Uttam Steels Ltd. - Mid cap stock pick

Traderji

Super Moderator
#1
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.
 

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#2
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?
 
#3
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
 

sh50

Active Member
#6
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

Super Moderator
#7
sh50 said:
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.
 
#8
Dear Traderji:

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

Regards

Harkara
 

Traderji

Super Moderator
#9
harkara said:
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.
 

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