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Visa Steel Ltd. Stock Analysis

Small Cap
Evaluated by 191 users | BSE: 532721 | NSE: VISASTEEL |
Steel & Iron Products
Visa Steel (VSL), incorporated in 1996, is part of Visa Group. Headquartered at Kolkata, the company has manufacturing facilities located at Kalinganagar and Golagaoan.VISA Steel Limited is a subsidiary of VISA Infrastructure Limited. The VISA Group is a minerals, metals and energy...

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 8.14%7.55%8.73%-3.14%-1.46%-3.14%-9.8%-4.19%-0.75%-3.59%
Growth Parameters
Growth Parameters Colour Code Guide
Net Sales (Rs. Cr.) 1,1571,3247945211,0309221,0111,397859815
Y-o-Y Gr. Rt.-14.4%-40%-34.4%97.5%-10.5%9.7%38.2%-38.5%-5.1%
Adjusted EPS (Rs.) 3.964.464.74-14.49-12.87-21.48-54.4-13.12-2.31-5.73
Y-o-Y Gr. Rt.-12.6%6.3%-405.7%NANANANANANA
Book Value per Share (Rs.) 28.3932.1221.3147.2333.3611.13-85.3-59.4316.1410.42
Adjusted Net Profit 43.649.152.1-159-142-236-598-144-26.7-66.3
Net Op. Cash Flow (Rs. Cr.) 174290546-519249-210-390-2.743.255.1
Debt to Cash Flow from Ops 6.564.812.86-4.289.59-14.21-9.01-1,404.1634.1825.38
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.
Visa Steel Ltd. should be analysed on a Standalone basis
CAGR
CAGR Colour Code Guide
  9 yrs 5 yrs 3 yrs 1 yr
Net Sales -3.8%-4.6%-6.9%-5.1%
Adjusted EPS -204.2%NANANA
Book Value per Share -10.5-20.80-35.4
Share Price -21.4% -14.2% -27.2% 34%
Key Financial Parameter
Performance Ratio Colour Code Guide
 Mar'10Mar'11Mar'12Mar'13Mar'14Mar'15Mar'16Mar'17Mar'18Mar'19
Return on Equity (%) 14.6514.6917.74-42.29-31.95-96.55146.6818.1911.59-43.13
Operating Profit Margin (%) 17.0316.2717.44-7.633.720.63-1.491.171.84-2.8
Net Profit Margin (%) 3.773.716.56-30.57-13.75-25.62-59.17-10.33-3.11-8.14
Debt to Equity 3.663.956.664.276.5124.35-3.74-5.727.8911.58
Working Capital Days 177172299387159163141119241251
Cash Conversion Cycle -140-90-163-303-70-78-18142819
Entity Percentage Holding
Promoters 58.88%
Institutions 21.95%
Non-Institutions 19.17%
Pledged *100.00100.00100.00100.00100.00100.00100.00100.00100.00100.00
* Pledged shares as % of Promoter's holding (%)
Data is not available for this company.

The 5-year analysis of Visa Steel's performance infers:

Visa Steel earnings have grown by 0%, whereas share price has depreciated -14.2% 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 Visa Steel share prices over the last 10 years. Here is what we found out:

Visa Steel share price has depreciated -15.9% annually over the past ten years.

Visa Steel (VSL), incorporated in 1996, is part of Visa Group. Headquartered at Kolkata, the company has manufacturing facilities located at Kalinganagar and Golagaoan.VISA Steel Limited is a subsidiary of VISA Infrastructure Limited. The VISA Group is a minerals, metals and energy conglomerate with business interests in Steel, Power, Cement, International Trading and Urban Infrastructure etc.

VISA Steel is a leading player in the Indian Special Steel and Ferro Chrome. It has its

Visa Steel (VSL), incorporated in 1996, is part of Visa Group. Headquartered at Kolkata, the company has manufacturing facilities located at Kalinganagar and Golagaoan.VISA Steel Limited is a subsidiary of VISA Infrastructure Limited. The VISA Group is a minerals, metals and energy conglomerate with business interests in Steel, Power, Cement, International Trading and Urban Infrastructure etc.

VISA Steel is a leading player in the Indian Special Steel and Ferro Chrome. It has its Registered office in Bhubaneswar; Corporate office in Kolkata and Branch offices across India.
The company has presence in countries like India, China, Australia, Indonesia, Switzerland, UK and Hong Kong.

In 2013 VISA Steel Limited and SunCoke Energy, Inc. formed their coke making joint venture in India. 

Manufacturing facilities

The company’s manufacturing facility, located at Kalinganagar, has a production capacity of 225,000 tonne per annum (TPA) of pig iron, 4,00,000, 50,000 TPA ferro chrome and TPA of coke oven.

VSL’s Golagaon manufacturing facility has a chrome ore beneficiation plant and a chrome ore grinding plant with an installed capacity of 1,00,000 TPA each.

Products

Pig Iron- The company manufactures three grade of pig iron such as basic, foundry and special that have applications in casting and steel making.

LAM Coke- VSL manufactures good quality coke by blending low cost soft coking coals with hard coking coals. Generally this coke is sold to blast furnaces, ferro alloy plants, chemical plants and foundries across India.

The company produces chrome concentrate that has application in ferro chrome/ stainless steel production. It also produces 50000 TPA of ferro chrome.

The steel major entered into a 51:49 joint venture with Bao Steel to form Visa Bao. Visa Bao was formed to set up a 1,00,000 tonne ferro-chrome plant in Orissa for an investment of Rs 260 crore.

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

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