Steelcast soars on obtaining quality assurance certification

Steelcast is currently trading at Rs. 60.00, up by 1.60 points or 2.74% from its previous closing of Rs. 58.40 on the BSE.

The scrip opened at Rs. 57.05 and has touched a high and low of Rs. 61.00 and Rs. 55.55 respectively. So far 19692 shares were traded on the counter.

The BSE group 'B' stock of face value Rs. 5 has touched a 52 week high of Rs. 60.75 on 06-Jun-2012 and a 52 week low of Rs. 18.55 on 23-Aug-2011.

Last one week high and low of the scrip stood at Rs. 61.00 and Rs. 53.51 respectively. The current market cap of the company is Rs. 97.78 crore.

The promoters holding in the company stood at 46.20% while Non-Institutions held 53.80% stake in the company.

Steelcast has received quality assurance certification from the Association of American Railroads. This certification will help the company to tap the huge US Railways demand for steel castings. Steelcast has thus achieved the distinction of becoming only the second castings company in India to have got this accreditation.

Freight transport segment of the US Railways is one of the biggest in the world. Thus, the steel castings demand from the Association of American Railroads (AAR) is also amongst the largest globally. To tap this large market, Steelcast had formed a 50:50 joint venture company, Steelcast LLC, way back in June 2010 with Michigan Steel of the USA. With technical assistance from the US partner, Steelcast upgraded its manufacturing facility at Bhavnagar in Gujarat so as to get it certified by the AAR.

An inspection team from the AAR had come to the Bhavnagar facility a few months’ back and after a thorough audit it has granted the quality assurance programme certification to Steelcast which is valid till February 23, 2015. Thereafter, company will have to go for a fresh audit.

The AAR certification will also give Steelcast a big advantage over other players while bidding for contracts from the Indian Railways in future, especially the huge opportunities that will emanate from the upcoming Delhi-Mumbai Freight Corridor.