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Tata Steel Long Products Ltd Stock Analysis

Small Cap
Evaluated by 1308 users | BSE: 513010 | NSE: TATASTLLP |
Steel/Sponge Iron/Pig Iron
Tata Sponge Iron (TSIL) was incorporated in 1982 as joint venture between Tata Steel and the Industrial Promotion and Investment Corporation of Orissa (IPICOL). Later in 1991, Tata Steel acquired IPICOL’s stake in joint venture. Today TSIL is associate company of Tata Steel.The...

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 Long Products 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 22.09%15.02%15.09%16.06%12.7%4.51%7.15%15.37%11.89%-6.75%
Growth Parameters
Growth Parameters Colour Code Guide
Net Sales (Rs. Cr.) 6816347967827905745578009923,490
Y-o-Y Gr. Rt.--6.9%25.5%-1.7%1%-27.4%-2.8%43.6%24%251.8%
Adjusted EPS (Rs.) 56.7542.6247.4255.4751.3618.1632.5377.5767-88.42
Y-o-Y Gr. Rt.--24.9%11.3%17%-7.4%-64.6%79.1%138.5%-13.6%-232%
Book Value per Share (Rs.) 281.01315.01354.37400.45440.65457.74479.26546.64600.41447.14
Adjusted Net Profit 10276.985.610092.732.858.7140121-399
Net Op. Cash Flow (Rs. Cr.) 14266.3112101-16.277.121.741.1100-336
Debt to Cash Flow from Ops 000000000-7.88
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 Long Products Ltd. should be analysed on a Standalone basis
CAGR
CAGR Colour Code Guide
  9 yrs 5 yrs 3 yrs 1 yr
Net Sales 19.9%34.6%84.3%251.8%
Adjusted EPS -205.1%-211.5%-239.6%-232%
Book Value per Share 5.30.3-2.3-25.5
Share Price 8.6% 5.9% -12.3% 45%
Key Financial Parameter
Performance Ratio Colour Code Guide
 Mar'11Mar'12Mar'13Mar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20
Return on Equity (%) 22.0914.314.1714.712.214.046.9415.1211.68-25.73
Operating Profit Margin (%) 22.9918.115.1218.3912.714.411.0822.8414.844.9
Net Profit Margin (%) 15.0312.1310.7512.811.745.7110.5317.4912.19-11.43
Debt to Equity 0000000001.31
Working Capital Days 199335312362303233176267347150
Cash Conversion Cycle 302814516207143017
Entity Percentage Holding
Promoters 75.91%
Institutions 5.40%
Non-Institutions 18.68%
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 Long Products Ltd and arrived at the following conclusion:

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

The 5-year analysis of Tata Steel Long Products Ltd's performance infers:

Tata Steel Long Products Ltd earnings have declined by -211.5%, whereas share price has appreciated 5.9% 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 Steel Long Products Ltd share prices over the last 10 years. Here is what we found out:

Tata Steel Long Products Ltd share price has appreciated 6.1% annually over the past ten years.

Tata Sponge Iron (TSIL) was incorporated in 1982 as joint venture between Tata Steel and the Industrial Promotion and Investment Corporation of Orissa (IPICOL). Later in 1991, Tata Steel acquired IPICOL’s stake in joint venture. Today TSIL is associate company of Tata Steel.

The company is engaged in business of manufacturing high-grade sponge iron that is consistent in quality.  The company has an annual manufacturing capacity of 390,000 tonnes of sponge iron from its

Tata Sponge Iron (TSIL) was incorporated in 1982 as joint venture between Tata Steel and the Industrial Promotion and Investment Corporation of Orissa (IPICOL). Later in 1991, Tata Steel acquired IPICOL’s stake in joint venture. Today TSIL is associate company of Tata Steel.

The company is engaged in business of manufacturing high-grade sponge iron that is consistent in quality.  The company has an annual manufacturing capacity of 390,000 tonnes of sponge iron from its three kilns. Its production plant is situated at Bilaipada in Orissa.

For production of sponge iron, the raw material required is iron ore, non-coking coal and dolomite. To meet the raw material requirement, the company has iron ore reserves located in the northern part of Orissa. It acquires coal from the collieries of Central Coalfields, South Eastern Coalfields and Mahanadi Coalfields and dolomite is acquired from Tata Steel's Gomardih dolomite quarry.

The company also operates a modern R&D facility that is set up along with a chemical laboratory to conduct the monitoring process. This R& D facility introduced Tisco Direct Reduction (TDR) -- an innovative technology for making sponge iron.

TSIL's manufacturing facilities have been accredited with ISO-9002 and ISO 14000 certifications for its quality management.

Tata Sponge Iron operates two captive power plants that produce a total capacity of 26 MW of power.

Awards and Recognition

Tata Sponge Iron was awarded Certificate of Appreciation by The Energy and Resources Institute (TERI) for company’s efforts towards environmental management and innovative initiatives.

The company received Greentech Environment Excellence Gold Award for the year 2006-07 by Greentech Foundation in recognition of company’s initiatives in conserving the environment.

The company received “Golden Peacock National Quality Award - 2007”.

Earth Care Award 2008 for the company’s relentless pursuits towards Greenhouse gas, mitigation and combating climate change, conferred by JSW and Times of India with technical support from The Energy Research Institute (TERI) and Centre of Environment Education (CEE), on 22nd April 2008.

Golden Peacock National Quality Award from Institute of Directors (awarded in January 2008)

In 2010, Tata Sponge wins Green India Award for Environment Excellence

Tata Steel (Parent Company)

Tata Sponge Iron is part of the Tata Steel Group of companies, which owns a wide spectrum of companies engaged in the business of steel and steel related manufacturing. It owns companies namely Corus, Tinplate Company of India, Tayo Rolls, Tata Ryerson, Tata Refractories, Tata Metaliks, Tata Pigments, Jamshedpur Injection Powder, TM International Logistics, Metal Junction Services, TRF , The Indian Steel and Wire Products and many more.

Puchho Befikar
SEBI Registered: Investment Adviser - INA000013323

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