NALCO has hiked prices of Alumina. this should impact the stock positively.
IMFA is still available at a PE of around 5. Recent issues seem to be behind them as the company has posted stellar results this quarter. As per the chrome cycle posted above by @phreakv6, chrome prices should peak around december; Hence IMFA should do well till then.
Disc: Invested in IMFA
Where to keep track of chrome prices
Most of the sources are paid but you can follow SteelMint on twitter, you’ll get a general idea of where they are headed:
Indian Ferro Chrome Prices Climb Again https://t.co/XVp9C1UcG2
— SteelMint (@SteelMint) September 8, 2017
#FERRO_CHROME
If someone knows of a reliable free source please share.
how about metkore alloys. They are planning for prefferential allotment for rewamping the plant.here the link
http://www.bseindia.com/xml-data/corpfiling/AttachLive/a28e5792-d322-4e6f-a0ea-fe2329fabfc2.pdf
This can also be considered as a ferro chome play
Currently have been adding to sectors where I am already invested. Metals/Mining/Infra. Cement remains a bit intriguing and adding slowly and on corrections only.
Not tracking SKM Egg.
As
I had said earlier, I had missed the Ferrochrome sector completely. My entries are never in mid or end-cycle, so am staying away, though sector may do well for some time.
Another sector, where I could enter early was Graphite Electrodes, though I am could not position size in that sector.
Jiten bhai…how long does the cyclical rallies last? For instance, current rally in metals…what are the usual timeframes … obviously no black n white here…but still…steel is touted to be the next big wealth creator in india…well, things have already rallied a lot…but this is said to be a multiyear theme …for next 5 years. You agree?
Can’t say about 5 years. I think it’s too long. Certainly no plans to stay
invested for this long, as of now.
But steel/metal cycles, are generally not very short. Currently have a 1
year view.
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Thanks for the information.
Where do you see historical prices of commodities?
Hi Jiten sir. Found your presentation interesting. Whats your current view on Metals especially on Iron,Aluminium. And which companies do you prefer in Iron. Whats your take on Sunflag Iron. I think Iron ,steel,Aluminum and other metals can be bullish for next one year what do you say?.
Alumina prices up quiet a bit. Nalco key beneficiary.
MOIL also raised manganese ore prices up by 7.5%
I have added to my metals/mining positions. cycle looks to be on upswing. Especially Aluminium.
Also, do evaluate if u want to add now. I am adding as I have many of these from much lower levels. So risk is different.
Hello,
Could you give me some links/books/resources to learn about investing in cement stocks?
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Metals/mining playing out. Many big investors now bullish on the sector.
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jiten bro can you please let us know your favorites …which you feel has good potential in metal and mining sector.many thanks
Hi Jiten sir. Heard the PET and BOPET film prices are increasing. Of course their raw material crude prices also increasing but still will it be beneficial to film manufacturing firms like JINDAL POLY,MAX VENTURES. Any view on MAX VENTURES sir.
Hi Vijay, he has already invested in Prakash SAIL and GPIL in steel. And with the miners it’s NMDC NALCO and MOIL.
IMFA
Q2 Results Link: https://nseindia.com/corporate/ImfaUFRandLRReport240917_24102017134721.zip
Tweets by management:
Q2 FY18 impacted by timing of benchmark price finalisation; FeCr prices have since bounced back & Q3 margins will be healthy - S Panda, MD (https://twitter.com/IMFALtd/status/922731525380087808)
Q3 FY18 benchmark has gone up 25% which has been captured in our long terms contracts & will be reflected in the earnings - S Panda, MD (https://twitter.com/IMFALtd/status/922732213619253248)
Foot Notes in results reports:
-
Revenue from Operations for periods upto 30th June, 2017 is inclusive of excise duty. Post the applicability of Goods and Service Tax (GST) w.e.f 1st July, 2017, Revenue from Operations for the quarter and half year ended 30th September, 2017 is disclosed net of GST, in accordance with ‘Ind AS 18 - Revenue’ and hence not strictly comparable with previous periods.
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Special Leave Petitions (SLP) filed by Utka\ Coal Limited (‘UCL’, a Subsidiary of the Company) in respect of compensation for land and mine infrastructure of UCL’s coal block Utkat ‘C’ and change of end use of Utkal ‘C’ before the Hon’b\e Supreme Court, are pending for adjudication. Pending resolution of the said matters, no accounting adjustments have been made by UCL in it’s books of account and no provision is deemed necessary against the Company’s net exposure in UCL as at 30th September, 2017 amounting to Rs 111.42 Crores invested as equity and Rs 263.10 Crores given as unsecured loan.
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In view of the circumstances detailed above and considering the probability of economic benefits associated with the transaction flowing to the Company, as envisaged in paragraph 29 of Ind AS 18 on “Revenue”, with effect from 1st October, 2014 the Company has postponed recognition of income from interest on unsecured loan given to UCL.
Due to this, profit before tax for the quarter and half year ended 30th September, 2017 is Lower by Rs 10.12 crore and Rs 19.84 crore respectively.The interest income would be considered as revenue of the period in which it is properly recognised.
Stock tanked -11.70% today. Way off its historical PE’s. Does it make a case for an investment? Good risk reward?
Seniors please advise…
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