Working Capital Days 260256308415393257150151128152
Cash Conversion Cycle 708913519619211661764643
Entity Percentage Holding
Promoters 72.65%
Institutions 8.75%
Non-Institutions 18.59%
Pledged *0.000.000.000.000.000.000.000.000.000.00
* Pledged shares as % of Promoter's holding (%)

MoneyWorks4Me analysed the past 10-year performance of Tata Steel BSL Ltd. and arrived at the following conclusion:

Past 10 year's financial track record indicates that Tata Steel BSL Ltd. is a below average quality company. However, for specific investment actions please connect with your investment advisor.

The 5-year analysis of Tata Steel BSL Ltd.'s performance infers:

Tata Steel BSL Ltd. earnings have grown by 0%, whereas share price has depreciated -3.5% 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 Tata Steel BSL Ltd. share prices over the last 10 years. Here is what we found out:

Tata Steel BSL Ltd. share price has depreciated -21.9% annually over the past ten years.

Bhushan Steel (BSL), earlier known as Bhushan Steel & Strips was incorporated in the year 1983.It is a globally renowned company and is one of the leading prominent player in Steel Industry. Backed by more than two decades, of experience in Steel making, Bhushan Steel is now India’s 3rd largest Secondary Steel Producer company with an existing steel production capacity of 2 million tones per annum’s.

The company has three manufacturing units in the state of Uttar Pradesh

Bhushan Steel (BSL), earlier known as Bhushan Steel & Strips was incorporated in the year 1983.It is a globally renowned company and is one of the leading prominent player in Steel Industry. Backed by more than two decades, of experience in Steel making, Bhushan Steel is now India’s 3rd largest Secondary Steel Producer company with an existing steel production capacity of 2 million tones per annum’s.

The company has three manufacturing units in the state of Uttar Pradesh (Sahibabad Unit), Maharashtra (Khopoli unit), and Orissa Plant (Meramandali unit) in India and sales network is across many countries.The company is a source for vivid variety of products such as Cold Rolled Closed Annealed, Galvanized Coil and Sheet, High Tensile Steel Strapping, Colour Coated Coils , Galume Sheets and Coils, Hardened & Tempered Steel Strips , Billets, Sponge Iron, Precision Tubes and Wire Rod.

BSL  clientele includes automobile and home appliances majors  like General Motor, Hyundai Motors, Ford Motors, Mahindra & Mahindra, Eicher Tractors, Ashok Leyland, LG Electronics, Whirlpool, Videocon, Daikin, Samsung Electronics, Godrej, Voltas, IFB, Carrier Refrigeration, Electrolux Group amongst others.The company is on due course o become a fully Integrated Steel & Power Company with market leading offerings in value added Steel in Automotive and White Good Segment with the quality  been approved by ISO 9002 and QS 9000.

Products:

  • Cold Rolled
  • Galvanized
  • Bhushan Galume
  • Colour Coated Coil
  • Colour Coated Tiles
  • Drawn Tubes of OEM Grade
  • Hardened & Tempered Steel Strips
  • High Tensile Steel Strapping
  • Alloy Billets
  • Sponge Iron
  • Wire Rod

Recognition:

BSL has received ISO 14001:2004 certification for Environmental Management System.

BSL has received ISO/TS 16949:2002 certification for Quality Systems.

It has also received OHSAS 18001:1999 certification for health and safety management system.

Milestone:

Most brilliant milestone in BSL’s journey of excellence is setting up of Steel and Power Plant in Orissa. On completion, the Plant will be one of the largest integrated Hot Rolled Steel and Power complexes of the nation

BSL has emerged as the countries largest and the only CR Steel Plant with an independent line for manufacturing Cold Rolled Coils and Sheets up to a width of 1700mm, as well as Galvanized Steel Coils and Sheets up to width of 1350mm.

Bhushan Steel has transformed to 3rd largest producer of Cold Rolled Steel with an installed capacity of one million tons and sales of more than USD 1 Billion.

Focused on niche high value added segment of automobile and white goods, the company today is a leader in these segments.

BSL has a good debt-servicing track record.

The company is first to set up a high Tech Plant in 1996 to cater to auto mobile and white good sector, in technical tie up with Sumitomo Metals, Japan.

Finally, the company is profit making and paying dividend since its inception.

Puchho Befikar
SEBI Registered: Investment Adviser - INA000013323

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