Wednesday 7 September 2011

10 fundamental reasons to bet on Electrosteel Castings.

01.As the pioneer manufacturer of ductile spun iron pipes, it has a head start over its competitors.

02.It is today one of the top five global players with exports accounting for a almost 65 % of its production.

03.It exports to discerning markets of Europe and America which a mute testimonials of its capabilities.

04.Its plants are TPM compliant and the stress the company accords to quality is nothing less than obsessive, helping it retain its edge (and position at the top).

05.Ductile Spun Iron Pipes have been proven superior to competitors and are widely accepted as the chosen material for carrying drinking water and the removal of sewerage.

06.Professionally managed, the company has seamlessly integrated operations making it cost effective and efficient.

07.The company has a highly motivated and skilled workforce which can adapt advancements in technology and add their creative touch.

08.The urban population which was 2.8 billion in 2000 is set to zoom to 4.2 billion in 2020 – calling for huge investments to provide clean drinking water and the removal of sewerage. The chosen playing ground of Electrosteel.

09.Once the company’s investment in Electrosteel Steels fructify, the company will enjoy the fruits of integration and will have complete security on its supplies.  

10.Electrosteel is also aggressively integrating backwards into iron ore and coal mining which too are expected to further add to the bottomline.


CRISIL valuation grade : 5/5
Current Price : Rs 30.40
52 week High / Low : Rs 56 / Rs 26

Income Statement          (Jun '11)               (Mar '11)
                                            Quarterly             Annual
Net Sales                             429.86                   1772.85
Other Income                           0.66                        8.91
PBDIT                                   55.09                     316.98
Net Profit                               27.90                     154.64


  1. * is it a good time to enter the counter?
    * how will the delay in the commissioning of the steel plant affect the counter?
    * are their coal and iron linkages in place?
    * will delays affect the profitability?

  2. its a good, long term bet.
    the delay is in the commissioning of its sister concern - electrosteel steels. once commissioned, this will a source of considerable value addition.
    as far as i know, while there are certain delays, they are not significant.
    the company already has proven track record with revenue streams firmly in place. the delays can only curb notional profitability.

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