Uttam Steels Ltd. - Mid cap stock pick

Traderji · #1 30th August 2004, 12:38 PM

Uttam Steels Ltd. - Mid cap stock pick

About Uttam Steels Ltd.

With a modest beginning in the year 1988 with a Wet-Flux Galvanizing line in technical collaboration with M/s John Lysaght of B.H.P. Australia, today Uttam Galva Steels Ltd. has two modern galvanizing lines with a total capacity of 240,000 tons/year. UGSL has its own cold rolling facility with a capacity of 420,000 tons/year. Balance of CR are converted to value added grades in CRCA coils, cut to length sheets and also sold as Full Hard CR in overseas market.

UGSL is today, one of the largest producers of CR & GP/GC products, in the Western part of India, with a turnover of about RS. 8,500 million (US $ 180 million). More than 70% of its products are currently exported to 89 countries worldwide, with China, USA and African countries as its focus areas.

In the Indian market, UGSL is an established player for the supply of CRCA to most of the manufacturers of automobiles, white goods, general engineering, Drums & Barrels etc. It is also a large supplier of Galvanized coils and sheets as well as galvanized corrugated sheets to construction industries. Its Swan brand is well known in the major parts of rural India.

UGSL is working towards being a ONE STOP SHOP for all steel flat products, tailor made as per customer requirements ,namely,CRCA,Galvanized coils,cut to length sheets,HR Pickled and Oiled coils etc. It has a road map to maintain its compounded growth of 25% being achieved over the last few years.

For trading signals, stoploss and more on Uttam Steels Ltd. please see attached chart.

krishna · #2 19th September 2004, 03:02 PM

Thank you Traderji,
I hope that it will turn out to be an excellent investment in the medium to longer term. Its sales are zooming and it should return to dividend list soon.
However, since it is not an integrated player, its input costs may rise in future.
Can someone please comment if this factor will affect its profitability significantly?

kkz59 · #3 20th September 2004, 04:51 PM

Dear Traderji

There was recently an article in a supplement on Australia issued by The Economic Times which indicated that the total exports of Uttam Galva Steels for the year ended 31st March 2004 was about 260,000 tons and it is estimated to rise to 320,000 tons for the year ending 31st March 2005.

Probably this is one of the best mid cap stories and the only caveat is the quality of management. We do not have any information on the management. They appear to be good. Will anyone throw any light on the quality of Management of Uttam Galva ?

Kamalesh

ramesh94 · #4 25th September 2004, 05:43 AM

Dear Traderji

The scrip reached 25 on Friday. Thank you so very much. Do you see more move on the upside.

Ramesh

Neal · #5 27th September 2004, 10:49 AM

This stock has hit a new 52 week high of 27.00. I am wondering if I should sell it??

sh50 · #6 2nd October 2004, 09:01 AM

What is the rationale for the upmove. The volume is pretty low. How come you don't give any oscillators like RSI STochastics on the graphs and explain things like positive/negative divergences

Traderji · #7 4th October 2004, 01:18 PM

Quote:

Originally Posted by sh50

What is the rationale for the upmove. The volume is pretty low. How come you don't give any oscillators like RSI STochastics on the graphs and explain things like positive/negative divergences

Most technical indicators do not work they way most analyst expect it to work.

Identifying profitable trading opportinity using technical analysis is an art which is developed after years of practical trading experience.

harkara · #8 5th October 2004, 09:03 AM

Dear Traderji:

You have given a very short but wonderful reply on stock market behaviour and my hearty congratulations for that.

Regards

Harkara

Traderji · #9 5th October 2004, 09:27 AM

Quote:

Originally Posted by harkara

Dear Traderji:

You have given a very short but wonderful reply on stock market behaviour and my hearty congratulations for that.

Regards

Harkara

Thank you Harkara for having an open mind and understanding and accepting the facts as they are to be.

abheesh · #10 6th October 2004, 09:56 PM

Can I buy this at the present level of 28 pls suggest

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