I guess stock performance is due to rally in all metal stocks… lets see what Q3 number they present today.
Company suspended the production due to high cost of raw material in November and yet to fully come back in production for Andhra plant destroyed last year.
Company came out with amazing set of numbers EPS of Rs23 for the quarter can one believe it? Still the shares rather than be locked at UC have corrected from day’s high and closing the day with minimal gains.
Some story is cooking on the counter. It would have been great if they could hold a press conference to explain the results in detail.
Edit: They means management of the company
I got a query regarding results,
since the company has been reporting only stanalone results, will it take into account the entire year revenue from subsidiaries in Q4 result ?
That way Q4 will be huge, isn’t it ?
It does not work that way. Consolidation happens on a quarter basis only, even though consolidated results might not be declared.
Does not have any major subsidiary so results won’t be much different.
Shares price could be subdued post wonderful results due to ferro alloy’s price off their peak they hit in Jan… Maybe…
I was going through several year ARs however could not find the production numbers (quantity) for each of following products that company manufactures
Has someone got any info about them ?
Rally in Silion Manganese and Ferro Manganese seems to be fizzling out. Though price of Major raw material (Manganese) has also come down significantly due to over supply. Not sure how margins of Maithan would be impacted. Need to analyze some more data for last few quarters
Not sure if today’s fall (12 %) in stock has anything to do with this.
Thanks for your analysis dear Zoro99…Can you please let me know where have you gathered this data from…I heard from my broker that there was some “rumor” of IT raid that took it down.
Data is from steelmint.com
Thanks zoro, have mailed the Company CS to seek clarity about the rumor
I just talked to CS & he confirmed that there is no Income tax raid, just rumour.
Many Thanks Gaurav, your pro activeness is much appreciated…Just got an email from CS…
From: Rajesh Shah firstname.lastname@example.org
Sent: Saturday, March 4, 2017 4:57 AM
Subject: RE: Extremely Urgent Clarification Sought
There is no substance in the market rumour.
Rajesh K Shah
Got a response for manufacturing capacity of different products from company representative
The three variants of Ferro Alloys manufactured are Ferro Manganese, Silico Manganese and Ferro Silicon. The furnaces of the company are compatible to manufacture any of the three products depending on market dynamics. As such the product can be switched in any of the furnaces at short notice. Thus the capacity of the plant is mentioned as that of Ferro Alloys.
So the total capacity should matter and based on demand they can alter the production numbers…
Makes it really difficult to say whether company is doing good or bad right now based on the prices of its Ferro Alloys as we will not know the ratio of production numbers.
Excellent set of results, sales down a bit in Q4 significant set of margin on back on power subsidy by various state govt’s and better capacity management backed by stable raw material prices. http://corporates.bseindia.com/xml-data/corpfiling/AttachLive/e1af1cf2-eed5-42f0-a497-77794919104a.PDF
Unfortunately, stock price showed a negative return on closing basis.
True, numbers are too good. But like last quarter… stock price is not matching the numbers
Maybe Mr.Market is foreseeing something which we don’t know for now… rest time will tell.
Management commentary is quite encouraging where in they are talking about buying stressed assets as well. All in all good to hold for long-term. I am not going to sell this one at throw away valuations. I am expecting company to announce another bonus next year.
Absolutely, considering Govt’s Steel policy and strong Alloy Prices complemented by moderate raw material price (Manganese) , I guess it has a long way and definitely worth more than ~7–8 PE
[Edit] Disclosure: Invested and planning to add more