Fundamental Analysis on Metal Sectors

8/3/2019 Fundamental Analysis on Metal Sectors

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INTRODUCTION ABOUT COMPANY

A) About the Religare Securities Ltd

a) Introduction:

Religare is one of the leading integrated financial services institutions of India.The company offers a large and diverse bouquet of services ranging from equities,commodities, insurance broking, to wealth advisory, portfolio management services,personal finance services, Investment banking and institutional broking services. Theservices are broadly clubbed across three key business verticals- Retail, Wealthmanagement and the Institutional spectrum. Religare Enterprises Limited is theholding company for all its businesses structured and being operated through

various subsidiaries.

1. Wealth spectrum

a. Wealth Advisory

To provide investment advisory and execution services

To work hand in hand with clients to identify and analyze their long-term goals, risktolerance and existing asset base

To Utilize our full-suite platform with an open architecture along with a fully focusedclient centric approach to offer customized solutions for clients

b. Portfolio Management Service

Religare offers PMS to address varying investment preferences. As a focusedservice, PMS pays attention to details, and portfolios are customized to suit the uniquerequirement of investors.

Religare PMS currently extends five portfolio management schemes - Panther,Tortoise, Elephant, Caterpillar and Leo. Each scheme is designed keeping in mind thevarying tastes, objectives and risk tolerance of our investors

c. Priority Client Group Services (PCG)

At Religare we strongly believe in not just providing you with incisive investmentadvice but we are equally focused to ensure timely execution of your important trades.With this as our driving philosophy we have created a unique client centric businessmodel that revolves around optimum service delivery. Further, our investment advisory isunderpinned by comprehensive fundamental and technical research helping you to timeyour investment decisions perfectly.


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2. Retail spectrum

a. Equity Trading

Trading in Equities with Religare truly empowers you for your investment needs.A highly process driven, diligent approach backed by powerful Research & Analytics andone of the best in class dealing rooms ensures that you have a superlative experience.

Further, Religare also has one of the largest retail networks, with its presence inmore than 1,217 locations across more than 392 towns & cities. This means, you canwalk into any of these branches and connect to our highly skilled and dedicatedrelationship managers to get the best services. You could also choose to enjoy thefreedom to execute your own trades through our online mechanism.

b. Commodities Trading

Religare Commodities Limited (RCL) was initiated to spearhead Exchange basedCommodity Trading. As a member of NCDEX, MCX and NMCE, RCL is a tradefacilitator providing the platform to trade in commodities. Grounded in the Religarephilosophy, highly skilled and dedicated professionals strive to offer the clients "best-fit"investment solutions in the country.

c. Personal Financial Services

Religare has recently entered into personal financial advisory services. It caters tothe financial needs of individuals by advising them on various financial plans. ReligaresPersonal financial advisors, also called financial planners or financial consultants, usetheir knowledge of investments, tax laws, and insurance to recommend financial optionsto individuals in accordance with the individuals short-term and long-term goals. Someof the issues that planners address are general investments, retirement and tax planning.

d. Personal Credit

Whether it is for realizing a personal dream or a requirement for business capital,

whenever you are in need of a loan, Religare can help. With us by your side, realizingyour dreams can be really simple.

Religare Personal Loans allow you to sit back and relax, for you now have thepleasure of surplus wealth.

Our Process


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3. Institutional Spectrum

a. Institutional Broking Services

The mission of this division is to institutionalize and implement a process drivenapproach to cater to the needs of leading corporate houses and institutions.

The division would like to be seen as a one stop investment gateway andknowledge repository for its clients servicing their unique and sophisticated needs.

The division is structured as a separate SBU and is housed out of Mumbai,manned by a small yet fleet footed and extremely skilled group of top notch professionalsdrawn from the best in the industry.

b. Investment Banking

We provide innovative, integrated and best-fit solutions to our corporate customers. It isour continuous endeavor to provide value enhancement through diverse financialsolutions on an on-going basis, through offerings like corporate debt, private equity, IPO,ECB, FCCB, GDR/ADR etc.

c. Insurance Advisory

Religare Insurance Broking Limited (RIBL), a Religare Enterprises Limited ventureis one of India's leading insurance broking firms, with one of the largest retail networksin the country. The company holds a composite broker's license operating in the Life,Non-life and Reinsurance domains.

RIBL not only provides customized solutions to individual clients but also to some ofthe leading corporate houses and institutions across the country.

Our Service Offerings


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b) Vision & Mission of the company:

Vision - To build Religare as a globally trusted brand in the financial services domainand present it as the Investment Gateway of India

Mission - Providing financial care driven by the core values of diligence andtransparency.

B) About The Farmson Trading

a) Introduction:

The farmson trading was started in the financial year 2004. In 2004, TheCompany started its activities as association of person as sub broker giving service forbuying and selling of securities to investors in Surat.

It is the franchisee of the Religare securities ltd. The Religare securities are the mainbroker and its branch is located in the 21st century, Ring road, Surat.

On the 27th January 2005, the company obtained SEBI registration broker.Originally the operation was started at Surat at Navratna Chambers, Mini Bazar, andVarachha Road.

In the next year 2006 the company has taken approval from National SecurityDepository Ltd. (NSDL) to work as Depository Participant (DP). The company provides2 different rooms for online trading to its clients. The company expects the tradingvolume will increase in future.

The company has trading and settlement regulation, which are in conformity withthe NSE and SEBI regulation through Religare securities ltd.

The Farmson Trading was started with 50 clients. Then after in the


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1st Year- 140

2nd Year- 300

3rd Year- 400

It is currently providing following services

BSE Derivatives

NSE Derivatives

IPO service

Registered Office

8th Floor, Navratna Chambers,

Mini Bazar,

Varachha Road,

Surat- 395006.

BASIC DEFINITIONS

1. Stock:A stock (also known as equity or a share) is a portion of the ownership

of a corporation. A share in a corporation gives the owner of the stock a stake inthe company and its profits. If a corporation has issued 100 stocks in total, theneach stock represents a 1% ownership in the company.

2. Stock Market:Most investors do not even stop to consider how much business a

company does all they look at are earning per share and net assets per share.

3. Stock Index:Every index is a bench mark that tracks the performance of common

stock and hence providing a small scale representation of overall market today,there are many indices from around the world which are commonly used byinvestors as a bench marking tool for monitoring market trends.

4. BSE:Bombay Stock Exchange Limited is the oldest stock exchange in Asia

Popularly known as BSE it was established as "The Native Share & StockBrokers Association" in 1875.

It is the first stock exchange in India to obtain permanent. Recognition in1956 from the Government of India under the Securities Contracts Act, 1956.

5. NSE:


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With the liberalization of the Indian economy, it was found inevitableto lift the Indian stock market trading system on par with the internationalstandards.

6. Fundamental Analysis:Fundamental analysis is one of two main methods for analyzing a

stocks potential return. Fundamental analysis involves assessing a corporations

financial history and current standing, including earnings, sales, andmanagement.

7. Scrip:It means the name of the company by which the company recognizes

into the stock market. All stock exchanges are merged with NSE & BSE inIndia. In NSE 1830 scrip of equity are listed.

INTRODUCTION ABOUT SECTOR

A. Meaning of sector:

There are many companies or scrip that manufacturer the same productsProvide services are specified under the particular name that called sector.

B. List of the sector:


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INTRODUCTION ABOUT METAL SECTOR

A) HISTORY:Production is increasingly undertaken in regions such as India, China, The rest of

the Far East and Latin America. This has significantly in the sector has declined in recentyears, from 27% in 1998 to an. estimated 17% in 2000. The metal has been fallingcontinuously on LME after a marginal correction last week. It closed Wednesday at $764per tonne. The country has about 50000 tonnes secondary lead production capacityincluding 24000 tonnes by India Lead , which is in private sector.

Agro Inputs HotelsAuto Ancillaries IT

Auto Mobiles Insurance

Aviation MiningBreweries & Distilleries Media &Entertainment

Cement Oil & GasChemicals PaintCigarettes Paper

Construction PharmaceuticalConsumer Durables Petrochemicals

Courier & Logistic Services Power

Cycle & Accessories Real EstateDiversified RetailDye Stuff Shipping(port)

Engineering SteelFinancial Institutions Sugar

Food Products Tele communicationGlass Textiles

Health Care Tyres
http://news.google.com/archivesearch?scoring=t&hl=en&um=1&lnav=ent0&sa=N&q=%22far+east%22http://news.google.com/archivesearch?scoring=t&hl=en&um=1&lnav=ent0&sa=N&q=%22latin+america%22http://news.google.com/archivesearch?scoring=t&hl=en&um=1&lnav=ent1&sa=N&q=%22india+lead%22http://news.google.com/archivesearch?scoring=t&hl=en&um=1&lnav=ent0&sa=N&q=%22far+east%22http://news.google.com/archivesearch?scoring=t&hl=en&um=1&lnav=ent0&sa=N&q=%22latin+america%22http://news.google.com/archivesearch?scoring=t&hl=en&um=1&lnav=ent1&sa=N&q=%22india+lead%22http://news.google.com/archivesearch?scoring=t&hl=en&um=1&lnav=ent1&sa=N&q=%22india+lead%22


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But the business environment in India had changed of late. Economicliberalization had unleashed intense competition, not only from existing Indian. As partof this policy, has his group started talks with the Australian mining and metal?

Anil Sinha, General Manager of SEDF, at the signing ceremony said, "SMEsector will not reach its full potential if the business talents of women SEDF is a multi-donor funded facility to support the growth of small and medium enterprises (SMEs)

mainly in Bangladesh,Northeast India.

Hence, Standard & Poor's expects the pace of downgrades in 2004 to slowmeaningfully in the global metals and mining sector. Significant stainless steel capacityexpansions are still planned in China, Korea, India, and South Africa. On the whole,nickel markets are expected to remain strong.India is emerging as an important investment destination in mining. The overall strategyof exploration of minerals should be guided by long term that the deliberations in theseminar spread over two days would throw up pointers for fresh policy initiatives for thenon-ferrous metal sector.

India is the world's largest importer of gold and accounts for about 18% of world

demand. High prices of the metal--they recently reached a 25- year high--have pushed upthe value makes an investment in gold by the private sector, particularly India's 700mrural population, an attractive option.

They believe that, with China and India buying up record amounts of raw materialto feed their economies, there will be more share price gains in the coming year despiteextraordinary. A rating of the sector could also mean a rally for stocks away from themining industrys biggest players.

B) LIST OF METAL COMPANIES:

AV Alloys Minex Metallurgical

Ahmedabad Steel Craft Mittal SteelAllied Ferro melt Mukand Group

Amble Ferro Metal Processors Murugan Exports

Ambica Steel N Gandhi & Co

Anchor Engineers' Files National General Industries

Apollo Tubes Nevatia Steel

Beehive Kowtha Group Otto India

Bengal Industries Padia Exports

Bhalaria Metal Pishey Industries

Bharat Impex Plastomet

Bokaro Steel Plant Popular Group

Buyao Info Quality FoilsCentral Steel Corporation RK Udyog

Centre for Engineering & Tech. Rampra

Chandan Steel Ramsarup

Chheda Industries Rana Steels, Muzaffarnagar

ColdFab Ransal

Datre Real Strips

Devson Steels SMT Machines
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Eastern Steel Shree Precoated Steels

Echjay Forgings Shyam Steel

Essar Steel Sindia Steels

Garg Steel Soorajmull Baijnath

Gaysons Steel Authority of India

Goodluck Steel Tubes Steel Corporation

Gopal Udyog Steel Mart

Govind Steel SteelcastHanuman Metal Industries Steeltube Agencies

Hisar Metal Steelwallah

Indian Iron and Steel Company Suncity Alloys

Isibars Sunflag Iron & Steel

Ispat Industries Sunjary Steels, BhavnagarJVP Steel, Ahmedabad Surya Roshni

Jindal Iron & Steel Tata IncJindal Stainless Tata SSL

Jindal Steel & Power Tata Steel

KR Steel Union Technocon EngineersKabir Overseas Titagarh Steel

Kamdhenu Ispat Trident Steels

Kanoi Group Triveni Shinton International

Lloyds Steel Tungabhadra Steel

MSTC India VKN Group

Mahamaya Steel Industries Venus Trading

Mahavir Steel Vizag Steel

METAL COMPANIES & THEIR PROFILE

A. ISPAT INDUSTRIES LTD:a) INTRODUCTION:

Industry Steel - GP/GC Sheets

BSE Code 500305

Market Lot 1

Business Group Ispat (Mittals) Group

NSE Code ISPATINDEQ
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Face Value Rs. 10.00

Chairman Pramod Mittal

ISIN No INE136A01022

Incorporation 23/05/1984

Corporate Office 7th Floor, Nirmal,Nariman Point,Mumbai 400 021

Website www.ispatind.com

Ispat Industries Limited (IIL) is one of the leading

integrated steel makers and the largest private sector

producer of hot rolled coils in India. Set up as Nippon Denro

Ispat Limited in 1985 by founding Chairman Mr M L Mittal,

IIL has steadily grown into an Rs 7,000-crore company,

assuming its position as flagship of the reputed Ispat Group.

It has a corporate power house with operations in iron,

steel, mining, energy and infrastructure.

Headquartered at Mumbai, IIL employs a total of

3000 people and is the leader in the national specialty steel

market. The company's core competency is the production

of high quality steel, for which it employs cutting edge

technologies and stringent quality standards. It produces

world-class sponge iron, galvanized sheets and cold rolled

coils, in addition to hot rolled coils, through its two state-of-

the art integrated steel plants.

The complex also has a 1.6 million tonne per annum sponge iron (DRI) plant,which was commissioned in 1994 as the world's largest and most efficient gas-based

single mega module plant. A new 2.24 million tonnes per annum sinter plant; a 1260tonnes per day oxygen and a new electric arc furnace have also been commissioned.

Ispat is the only steel maker in India and among a few in the world to have totalflexibility in choice of steel making route, be it the conventional blast furnace route or theelectric arc furnace route. Its dual technology allows Ispat the freedom to choose its rawmaterial feed, be it pig iron, sponge iron, iron ore, scrap or any combination of variousfeeds. It also has total flexibility in choosing its energy source, be it electricity.

With investments of over US $2 billion, IIL is the seventh largest Indian private


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sector company in terms of fixed assets. It aims to consolidate its market leadership in thenational specialty steel market by capitalizing on the proximity of its manufacturingfacilities to major consumers of flat steel products in Maharashtra, while increasing itspresence in international markets by using its convenient port location.

b) Board of Directors:

S.No Name Designation1 Mr. Pramod Mittal Chairman / Chair Person

2 Mr. Mohan Lal Mittal Chairman Emeritus

3 Mr. U Mahesh Rao Director

4 Mr. Manu Chadha Director

5 Dr. A Besant C Raj Director

6 Mr. Anil Sureka Executive Director

7 Mr. Vinod Garg Executive Director

8 Mr. V K Mittal Managing Director

9 Mr. Sanjoy Chowdhury Nominee Director

10 Mr. K M Jaya Rao Nominee Director 11 Mr. B P Singh Nominee Director

12 Mr. M Sankaranarayanan Nominee Director

c) Key Executives:

S.No Name Designation

1 Mr.T P Subramanian President, Co. Secretary & Compliance Officer

d) History:1995 - The company received a Letter of Intent for providing basic telecommunicationsservices by the departmental of communication for Maharashtra circle.

1996 - As a forward integration to the existing sponge iron plant at Dolvi and backwardintegration to the existing cold rolling complex at Nagpur, the company undertook to setup facilities to manufacture hot rolled steel sheets and coils with a capacity of 3 milliontpa. This project would have the flexibility to manufacture HR coils of thickness rangingfrom 1.2 mm to 25 mm and width ranging from 900 mm to 1560 mm.

1997 - `Ispat Industries' 1 - million tpa sponge iron unit at Raigad (Maharashtra) is thesecond largest gas based unit in the country after Essar Steel's went on stream two years

ago in October, 1994.1998 - Ispat Industries Ltd (IIL), a member of the Ispat group, is set to enter the hot-rolled (HR) coil market during the current financial year.

1999 - The memorandum of understanding was signed between Ispat, the world's seventhlargest steel producer and Europe-based Usinor, the world's second largest steel producer,for acquisition of the above-mentioned companies.


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2002-Youngest son Vinod now becomes the managing director of Ispat Industries, thegroup flagship, a position which Pramod held earlier.

2003-05 -Ispat Industries Ltd. informs that ICICI bank Limited is withdrawing itsnomination of Mr.S K Maheshka and has nominated Mr.S Kishore as its nomineeDirector on the board of the company. -Ispat-acquires NSC's rolling mill sets out beforetime frame -Ispat acquires Kremikovtzi of Bulgaria

2006 -GSHL appoints Lalit Kumar Sehgal as CEO of Zisco2007 -January 10, 2007 with Government of Chhattisgarh for setting-up a coal-based 600MW power project.

e) Quarterly Results: (Rs in Cr.)

Particulars Sep ' 07 Jun ' 07 Mar ' 07 Dec ' 06 Sep ' 06Sales 2,025.56 2,057.76 2,366.25 2,033.93 2,090.05

Other Income 23.13 45.92 36.32 37.91 8.46

Stock Adjustment 48.44 -57.53 26.30 -85.06 10.78

Raw Material 1,055.82 984.33 1,078.90 944.28 905.00Power And Fuel 320.80 305.96 168.67 355.27 302.32

Employee Expenses 49.18 47.69 45.84 42.36 40.99

Excise 0.00 244.42 260.99 206.58 205.80

Other Expenses 238.45 244.70 280.44 227.42 227.59

Operating Profit 312.87 288.19 505.11 343.08 397.57

Interest 99.34 165.14 248.87 195.12 245.29

Gross Profit 236.66 168.97 292.56 185.87 160.74

Depreciation 161.63 154.41 158.52 157.05 154.98

Taxation 61.49 6.19 51.92 11.30 3.44

Net Profit / Loss 13.54 8.37 82.12 17.52 2.32

Equity Capital 1,218.41 1,218.40 1,218.40 1,218.40 1,218.40

Agg. Of Non-Prom. Shares 6,041.20 6,041.20 6,041.20 6,041.20 6,042.38

Agg. Of Non Prom. Holding (%) 49.42 49.42 49.42 49.42 49.43

Operating Profit Margin (%) 15.44 14.00 21.34 16.86 19.02

Gross Profit Margin (%) 11.68 8.03 12.17 8.97 7.65

Net Profit Margin (%) 0.66 0.39 3.41 0.84 0.11

EPS (Rs.) 0.11 0.07 0.67 0.14 0.02

B. JINDAL STEEL & POWER LTD.:

a) INTRODUCTION:

Industry Steel - Sponge IronBSE Code 532286

Market Lot 1

Business Group

Jindal O P GroupNSE Code JINDALSTEL

Face Value Rs. 1.00

Chairman Mrs. Savitri Jindal
http://www.religareonline.com/Fundamental/Advancedsearch.asp?ReportType=IND&PRCode=556http://www.religareonline.com/Fundamental/Advancedsearch.asp?ReportType=House&PRCode=10330http://www.religareonline.com/Fundamental/Advancedsearch.asp?ReportType=IND&PRCode=556http://www.religareonline.com/Fundamental/Advancedsearch.asp?ReportType=House&PRCode=10330


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Registered Office O.P. Jindal Marg, Hissar, Haryana -125005

Website www.jindalsteelpower.com

In the world of business, the Jindal Organization is a celebrity. Ranked sixth

amongst the top Indian Business Houses in terms of assets, the Group today is a US $8billion conglomerate. Jindal Organization, set up in 1970 by the steel visionary Mr. O.P.Jindal, has grown from an indigenous single-unit steel plant in Hisar, Haryana to the present multi-billion, multi-locational and multiproduct steel conglomerate. Theorganization is still expanding, integrating, amalgamating and growing. New directions,new objectives... but the Jindal motto remains the same- "We are the Future of Steel ".

The group has been technology-driven and has a broad product portfolio. Yet, thefocus at Jindal has always been steel. From mining of iron-ore to the manufacturing ofvalue added steel products, Jindal has a pre-eminent position in the flat steel segment inIndia and is on its way to be a major global player, with its overseas manufacturingfacilities and strategic manufacturing and marketing alliances with other world leaders.

Jindal Organization aims to be a global player.



1 Mrs. Savitri Jindal Chairman / Chair Person

2 Mr. Anand Goel Deputy Managing Director

3 Mr. Suresh Baid Director

4 Mr. Ratan Jindal Director

5 Mr. Naveen Jindal Exec. Vice Chairman & Mang Dir

6 Mr. Ram Vinay Shahi Independent Director 7 Mr. A K Purwar Independent Director

8 Mr. S Ananthakrishnan Nominee Director

9 Mr. Ashok Alladi Nominee Director

10 Mr. Vikrant Gujral Vice Chairman & CEO

11 Mr. Sushil K Maroo Whole Time Director

12 Mr. P S Rana Whole Time Director

c) Key Executives:

S.NO. Name Designation1 Mr.T K Sadhu Co. Secretary & Compl.

Officer

d) History:

1998
http://www.jindalsteelpower.com/http://www.jindalsteelpower.com/


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- The name of the Company has been changed from Orbit Strips Ltd. to Jindal Steel &Power Ltd. on 12th June.1999

- Shri O.P. Jindal, Shri Ratan Jindal and Shri M.L. Gupta were appointed as AdditionalDirectors of the Company in terms of Section 260 of the Companies Act, 1956 andArticle 117 of Articles of Association of the Company.- The Raigarh and Raipur Divisions of Jindal Strips Limited have been hived off to

JINDAL STEEL & POWER LIMITED pursuant to the Scheme of Arrangementapproved by Hon'ble High Court of Punjab and Haryana.2000

- The company raised 10.5% Redeemable Cumulative Non-Convertible PreferenceShares aggregating to Rs 10 crores, on private placement basis.- Naveen Jindal-controlled Jindal Steel & Power Ltd (JSPL), today announced the launchof another company Infovergix Technologies Ltd., which will provide informationtechnology services and solutions.2001

- The Company is setting up a Coal Washery of 2.5 million MT capacity at the coal mineto meet the additional requirement of coal fo rhte Sponge Iron Plant.

- The Company has introduced a new value added product, Alloy Steel Rounds, suitablefor manufacture of seamless tubes.2002

-Jindal Steel & Power Ltd has informed that the Board of Directors appointed Shri M LGupta as Wholetime Director of the company wef December 23, 2002 in place of Shri SN Singh who has resigned from the Directorship of the company from November 15,2003

-Jindal Steel & Power, a OP Jindal Group has converted Rs.200cr of debt to Foreign2004

-Jindal Steel & Power Ltd. has appointed Mr. Sushil K Maroo as Wholetime Director ofthe company from May 20, 2004

2005-Jindal Steel & Power signs MOU with Government of Chhattisgarh on January 07, 2005-Jindal Steel signs MoU with Jharkand Government on July 05, 2005-Jindal Steel inks agreement with S. African, German cos for coal gasification facility atits proposed six-million-tonne steel plant in Orissa2006

-Bolivia inks JV deal with Jindal for El Mutun development-Jindal Steel & Power Ltd has appointed Shri. Suresh Baid as an Additional Director(independent) on the Board of the Company.2007

-Jindal Steel & Power Ltd has has appointed Shri A K Purwar, former Chairman, StateBank of India as an Independent Director on the Board of the Company with immediateeffect. Jindal Steel & Power Ltd has informed that the Board of Directors of the 15,

e Quarterly Results:

Particulars Dec ' 07 Sep ' 07 Jun ' 07 Mar ' 07 Dec ' 06Sales 1,395.61 1,269.04 1,366.39 1,195.62 1,111.83

Other Income 11.80 2.90 9.60 20.13 2.37


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Stock Adjustment -23.00 5.52 4.42 -39.72 44.69

Raw Material 389.32 298.19 280.71 239.32 233.10

Power And Fuel 103.83 33.91 124.28 174.54 71.49


Excise 0.00 0.00 143.26 141.70 101.77

Other Expeses 362.99 297.65 304.00 263.79 260.54

Operating Profit 532.36 540.67 479.18 391.68 377.32

Interest 49.97 79.10 37.08 25.03 36.26Gross Profit 494.19 464.47 451.70 386.78 343.43

Depreciation 118.79 117.82 111.47 118.29 91.86

Taxation 56.35 69.18 90.12 65.72 61.67

Net Profit / Loss 319.05 277.47 250.11 202.77 189.90

Equity Capital 15.40 15.40 15.40 15.40 15.40

Agg.Of Non-Prom. Shares (Lakhs) 633.34 126.21 126.21 126.11 125.82

Agg.Of Non PromotoHolding(%) 41.14 40.99 40.99 40.96 40.86

Operating Prpfit Margin(%) 38.14 42.60 35.06 32.75 33.93

Gross Profit Margin(%) 35.11 36.51 32.82 31.81 30.82

Net Profit Margin(%) 22.66 21.81 18.17 16.67 17.04

EPS (Rs.) 20.72 18.02 16.24 13.17 12.33

C. TATA STEEL:

a) Introduction:Industry Steel

BSE Code 500470Market Lot 1

Business Group

Tata GroupNSE Code TATASTEELEQ

Face Value Rs. 1.00

Chairman R N Tata



Registered Office Bombay House, 24 Homi Mody Street,Fort, Mumbai, Maharashtra - 400001

Website www.tatasteel.com


S.No Name Designation1 Mr. R N Tata Chairman / Chair Person

2 Mr. James Leng Deputy Chairman

3 Dr. T Mukherjee Deputy Managing Director

4 Mr. Jacobus Schraven Director

5 Mr. Nusli N Wadia Director


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6 Dr. Anthony Hayward Director

7 Mr. Subodh Bhargava Director

8 Mr. Suresh Krishna Director

9 Mr. Philippe Varin Director

10 Mr. Ishaat Hussain Director

11 Dr. Jamshed J Irani Director

12 Mr. S M Palia Director

13 Mr. B Muthuraman Managing Director 14 Mr. Robb Non Executive Director

15 Mr. Andrew Robb Non Ind.& Exe.Director

c) Key Executives:


1 Mr.Anand Sen Vice President ( Flat Products )

2 Mr.Koushik Chatterjee Vice President (Finance)

3 Mr.R P Singh Vice President (Engineering , Services & Products)

4 Mr.Om Narayan VP (Safety & Services)

5 Mr.U K Chaturvedi Vice President (Long Products)6 Mr.Varun Jha VP (Chattisgarh Project)

7 Mr.H M Nerurkar Vice President ( KPO & Technology )

8 Mr.Abanindra M Misra VP (Rawmaterials)

9 Mr.Avinash Prasad VP (Industrial Relations)

10 Mr.J C Bham Company Secretary

11 Mr.Radhakrishnan Nair Chief Human Resource Officer

12 Mr.A D Baijal Vice President (Global Mineral Resources)

13 Mr.H C Kharkar VP (TQM & CSI)

d) History:1995

- The company was implementing expansion of the Hot Strip Mill to two million tonnesper annum and increasing the saleable steel capacity to 3.20 million tonne per annum.The company proposed to install a bar and rod mill of 5,00,000 tonnes per annumcapacity and put up a facility to produce forging quality Rounds/Squares.

1996

- Production at the hot strip mill at 1.04 million tonnes exceeded its rated capacity and asa measure of cost reduction, coal tar injection was introduced in `A' and `B' blastfurnaces. - 15,517 shares allotted on exercise of warrants of SPN.1997

- The second Slab Reheating Furnace, Phase IV, was commissioned on 31st December.The new Coke Oven Battery No.8 with a capacity of 0.5 million tonnes per annum, waslit up on 24th March, 1998.1998

- During the year it was proposed to set up a cold rolling mill at the company's works inJamshedpur to add value to current product mix-up. Letters of intent for most of the


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major equipment, foreign and indigenous were placed. Nippon Steel were appointed astechnology consultants for the project.1999

- Tata Steel has achieved a record performance in all areas of production for the first ninemonths (April to December 1998-99) of the current financial year, despite the gloomyscenario in the steel sector.2000

- Tata Steel is in talks with Usinor of France, one of the world's largest steelmanufacturers, to jointly bid for Steel Authority of India's (SAIL) Salem Steel Plant.2001

- Tata Iron and Steel Company Ltd. is the recipient of National Award for Excellence inCorporate Governance for the year 2000.2002

- TATA Steel's Noamundi Iron Mine (NIM) has been given away the Indira PriyadarshiniVrikshamitra Award 2000 instituted by the National Afforestation & Eco-DevelopmentBoard under the Union Ministry of Environment and Forests. NIM is one of the biggestand fully mechanised iron ores in the newly formed State of Jharkhand. NIM is supplyinghigh-grade iron ore to Tata Steel's Jamshedpur plant. NIM was incorporated in 1925.

2003-05-Tata Iron & Steel co. Ltd. entered in to a power distribution business. Tisco has begandistributing power in Jamshedpur.-Tisco gets lenders proposal to acquire Neelachal Ispat Nigam Limited (NINL)-Tata Steel signed an agreement with its consortium partners for setting up its titaniaproject in Tamil Nadu.2006

-Tata steel sets up Jiggling and hydro-cyclone plant-Tisco establishes processing unit at Noamundi mine-Tata Steel signs JV Agreement with Tata Power to set up captive power plants.2007

-Tata Steel enters into Share Purchase Agreement with Rawmet Ferrous Industries.-Tata Steel completes 6.2bn acquisition of Corus Group plc.

e) quarterly Results:PARTICULARS Sep ' 07 Jun ' 07 Mar ' 07 Dec ' 06 Sep ' 06

Sales 4,785.09 4,745.30 5,609.58 5,038.26 4,724.53

Other Income 94.32 146.12 79.77 98.74 177.23

Stock Adjustment -15.89 -77.09 65.41 -79.02 1.03

Raw Material 799.86 743.48 860.71 831.49 732.63Power And Fuel 0.00 232.78 0.00 226.07 225.61


Excise 0.00 547.72 629.14 568.28 538.78

Other Expeses 1,598.75 1,222.65 1,721.13 1,346.75 1,158.95

Operating Profit 2,025.44 1,699.17 1,903.53 1,783.62 1,704.82

Interest 202.15 79.99 44.81 52.03 47.77

Gross Profit 1,917.61 1,765.30 1,938.49 1,830.33 1,834.28


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Depreciation 205.01 211.24 229.36 199.06 195.73

Taxation 555.79 680.39 565.50 518.25 492.80

Net Profit / Loss 1,190.83 1,222.11 1,103.50 1,063.75 1,101.49

Extra Ordinary Item 34.02 348.44 -40.13 -49.27 -44.26

Equity Capital 609.17 609.17 580.67 580.67 580.67

Agg.Of Non-Prom. Shares (Lakhs) 4,033.17 4,033.17 4,033.17 4,048.17 4,048.17

Agg.Of Non PromotoHolding(%) 66.23 66.23 69.48 69.74 69.74

Operating Prpfit Margin(%) 42.32 35.80 33.93 35.40 36.08Gross Profit Margin(%) 39.30 36.08 34.07 35.63 37.42

Net Profit Margin(%) 24.40 24.98 19.39 20.70 22.47

EPS (Rs.) 19.55 20.06 19.00 18.32 18.97

FUNDAMENTAL ANALYSIS

The fundamental analysis is a method of finding out the future price of the stock which

an investors wishes to buy. The behavior of stock prices as well as forecasting the pricesof stock.It can be grouped into following three types:

1. Economic analysis2. Industry analysis3. Company analysis

1. ECONOMIC ANALYSIS:

Being a core sector, steel industry tracks the overall economic growth in thelong-term. Also, steel demand, being derived from other sectors like automobiles,

consumer durables and infrastructure, its fortune is dependent on the growth of these userindustries. India is currently the eighth largest steel-producing nation in the world withcrude steel production of approx. 39 MT. However, it has a per capita consumption ofsteel of around 33 kgs as against 242 kgs in China and an average of over 400 kgs in thedeveloped countries. This wide gap in relative steel consumption indicates that thepotential ahead for India to raise its steel consumption is high.

Macro Economic Developments

Overall Economy

Indias GDP at constant prices for the first quarter of 2006-07, clocked a growthof 8.9% exceeding the growth registered in the corresponding quarter of last fiscal.Among the broad sectors agriculture recorded a growth of 3.4%, same as in the

corresponding quarter of the 2005-06, while growth of the industry was down a notch at9.7% as against growth of 10.2% in the same period of last year and services recorded adouble digit growth of 10.6%, higher than the growth posted in the same quarter of lastyear.Industrial Growth

The industry continues to maintain the growth trend in the fifth month of the fiscal. InAugust 2006-07 overall industry clocked a growth rate of 9.7% against 7.6% in thecorresponding month of 2005. The growth in the overall industry was fueled by themanufacturing sector; it rose by 11.1% in August 2006.


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On a cumulative basis, from April to August 2006-07 the industry was able to maintainthe growth momentum at 10.6% against 6.7% in the corresponding period of last fiscal.During April-August of 2006-07 the mining sector grew at 3.1% out pacing the growthposted in the corresponding period of last fiscal. Out of the fourteen (14) industry groups,seven (7) industry groups posted higher growth in August 2006 and these includedmachinery and equipments (20.3%), beverages, tobacco and related products (16.4%),rubber, plastic, petroleum and coal (12.9%), basic chemicals (10.4%), metal products and

parts (8.5%), wool, silk and man made fiber (4.6%) and food products (2.0%).Inflation Trends

Inflationary pressure in the first six months ( 4.53%) remained well below the annualizedtargeted level of 5%-5.5%. The wholesale price index (WPI)-based inflation stood at4.7% in September 2006 and this was much higher than the rate of inflation of 3.9% inthe corresponding month of previous year. Weekly trends in September 2006 showmoderate movement on a year-on-year basis in the wholesale price index. During themonth the inflation ranged between 4.6% to 4.8% , however, in the second week ofOctober 2006 inflation reached the 5% mark on account of higher price of food articles,energy and manufacturing items. Among the manufactured category, items responsible

for the price increase were beverages and tobacco that became dearer by 5.8%, textiles(4.5%), wood products (8.0%), paper (7.6%), rubber and plastic products (6.3%),chemical products (3.4%) and non metallic minerals (12.4%). Nevertheless, the overallinflationary pressure was slightly checked by the moderation in the prices of basic metals,machinery and metals and transport equipment.

Monetary Indicators

Expansion in the broad money continues. Increase in the broad money supply up toSeptember 2006 was 7.8% as compared to an increase of 6.4% in the 1 st Provisionalresults corresponding period of last year. During this period both commercial and

government borrowings also increased by 4.3% and 9.2% respectively. Growth in theforeign exchange assets of banks is maintained; foreign exchange assets went up by 9.2%up to September 2006 as opposed to a 1.9% increase in the same period of last year.Aggregate deposits of scheduled commercial banks rose by 9.2% in contrast to the rise of7.7% in the same period of last year, investments in the government securities acceleratedby 4.9% as compared to a 2.2% increase seen in last year.Stock Market Trends

The 30 stock index sensex is close to the 13000 psychological barrier. In September 2006the BSE sensex revved past the 12000 mark, for the second time in the year on the backof strong corporate earnings and strong growth in the manufacturing sector.Sensex touched 12366 points, rising by 5 percentage points in September 2006 over theindex in the previous month. NSE nifty too rose by 3.9 percentage points to reach 3569points in September 2006.Fiscal Trends

The gross tax collection continues to perform better in the first five months of the currentfinancial year than the last year. Cumulatively, during April-August in 2006- 07 the grosstax collection increased by 32% at a rate higher than the growth seen in collection rateseen last year. The growth in corporation tax collection that contributed about 18% to thetax kitty slowed to 71.2% during April- August 2006 as compared to the growth in thecorresponding period of the last financial year. In the period April-August 2006-07 the


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revenue receipts stood at Rs 106551 crore, of which almost 74% was accounted by taxrevenue sources at Rs 81444 crore.Foreign Trade

There has been a sustained growth in merchandise exports during the year 2006- 07. InUS $ terms the three-month average ( June to August 2006) growth in merchandiseexports stood at 40% and in August 2006 merchandise exports accelerated at 41.1%against 24.9% in the corresponding month of last year. Total imports clocked a growth of

32.2%, a rate same as that posted in August 2005. Cumulatively, exports from April toAugust 2006-07 are valued at $48 billion, which is 34.48 % higher than the level of($35.76 billion) seen in last year. Under the review period there has been a salutary uptrend in the exports of petroleum products. Cumulatively, imports during April-August2006-07 are valued at $68.29 billion, which is 28.39 % higher than the growth of $53.2billion in April-August 2005-06. Exports of ores and minerals went down by 1.8%against a 61% rise in the corresponding month of last year. Manufactured productsexports went up by 16.6% as compared to a 37.4% increase seen last year. Almost all themanufacturing products suffered a slowdown. Under the manufactured category, onlypetroleum products grew faster at 32.6% and gems and jewelry at 16.4%. Howeverexports of engineering goods, chemicals and textiles slowed and exports of leather and

handicrafts declined.Capital InflowsTotal (net) foreign investments inflow continues to be negative. The total foreigninvestment in June 2006 was a negative US $ 380 million as compared to a positive US $1555 million in the corresponding month of last year. During the period from April toJune in 2006-07 foreign direct investment amounted at US $1722 million and this wasmuch higher than what was received during the same period in the previous year.

Foreign Exchange Reserves

In September 2006 the foreign exchange reserves suffered a slight fall of 0.6% to US $165.3 billion against a record high in total reserves of US $166.4 billion in August of this

fiscal. The change in the total reserves was due to a slight fall in the foreign currencyassets to US $ 158.3 billion. Gold position and reserve position in the IMF also altered toUS$ 6202 million and US $ 762 million as opposed to US $ 6538 million and US $ 767million respectively in the same month of last year.

2. Industry analysisGlobal production capacity of steel stands at 1350 million tonnes of

which near about 1200 million tonnes has been produced in 2006. In other words, steelindustry is operating at 90 per cent capacity. Its estimated that 250 million tonnes morecapacities would be added in the next three years as many of the steel companiesworldwide have gone for the expansion to ride the bullish cycles.

Emerging economies are supposed to contribute around 70 percent ofthe global steel demand by the year 2020. Demands at developed markets are facingdeclining trends and constitute about 40 per cent of global share. India along with Chinawould be the major growth driver for the steel in the world. Hence, it is very critical thatthese two economies keep doing well to sustain the bullish phase.

On the domestic front, Indian economy is expected to surpass Japan by2032, has witnessed a tremendous growth during last 5 years. Sectors like Automobile,Capital Goods, Consumer Durables and Constructions are witnessing double digit growthand steel being a core sector is having immediate advantage. In addition, increased


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spending on infrastructure would give another boost to the steel sector as the Roads,Ports, Power and Housing account for 40 per cent of steel demand.

The government is putting great thrust on the infrastructure and indirectbenefit of the same accrues to steel industry for both Flat as well as long products.

Budget expectations

Steel sector was the first core sector to be deregulated in 1991, tariffs rate were lowered

and quantitative restrictions were lifted to liberate the sector from numerous regulatoryrequirements. The sector had shown growth since then and production has raisedmanifold.

We do not expect any major changes on custom duty front as government very recentlyannounced some cut in stainless steel as well on other non-ferrous metal. In other words,do not expect any change in the coming budget on the custom duty front but on excisefront there has been demand that Cenvat to be reduced from 16 per cent to 14 per cent. Ifthat happens this would be good for the industry, as prices of steel would come downpushing the demand for the steel. On the raw materials front, there has been demand fromthe industry to reduce custom duty on melting Iron and steel scrap from present 5 per cent

to 2 percent. We feel it would be unlikely to be met in the coming budget. We don t see any potential effect of custom duty cuts on melting scraps in the coming budgetbecause that would be minimal in nature. Dr. B N Singh, JMD & CEO, JSW Steel Ltd. But biggest concern for the industry is the supply side increase and second is the effortsby China and India to cool down the pace of economic growth. If that happen Steelindustry may have some trouble going forward.Steel companies performances on Bourses since Budget

(Rs/crore) (Rs)

Name of the

CompanyYear Sales

Net

ProfitEPS CMP

Price

- 1/3/

2006

Appreciation

SAIL March,2006 28200.50 4013 9.7 113.05 66.2 70.77%

Tata Steel March,2006 15132.10 3506.4 60.4 519.25 442.3 17.40%

Essar Steel March,2006 6168.70 530.2 4.7 47.65 39.4 20.94%

JSW Steel March,2006 6092.40 864.3 55.1 443.9 208.3 113.11%

Jindal Stainless March,2006 3158.40 159.7 12.2 128.05 96.5 32.69%

CMP as on 29/1/2007

Appreciation is from budget day

3. Company Analysis

Accounting Policy:A) ISPAT:

1. Accounting Assumption


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a) The production process is inoperative since 22nd October, 2000 and Companys plantis under Lockout since 6th November, 2000.b) The Company has been declared a Sick Industrial Unit under the Sick IndustrialCompanies (Special Provision) Act, 1985; by the BIFR vide order dated 30/03/2006.2. Fixed Assets

a) Land, Buildings and Plant & Machinery are stated at revalued amounts as a result oftheir revaluation.

b) Other fixed assets are stated at cost.3. Capital Work In ProgressCapital work in progress is stated at cost, which includes direct costs and interest.4. Depreciation And Amortisation

a) Depreciation on original cost of fixed assets has been provided on Straight LineMethod at the rates prescribed in Schedule XIV to the Companies Act, 1956.Depreciation on certain Plant & Machinery has been provided at the rates applicable toContinuous Process Plant as per technical expert opinion.b) Depreciation in respect of revalued assets is provided on Straight- Line method on the basis of residual life as determined by the values. The amount of depreciation ascomputed under 4(a) is charged to the Profit & Loss Account and balance is withdrawn

from Revaluation Reserve.5. InvestmentLong term Investments are stated at cost.

B) JINDAL STEEL:1. Basis of Preparation of Financial Statements

The financial statements are prepared under the historical cost convention, on goingconcern concept and in compliance with the Accounting Standards issued by the Instituteof Chartered Accountants of India. The company follows mercantile system ofaccounting and recognizes Income & Expenditure on accrual basis to the extentmeasurable and where there is certainty of ultimate realization in respect of incomes.

2. Fixed AsstsFixed Assets are stated at Cost of acquisition inclusive of incidental expenses relatedcredit. Fixed assets acquired by the company pursuant to the Scheme of Arrangement arestated at their transfer values.3. Investment

Long-term investments are stated at cost. Provision is made when, in the opinion ofmanagement, diminution in value of investment is other than temporary in nature.Current investments are stated at lower of cost or market/fair values.4. Research and Development Expenditure:

Research & Development expenditure not fulfilling the recognition criteria as set out inAccounting Standard AS-26 on `Intangible Assets' is charged to profit & loss account

while capital expenditure is added to the cost of fixed assets in the year in which it isincurred.5. Inventories

Raw Materials and Stores and Spares are valued at lower of cost, computed on weightedaverage basis, and net realizable value. Cost includes the purchase price as well asincidental expenses. Scrap is valued at estimated realizable value. Work in progress isvalued at lower of estimated cost and net realizable value and finished goods are valuedat lower of cost or net realizable value. Cost for this purpose includes direct cost andappropriate administrative and other overheads.


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6. Revenue Recognition:

a) Sales & Operational income are inclusive of excise duty, export benefits and Inter-division transfer burnet of returns, rebates and sales tax. Materials returned/rejected areaccounted for in the year of return/rejection.b) Export sales are accounted for on the basis of the date of bill of lading/airways bill.c) Income for job charges is accounted for at the time of billing.

C) TATA STEEL:1. Basis of Preparation of financial statement:The financial statements are prepared under the historical cost convention on an accrual basis of accounting in accordance with the generally accepted accounting principles,accounting standards issued by the Institute of Chartered Accountants of India, asapplicable, and the relevant provisions of the Companies Act, 1956.

2. Fixed Assets

All fixed assets are valued at cost less depreciation. Pre-operation expenses includingtrial run expenses (net of revenue) are capitalized. Interest on borrowings and financingcosts during the period of construction is added to the cost of fixed assets. Blast Furnace

relining is capitalized. The written down value of the asset consisting of lining/reliningexpenditure embedded in the cost of the furnace is written off in the year of freshrelining.3. Depreciation& Amortization

(I) Capital asset whose ownership does not vest in the Company is depreciated over theirestimated useful life or five years, whichever is less.(II) In respect of other assets, depreciation is provided on a straight line basis applyingthe rates specified in Schedule XIV to the Companies Act, 1956 or based on estimateduseful life whichever is higher. The details of estimated life for each category are asunder:

4. Investment

Long term investments are carried at cost less provision for permanent diminution invalue of such investments. Current investments are carried at lower of cost and fair value.When investment is made in partly convertible debentures with a view to retain only theconvertible portion of the debentures, the excess of the face value of the non-convertibleportion over the realization on sale of such portion is treated as a part of the cost ofacquisition of the convertible portion of the debenture.5. Inventories

Finished and semi-finished products produced and purchased by the Company are carriedat lower of cost and net realizable value. Purchased goods-in-transit are carried at cost.Work-in-progress is carried at lower of cost and net realizable value. Coal, iron ore andother raw materials produced and purchased by the Company are carried at lower of costand net realizable value. Purchased raw materials-in-transit are carried at cost.

6. Revenue Recognition:

(I) Sales comprises sale of goods and services, net of trade discounts and includeexchange differences arising on sales transactions.


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(ii) Export incentive under the Duty Entitlement Pass Book Scheme has been recognizedon the basis of credits afforded in the pass book.

Profitability Ratio:

(i) Operating Margin:

Company name Mar07ISPAT INDUSTREIS 21.34

JINDAL STEEL 32.75

TATA STEEL 33.93

(ii) Gross Profit Margin:


JINDAL STEEL 31.81

TATA STEEL 34.07

(iii) Net Profit Margin:


JINDAL STEEL 16.67

TATA STEEL 19.39

Capital Structure:

a) ISPAT INDUSTRIESFrom

Year

To

Year

Class Of

Share

Authorized

Capital

(Crores)

Issued

Capital

(Crores)

Paid Up

Shares

(Nos)

Paid Up

Face

Value

Paid Up

Capital

(Crores)

2006 2007 Equity Share 4000.00 1222.44 1222442218 10 1222.44

2005 2006 Equity Share 4000.00 1222.44 1222442218 10 1222.44

2004 2005 Equity Share 4000.00 692.59 692590311 10 692.59

2003 2004 Equity Share 4000.00 692.59 692590311 10 692.59

b) JINDAL STEEL

From

Year

To Year Class Of

Share

Authorized

Capital

(Crores)

Issued

Capital

(Crores)

Paid Up

Shares

(Nos)

Paid Up

Face

Value

Paid Up

Capital

(Crores)

2006 2007 Equity Share 20.00 15.40 30792268 5 15.40

2005 2006 Equity Share 20.00 15.40 30792268 5 15.40

2004 2005 Equity Share 20.00 15.40 30792268 5 15.40

2003 2004 Equity Share 20.00 15.40 30792268 5 15.40


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c) TATA STEELFrom

Year

To Year Class Of

Share

Authorized

Capital

(Crores)

Issued

Capital

(Crores)

Paid Up

Shares

(Nos)

Paid Up

Face

Value

Paid Up

Capital

(Crores)

2006 2007 Equity Share 1750.00 581.07 580472856 10 580.47

2005 2006 Equity Share 600.00 554.07 553472856 10 553.47

2004 2005 Equity Share 600.00 554.07 553472856 10 553.47

2003 2004 Equity Share 440.00 368.37 367771901 10 367.77

Ratio Analysis

1. Per Share Ratio:

(i) AdjustedEarning Per Share:

Company Name Mar07

ISPAT INDUSTREIS -0.86JINDAL STEEL 225.42

TATA STEEL 72.71

(ii)Dividend Per Share:

Company Name Mar07ISPAT INDUSTREIS 0.00

JINDAL STEEL 18.00

TATA STEEL 15.50

(iii) Book Value Per Share:Company Name Mar07ISPAT INDUSTREIS 5.16

JINDAL STEEL 809.45

TATA STEEL 236.74

2. Liquidity Ratio

a) Current Ratio:

Company Name Mar07

ISPAT INDUSTREIS 1.58JINDAL STEEL 1.13

TATA STEEL 1.74

b) Quick Ratio:


JINDAL STEEL 0.72


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TATA STEEL 1.46

c) Inventory Turnover Ratio:


JINDAL STEEL 6.99

TATA STEEL 8.47

3. Pay out Ratio:

a) Dividend payout Ratio:


JINDAL STEEL 9.14

TATA STEEL 26.15

4. LEVERAGE RATIOS:

a) Long Term Debt / Equity:


JINDAL STEEL 1.06

TATA STEEL 0.69

b) Fixed Assets Turnover Ratio


JINDAL STEEL 0.71TATA STEEL 1.09

Shareholding Pattern:

1) ISPAT INDUSTRIES

Share Holding Pattern as on 31/12/2007 30/09/2007 30/06/2007

Face Value 1.00 1.00 1.00

% Holding % Holding % Holding

PROMOTER'S HOLDING

Foreign Promoters 28.04 32.66 32.66

Indian Promoters 17.91 17.91 17.91

Sub Total 45.95 50.57 50.57

NON PROMOTER'S HOLDING

Institutional InvestorsMutual Funds and UTI 0.27 0.08 0.08


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Banks Fin. Inst. and Insurance 22.96 27.24 35.19

FII's 1.71 0.37 0.29

Sub Total 24.94 27.69 35.57

Other InvestorsPrivate Corporate Bodies 7.65 7.30 2.47

NRI's/ OCB's/ Foreign Others 2.24 0.39 0.33

Government 0.00 0.00 0.00

Others 3.56 0.47 0.28Sub Total 13.45 8.16 3.07

General Public 15.66 13.58 10.79

GRAND TOTAL 100.00 100.00 100.00

2) JINDAL STEEL


Face Value 1.00 1.00 1.00


PROMOTER'S HOLDING

Foreign Promoters 7.86 7.86 7.86


Sub Total 58.86 59.01 59.01



Banks Fin. Inst. and Insurance 0.04 0.04 0.03FII's 23.64 23.76 23.31

Sub Total 27.38 28.19 28.01




Others 3.85 3.25 3.36

Sub Total 9.91 9.54 9.62

General Public 100.00 100.00 100.00

GRAND TOTAL 100.00 100.00 100.00

3) TATA STEEL


Face Value 1.00 1.00 1.00


PROMOTER'S HOLDING


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Foreign Promoters - - -


Sub Total 33.74 33.77 33.77



Banks Fin. Inst. and Insurance 15.75 15.55 15.63FII's 20.55 21.35 22.65

Sub Total 40.54 40.31 40.42




Others 0.86 0.86 0.86

Sub Total 4.02 4.27 3.52

General Public 21.70 21.65 22.30

GRAND TOTAL 100.00 100.00 100.00

Findings and suggestions

Findings:

From the scrips analysis of steel sectors, among many companies in India, I have

selected three companies to find out the performance and the financial results.

I have also found out that the TATA STEEL gives better results and performance

compare to the other companies.

On the basis of my project on fundamental analysis, I have ranked to all the threecompanies.

RANK 1 TATA STEEL

From the comparative study on the basis of financial results and ratio analysis, I

can allocate 1ST rank to it.


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Net profit is also high i.e. 1190.83 crore than JINDAL (277.47 crore) & ISPAT

(13.54 crore).

Margins like OPM, NPM, and GPM is highest than JINDAL & ISPAT industries.

The return on investment is also highest than other companies.

RANK 2 JINDAL STEEL


can allocate 2nd rank to it.

Net profit is a second highest i.e. 277.47 crore than others.

Margins like OPM, NPM, and GPM is second highest than TATA STEEL &

ISPAT industries.

The return on investment is also second highest than other companies.

The liquidity position is not good than ISPAT & TATA STEEL.

RANK 3 ISPAT INDUSTRIES


can allocate 3rd rank to it.

Net profit is a second lower i.e. 13.54 crore than others.

Margins like OPM, NPM, and GPM is also very lower than TATA STEEL &

JINDAL STEEL.

The return on investment is also lower than other companies.

The liquidity position is good than JINDAL STEEL.

SUGGESTIONS FOR INVESTORS

This is required for each investors that the knowledge about share market & how

to see the price on the computer.

Those investors have physical share certificate should convert into demat by

opening demat account.

The investors should analyze price movement of stock.


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Economic performance is greatly affected to the performance of the industries of

the country, so investors should know economic performance of the country while

investing.

They will also have to require the knowledge about the speculation & frauds of

the market.

Before investing in any company, this is required to implement all the data &

financial results & also decision him self.

Do not depend on any other persons if do not know about particular scrip.

If they follow the market trends then they can deliver high returns & also they

should have reduced the risks.

Before investing we should undertake a deeps study on the net sales, net

profits in relations to equity capital employed & should attempt to forecast for

the coming years.

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Fundamental Analysis on Metal Sectors

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