• Quotes

  • NAVs

  • News

  • Messages

  • Opinions

  • Notices

  • Videos

Feedback
Make this your Home
Search: Messages    Stock    Boarder
 
Post a Message | Explore Forums  |  Browse Stock Messages  |  Hot Discussions  | Top rated Messages  | Top Boarders
Ads by Google
Moneycontrol.com >> Messageboard >> Stocks >> Adhunik Metalik >> Adhunik Update-II
   You are here :     Moneycontrol     MMB    Stocks      Adhunik Metalik                         Most active discussions of 2006 , 2007 & 2008
Adhunik Update-II (81)   06-Jun-07 16:28Track this thread   Tracked by (2)  
Posted by:   sbalu on ( 06-Jun-07 16:28 )
Rating      
Price : BSE: Rs 51.05 ( -4.93 % ), NSE: Rs. 51.20 ( -4.83 % )

E.Clientele


The Company has already signed MoUs for product off-take with 20+ leading vendors of auto-comp OEMs. To name a few Telco, SKF Bearings Ltd., FAG Bearings India Ltd, Mico, Sundaram Fasteners Ltd., Siemens India Ltd., Hindalco Inds. Ltd, Cummins India Ltd and Ashok Leyland are its clients. AS the company moves towards the specialized steel bracket, it plans MOU with leading automobile manufacturers like M&M and Tata Motors.


Concerns


Interest Cost: Out of the total capex of Rs.437crs, the company has Rs.277crs worth of long-term loans. With the interest cost going up, the interest cost for the company will go up which inturn will impact the bottomline of the company.



Delay in planned expansion: Phase I of the company’s expansion was well on track. But the major expansions are yet to come in the phase II. Any delay in the proposed expansion will lead to changes in the company’s financial and operational health.



Weak demand/oversupply leading to fall in steel prices: Any weakness in alloy steel and steel product prices which may be triggered by a lull in demand for alloy steel products or an oversupply situation may depress realizations and therefore the topline.



Outlook & Recommendation


The company targets a topline of Rs.800crs for FY07 and a bottomline of Rs.70crs. Going by the company estimates, it presently trades at 5x its FY07 (E) earnings. The company’s margins will improve post the Phase II expansion that will see the bottomline growing faster than the topline.



Profile


Adhunik Metaliks Ltd, incorporated in 2001, is a part of Adhunik group and was founded by the late Mahadeo Prasad Agarwal. Its current product portfolio includes sponge iron, pig iron and alloy billets. The group has its focus on Eastern India primarily on account of access to high quality raw materials and stands amongst the largest business houses in eastern India. With an integrated business model from Iron ore to finished products, the group caters to the requirement of Automobile, Construction and Engineering


Upcoming projects for the company


Facilities Uses/Benefits


Capacity Expansion
Alloy Steel Making Enhancement to 330000TPA

Stainless Steel making New capacity of 0.12mn TPA

Vacuum Degassing Manufacturing clean specialty steel Billet/Bloom conditioning
To achieve desired reduction ratio as required in Auto and Bearing Steel and able to cater to niche Market.




Backward Integration
Mines (Iron Ore & Coal)


100% of Iron ore and Coal mined will be captively Consumed in DRI & Blast furnace.
Power Plant (17MW) Based on Coal Midlings from coal washery, for captive consumption,
resulting in increase in energy self generation from 30% to 60%.


Cost Reduction
Private Railway Sliding


For logistic Management for incoming and outgoing materials.

Safe Harbor Statement:
Some forward looking statements on projections, estimates, expectations & outlook are included to enable a better comprehension of the Company prospects. Actual results may, however, differ materially from those stated on account of factors such as changes in government regulations, tax regimes, economic developments within India and the countries within which the Company conducts its business, exchange rate and interest rate movements, impact of competing products and their pricing, product demand and supply constraints.

Nothing in this article is, or should be construed as, investment advice.
With thanks,
-sbalu
  Reply to this post | Rate message | Click if Offensive 
Page No :   1    2    3    4    5    6  

Dekha Hai Maine Tumhe
It's The Time To Disco
Gunmaster G-9
Dard-E-Disco
Sara Zamana
Jimmy Jimmy Jimmy Aaja
Auva Auva Koi Yahan Nache
more disco songs

What the stars foretell

Bejan Daruwala

Ganeshaspeaks: Market prediction for Nov 23

View all astrologers

India over 10 years

See whats improved/ worsended

FII Investments »
FDI »
Exports »
Imports »
GNP »
See all »

Poll 

Will you buy Suzlon after it sold 35% stake in Hansen?

Yes No
Can't Say  
 
View Result  6 comments read all
To SMS your queries to us Type YS < Your query > SMS to 51818
Stocks to be discussed next:
|  ABG Shipyard |  Bajaj Hindustan |  Jaiprakash Asso |  JSW Steel |  Suzlon Energy |  Patni Computer |  Unitech 
 view all queries »
Boarder Circle
Platinum
Gold
Silver
Newbie
Popular Boarders 7days
flashstock05
244
KotakInvestment
226
joetom
221
India_bulls
138
radhika_nandlal
121
All Time
more
Top Tracked 7days
KotakInvestment
1310
joetom
1022
India_bulls
985
marketman
843
flashstock05
816
All Time
more
Prolific Boarders 7days
hsnmf
801
radhika_nandlal
355
NAUGHTY007
275
tara23
250
All Time
more