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Steel Authority of India lost 5% to Rs 132 a day after the state-run steel giant cut prices of various products.

Wednesday, June 6, 2007

On BSE, 27.4 lakh shares were traded in the counter.

The Steel Authority of India (Sail) scrip had come off higher level ahead of the price cut. From a recent peak of Rs 147.95 on 25 May 2007, the stock had slipped to Rs 139.05 by 5 June 2007.

The stock had firmed up after the company had announced good Q4 results during trading hours on 21 May 2007. From Rs 138.95 on 18 May 2007, it surged to Rs 147.95 on 25 May 2007.

As per reports that filtered in on the bourses after trading hours on Tuesday, 5 June 2007, Sail cut prices of various products by up to Rs 300 per tonne. Prices have been lowered on galvanised products, cold rolled steel and coils.

The PSU has also, reportedly, reduced prices of pig iron, a major input for steel making, by up to Rs 500 per tonne. The new prices came into effect from 5 June 2007.

Sail’s net profit jumped 72% to Rs 1901.88 crore in Q4 March 2007. Sales rose 16% to Rs 10385.08 crore. Net profit rose 55% to Rs 6202.29 crore in the year ended 31 March 2007. Sales advanced 22% to Rs 35026.21 crore.

The current price of Rs 132 discounts its FY 2007 EPS of Rs 15 by a PE multiple of 8.8.

Sail is the largest steel maker in India.

Posted by FR at 9:19 PM  

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Investment in equity shares has its own risks. Sincere efforts have been made to present the right investment perspective.The information contained herein is based on analysis and up on sources that we consider reliable. I, however, do not vouch for the accuracy or the completeness thereof. This material is for personal information and I am not responsible for any loss incurred based upon it.& take no responsibility whatsoever for any financial profits or loss which may arise from the recommendations given in this blog.