Saturday, November 15, 2008

Sail Loses Sheen On Reports Of Deferring Expansion - Nov 15, 2008

Meanwhile, the BSE Sensex was down 132.83 points, or 1.39%, to 9408.23.On BSE, 31.78 lakh shares were traded in the counter. The scrip had an average daily volume of 20.73 lakh shares in the past one quarter.The stock hit a high of Rs 74.90 and a low of Rs 67.70 so far during the day. The stock had a 52-week high of Rs 292.50 on 13 December 2007 and a 52-week low of Rs 62 on 27 October 2008.

The stock had underperformed the market over the past one month till 12 November 2008, declining 33.87% as compared to the Sensex's 9.42% decline. It had also underperformed the market in the past one quarter, falling 50% as compared to the Sensex's fall of 37.31%.

The mid-cap state-run steel maker has an equity capital of Rs 4130.40 crore. Face value per share is Rs 10.

The current price of Rs 69.60 discounts its Q2 September 2008 annualised EPS of Rs 19.46, by a PE multiple of 3.57.

As per reports, Steel Authority of India (Sail) may miss the 2010-deadline to complete its ambitious expansion and modernisation programme to enhance production capacity from 15 million tonne to over 26 million tonne with an investment of Rs 54,000 crore.

The reports suggested that a sharp slide in domestic demand for steel had forced the company to defer the 2010-deadline by 3 to 4 years.

Sail's net profit rose 18.2% to Rs 2009.60 crore on a 33.6% rise in sales to Rs 12238.59 crore in Q2 September 2008 over Q2 September 2007.

Sail is an integrated steel manufacturing company. The company's products include pig iron, steel ingots, liquid steel, alloy steel, special steel, stainless steel, ferro alloys, spirally welded pipes, and calcium ammonium nitrate. The Government of India currently holds 85.82% in the company.

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