I do not feel that there is any bail out situation for this company. If you compare the last 12 quarter results there is an overall improvement at every level i.e Sales, Margin, Net Profit, Cash flows.
I just cannot understand that why we tend to compare the performance of the company from the Share price. The value a stock carries is independent of market price. The company has only improved its performance during the last 2 years and looking the steel cycle it will continue to do so for another 2 to 3years.
I had already advised that the company is having some legacy issues on corporate government and which haunt the investors in future also. If you can digest this fact then only you will see value in the company . I have analysed corportate governance issues in detail in my previous post.
Can we imagine any 100% ethical person running a small size Iron and Steel Industry in remote area of Chhattisgarh in late 90s. Its a 100% fact that more then 50% of Iron and steel business (before GST) accross India was being done in Kacchha 9without paying tax). In a corrupt system can you imagine getting an Coal or Iron ore mine without any manipulation.
I am not favouring the promoters but we will have understand the prevailing situation at the material time. The promoters have ploughed back the money in the company and because of which it has shown growth in its capacity even during the time when the steel Industry was in recession and when even big steel companies have failed.(Essar, Bhushan, Monet, Electrosteel,etc).
In my opinion the the management has passed the biggest criterion of Corporate Governance which is that it has successfully come out from Steel recession cycle and at a time when it was loaded with corporate governance issues, Coal block de allocation, Syndicate Bank Bribery case,CBI enquiry on allocation of coal block,FCCB default etc etc.
Disclosure: Invested with substantial exposure and very much confident about the company and the capability of management.