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Tata Metaliks Ltd Stock Analysis

Small Cap
Evaluated by 1163 users | BSE: 513434 | NSE: TATAMETALI |
Steel/Sponge Iron/Pig Iron

A subsidiary of Tata Steel, Tata Metaliks has its state-of-the-art manufacturing plant at Kharagpur, West Bengal, India which produces the finest quality of pig iron and ductile iron pipes in India. It produces hot metal using iron ore lumps, sinter, coke and...

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 Metaliks Ltd has performed well in some of the past ten years indicating its past ten year financial track record is somewhat good
Value Creation
 Mar'11Mar'12Mar'13Mar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20
Return on Capital Employed 11.67%-10.33%2.38%23.22%30.24%32.93%23.4%24.88%25.79%19.71%
Growth Parameters
Growth Parameters Colour Code Guide
Net Sales (Rs. Cr.) 1,3181,1338641,1611,0991,2981,3391,8742,1552,051
Y-o-Y Gr. Rt.--14.1%-23.7%34.3%-5.4%18.2%3.1%40%15%-4.9%
Adjusted EPS (Rs.) 8.68-29.28-1.0428.0735.7246.2647.3764.4464.3559.45
Y-o-Y Gr. Rt.--437.3%NANA27.3%29.5%2.4%36%-0.1%-7.6%
Book Value per Share (Rs.) 44.378.54-13.112.1834.9939.1781.93141.84253.17307.4
Adjusted Net Profit 22-74-2.67190.3117120163181167
Net Op. Cash Flow (Rs. Cr.) -64.5-26.915418278.690.87719637570.2
Debt to Cash Flow from Ops -5.3-16.432.31.352.724.5172.430.113.01
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 Metaliks Ltd. should be analysed on a Standalone basis
CAGR
CAGR Colour Code Guide
  9 yrs 5 yrs 3 yrs 1 yr
Net Sales 5%13.3%15.3%-4.9%
Adjusted EPS 23.8%10.7%7.9%-7.6%
Book Value per Share 2454.455.421.4
Share Price 33.5% 52.2% 2.6% 154.2%
Key Financial Parameter
Performance Ratio Colour Code Guide
 Mar'11Mar'12Mar'13Mar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20
Return on Equity (%) 21.8-63.34-2.7882.261.3981.3378.2457.632.1119.8
Operating Profit Margin (%) 5.56-5.935.5810.314.6717.2317.2414.9114.1913.98
Net Profit Margin (%) 1.67-6.54-0.36.118.229.018.958.78.398.14
Debt to Equity 3.053.645.312.321.134.142.61.330.060.24
Working Capital Days 1061281431001071101139099130
Cash Conversion Cycle 203821-14-19-1211301824
Entity Percentage Holding
Promoters 60.03%
Institutions 15.52%
Non-Institutions 24.44%
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 Metaliks Ltd and arrived at the following conclusion:

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

The 5-year analysis of Tata Metaliks Ltd's performance infers:

Tata Metaliks Ltd earnings have grown by 10.7%, whereas share price has appreciated 52.2% 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 Tata Metaliks Ltd share prices over the last 10 years. Here is what we found out:

Tata Metaliks Ltd share price has appreciated 21.8% annually over the past ten years.

A subsidiary of Tata Steel, Tata Metaliks has its state-of-the-art manufacturing plant at Kharagpur, West Bengal, India which produces the finest quality of pig iron and ductile iron pipes in India. It produces hot metal using iron ore lumps, sinter, coke and fluxes, which are partly value-added into DIP for use in the water infrastructure industry and partly cast into PI for use in foundries. Its state-of-the-art manufacturing plant near Kharagpur, West

A subsidiary of Tata Steel, Tata Metaliks has its state-of-the-art manufacturing plant at Kharagpur, West Bengal, India which produces the finest quality of pig iron and ductile iron pipes in India. It produces hot metal using iron ore lumps, sinter, coke and fluxes, which are partly value-added into DIP for use in the water infrastructure industry and partly cast into PI for use in foundries. Its state-of-the-art manufacturing plant near Kharagpur, West Bengal, enjoys strategic locational advantage due to its proximity to iron ore mines in Odisha and Jharkhand, the Haldia port (for import of coal) and the PI and DIP markets of eastern India.

Business area of the company

Tata Metaliks is engaged in the manufacture of foundry grade pig iron. The Company manufactures and sells products, such as scrap pig iron and granulated slag. The Company offers a range of end-to-end technical services, which include charge mix and melting, molding and core making, spheroidal graphite (SG) iron production and development, project based consultancy, pollution control, customized training and testing facility. It also offers a range of by-products, such as slag, which includes manufacturing and supplying granulated blast furnace slag for cement plants; potted pig iron, which is used by foundries as scrap; pig iron scrap, which includes pig casting machine scrap, pig iron runner, pig iron skull and pig iron chips and plates, and iron sweepings, including low iron (Fe) and high Fe. Its products offer applications, such as pressure tight precision castings, rolling mill rolls, motor and generator housings, automobile engine blocks, crankshafts and gears.

Awards and Accolades

  • 1999-01: Won the Golden Peacock National Quality Award
  • 1999-01: Golden Peacock Innovative Management Award
  • 2002-03: Won the Golden Peacock Environment Management Quality Award and the TPM Award Category 1 (by JIPM)
  • 2003-04: Won the active promotion award by CII Exim Bank
  • 2005-06: TPM Consistency Award Category 1
  • 2007-08: Won the JRD QV Award on Business Excellence
  • 2016-17: Received the National Sustainability Award from Indian Institute of Metals
  • 2017-18: Received the ICC Corporate Governance and Sustainability Vision Awards, 2018
  • 2018-19: ‘Excellence in Corporate Social Responsibility in 2018’by the CII-ITC Centre of Excellence for Sustainable Development - 2018.
  • 2018-19: ‘Certificate of Recognition’ by the Institute of Company Secretaries of India (ICSI) for implementing sound Corporate Governance practices - 2018.
  • 2018-19: ‘Noteworthy Water Efficient Unit’ at the 4th Water Innovation Summit 2018 (Economic Growth and Human Development in context of Water Scarcity) and National Awards for Excellence in Water Management - 2018 by CII-Triveni.
  • 2019-20: Received Economic Times Corporate Award for Excellence in Business Performance.
  • 2019-20: Bagged 3rd prize in Confederation of Indian Industry (CII) National-Level Environmental Kaizen competition.
  • 2019-20: Received the Energy Conservation Award at the CII ENCON Awards 2019 with ‘4 Star Rating’ in the Large-Scale Category.

History and milestones

  • 1990-92: Incorporated as Tata Korf Metals West Bengal Limited
  • 1990-92: Plant construction commenced at Kharagpur
  • 1990-92: The Company’s name changed to Tata Metaliks
  • 1994: Plant commissioned with an initial capacity of 0.9 LTPA
  • 2005: Commissioned the 2nd Mini Blast Furnace (MBF) (installed capacity increased to 3.45 LTPA)
  • 2006: Bought PI plant at Redi, Maharashtra (installed capacity increased to 6.5 LTPA)
  • 2007: Entered into a joint venture with Kubota for DI pipe business
  • 2008: Amid global financial crisis, the Company booked significant mark-to-market losses in raw materials and finished goods
  • 2009: Commissioned DI pipe plant at Kharagpur (1 LTPA). However, there was delay in obtaining requisite approvals for commercial operation
  • 2011: Pig Iron plant at Redi, Maharashtra was shut down
  • 2013: DI pipe business became a wholly owned subsidiary of the Company
  • 2013: Commissioned Sinter Plant
  • 2014: Improved DI pipe production and optimised manufacturing process parameters
  • 2016-17: DI pipe business amalgamated with the Company
  • 2016-17: Increased DI pipe capacity from 1.3 LTPA to 1.8 LTPA
  • 2016-17: Installed coke plant (1.2 LTPA)
  • 2016-17: Commissioned a 10 MW captive power plant
  • 2016-17: Upgraded MBF#1
  • 2017-18: Coal injection project kicked-of
  • 2018-19: Commissioned Pulverised Coal Injection (PCI) plant to reduce prime coke consumption at Mini Blast Furnaces (MBFs)
  • 2018-19: Increased pig casting machine productivity by installing new design moulds
  • 2019-20: 3 Effluent Treatment Plant are installed for processing waste water recycling. Approximately 2300 cum/d waste water is being recycled back in the process
  • 2020-2021: Tata Metaliks shuts down one of blast furnaces & associated facilities in Kharagpur
Puchho Befikar
SEBI Registered: Investment Adviser - INA000013323

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