Company Background :
Steel Authority of India Limited is a holding company. The Company is engaged in the manufacturing of flat products, such as hot rolled (HR) coils, HR plates, cold rolled (CR) coils, pipes and electric sheets, and long products, such as thermo mechanically treated (TMT) bars and wire rods. The Company's segments include Bhilai Steel Plant (BSP), Durgapur Steel Plant (DSP), Rourkela Steel Plant (RSP), Bokaro Steel Plant (BSL), IISCO Steel Plant (ISP), Alloy Steels Plant (ASP), Salem Steel Plant (SSP), VISL, POWER COMPANIES and OTHERS.
It also offers rails, structurals, merchant products, electric resistance welded pipes, spiral welded pipes and silicon steel sheets. It operates and owns over five integrated steel plants at Bhilai, Durgapur, Bokaro, Rourkela and Burnpur, and approximately three special steel plants at Salem, Durgapur and Bhadravati. Its unit, Chandrapur Ferro-Alloy Plant (CFP), produces ferro-alloys. It also has SAIL Refractory Unit (SRU) at Bokaro
Recommendation :
Buy and add to your long term portfolio. With the impending awarding of large construction projects by Government of India, company stands to gain. With a sound balance sheet and a good management makes it a compelling buy.
This scrip has a great potential to move higher and higher in next 2 years. Both the long term and short term investors will be rewarded well with consistent growth in profitability and bottom line.
The steel sector has seen a sell out in the month of Feb 2019 and is now staging a recovery.
Raghav
Equity Analyst
Smart Investor
Equity Research
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