This company is in to the manufacturing of steel tubes and pipes. They have two broad segments which are carbon steel and stainless steel tubes.
The current price or valuation metrics are below:-
PE - 4.8
PB - 0.94
BV (pershare) - 139.33
Div Yield: 3%
Market Cap: 610 crore
ROCE is over 18% and ROE is over 20% for the year ending March 2013.
Looking at the number and the valuation ratios it appears attractive but I have a few questions on which I’m looking for more clarity.
So far the business has been good, but how does the business model work and how will it do in future ?
What about the quality of management? Are they focused on enhancing shareholder value?
The management was mentioning oil/gas and power sector as the major triggers for future growth in its annual report (2013). What kind of impact will be seen on the earnings or EPS?