ISMT technically has the Ability to give you Plenty!

This analysis is purely Technical.

Positive:
- Annual Revenue rose 19.1%, in the last year to Rs 2,598.2 Crores. Its sector's average revenue growth for the last fiscal year was 9.5%.
- Quarterly Revenue rose 12% YoY to Rs 658.7 Crores. Its sector's average revenue growth YoY for the quarter was -0.6%.
- Mutual Fund Holding remained the same in the last quarter at 0%.

Negative:
- Annual Net Profit fell 96.3% in the last year to Rs 87.7 Crores. Its sector's average net profit growth for the last fiscal year was -53.4%.
- Quarterly Net profit fell 99.7% YoY to Rs 8.4 Crores. Its sector's average net profit growth YoY for the quarter was -51.2%.

Kirloskar Ferrous Industries Limited (KFIL) acquired majority stake in the Share Capital of the Company(i.e. 51.25%), making ISMT a subsidiary of KFIL w.e.f March 10, 2022.

The Company is the largest integrated manufacturer of precision seamless tubes, tubular components, and steels in the Asia Pacific Region. The Company is mainly engaged in manufacturing of seamless tubes and engineering steels.

Apart from tubes, ISMT Limited also manufactures a wide range of value added products for each of these industries. These include items such as bearing rings, gear blanks, shifter sleeves, cages for constant velocity joints, swaged & machined axles, threaded and coupled casings, couplings and a host of similar products. The group companies include ISMT North America, Taneja Aerospace and Aviation Limited (TAAL), Structo Hydraulics AB, Sweden and ISMT Europe, Sweden.

ISMT has one of the most modern alloy steel plants in India. The factory, located at Jejuri (within a 100 km radius of ISMT's Tube plants) has a capacity of 190,000 MT per annum.

The Company is currently using the de-bottlenecking and modernization process to raise its capacity in the immediate future. It plans to increase the 1,55,000 tpa tube capacity to 2,00,000 tpa. Moreover, the steel capacity of the company which is already manufacturing at the rate of 2,40,000 tpa will be raised to 3,50,000 tpa.

Trade active:

On Song. A good momentum of 10% to start with

Comment:

I think this is how it would move.

Comment:

Booking partial profits. Trail the SL as per risk appetite for the rest.

Comment:

Expecting a reversal from these levels.

Comment:

Please exercise CAUTION with your stoploss as per risk appetite. The stock isn't gaining momentum as expected.

Comment:

So far the structure/pattern hasn't turned negative but keeping a stoploss would prevent unexpected moves. One good candle from this support could get the momentum back.