Invested in GPIL, was biggest holding at one point, tremendous growth in past year, one has to be careful about cyclicals thoughx2 I do not see any downside yet, this is going to be big steel cycle lasting few more years, allizwell news till now for the company in particular, some long term mining linkages and materials supply tie-ups established, capacity looks to grow etc.
40% revenue are from iron ore pellets, seems mainly export market oriented. Market is bit shaken because of steel tariff issues, but I do not see China (main importer of materials and exporter of goods) trading with US. Of course, the steel from Korea, Japan etc. will get re-distributed and is already causing impact, also on India, I do not think the market will get shaken up that much to disturb GPIL’s cart.
I saw some ICICIdirect report also about a pretty high target. Edelweiss had a 400 target, which they have doubled now.
Company has been awarded 1,15,900 metric tonnes of Long-Term Coal Linkage to be used in the Company’s Sponge Iron Unit in the recently concluded Coal Linkage Auction made by Coal India Limited under auction of coal linkages in the sponge iron sub-sector (Tranche IV Scheme). With this additional quantity of coal linkage the aggregate quantity of coal linkage for Sponge Iron Division shall be 4,95,000 metric tonnes. In addition to this the Company has got 1,11,600 metric tonnes of coal linkage for its Gassifier Units, 98,064 metric tonnes of coal linkage for its Captive Power Plant and 13,900 metric tonnes of coal linkage for its Biomass Power Plant. Thus the total long term coal linkage awarded to the Company aggregates to 7,18,564 metric tones which fulfills the 80% of the total coal requirement of the Company.
CARE rating upgrade
Company has received approval of competent authority for private railway siding served by Mandhar Station of Raipur Division for inward traffic of Coal, Iron Ore & Manganese and outward traffic of Pellet, which has become operational w.e.f. 31st March, 2018