A contingent liability is a potential liability that may occur, depending on the outcome of an uncertain future event. A contingent liability is recorded in the accounting records if the contingency is probable and the amount of the liability can be reasonably estimated
To check debt , please check the debt to equity ratio trend. It should decrease. Lesser the ratio better it is.
Understood. Thank you for replying. How about my Q#3?
- Why does https://www.screener.in/ or http://www.ratestar.in/ say P/E = NA?
Also Screener says - Pros: Company is expected to give good quarter
I know such conclusions on Screener are derived from numbers like Quarterly/Yearly results, Balance sheets, Peer Comparison. What numbers suggests this?
As I said I am a novice and don’t have Accounting background. I am learning things from VP forum one at time. I have also started reading books recommended here (Like - One Up On Wall Street).
I don’t fully understand what it means for Bhushan Steel when Tata Steel bid for it (Refer above article). I am just trying to understand what attributes will make Bhushan Steel a Turnaround.
because earnings are negative
Came across this article showcasing the IBC route for Bhushan steel and eventual merger with TATA Steel. Link to the article - Tata Steel acquires Bhushan through IBC route
A followup article stating some impact of the Resolution Plan approved by NCLT.
BSL looks a good deep value bet to me. With the uptick in both prices and volumes, the eps is all set to double this year. While the PE is already low .
Reduced debt, talks of merger with parent tata steel (spoken to bsl employees on this). Streamlining rm sourcing and debottlenecking post takeover by tisco.
Will you care to study/ comment @Donald @harsh.beria93
Taken a small exposure, will expand post feedback of VP members
I gather that the merger with parent is an issue. Merger ratio was fixed at 1:15 so effectively Bsl is now tata steel unless they revisit the merger ratio. Agree perfectly on deep value and huge potential but with BSL being merged with parents minority share holders will lose
Thanks shiva, have taken a position in tisco instead . Since there is no thread for tisco my rational is
Production higher by 15 % in fy 22 over fy21
Earning higher by 5000 rs/ mt over q4. And significantly higher over the entire year.
Lower debt
Merger ratio with bsl in favour of tisco.
The above increase eps by 3 times over fy 21. And demand supply situation not expected to change in medium term. And that is why tisco is
A value buy currently imho.
Yes Ashish, I agree, especially the steel sector dynamics appear structural and should stay for a year or two. Tata steel is definitely a good buy. If you have a higher risk appetite, you can consider JSW ispat special products, maybe at lower price levels. My thesis on the same : JSW Ispat Special products (Monnet Ispat) - turnaround scenario
Please offer your view.
Finally, after Bhushan steel got acquired by Tata Steel as TataSteel BSL, the company itself is getting amalgamated into Tatasteel for 1 share of Tatasteel for every 15 shares of Tata-BSL.
Tata Steel BSL to merge with Tata Steel | Business Standard News (business-standard.com)
