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SECTOR: METAL REPORTING DATE: 1ST DECEMBER, 2017
UTTAM VALUE STEELS LTD www.uttamvalue.com
Uttam Value Steels Ltd NSE Code - UVSL TABLE 1 - MARKET DATA (STANDALONE) (AS ON 1ST NOVEMBER, 2017)
Sector - Steel NSE Market Price (`) 0.40 NSE Market Cap. (βΉ Cr.) 290.76
Face Value (`) 1.00 Equity (` Cr.) 660.81
Business Group - Indian Private 52 week High/Low (βΉ) 0.90/0.30 Net worth (βΉ Cr.)* -753.94
Year of Incorporation - 1970 TTM P/E (TTM) N.A. Traded Volume (Shares) 7,52,372
TTM P/BV N.A. Traded Volume (lacs) 3.01
Registered Office - Source β Capitaline; TTM - Trailing Twelve Months; N.A. - Not Applicable;* As on 30th September, 2017
4th Floor Uttam House, COMPANY BACKGROUND
69 P D Mello Road, Uttam Value Steels Limited is engaged in the manufacturing of steel and capital equipment
products. The Company's principal products include hot rolled (HR) steel
strips/sheets/plates, and Galvanized Plain (GP)/Galvanized Corrugated (GC) sheets/coils.
The Company supplies HR Special steels to various sectors, such as defense, Indian Railways,
oil and gas sector, automobiles, infrastructure projects, transmission tower sector, pre-
engineered building sector and liquefied petroleum gas (LPG) cylinder manufacturers. The
Company offers HR products, such as cut to length sheets, plates and HR coils; cold rolled
full hard (CRFH) products, such as CRFH coils and CRFH sheets, and galvanized products,
such as Galvanised Hard Corrugated Sheets, Galvanised Soft Coil and GP COIL. The
Company's plant is located at Uttam Nagar, Bhugaon Link Road in Wardha, Maharashtra.
The plant includes steel melt shop, ladle furnace, continuous casting plant, hot rolling mill
and cold rolling complex.
Mumbai β 400009,
Maharashtra
Company Website:
http://www.uttamvalue.com
Revenue and Profit Performance
The revenue of the Company decreased from βΉ825.78 crores to
βΉ673.73 crores from quarter ending Sepβ16 to quarter ending
Sepβ17. The Company made a loss of βΉ 75.57 crores in quarter
ending Sepβ17 vis-a-vis making a loss of βΉ 52.69 crores in quarter
ending Sepβ16.
Source: Moneycontrol
Performance vis-Γ -vis Market
TABLE 2- Returns
1-m 3-m 6-m 12-m
Uttam Value Steels Ltd -20.00% -37.50% -27.27% -20.00%
Nifty -2.90% 1.68% 4.62% 22.51%
NIFTY METAL -8.20% 1.10% 24.50% 26.27%
Source - Capitaline/NSE
673.73 744.85 825.78
-75.57-205.64
-52.69
-500
0
500
1,000
Sep'17 Mar'17 Sep'16
Quarterly revenue and Profit (βΉ CRORE)
Revenue Profit
0.50
0.70
0.90
1.10
1.30
1.50
1.70
1.90
Dec 16 Feb 17 Apr 17 Jun 17 Aug 17 Oct 17
Uttam Value Steels Ltd NIFTY NIFTY METAL
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UTTAM VALUE STEELS LTD www.uttamvalue.com
TABLE 3 - FINANCIALS
(βΉ Cr.) Sepβ17 Marβ17 Sepβ16 % Change
Sep β17 vs Marβ17 Marβ17 vs Sepβ16
Net Worth -753.94 -723.20 -373.45 N.A. N.A.
Current Assets 524.44 852.78 1,231.78 -38.50% -30.77%
Non-Current Assets 3,090.50 3,009.29 2,764.84 2.70% 8.84%
Total Assets 3,614.94 3,862.07 3,996.62 -6.40% -3.37%
Investments 17.57 17.57 17.57 0.00% 0.00%
Finance Cost 59.52 54.49 11.25 9.23% 384.36%
Long Term Liabilities 2,065.00 2,172.99 1,017.65 -4.97% 113.53%
Current Liabilities 2,303.88 2,412.29 3,352.42 -4.49% -28.04%
Turnover 673.73 744.85 825.78 -9.55% -9.80%
Profit After Tax -75.57 -205.64 -52.69 N.A. N.A.
EPS (βΉ) -0.11 -0.31 -0.08 N.A. N.A.
Source - Money Control/Stock exchange filing
AUDIT QUALIFICATIONS
Audit Qualifications in last 3 years: The Statutory Auditors have not raised qualification in their Report for FY 2014-15, 2015-16
and 2016-17.
Response Comment
Frequency of Qualifications NA
Have the auditors made any adverse remark in last 3 years? No
Are the material accounts audited by the Principal Auditors? Yes -
Do the financial statements include material unaudited
financial statements? No -
TABLE 4: BOARD PROFILE (AS PER ANNUAL REPORT - FY 2016-17)
Regulatory Norms Company
% of Independent Directors on the Board 33% 33.33%
% of Promoter Directors on the Board - 0
Number of Women Directors on the Board At least 1 1
Classification of Chairman of the Board - Independent Director
Is the post of Chairman and MD/CEO held by the same person? - No
Average attendance of Directors in the Board meetings (%) - 73.33%
Composition of Board: As per Regulation 17(1)(b) of the SEBI (Listing Obligations and Disclosure Requirements) Regulations,
2015 "Listing Regulations, 2015", the Company should have at least 33% Independent Directors as the Chairman of the Board is
Independent Director. The Company has 33.33% of Independent Directors and hence, it meets the regulatory requirements.
Board Diversity: The Company has 6 directors out of which 5 are male and 1 is female.
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SECTOR: METAL REPORTING DATE: 1ST DECEMBER, 2017
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TABLE 5 - FINANCIAL RATIOS
Ratios Sepβ17 Marβ17 Sepβ16
% Change
Sep β17 vs
Marβ17
Marβ17 vs
Sepβ16
Turn
ove
r
Rat
ios
Inventory Turnover 3.15 2.05 2.13 53.48% -3.68%
Debtors Turnover 3.59 2.38 3.77 51.13% -36.85%
Fixed asset Turnover 0.22 0.25 0.30 -11.93% -17.13%
Current Asset Turnover 1.28 0.87 0.67 47.08% 30.29%
Ret
urn
Rat
ios Operating Profit Margin -0.17% -2.01% -1.82% N.A. N.A.
Net Profit Margin -11.22% -27.61% -6.38% N.A. N.A.
Return on Assets (ROA) N.A. N.A. N.A. N.A. N.A.
Return on Equity (ROE) N.A. N.A. N.A. N.A. N.A.
Return on Capital Employed (ROCE) N.A. N.A. N.A. N.A. N.A.
Liq
uid
ity
Rat
ios
Current Ratio 0.23 0.35 0.37 -35.61% -3.79%
Quick Ratio 0.13 0.20 0.25 -33.62% -19.39%
Cash Ratio 0.05 0.07 0.19 -27.01% -60.78%
Working Capital Turnover ratio N.A. N.A. N.A. N.A. N.A.
Solv
en
cy
Rat
ios Debt to equity ratio N.A. N.A. N.A. N.A. N.A.
Interest Coverage Ratio N.A. N.A. N.A. N.A. N.A.
Trad
ing
Rat
ios
Market Cap / Sales 0.54 0.62 0.36 -13.14% 72.46%
Market Cap/ Net Worth N.A. N.A. N.A. N.A. N.A.
Market Cap/PAT N.A. N.A. N.A. N.A. N.A.
Market Cap/EBITDA N.A. N.A. N.A. N.A. N.A.
Source - Money Control/Stock exchange filing
TABLE 6 - TRADING VOLUME
Particulars Sepβ17 Marβ17 Sepβ16
% Change
Sep β17 vs
Marβ17
Marβ17 vs
Sepβ16
Trading Volume (shares) (avg. of 1 qtr) 9,44,815 42,12,857 42,68,938 -77.57% -1.31%
Trading Volume (shares) (high in 1 qtr) 1,04,45,798 3,37,95,352 4,38,27,833 -69.09% -22.89%
Trading Volume (shares) (low in 1 qtr) 19,361 49,245 11,058 -60.68% 345.33%
Ratio - High/low trading volume 539.53 686.27 3,963.45 -21.38% -82.69%
Ratio - High/average trading volume 11.06 8.02 10.27 37.82% -21.86%
Source - Capitaline
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SECTOR: METAL REPORTING DATE: 1ST DECEMBER, 2017
UTTAM VALUE STEELS LTD www.uttamvalue.com
TABLE 7 (A): OWNERSHIP & MANAGEMENT RISKS
Sep-17 Mar-17 Sep-16 Comments
Shar
eho
ldin
g (%
)
Promoter shareholding 46.12 46.12 46.12 β’ No new equity shares were issued during 1st Octβ 2016 to 30th Sepβ 2017.
β’ There was no change in the promoter shareholding during the said period.
β’ The shareholding of public institution decreased by 1.40% and that of public others increased by the same.
β’ The promoters have pledged 47.04% of their shareholding.
Public - Institutional shareholding 14.26 14.26 15.66
Public - Others shareholding 39.62 39.62 38.22
Non-Promoter Non-Public
Shareholding 0.00 0.00 0.00
Source - NSE
MAJOR SHAREHOLDERS (AS ON 30TH SEPTEMBER 2017)
S. No. Promoters Shareholding S. No. Public Shareholders Shareholding
1 Firstindia Infrastructure Private Limited 32.05% 1 Shree Global Tradefin Ltd 13.12%
2 Metallurgical Engineering and
Equipments Limited 14.06%
2 IDBI Bank Ltd. 10.00%
3 Metal Industrial Pte Ltd 9.62%
4 State Bank of India 3.80%
5 Triumph Trade & Properties
Developers Private Limited 2.80%
Source - NSE
TABLE 7 (B): OWNERSHIP & MANAGEMENT RISKS
Market Activity of Promoters The promoters have not sold/bought any shares during the FY 2016-17.
Preferential issue to promoters No preferential issue of shares was made to the promoters during the FY 2016-17.
Preferential issue to others No preferential issue of shares was made to other shareholders during the FY 2016-17.
GDRs issued by the Company The Company did not issue any GDRs during the FY 2016-17.
Issue of ESOPs/Issue of shares other
than Preferential allotment The Company does not have any ESOP Scheme.
Source - Annual Report FY 2016-17
TABLE 8: PRINCIPAL BUSINESS ACTIVITIES OF THE COMPANY
Sr. No. Name and Description of main products / services % to Total turnover of the Company
1 Hot Rolled Steel Strips/Sheets/Plates 30.68%
2 GP/GC Sheets/CSoils 21.25%
Source - Annual Report FY 2016-17
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SECTOR: METAL REPORTING DATE: 1ST DECEMBER, 2017
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Glossary
Equity: The equity shares capital of the Company
Net Worth: The amount by which the Assets exceeds the liabilities excluding shareholdersβ funds of the Company
Turnover: The revenue earned from the operations of the Company
EPS: Earning Per Share is net profit earned by the Company per share
πΈππ =Profit After Tax
Number of outstanding shares
P/E ratio: It is the ratio of the Companyβs share price to earnings per share of the Company
π/πΈ πππ‘ππ =Price of each share
Earnings per share
Current Assets: Cash and other assets that are expected to be converted to cash in one year
Fixed Assets: assets which are purchased for long-term use and are not likely to be converted quickly into cash, such as land,
buildings, and equipment
Total Assets: Current Assets + Fixed Assets
Investments: An investment is an asset or item that is purchased with the hope that it will generate income or appreciate in
the future.
Finance Cost: The Financing Cost (FC), also known as the Cost of Finances (COF), is the cost and interest and other charges
incurred during the year in relation to borrowed money.
Long Term Liabilities: Long-term liabilities are liabilities with a maturity period of over one year.
Current Liabilities: A company's debts or obligations that are due within one year.
Inventory Turnover ratio: Inventory Turnover is a ratio showing how many times a company's inventory is sold and replaced
over a period.
πΌππ£πππ‘πππ¦ ππ’ππππ£ππ πππ‘ππ =Sales Turnover
Inventory
Debtors Turnover: Accounts receivable turnover is an efficiency ratio or activity ratio that measures how many times a business
can turn its accounts receivable into cash during a period
π·πππ‘πππ ππ’ππππ£ππ πππ‘ππ =Sales Turnover
Accounts recievables
Fixed Asset Turnover: The fixed-asset turnover ratio is a financial ratio of net sales to fixed assets
πΉππ₯ππ π΄π π ππ‘ ππ’ππππ£ππ πππ‘ππ =Sales Turnover
Fixed Assets
Current Asset Turnover: The current-asset turnover ratio is a financial ratio of net sales to fixed assets
πΆπ’πππππ‘ π΄π π ππ‘ ππ’ππππ£ππ πππ‘ππ =Sales Turnover
Current Assets
Operating Profit Margin: Operating margin is a measurement of what proportion of a Companyβs revenue is left over after
paying for variable costs of production such as wages, raw materials etc. It can be calculated by dividing a Companyβs operating
income (also known as βoperating profitβ) during a given period by its sales during the same period.
ππππππ‘πππ ππππππ‘ ππππππ =Operating profit
Sales Turnover
Net Profit Margin: Net profit margin is the percentage of revenue left after all expenses have been deducted from sales
πππ‘ ππππππ‘ ππππππ =Net profit
Sales Turnover
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Return on Assets: ROA tells you what earnings were generated from invested capital (assets)
π ππ‘π’ππ ππ π΄π π ππ‘π =Net profit
Total Assets
Return on equity/net worth: return on equity (ROE) is the amount of net income returned as a percentage of shareholdersβ
equity.
π ππ‘π’ππ ππ πΈππ’ππ‘π¦ =Net profit
Net worth
Return on Capital Employed: Return on capital employed (ROCE) is a financial ratio that measures a company's profitability
and the efficiency with which its capital is employed.
π ππ‘π’ππ ππ πΆππππ‘ππ πΈπππππ¦ππ =Net profit
Total Debt + Equity share capital
Current ratio: The current ratio is a financial ratio that measures whether or not a firm has enough resources to pay its debts
over the next 12 months. It compares a firm's current assets to its current liabilities.
πΆπ’πππππ‘ πππ‘ππ =Current Assets
Current Liabilities
Quick ratio: The quick ratio is a measure of how well a Company can meet its short term financial liabilities.
ππ’πππ πππ‘ππ =Current Assets β Inventories
Current Liabilities
Cash ratio: The ratio of the liquid assets of a Company to its current liabilities.
ππ’πππ πππ‘ππ =Current Assets β Inventories β Account Recievables
Current Liabilities
Working Capital Turnover ratio: The working capital turnover ratio is also referred to as net sales to working capital. It indicates
a Company's effectiveness in using its working capital.
πππππππ πΆππππ‘ππ ππ’ππππ£ππ πππ‘ππ =πππππ ππ’ππππ£ππ
Current Assets β Current Liabilities
Debt to Equity ratio: The debt-to-equity ratio (D/E) is a financial ratio indicating the relative proportion of
shareholders' equity and debt used to finance a company's assets.
π·πππ‘ π‘π πΈππ’ππ‘π¦ πππ‘ππ =πβπππ‘ ππππ π·πππ‘ + πΏπππ ππππ π·πππ‘
πππ‘ ππππ‘β
Interest Coverage ratio: The Interest coverage ratio is a debt ratio and profitability ratio used to determine how easily a
Company can pay interest on outstanding debt.
πΌππ‘ππππ π‘ πΆππ£πππππ π ππ‘ππ =πΈππππππ π΅πππππ πΌππ‘ππππ π‘ πππ πππ₯
πΉππππππ πΆππ π‘
Market Cap/Sales ratio: Market Cap/sales ratio, Priceβsales ratio, P/S ratio, or PSR, is a valuation metric for stocks. It is
calculated by dividing the company's market cap by the revenue in the most recent year; or, equivalently, divide the per-
share stock price by the per-share revenue.
ππππππ‘ πΆππ/πππππ πππ‘ππ =ππππππ‘ πΆππ
πππππ ππ’ππππ£ππ
Market Cap/ Net Worth ratio: It is a valuation ratio calculated by dividing Companyβs market cap to net worth.
ππππππ‘ πΆππ/πππ‘π€πππ‘β πππ‘ππ =ππππππ‘ πΆππ
πππ‘π€πππ‘β
Market Cap/ PAT ratio: It is a valuation ratio calculated by dividing Companyβs market cap to net profit.
ππππππ‘ πΆππ/ππ΄π πππ‘ππ =ππππππ‘ πΆππ
πππ‘ ππππππ‘
Market Cap/ EBITDA ratio: It is a valuation ratio calculated by dividing Companyβs market cap to EBITDA.
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ππππππ‘ πΆππ/πΈπ΅πΌππ·π΄ πππ‘ππ =ππππππ‘ πΆππ
πΈπ΅πΌππ·π΄
Trading Volume (shares) (avg. of 1 year): Average number of shares/day traded in 1 year
Trading volume (shares) (high in 1 year): Highest number of shares/day traded in 1 year
Trading volume (shares) (minimum in 1 year): Lowest number of shares traded on any one day in 1 year
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Research Analyst: Kirti Dhokiya