VARDHMAN STEEL is SPECIAL !Market Cap 1,111 Cr.
Promoter holding 60.8 %
Pledged 0%
Dividend Yield 1.25 %
Intrinsic Value 483
Stock P/E 10.4
Industry P/E 18.2
Debt to equity 0.26
ROCE 25.7 %
ROE 19.8 %
OPM 9.74 %
EBIDT growth 3Years 42.9 %
Free Cash Flow 24.2 Cr.
EPS 26.4 vs EPS last year 24.8 vs EPS preceding year 10.9
Vardhman Special Steels is engaged in manufacturing of Billets, Steel bars & Rods and Bright Bars of various categories of special and alloy steels since 1973 which caters to sectors such as Engineering, Automotive, Tractor, Bearing and Allied Industries.
The Co is amongst India’s Leading Steel Bar Producers for Automotive Applications.
The Co. has the capacity to manufacture 2 lakh TPA of steel billets and also 2 lakh TPA of steel rolled products. It has received approval from the Ministry of Environment for expanding its rolled-products capacity from 2 lakh TPA to 2.80 lakh TPA. The Co. invested Rs. 35 crore in capital expenditure in its unit. The most important among them was the modifications made to the Continuous Casting Machine (CCM) which has increased its melting capacity from 2 lakh TPA to 2.60 lakh TPA
The Co. sold 1.7 lakh tonnes in FY22 against 1.5 lakh tonnes in FY21.
The Co. has strong relations with 200+ customers like Toyota, Hero Moto Corp, Caterpillar, Hino Motors, Maruti, Bajaj, and Hyundai, among others. Its top 5 clients contribute about 30% of total revenue and about 70-75% of the contribution coming from passenger vehicles and two-wheelers.The Co also caters to international customers and has a presence in countries like Thailand, Taiwan, Turkey, Russia, Germany and Spain.In FY22, 5% of total sales came from exports.
