fundamental analysis of iron and steel industry and tata steel (indiabulls)

Upload: chao-sherpa

Post on 04-Jun-2018

220 views

Category:

Documents


0 download

TRANSCRIPT

  • 8/13/2019 Fundamental Analysis of Iron and Steel Industry and Tata Steel (Indiabulls) ...

    1/77

    Summer Project Report

    On

    FUNDAMENTAL ANALYSIS OF IRON AND STEEL

    INDUSTRY AND TATA STEEL

    At

    1

  • 8/13/2019 Fundamental Analysis of Iron and Steel Industry and Tata Steel (Indiabulls) ...

    2/77

    Table of content

    S.NO Pg No.

    DECLARATION

    CERTIFICATE OF GUIDEACKNOWLEDGEMENT

    EXECUTIVE SUMMARY 4

    INTRODUCTION 6

    REVIEW OF LITERATURE 10

    RESEARCH METHODOLOGY 14

    ANALYSIS OF RESULTS 16

    PART #1 E!o"o$ A"%&$'(' 1)

    PART #* A"%&$'(' o+ I,o" %"- S//& ("-',$ *4

    PART # ANALYSIS OF TATA STEEL

    PART #4 DETAILED ANALYSIS OF THE

    ANNUAL REPORT

    2

    FINDINGS AND RECOMMENDATIONS 6)

    CONCLUSION )

    REFERENCES )4

    *

  • 8/13/2019 Fundamental Analysis of Iron and Steel Industry and Tata Steel (Indiabulls) ...

    3/77

    ACKNOWLEDGEMENT

    I % %&'o o' g,%/+& o $ P,o3/! G(-/ M,. T%," P%%5 S%&/' M%"%g/,

    I"-(%7&&' %"- M,. R%3(8 S%7%,9%& +o, /(, %7&/ g(-%"!/ %"- /"!o,%g//" %"-

    %7o8/ %&& +o, %''(g"("g (' :,o3/! o / /,/7$ %&&o9("g / o /;:&o,/ ("o / '//&

    ("-',$ (" I"-(%.

    M$ '("!/,/ %"5' o %&& / /:&o$//' o+ I"-(%7&&' 9o %8/ 8/,$ 5("-&$ ':%,/- /(,

    8%&%7&/ (/ (" %/"-("g o $

  • 8/13/2019 Fundamental Analysis of Iron and Steel Industry and Tata Steel (Indiabulls) ...

    4/77

    EXECUTIVE SUMMARY

    I"-(%7&&' '/,8/' / +("%"!(%& "//-' o+ o,/ %" 4 >0000 !'o/,' 9( (' 9(-/

    ,%"g/ o+ +("%"!(%& '/,8(!/' %"- :,o-!' 9(! %,/ / +o&&o9("g?

    So!5 @,o5("g S/,8(!/' R/%(& I"8/'o, S/,8(!/' HNI S/,8(!/' B I"'((o"%&

    @,o5("g ("!&-("g '/!,((/' -/,(8%(8/' !oo-((/' ,%-("g %"- -/:o'(o,$

    '/,8(!/'

    R/'/%,! B A-8('o,$ '/,8(!/' E

    D(',(7(o" S/,8(!/' D(',(7(o" o+ M%& F"-' IPO I"',%"!/ %"- o/,

    +(;/- ("!o/ '/!,((/'

    W( %,o"- 4000 R/&%(o"'(: M%"%g/,' I"-(%7&&' /&:' (' !&(/"' o '%('+$ /(,

    !'o(=/- +("%"!(%& go%&'.

    So/ o+ / &%,g/ '%,/o&-/,' o+ I"-(%7&&' %,/ / &%,g/' +("%"!(%& ("'((o"' o+ /

    9o,&- '! %' F(-/&($ F"-' Go&-%" S%!' M/,,(&& L$"! Mo,g%" S%"&/$ %"-

    F%,%&&o" C%:(%&.

    I"-(%7&&' 7/!%/ / +(,' !o:%"$ o 7,("g FDI (" I"-(%" R/%& E'%/ ,og % V

    9( F%,%&&o" C%:(%& M%"%g//" LLC % ,/':/!/- US 7%'/- ("8/'/" +(,.

    I"-(%7&&' %' -/o"',%/- -//: "-/,'%"-("g %"- !o(/" o I"-(%" R/%& E'%/

    %,5/ 7$ 9(""("g !o:/((8/ 7(-' +o, &%"-%,5 :,o:/,(/' (" M7%( %"- D/&(.

    I"-(%7&&' (' % %,5/ &/%-/, (" '/!,((/' 7,o5/,%g/ ("-',$ 9( o,/ %" 1 '%,/

    (" o"&("/ ,%-("g. I"-(%7&&' /"/,/- (" % >0>0 3o(" 8/",/ 9( DLF K/""/ @(&-/,'

    B D/8/&o:/,' K@D. I"-(%7&&' %' ,/!/(8/- %" (" :,("!(:&/ %::,o8%& +,o

    Go8/,"/" o+ I"-(% +o, -/8/&o:/" o+ &( :,o-! SE (" / '%/ o+ M%%,%',%.

    4

  • 8/13/2019 Fundamental Analysis of Iron and Steel Industry and Tata Steel (Indiabulls) ...

    5/77

    T/ /;('("g :&%$/,' (" / %,5/ %,/ Mo(&%& O'9%& S%,/5%" R/&(g%,/ R/&(%"!/

    Mo"/$ /! 9(! o++/, %&o' '((&%, '/,8(!/' %' I"-(%7&&' 7 /,/ (' -/+("(/&$ 'o/

    :,o-! -(++/,/"(%(o". W( '! % g/ %o" o+ !o:/((o" ( (' 8/,$ /''/"(%& o

    ,/%(" !o:/((8/ 7$ /%! %"- /8/,$ 9%$ :o''(7&/.

    T/ :,o3/! 9%' "-/,%5/" % / Co""%g P&%!/ 7,o5/,%g/ o++(!/.

    T/ /o-o&og$ %-o:/- 9%'

    Co&&/!("g -%% %7o 8%,(o' %':/!' o+ +"-%/"%& %"%&$'(' %7o /

    /!o"o$ / ("-',$ %"- / !o:%"$.

    U"-/,'%"-("g / 8%,(o' -%% !o&&/!/- %"- 'o/ %':/!' o+ 'o!5 %,5/

    %"- '%,/ :,(!/ o8//"'.

    A"%&$=("g / ("-',$ +("%"!(%&' / !o:%"$ %""%& ,/:o, %"- +("%"!(%&

    '%//"' (" o,-/, o -,%9 !o"!&'(o"' %"- g(8/ ,/!o/"-%(o"' ,/g%,-("g

    / 9o,5("g o+ / !o:%"$.

    I-/"(+$("g / 5/$ +%!o,' % 'o&- 7/ 5/: (" ("- 9(&/ %"%&$'(' o+ %&&

    / %7o8/ /"(o"/- ("g' '! %' ,%(o' MB A /!.

    T/ !o:%"$ :,o3/!(o"' 9/,/ !%,,(/- o o" / +o&&o9("g 7%'('?

    1. R/!/" !o:%"$ %""%& ,/:o, J C%(,%"' '%//" %"- MD B A

    *. U"-/,'%"-("g !o:%"(/' :,o-! '/,8(!/' 7'("/'' '/g/"'

    /;:o,'

    . R/!/" %,/,&$ g,o9 ,%/

    4. A"%&$'(' o+ g,o9 ,%/ o+ &%'

  • 8/13/2019 Fundamental Analysis of Iron and Steel Industry and Tata Steel (Indiabulls) ...

    6/77

    INTRODUCTION

    Introduction !out t"e compn#

    I"-(%7&&' %' //,g/- %' I"-(%' &/%-("g F("%"!(%& S/,8(!/' %"- R/%& E'%/ Co:%"$

    %8("g o8/, 640 7,%"!/' %&& o8/, I"-(% (" &/'' %" 9o $/%, '("!/ (' ("((%& :7&(!

    o++/,("g (" S/:/7/, *004. I"-(%7&&' '/,8/' / +("%"!(%& "//-' o+ o,/ %" 4 >0000

    !'o/,' 9( (' 9(-/ ,%"g/ o+ +("%"!(%& '/,8(!/' %"- :,o-!' 9(! %,/ /

    +o&&o9("g?

    So!5 @,o5("g S/,8(!/' R/%(& I"8/'o, S/,8(!/' HNI S/,8(!/' B I"'((o"%&

    @,o5("g ("!&-("g '/!,((/' -/,(8%(8/' !oo-((/' ,%-("g %"- -/:o'(o,$

    '/,8(!/'

    R/'/%,! B A-8('o,$ '/,8(!/' E

    D(',(7(o" S/,8(!/' D(',(7(o" o+ M%& F"-' IPO I"',%"!/ %"- o/,

    +(;/- ("!o/ '/!,((/'

    W( %,o"- 4000 R/&%(o"'(: M%"%g/,' I"-(%7&&' /&:' (' !&(/"' o '%('+$ /(,

    !'o(=/- +("%"!(%& go%&'.

    I"-(%7&&' F("%"!(%& S/,8(!/' L- (' &('/- o" / N%(o"%& So!5 E;!%"g/ @o7%$

    So!5 E;!%"g/ %"- L;/7o,g So!5 E;!%"g/. T/ %,5/ !%:(%&(=%(o" o+

    I"-(%7&&' (' %,o"- USD *>0 (&&(o" *> A:,(& *00). Co"'o&(-%/- "/ 9o, o+ /

    g,o: (' %,o"- USD >10 (&&(o" 1'M%,! *00). I"-(%7&&' %"- (' g,o: !o:%"(/'

    %8/ %,%!/- USD >00 (&&(o" o+ /

  • 8/13/2019 Fundamental Analysis of Iron and Steel Industry and Tata Steel (Indiabulls) ...

    7/77

    '("!/ M%,! *000. So/ o+ / &%,g/ '%,/o&-/,' o+ I"-(%7&&' %,/ / &%,g/' +("%"!(%&

    ("'((o"' o+ / 9o,&- '! %' F(-/&($ F"-' Go&-%" S%!' M/,,(&& L$"! Mo,g%"

    S%"&/$ %"- F%,%&&o" C%:(%&.

    @'("/'' o+ / !o:%"$ %' g,o9" (" &/%:' %"- 7o"-' '("!/ (' ("!/:(o". R/8/"/ o+

    / !o:%"$ g,/9 % % CAGR o+ 1>2 +,o FY0 o FY0). D,("g / '%/ :/,(o-

    :,o+(' o+ / !o:%"$ g,/9 % % CAGR o+ 14.

    I"-(%7&&' 7/!%/ / +(,' !o:%"$ o 7,("g FDI (" I"-(%" R/%& E'%/ ,og % V

    9( F%,%&&o" C%:(%& M%"%g//" LLC % ,/':/!/- US 7%'/- ("8/'/" +(,.

    I"-(%7&&' %' -/o"',%/- -//: "-/,'%"-("g %"- !o(/" o I"-(%" R/%& E'%/

    %,5/ 7$ 9(""("g !o:/((8/ 7(-' +o, &%"-%,5 :,o:/,(/' (" M7%( %"- D/&(.

    I"-(%7&&' (' % %,5/ &/%-/, (" '/!,((/' 7,o5/,%g/ ("-',$ 9( o,/ %" 1 '%,/

    (" o"&("/ ,%-("g. I"-(%7&&' /"/,/- (" % >0>0 3o(" 8/",/ 9( DLF K/""/ @(&-/,'

    B D/8/&o:/,' K@D. I"-(%7&&' %' ,/!/(8/- %" (" :,("!(:&/ %::,o8%& +,o

    Go8/,"/" o+ I"-(% +o, -/8/&o:/" o+ &( :,o-! SE (" / '%/ o+ M%%,%',%.

    Introduction to t"e project

    T/ :,o3/! "-/,%5/" % I"-(%7&&' (' %(/- % '-$("g / ("8/'/" o::o,"((/'

    +,o / :o(" o+ 8(/9 o+ ,/%(& %"- '%&& ("8/'o,' +("%"!(%& ("'((o"' %"- :,(8%/

    /

  • 8/13/2019 Fundamental Analysis of Iron and Steel Industry and Tata Steel (Indiabulls) ...

    8/77

  • 8/13/2019 Fundamental Analysis of Iron and Steel Industry and Tata Steel (Indiabulls) ...

    9/77

    O!jecti*e'

    T/ %(" o73/!(8/' o+ / ,/:o, %,/

    To /:%'(=/ / (:o,%"!/ o+ %!!/''("g / 9o,&- o+ ("+o,%(o" %"-

    %"%&$'(' %"- o 'o9 o9 o"/ !%" %,,(8/ % %" I"8/'/" -/!('(o"

    To "-/,'%"- / /!o"o$ %"- / (,o" %"- '//& ("-',$ (" 9(! /

    !o:%"$ o:/,%/' %"- +("- o / +%!o,' %g%("' o, !o"-!(8/ o !o:%"$

    g,o9 %"- +"!(o"("g.

    To "-/,'%"- / +("%"!(%& '%//"' o+ %% '//& / ("-',$ %"- /

    8%,(o' "/9' :(/!/' %7o / /!o"o$ %"- / !o:%"$.

    Co"-!("g % -/%(&/- %"%&$'(' o+ / %""%& ,/:o, 5/$ ,%(o' -,%9

    !o"!&'(o"' %"- /&& / +("-("g'

    A7o8/ %&& / ,/:o, /"%7&/' o "-/,'%"- / (:o,%"!/ % F"-%/"%&

    %"%&$'(' %' +o, %" ("8/'o,.

    2

  • 8/13/2019 Fundamental Analysis of Iron and Steel Industry and Tata Steel (Indiabulls) ...

    10/77

    REVIE+ OF LITERATURE

    Cpit& Mr,et

    T/ I"-(%" !%:(%& %,5/ (' 8(7,%" %"- %&(8/. I' g,o9 (" / &%' 9o -/!%-/' %'

    7//" :/"o/"%&. I" 12 / %,5/ !%:(%&(=%(o" o+ / '%,/' 7(&&(o" (" 122* o **0

    7(&&(o" 7$ A:,(& *000 %"- ( (' % / /"- o+ *00 /'(%/- % 4* 7(&&(o". I"-(% ,%"5'

    ) (" :,(!/ ("-/; %"- 4 (" o%& ,/," ("-/;.

    T/ ,(-/ %' 7//" &o'. T/ ("/,/' %"- g,o9 o+ / %,5/ 7/g%" 9( /

    FERA -(&(o" (./. 9/" +o,/(g" !o:%"(/' -(&/- /(, ("/,/'. T/ ("/,/' g,/9 9(

    ':/!&%o,' %"- o/,' /"/,("g / %,/"%. T/ ,/+o,' +o&&o9("g / &(7/,%&(=%(o" %"-

    / /"/,("g ("o (' %,5/ o+ Fo,/(g" I"'((o"%& I"8/'o,' %"- M%& F"-' !o:&/-

    9( '!%' %"- -o9","' +o,!/- / ("-(8(-%& ("8/'o, o o+ / %,5/. T/ 7,'("g

    o+ / -o!o 777&/ %"- / K/%" P%,/5 '!% :"!%/- / %8/,%g/ ("8/'o,' +/%,'

    I" /,' o+ ("8/'o,' / &%,g/' ("8/'o, '/g/" (' F("%"!(%& I"'((o"' %"- M%&

    F"-'. Fo,/(g" I"'((o"%& I"8/'o,' FII' %"- No" R/'(-/" I"-(%"' %8/ % '(g"(+(!%"

    :,/'/"!/. T/$ %!!o" o-%$ +o, % '(g"(+(!%" %o" o+ / ("8/'/"' %-/ (" /

    %,5/. I" / /"- o+ &$ *00> +o,/(g" ("'((o" ("8/'o,' 7$ ("8/'("g % &(&/ o8/, %&+

    % 7(&&(o" -o&&%,' ,%('/- / 'o!5 ("-/; 7$ "/%,&$ 00 :o("'.

    Fundment& An'i'

    10

  • 8/13/2019 Fundamental Analysis of Iron and Steel Industry and Tata Steel (Indiabulls) ...

    11/77

    F"-%/"%& %"%&$'(' (' "o +o, ':/!&%o,'. I (' +o, o'/ 9o %,/ :,/:%,/- o '-$ %"-

    %"%&$=/ % !o:%"$Q +o, o'/ 9o %,,(8/ % % -/!('(o" %+/, !%,/+& og %"-

    -/&(7/,%(o". F"-%/"%& %"%&$'(' (' +o, / ,%(o"%& %".

    To '/&/! / o' :,o('("g '%,/' / ("8/'o, +%!/' o7'%!&/'. T/ +(,' (' (" /

    %''/''/"? / H%" +%&&(7(&($ +%!o,. T/ '/!o"- (' +,o / "%,/ o+ /

    !o:/((o". T/ (,- (' +,o '//, :/,8/,'($ ? / +%(&,/ o+ / %,5/ o 7/ &og(!%&.

    T/ ("8/'o, %$ 7/ 9,o"g (" (' /'(%/ o+ / +,/ o, /8/" (+ / (' ,(g / !,,/"

    :,(!/ %$ %&,/%-$ ,/+&/! 9% / (' %"(!(:%("g. T/ :o(" I % ,$("g o ',/'' % ("

    / /"- / %""/, / :,(!/' o+ '%,/' o8/- -/:/"- o" % o' o+ +%!o,'. Y/ / 7%'(!

    (''/ ,/%("'. T/ '%,/ ' %8/ 8%&/. I' +"-%/"%&' ' 7/ goo-. I'

    %"%g//" ' 7/ !o://".

    F"-%/"%& %"%&$'(' %' ,// !o:o"/"'

    T/ E!o"o$

    T/ I"-',$

    T/ Co:%"$

    Econom#

    A 9('/ %" o"!/ '%(- No %" (' %" ('&%"-. No :/,'o" !%" 9o,5 %"- &(8/ (" ('o&%(o".

    E;/,"%& +o,!/' %,/ !o"'%"&$ ("+&/"!("g %" ("-(8(-%&' %!(o"' %"- %++/!("g (.

    S((&%,&$ "o ("-',$ o, !o:%"$ !%" /;(' (" ('o&%(o". I %$ %8/ ':&/"-(- %"%g/,'

    %"- % ,//"-o' :,o-!. Ho9/8/, (' '%&/' %"- (' !o'' %,/ %++/!/- 7$ +%!o,' 'o/

    o+ 9(! %,/ 7/$o"- (' !o",o& ? / 9o,&- /!o"o$ :,(!/ ("+&%(o" %;/' %"- % o' o+

    o/,'. I (' (:o,%" /,/+o,/ o %8/ %" %::,/!(%(o" o+ / :o&((!o /!o"o(! +%!o,'

    % %++/! %" ("-',$ %"- % !o:%"$. I !%" 7/ %"%&$=/- "-/, +o&&o9("g /%-'

    T/ Po&((!%& E

  • 8/13/2019 Fundamental Analysis of Iron and Steel Industry and Tata Steel (Indiabulls) ...

    12/77

    Go8/,"/" Po&(!$

    I"+,%',!,/

    Indu'tr# An'i'

    T/ (:o,%"!/ o+ ("-',$ %"%&$'(' (' "o9 -%9"("g o" / I"-(%" ("8/'o, %' "/8/,

    7/+o,/. P,/8(o'&$ ("8/'o,' :,!%'/- '%,/' o+ !o:%"(/' 9(o !o"!/,"("g

    /'/&8/' %7o / ("-',$ ( o:/,%/- (". A"- /$ !o&- g/ %9%$ 9( ( ,//

    -/!%-/' %go. T(' 9%' 7/!%'/ I"-(% 9%' % '/&&/,' %,5/ % % (/ %"- :,o-!'

    :,o-!/- 9/,/ !/,%(" o 7/ 'o&- o+/" % % :,/(. To'/ %::$ -%$' %,/ o8/,. No9

    /,/ (' ("/"'/ !o:/((o". Co"'/,' %8/ "o9 7/!o/

  • 8/13/2019 Fundamental Analysis of Iron and Steel Industry and Tata Steel (Indiabulls) ...

    13/77

    !,/%(o" (" :7&(! '/!o,. S("!/ /" ( %' :%''/- ,og 8%,(o' :%'/' o+ !%"g("g

    -o/'(! %"- /;/,"%& :o&(!$ /"8(,o"/". T/ ("-',$ %' % 9o&/ %' ,/':o"-/- o /

    //,g("g !o:&'(o"' o+ / !%"g("g (/'. T/ !%"g/ !%/ (" / &%' -/!%-/ o+

    *0 !/",$ 9( &(7/,%&(=%(o" o+ I"-(% (,o" %"- '//& ("-',$. I"-(%" '//& '/!o, '%9

    / &%,g/' %--((o"' o !%:%!($ -,("g (' (/.

    T"e compn#- TATA STEEL

    T"e Annu& Report

    T/ :,(%,$ %"- o' (:o,%" 'o,!/ o+ ("+o,%(o" %7o % !o:%"$ (' (' A""%&

    R/:o,. @$ &%9 (' (' :,/:%,/- /8/,$ $/%, %"- -(',(7/- o / '%,/o&-/,'. A""%&

    R/:o,' %,/ '%&&$ 8/,$ 9/&& :,/'/"/-. A ,//"-o' %o" o+ -%% (' g(8/" %7o /

    :/,+o,%"!/ o+ % !o:%"$ o8/, % :/,(o- o+ (/. T/ %8/,%g/ '%,/o&-/, &oo5' "o

    +,/,. I+ %" A""%& R/:o, (' (:,/''(8/ (+ / !o:%"$ %' %-/ % :,o+( %"- (+ %

    ,/%'o"%7&/ -(8(-/"- %' 7//" :%(- / (' $:(!%&&$ !o"/" (" / 7/&(/+ % / !o:%"$

    (' (" goo- %"-'. T(' ' "o 7/ / !,(/,(o" 7$ 9(! o 3-g/ % !o:%"$. T/

    ("/&&(g/" ("8/'o, ' ,/%- / %""%& ,/:o, (" -/:Q / ' ,/%- 7/9//" %"-7/$o"- / &("/'Q / ' ://: 7/("- / +(g,/' %"- +("- / , %"- o"&$ /" 'o&-

    / -/!(-/ 9//, / !o:%"$ (' -o("g 9/&& o, "o. T/ A""%& R/:o, (' 7,o5/" -o9"

    ("o / +o&&o9("g ':/!(+(! :%,'

    A. T/ D(,/!o,' R/:o,

    @. T/ A-(o,' R/:o,

    C. T/ F("%"!(%& S%//"' %"-

    D. T/ S!/-&/' %"- No/' o / A!!o"'.

    1

  • 8/13/2019 Fundamental Analysis of Iron and Steel Industry and Tata Steel (Indiabulls) ...

    14/77

    RESEARC. MET.ODOLO)Y

    Met"odo&o$# Adopted

    T/ /"(,/ :,o3/! %- 7//" -(8(-/- ("o % :/,(o- o+ /(g 9//5' (" 9(! / +o&&o9("g

    %!(8((/' %- 7//" :&%""/-

    Co&&/!("g -%% %7o 8%,(o' %':/!' o+ +"-%/"%& %"%&$'(' %7o /

    /!o"o$ / ("-',$ %"- / !o:%"$ +,o I"-(%7&&' -%%7%'/ T%% S//&

    9/7'(/ 7oo5' !%:(%&("/ ("/,"/ "/9':%:/,' %"- 'o!5 %,5/.

    U"-/,'%"-("g / 8%,(o' -%% !o&&/!/- %"- 'o/ %':/!' o+ 'o!5 %,5/

    %"- '%,/ :,(!/ o8//"' 9( / /&: o+ / '%&/' %"%g/,' ,/&%(o"'(:

    %"%g/,' %"- /!"(!%& '%++ % ("-(%7&&'.

    A"%&$=("g / ("-',$ +("%"!(%&' / !o:%"$ %""%& ,/:o, %"- +("%"!(%&

    '%//"' (" o,-/, o -,%9 !o"!&'(o"' %"- g(8/ ,/!o/"-%(o"' ,/g%,-("g

    / 9o,5("g o+ / !o:%"$.

    T/ !o:%"$ :,o3/!(o"' 9/,/ !%,,(/- o o" / +o&&o9("g 7%'('?

    1. R/!/" !o:%"$ %""%& ,/:o, J C%(,%"' '%//" %"- MD B A

    *. U"-/,'%"-("g !o:%"(/' :,o-! '/,8(!/' 7'("/'' '/g/"'

    /;:o,'. R/!/" %,/,&$ g,o9 ,%/

    4. A"%&$'(' o+ g,o9 ,%/ o+ &%'

  • 8/13/2019 Fundamental Analysis of Iron and Steel Industry and Tata Steel (Indiabulls) ...

    15/77

    %. D/%"-

    7. S::&$ :,(!/'

    !. T/!"o&og$

    -. R/g&%(o"

    /. MBA

    ). R/!/" ',%/g(/' %"- ("((%(8/' (" /,' o+

    %. P,o-! &%"!/'

    7. C%:%!($ %--((o"

    . M%5("g ,/8/"/ :,o3/!(o" +o,

  • 8/13/2019 Fundamental Analysis of Iron and Steel Industry and Tata Steel (Indiabulls) ...

    16/77

    ANALYSIS OF RESULTS

    T/ :,o3/! %' 7//" -(8(-/- ("o 4 :%,'

    E!o"o$ A"%&$'('

    I"-',$ A"%&$'('

    Co:%"$ A"%&$'('

    A""%& R/:o, A"%&$'('

    16

  • 8/13/2019 Fundamental Analysis of Iron and Steel Industry and Tata Steel (Indiabulls) ...

    17/77

    PART /01 ECONOMY ANALYSIS

    T/ E!o"o$ !%" 7/ %"%&$=/- "-/, / +o&&o9("g /%-("g'

    T"e po&itic& e2ution

    A '%7&/ :o&((!%& /"8(,o"/" (' "/!/''%,$ +o, '/%-$ 7%&%"!/- g,o9. I+ % !o",$ ('

    ,&/- 7$ % '%7&/ go8/,"/" 9(! %5/' -/!('(o"' +o, / &o"g?/, -/8/&o:/" o+ /!o",$ ("-',$ %"- !o:%"(/' 9(&& :,o':/,. O" / o/, %"- ("'%7(&($ !%'/'

    ("'/!,($ /':/!(%&&$ (+ /,/ (' / :o''(7(&($ o+ % go8/,"/" 7/("g o'/- %"-

    ,/:&%!/- 7$ %"o/, % o&-' -(%/,(!%&&$ -(++/,/" :o&((!%& %"- /!o"o(! 7/&(/+'.

    I"-(% %' go"/ ,og % +%(,&$ -(++(!& :/,(o-. T/,/ %- 7//" /,,(7&/ :o&((!%&

    ("'%7(&($ %+/, / o'/, o+ M,. N%,%'(% R%o +,o / P,(/ M("('/, '(:. T/,/

    %' %&'o 7//" ! g,%"- '%"-("g '! %' / M%"-%& ,/!o/"-%(o"' (" o,-/, o

    !%:,/ 8o/'. T/'/ &/- o ,(o'. T/,/ 9/,/ o/, ,/&(g(o' %"- /"(! (''/' % %&'o

    &/- o 8(o&/"!/ '! %' / @%7,( M%'3(-R% %"%7oo( (''/. A&& /'/ 'oo5 /

    !o"+(-/"!/ o+ / -/8/&o:/- 9o,&- (" / '/!,($ %"- '%7(&($ o+ I"-(%. To,(' +/&&.

    Fo,/(g" D(,/! I"8/'/" +/&&. I"8/'/"' 9/,/ /&- 7%!5. T/'/ %- %" %-8/,'/

    (:%! o" / -/8/&o:/" o+ / /!o"o$. I" ,/!/" (/' (' '!/"%,(o %' !%"g/-.

    T/ Go8/,"/" /8/" og % !o%&((o" %' 7//" '%7&/. I' :o&(!(/' %8/ 7//" :o'((8/

    1)

  • 8/13/2019 Fundamental Analysis of Iron and Steel Industry and Tata Steel (Indiabulls) ...

    18/77

    %"- / /!o"o$ %' 7//" -o("g 9/&&. T/,/ %,/ :,/-(!(o"' % 7$ *0>0 I"-(% 9o&-

    7/ o"/ o+ / ,// o' :o9/,+& "%(o"' (" / 9o,&-. T(' %' &/- o ,/"/9/- ("/,/'

    (" I"-(% %"- ("8/'o,' %,/ 7%!5.

    T/ o/, g"%9("g :o&((!%& (''/ % %' 7//" % o," (" I"-(%' 7%!5 (' / P%5('%"

    (''/. T/ -//,(o,%(o" (" o, ,/&%(o"'(: !&("%/- (" 1222 (" / 9%, (" K%,g(&.

    E%,&(/, 9/ %8/ +og '/8/,%& 9%,' o" K%'(, %"- o/, (''/'. I" *00> /,/ %' 7//"

    %" (:,o8//" (" / ,/&%(o"'(:. W%,' :' : ("+&%(o" %"- -/%"- -/!&("/'. I ('

    /'(%/- % / G&+ W%, !o' I"-(% 1.> 7(&&(o" o" %!!o" o+ (g/, :,(!/' o+

    :/,o&/ :,o-!' o::o,"($ !o'' %"- +%&& (" /;:o,'. T/ -/+/"!/ 7-g/ ('

    /"o,o'. T(' o"/$ !o&- %8/ 7//" ':/" /&'/9/,/ +o, / -/8/&o:/" o+ /

    !o",$. O/, /;%:&/' ("!&-/ S,( L%"5% E%' E,o:/ %"- o/, ,o7&/- !o",(/'.

    T/'/ !o",(/' 9/,/ o"!/ ,(8("g. No &o"g/, %,/ /$ / '%/.

    I" !o"!&'(o" / :o&((!%& '%7(&($ o+ % !o",$ (' o+ :%,%o" (:o,%"!/. No

    ("-',$ o, !o:%"$ !%" g,o9 %"- :,o':/, (" / (-' o+ :o&((!%& ,o(&.

    Re'tricti*e Prctice'

    R/',(!(8/ :,%!(!/' o, !%,/&' (:o'/- 7$ !o",(/' !%" %++/! !o:%"(/' %"- ("-',(/'.I"-(% %' % "7/, o+ ,/',(!(o"' o" 9% %$ 7/ (:o,/- %"- % 9% ,%/ o+ -$. To

    %" /;/" (' -//,("/' / :,(!/' % 9(! goo-' !%" 7/ 'o&-. I+ / -o/'(! ("-',$

    (' o 7/ '::o,/- / -(/' &/8(/- %$ 7/ ("!,/%'/- ,/'&("g (" (:o,' 7/!o("g

    "%,%!(8/. D,("g / &%' 9o $/%,' I"-(%" !'o' -(/' %8/ 7//" ,/-!/-

    -,%'(!%&&$. I:o,' %,/ !o"'/0 :/, o""/

    +,o R' 00. Ho9/8/, /;:o, -$ o" (,o" o,/ +("/' 9( F/ !o"/" o+ o,/ %" 6* :/,

    !/" %"- &:' 9o&- ,/%(" "!%"g/- % R' 00 :/, o""/. T/ '//& ("-',$ 9%'

    "%::$ 9( (' -/!('(o" %"- '%(- / :%,(%& ,o&& 7%!5 o+ /;:o, -$ o" (,o" o,/ +("/'

    1

  • 8/13/2019 Fundamental Analysis of Iron and Steel Industry and Tata Steel (Indiabulls) ...

    19/77

    9o&- ( -o/'(! '//& (&((/' %"- !o&- %++/! /;:%"'(o" :&%"'. T/$ %- 7//"

    -/%"-("g % /;:o, -$ 7/ -o7&/- o -('!o,%g/ /;:o, o+ (,o" o,/ 9(! (' "//-/-

    o +,!(+$ / %''(8/ !%:%!($ /;:%"'(o"' %""o"!/- 7$ / %3o, '//& (&((/'.

    A!!o,-("g o &%/' /'(%/' 9/ %8/ %7o '(; 7(&&(o" o""/' o+ ("/%7&/ (,o" o,/

    ,/'/,8/ (" / !o",$ %"- (+ / :,/'/" &/8/& o+ /;:o,' !o"("/- "%7%/- /" 9/

    9o&- 7/ /;%'("g o, o,/' 7$ *00 %"- +o,!/- o (:o,.

    W/" 8(/9("g % !o:%"$ ( (' (:o,%" o '// o9 '/"'((8/ ( (' o go8/,"/"%&

    :o&(!(/' %"- ,/',(!(8/ :,%!(!/'.

    Forei$n De!t nd t"e (&nce o% Trde

    Fo,/(g" -/7 /':/!(%&&$ (+ ( (' 8/,$ &%,g/ !%" 7/ % ,//"-o' 7,-/" o" %" /!o"o$.

    I"-(% :%$' %,o"- > 7(&&(o" % $/%, (" :,("!(:%& ,/:%$/"' %"- ("/,/' :%$/"'. T('

    (' "o '%&& '. T(' %' 7//" / :,(!/ / !o",$ %' %- o :%$ -/ o o, (:o,'

    7/("g +%, (" /;!/'' o+ /;:o,' %"- %" %-8/,'/ 7%&%"!/ o+ :%$/"'. A / (/ /

    !o",$ -(- 7o,,o9 ( %- "o %&/,"%(8/. I" 1221 % / (/ o+ -/8%&%(o" I"-(% %-

    o"&$ /"og +o,/(g" /;!%"g/ o +("%"!/ / (:o,' o+ +/9 9//5'. I (' o ,/8/,'/ ('

    % / go8/,"/" -(- 7o,,o9 +,o / Wo,&- @%"5 %"- -/8%&/ / !,,/"!$.

    E3port'

    C&%(8/ /;:o,' -,("g A:,(&?%"%,$ *00) ,/!o,-/- % g,o9 o+ *0.* :/, !/"

    !o:%,/- o *).2 :/, !/" % $/%, %go. Ho9/8/, o" % o"&$ 7%'(' /;:o,' 'o9/- %

    '&o9 -o9" (" D/!/7/, *006 %"- %"%,$ *00) C%, 1.

    12

  • 8/13/2019 Fundamental Analysis of Iron and Steel Industry and Tata Steel (Indiabulls) ...

    20/77

    Import'

    T/ !&%(8/ (:o,' -,("g A:,(&?%"%,$ *00) :o'/- % g,o9 o+ *). :/, !/"

    4. :/, !/" % $/%, %go

    .

    Trde De%icit

    T/ ,%-/ -/+(!( 9(! ,/%("/- (" %"-/ 9( / &/8/&' o+ &%' $/%, 9(-/"/- +,o

    S/:/7/, *006. I" %"%,$ *00) ( 9(-/"/- o US >. 7(&&(o" -/ o / '&%!5/"("g ("

    /;:o,'. D,("g A:,(&?%"%,$ *006?0) ,%-/ -/+(!(' o!/- % ,/!o,- US >0.> 7(&&(o"

    %" ("!,/%'/ o+ US 1>.4 7(&&(o" o8/, / :,/8(o' $/%,. T/ ,%-/ -/+(!( o" / o(&

    %!!o" ("!,/%'/- 7$ US 6.0 7(&&(o" -,("g A:,(&?No8/7/, *006 9(&/ / "o"?o(&

    ,%-/ -/+(!( ("!,/%'/- 7$ US .0 7(&&(o".

    A :/,%"/" 'o&(o" 9(&& ,/'& o"&$ 9/" / ("+&o9 o+ +o,/(g" !,,/"!$ /;!//-' /

    o+&o9 %"- ( (' o" %!!o" o+ (' % o,(' /;:o,' %"- /;!%"g/ /%,"("g'%8("g

    ("-',(/' %,/ /"!o,%g/-.

    In%&tion

    I"+&%(o" %' %" /"o,o' /++/! (" / /!o"o$. W((" / !o",$ ( /,o-/'

    :,!%'("g :o9/,. A' % !o"'/

  • 8/13/2019 Fundamental Analysis of Iron and Steel Industry and Tata Steel (Indiabulls) ...

    21/77

    A '(g"(+(!%" +/%,/ o+ ,/!/" -o/'(! -/8/&o:/"' (' / +(,("g : o+ ("+&%(o"

    ,og / $/%,. C,,/"&$ o8/,("g %7o8/ 6 :/, !/" ("+&%(o" (" /,' o+ /

    9o&/'%&/ :,(!/ ("-/; (' ,&("g %7o8/ ("-(!%(8/ :,o3/!(o"' %"- ,/:,/'/"' % 5/$

    !o"!/," (" / /8o&8("g %!,o/!o"o(! o&oo5. I" /,' o+ !o"'/, :,(!/' ("+&%(o"

    (' /8/" (g/, (" / ,%"g/ o+ )? :/, !/". P,(%,$ %,(!&/' "&(5/ (" ,/!/" $/%,' %8/

    !o",(7/- '(g"(+(!%"&$ o WPI -,("g *00>?06. A!!o"("g +o, % (,- o+ /%-&("/

    ("+&%(o" /$ !%" 7/ ("/,:,//- o o,(g("%/ +,o '::&$ '(-/ :,/'',/'. A / '%/

    (/ :,(!/' o+ %"+%!,/- :,o-!' %!!o" +o, o8/, %&+ o+ !,,/" /%-&("/ ("+&%(o".

    Do/'(! :,(!/' %,/ +(,("g : (" '$:%$ 9( ("/,"%(o"%& :,(!/'. M/%& :,(!/' %8/

    ,('/" 7$ >.6 :/, !/" (" *006. Lo9 'o!5 &/8/&' %"- !o"("("g -/%"- %' 5/: o'

    /%& :,(!/' (g %"- /&/8%/- &/8/&' %,/ &(5/&$ o :/,'(' (" / "/%, /,. I" !o"3"!(o"

    9( //,g("g ',%("' o" !%:%!($ /&/8%/- %''/ :,(!/' %"- / ',g("g -/%"- +o, 7%"5

    !,/-( / ,('("g :,(!/' o+ %"+%!,/' !o"'(/ / -/%"- :,/'',/' o" ("+&%(o".

    T/ '(&8/, &("("g o / !&o- (' / (:,o8//" (" :7&(! +("%"!/' %"- / -/!&("/ ("

    ("/,"%(o"%& !,-/ :,(!/' %"- !o"'/ :/, !/" (" *006 7 9( % '(+ %9%$ +,o / US %"-

    o9%,-' E,o:/ %:%" %"- / //,g("g 9o,&- %&& o+ 9(! %8/ -('("!(8/ +/%,/'.

    G&o7%& +("%"!(%& %,5/' %8/ 7//" ,/%'o"%7&$ '%7&/ 9(&/ ,/?:,(!("g ,('5'. So,?/,

    ("/,/' ,%/' %8/ +(,/- : '("!/ O!o7/, 7 &o"g?/, 7o"- $(/&-' %8/ +%&&/"

    ,%"'&%("g ("o % '//:/, ("8/,'(o" o+ / $(/&- !,8/. Fo,/(g" /;!%"g/ %,5/' %8/

    7//" ,/!o,-("g &o9/, &/8/&' o+ 8o&%(&($ (" ,/!/" 9//5' %" 7/+o,/. G&o7%& /

  • 8/13/2019 Fundamental Analysis of Iron and Steel Industry and Tata Steel (Indiabulls) ...

    22/77

    Lo9 ("+&%(o" 9((" % !o",$ ("-(!%/' '%7(&($ %"- -o/'(! !o:%"(/' %"- ("-',(/'

    :,o':/, % '! (/'. T' ( (' 8/,$ /''/"(%& o 5//: ("+&%(o" "-/, !o",o&.

    Intere't Rte'

    A &o9 ("/,/' ,%/ '(&%/' ("8/'/" %"- ("-',$. Co"8/,'/&$ (g ("/,/' ,%/'

    ,/'& (" (g/, !o' o+ :,o-!(o" %"- &o9/, !o"':(o". W/" / !o' o+ o"/$ ('

    (g % !o:%"$' !o:/((8/"/'' -/!,/%'/'. I" I"-(% / go8/,"/" ,og /

    R/'/,8/ @%"5 %' 7//" '!!/''+& (" &o9/,("g ("/,/' ,%/'. I"!,/%'("g !o:/((o"

    %o"g 7%"5' %' %&'o /&:/-. Y(/&- o" / 10?$/%, g(& /;:/!/- o /"- / +('!%& *006?

    0) (' (" / 7%"- o+ ).? :/, !/".

    A' / %,5/' %- %&,/%-$ +%!o,/- (" % ,%/ (5/ 7$ / C/",%& 7%"5 % ,/&(/+ ,%&&$

    +o&&o9/- %+/, / %""o"!//" o+ ,/8/,'/?,/:o ,%/ 7/("g &/+ "!%"g/-. T/ $(/&- o"

    / 7/"!%,5 .0) :/, !/" go8/,"/" '/!,($ +/&& +,o ).2 :/, !/" % &/8/& ( %-

    %!.> :/, !/"

    )o*ernment Po&ic#

    Go8/,"/" :o&(!$ %' % -(,/! (:%! o" / /!o"o$. A go8/,"/" % (' :/,!/(8/-

    o 7/ :,o?("-',$ 9(&& %,%! ("8/'/". T/ &(7/,%&(=%(o" :o&(!(/' o+ / N%,'(%

    R%o go8/,"/" /;!(/- / -/8/&o:/- 9o,&- %"- +o,/(g" !o:%"(/' g,/9 5//" o ("8/'

    (" I"-(% %"- ("!,/%'/ /(, /;('("g '%5/' (" /(, I"-(%" 8/",/'. T/ ("((%(8/ o+ /

    +o,/, @P go8/,"/" (" (:,o8("g / ("+,%',!,/ g,%77/- / %/"(o" o+ +o,/(g"

    **

  • 8/13/2019 Fundamental Analysis of Iron and Steel Industry and Tata Steel (Indiabulls) ...

    23/77

    ("8/'o,'. T/ :,/'/" go8/,"/" !o"("/' o +o!' o" ("+,%',!,/ %' ( (' ,/%&(=/-

    :,og,/'' % % -/!/" ,%/ 9o&- "o 7/ :o''(7&/ 9(o ("+,%',!,/.

    T"e In%r'tructure

    T/ -/8/&o:/" o+ %" /!o"o$ (' -/:/"-/" o" (' ("+,%',!,/. I"-',$ "//-'

    /&/!,(!($ o %"+%!,/ %"- ,o%-' o ,%"':o, goo-'. @%- ("+,%',!,/ &/%-' o

    ("/++(!(/"!(/' :oo, :,o-!(8($ 9%'%g/ %"- -/&%$'. T(' (' :o''(7&$ / ,/%'o" 9$ /

    122 7-g/ &%(- 'o ! /:%'(' %"- o++/,/- 'o %"$ 7/"/+(' o ("+,%',!,%&

    ("-',(/' '! %' :o9/, %"- ,%"':o,%(o". I" ,/!/" $/%,' /,/ %' 7//" g,/%/,

    /:%'('. F&$o8/,' %8/ 7//" 7(& "%(o"%& (g9%$' %,/ 7/("g 9(-/"/- %"- %-/

    7//, %"- / (:,o8//"' %-/ (" !o"(!%(o"' %,/ %9/'o/.

    To /"!o,%g/ +o,/(g" +"-' +&o9 ("o / ("+,%',!,/ '/!o, / F("%"!("g M("(',$

    %' %&&o9/- Fo,/(g" I"'((o"%& I"8/'o,' FII' %&'o o ("8/' (" "&('/- !o:%"(/'. I"

    % 7(- o %5/ / !o,/ '/!o, %,%!(8/ +o, FDI / C%7("/ Co(// o" Fo,/(g"

    I"8/'/" CCFI %' o-(+(/- / 42 :/,!/" !%: o" +o,/(g" /

  • 8/13/2019 Fundamental Analysis of Iron and Steel Industry and Tata Steel (Indiabulls) ...

    24/77

    PART /41 ANALYSIS OF IRON AND STEEL INDUSTRY

    Stee& Indu'tr#

    T/ '//& '/!o, %' 7//" o"/ o+ / :,(%,$ 8/(!&/' o+ /!o"o(! -/8/&o:/" ("

    ("-/:/"-/" I"-(%. I"-(% (' /"-o9/- 9( /''/"(%& ,%9 %/,(%&' '! %' (,o" o,/ %"-!o%&. T/ ("-',$ %' 9(-/':,/%- +o,9%,- %"- 7%!59%,- &("5%g/' 9( / ,/' o+ /

    /!o"o$.

    T/ :/,+o,%"!/ o+ / I"-(%" '//& ("-',$ -,("g / &%' -/!%-/ og ':/!%!&%,

    %' "o 7//" %&og//, 'oo. T/ /:o,(! -/8/&o:/"' (" / +/9 -/,/g&%(o"

    $/%,' 9/,/ ! 'o,. T/ /;/,"%& g&o7%& /"8(,o"/" 9o,'/"/- :,og,/''(8/&$ "-/,

    :,/'',/ +,o % '/,(/' o+ +("%"!(%& /&-o9"' (" 8%,(o' :%,' o+ / 9o,&- 9(&/ o,

    -o/'(! /!o"o$ %&'o '%g"%/-. P,(!/' '%,/- +%&&("g !o"("o'&$ %' 9o,&- '//&

    ("-',$ ',%("/- "-/, !o"-((o"' o+ /;,// o8/, '::&$ %"- ! ,o% !o:/((o".

    T/ -o/'(! %,5/ %&'o -9("-&/- o" 7%!5 o+ '&o9 g,o9 (" !o"',!(o" %"- o/,

    +o,' !%:(%& +o,%(o".

    *4

  • 8/13/2019 Fundamental Analysis of Iron and Steel Industry and Tata Steel (Indiabulls) ...

    25/77

    )o*ernment Po&ic#

    S%7&/ !,,/"!$

    E%'("g o+ ,/g&%(o"'

    S,o"g @%"5("g B 3-(!(%& '$'/

    E"!o,%g("g ,%-/ ,/&%(o"' 9( ASEAN %"- o/, !o",(/'

    I"+,%',!,/ 7(&-("g

    E;:&o,("g "/9 E"/,g$ ,/'o,!/'

    Ntion& Stee& Po&ic#5 4667

    No8/7/, *00> '%9 / ,/&/%'/ o+ N%(o"%& S//& Po&(!$ J / +(,' V('(o" -o!/" +o,

    / I"-(%" I,o" %"- S//& I"-',$. T/ :o&(!$ %(' % %5("g / -o/'(! '//& ("-',$

    g&o7%&&$ !o:/((8/ (" /,' o+ !o' ?06 4*.) (&&(o" o"/' T % g,o9 o+

    11.

    *>

  • 8/13/2019 Fundamental Analysis of Iron and Steel Industry and Tata Steel (Indiabulls) ...

    26/77

    A::%,/" Co"':(o" o+ F("('/- S//& (" *00>?06 ? .1T g,o9 o+ 10..

    A::%,/" !o"':(o" o+ Lo"g' ?16.* T F&%' ? *1. T.

    L%,g/' :,o-!/, o+ S:o"g/ I,o" ? 1*. T (" *00>?06 % g,o9 o+ *>.

    I"-(%' /;:o,' o+ F("('/- S//& (" *00>?06 4.4 T I:o,' .) T

    Hg/ I,o" O,/ ,/'/,8/' J * 7". o""/'

    P,(8%/ S//& P,o-!/,' %,/ o:("g +o, Fo,9%,- %' 9/&& %' @%!59%,- I"/g,%(o"

    I"-(%" S//& P,o-!/,' %,/ ("!,/%'("g&$ &oo5("g +o, o8/,'/%' %!

  • 8/13/2019 Fundamental Analysis of Iron and Steel Industry and Tata Steel (Indiabulls) ...

    27/77

    o+ 7o %' (": VSL '/' COREX % ,/8o&(o"%,$ /!"o&og$ +o, %5("g '//& '("g

    7%'(!%&&$ (,o"?o,/ %"- !o%&. T/ M%3o, :,o-!/,' %,/ 8(%& o / ("-',$ %' /$ %!!o"

    +o, o' o+ / (&- '//& :,o-!(o" (" / !o",$. T/ g,o: :,o-!/' o' o+ / +&%

    '//& :,o-!' (" / !o",$ ("!&-("g Ho Ro&&/- Co&- Ro&&/- %"- G%&8%"(=/- '//&.

    T/ %3o,' %&'o :,o-!/ % '%&& :,o:o,(o" o+ Lo"g :,o-!' %"- o/, ':/!(%& '//&

    7/("g :,o-!/- (" / !o",$.

    *. Ot"er producer': T(' g,o: !o"'('' o+ '%&&/, '%"-?%&o"/ '//& :&%"' % ("!&-/

    :,o-!/,' %"- :,o!/''o,' o+ '//&

    P,o!/''o,'R/,o&&/,' U"(' :,o-!("g '%&&

  • 8/13/2019 Fundamental Analysis of Iron and Steel Industry and Tata Steel (Indiabulls) ...

    28/77

    Stee& Price'

    Fo&&o9("g -/?,/g&%(o" o+ :,(!/' +o, ("/g,%/- '//& :&%"' (" 1221?2* / -o/'(!

    :,(!/' o+ '//& %8/ 7/!o/ %,5/?-//,("/-. S//& :,(!/' %,/ (g&$ 8o&%(&/ %"-

    o8/ (" %"-/ 9( g&o7%& :,(!/'. W(&/ ,%(o"%&(=%(o" o+ / !'o' %"- /;!('/ -$

    ',!,/ (' %(/- :,(%,(&$ % ,/-!("g +('!%& %"- ,/8/"/ -/+(!(' ( %' %" ("-(,/!

    ("+&/"!/ o" !o"'/, :,(!/'. A :,/'/" /,/ %,/ %,o"- ,// o'%"- "('

    *

    Compn# 67-68

    9MT:

    SAIL ;

  • 8/13/2019 Fundamental Analysis of Iron and Steel Industry and Tata Steel (Indiabulls) ...

    29/77

    %"+%!,("g '//& %"- '//& :,o-!' 9(! %,/ %,5//- 7$ o8/, 100000 ,%-/,' +o,

    &(%/ !o"'/,'. T(' -(':/,'%& o+ / -(',(7(o" !%(" %' 7//" / :,("!(:%& ,/%'o"

    9$ "o :,(!/ ,/g&%(o" o+ / '//& ,%-/ %' /8/, 7//" (" +o,!/.

    D,("g FY*006 / :,(!/' oo5 % -o9",". D/ o % '&o9-o9" (" / g&o7%& -/%"-

    -,(8/" 7$ '&o9/, C("/'/ -/%"- ,/'&/- (" % -/!&("/ (" :,(!/' 7$ o8/, 0 -,("g &$

    J S/:/7/, *00> %' !o:%,/- o / 7/g(""("g o+ / $/%,. Do/'(! :,(!/' +/&&

    9/" !o"'(-/,/- '("!/ A:,(& *00>. T/ 7/g(""("g o+ $/%, *006 %g%(" 9("/''/- % ',g/

    (" :,(!/' 7%!5/- 7$ ("!,/%'/ (" -/%"- +,o C("% 9(! ("-(!%/- % / !o",$

    9o&- !o"'/ >0 MT o+ :,o-!(o" ' ,/-!("g / &/8/& o+ o8/,!%:%!($. P,(!/' ("

    C("% o8/,/- %,o"- USD >00 :/, o""/ o9("g o ,('/ (" +,/(g !o'' %"- g,o9 ("

    -/%"- +,o %oo7(&/ %"- !o"',!(o" '/!o,'. To !,7 C("/'/ '//& /;:o,' 9(!

    g,/9 ** (" H1 CY06 / C("/'/ go8/,"/" %' ,/!/"&$ ! / /;:o, ,/7%/ +,o

    11 o 2. D,("g / 7/g(""("g o+ S/:/7/, *006 / -o/'(! '//& +(,' %8/

    ,/-!/- / :,(!/' o+ HR !o(&'. T/ :,(!/' o+ / /%& 9/,/ '&%'/- 7$ %,o"- R'.)>0?

    1>00 :/, o""/ o %,o"- R'.*6 000 +o, o ,o&&/- !o(& HRC. T/ +%!o,' !o",(7("g

    o (' !o,,/!(o" %,/

    I"!,/%'/ (" C("/'/ /;:o,' -/ o '(g"(+(!%" !%:%!($ 7(&-?: (" / &%' 9o

    $/%,'. A o8/ o :,/?/: !/%:/, (:o,' o+ '//& /':/!(%&&$ +,o ,(8%& C("%.

    S&o9-o9" (" ("+,%',!,/ %!(8((/' -/ o o"'oo"'.

    W/ -o "o /;:/! '//& :,(!/' o go : o / &/8/&' o+ %,o"- USD )00o" %' '//" %

    $/%, 7%!5 7 o '%7(&(=/ (" / ,%"g/ o+ USD 4>0?>00o" (" / /-( /,.

    P,/'/"&$ / :,(!/' %,/ o8/,("g (" / ,%"g/ o+ USD 4>0?4)0o".

    C#c&ic& Nture

    T/ !$!&(!%& "%,/ o+ / '//& ("-',$ -//,' +,/' ("8/'/"' -/ o ,('5' o+

    ,/!/''(o". T/ ('%! 7/9//" -/%"- %"- '::&$ %&'o &/%-' o :,(!/ 8o&%(&($

    9("/''/- -,("g ,/!/" (/'. S%g"%(o" (" '//& :,(!/' +o, &o"g :/,(o-' +o&&o9/- 7$

    *2

  • 8/13/2019 Fundamental Analysis of Iron and Steel Industry and Tata Steel (Indiabulls) ...

    30/77

    '--/" ':, %&'o %++/!' / !o"'/,' %"- / ("+,%',!,/ ("-',$. T/,/+o,/ /

    /++o,' o+ 8%,(o' '%5/o&-/,' o -/8/&o: ,('5?/-g("g ("',/"' &(5/ +,/' %"-

    -/,(8%(8/' 9o&- 7/ '::o,/-.

    In*e'tment Promotion' nd Po&ic# Imp&ementtion

    T/ 8/,$ "%,/ o+ '//& :,o-!(o" /':/!(%&&$ ,og / ("/g,%/- ,o/ ,/

  • 8/13/2019 Fundamental Analysis of Iron and Steel Industry and Tata Steel (Indiabulls) ...

    31/77

    Indu'tr# Finnci&'

    R'< Crore FY4664 FY466= FY466 FY4667 FY4668

    Net Re*enue *>)* 0204 401*1 >>0 >>04

    Ot"er Rec

    Income

    ) >4 )2 4)> 104

    Tot&

    income *6660 1*> 40>00 >6* >6021

    Opertin$

    Co't

    *41 *>21> 0)** >*** 4061*

    Opertin$

    Pro%it

    162 422 222 *0>6 1446

    Deprecition *>1 *10 *)1 *>)6 *2>6

    Finnci&

    E3pen'e

    *4 **)0 1)>4 1)) 121

    Net Pro%it ?*61* )1 4>1 11*) )*2

    OPM 9B: 6.> 16.14 *.4 ).2 *6.**

    NPM 9B: ?2. *.0 11.1 *0.04 1*.21

    T/ %7o8/ %7&/ 'o9' % o8/, / :%' +o, $/%,' / "/ ,/8/"/ o+ / ("-',$ %'

    7//" o" %" ("!,/%'("g ,/"- %"- 9/" : 7$ % CAGR o+ *0.). I" / !o,,/':o"-("g

    :/,(o- / o:/,%("g :,o+( o+ / ("-',$ 9/" : 7$ % CAGR o+ )0.2. I (' 7/!%'/

    o+ / -/!&("/ (" / :,o:o,(o" o+ o:/,%("g !o' o "/ ,/8/"/ +,o 2 (" FY*00* o

    )4 (" FY*006. T/ :,o+(' o+ / ("-',$ :/%5/- (" FY*00> 9/" :,(!/' o+ / /%&

    9/,/ % %&& (/ (g. T/ :,(!/' o9/8/, 7oo/- o9%,-' / /"- o+ CY*00>

    -(("('("g / :,o+(' o+ / ("-',$ (" FY*006.

    Indu'tr# A$$re$te1 Opertion& Per%ormnce

    1

  • 8/13/2019 Fundamental Analysis of Iron and Steel Industry and Tata Steel (Indiabulls) ...

    32/77

    Indu'tr# A$$re$te1 Finnci& Per%ormnce

    T"e Re$u&tor# Inter%ce

    O, '-$ ,/8/%&/- % ("/,/'("g&$ /"og / I"-(%" go8/,"/" %::/%,' -('("!&$

    &/'' :,o%!(8/ %" /(, !o"/,:%,' 9o,&-9(-/. Co"'/

  • 8/13/2019 Fundamental Analysis of Iron and Steel Industry and Tata Steel (Indiabulls) ...

    33/77

    7$ / $/%, *0*0 o // / /;:/!/- /;:%"'(o" (" -o/'(! %"- ("/,"%(o"%& -/%"-

    (" / !o("g $/%,'.

    T"e Indin Stee& indu'tr#- S+OT An'i'

    STREN)T.S

    1.I,o" o,/ ,/'/,8/' o+ * 7(&&(o" o"/'

    *.Lo9 !o' %"- /++(!(/" &%7o, +o,!/

    . S,o"g %"%g/,(%& !%:%7(&($

    4. Hg/ :o/"(%& +o, -/%"-

    >.S,o"g&$ g&o7%&(=/- ("-',$ %"-

    //,g("g g&o7%& !o:/((8/"/''

    6. Mo-/," "/9 :&%"' %"- o-/,"(=/- o&-

    :&%"'

    ). R/g(o"%&&$ -(':/,'/- /,!%" ,o&&("g

    (&&'

    +EANESSES

    1. H(g !o' o+ /"/,g$

    *. H(g/, -(/' %"- %;/'

    . I"+,%',!,/

    4. %&($ o+ !o5("g !o%&

    >. L%7o, &%9'

    6.D/:/"-/"!/ o" (:o,' +o, '//&

    %"+%!,("g /. I"!,/%'("g ("/,/' o+ +o,/(g" '//&

    :,o-!/,' (" I"-(%

    T.REATS

    1.S&o9 g,o9 (" ("+,%',!,/

    -/8/&o:/"

    *. G&o7%& /!o"o(! '&o9-o9"

    . M%,5/ +&!%(o"' %"- C("%' /;:o,

    :o''(7(&((/'

  • 8/13/2019 Fundamental Analysis of Iron and Steel Industry and Tata Steel (Indiabulls) ...

    34/77

    PART /=1 ANALYSIS OF TATA STEEL

    (c,$round

    E'%7&('/- (" 120) T%% S//& (' A'(%' +(,' %"- I"-(%' &%,g/' ("/g,%/- :,(8%/ '/!o,'//& !o:%"$. W( (' !%:(8/ (,o" o,/ %"- !o%& ("/' %"- o"/ o+ / 9o,&-' o'

    o-/," '//& %5("g %"- +("('("g +%!(&((/' % %'/-:, (" /%'/," I"-(% 9(!

    ("!&-/' % '%/?o+? / %, Co&- Ro&&("g M(&& !o:&/; T%% S//& (' %o"g / &o9/'

    !o' :,o-!/, o+ '//& (" / 9o,&-. T/ !o:%"$ ("/"-' o ,%('/ (' !%:%!($ o 1>

    (&&(o" o""/' :/, %"" 7$ *010 ,og o,g%"(! g,o9 %"- %!

  • 8/13/2019 Fundamental Analysis of Iron and Steel Industry and Tata Steel (Indiabulls) ...

    35/77

    )0000 !,o,/' (" / "/; -/!%-/ !o"'(("g / &%,g/' ("8/'/" 9((" / T%%

    G,o:.

    T%% S//&' ,/&/"&/'' .

    Vi'ion 466@

    To '/(=/ / o::o,"((/' o+ oo,,o9 %"- !,/%/ % +,/ % 9(&& %5/ ' %" EVA

    :o'((8/ !o:%"$. To !o"("/ o (:,o8/ /

  • 8/13/2019 Fundamental Analysis of Iron and Steel Industry and Tata Steel (Indiabulls) ...

    36/77

    A Su'tin!&e Competiti*e Ad*nt$e- A!!/'' o R%9 M%/,(%&1

    W/ 7/&(/8/ % %!!/'' o ,%9 %/,(%& (' % !,((!%& +%!o, (" -//,("("g % '//&

    :,o-!/,' &o"g?/, :,o+(%7(&($. T('!o' (g -/g,// o+ ("/g,%(o" g(8/' ( %

    ''%("%7&/ !o:/((8/ %-8%"%g/ o8/, (' ://,' %"- 9(&& 7oo' (' 7oo &("/.

    W/ 7/&(/8/ % T('!o (' 7/' :&%!/- (" / ("-',$ 9( !%:(8/ (,o" o,/ 9(! //' ('

    /"(,/ ,/

  • 8/13/2019 Fundamental Analysis of Iron and Steel Industry and Tata Steel (Indiabulls) ...

    37/77

    (:%! o+ 8o&%(&/ '//& :,(!/'. S(+ (" !o",%! (; (" +%8o, o+ &o"g?/, !o",%!' %&'o

    /"',/' % (' !,,/" :,o+(%7(&($ &/8/&' %,/ ''%("%7&/.

    Are' O% (u'ine''

    A:%, +,o / %(" '//& -(8('(o" T%% S//&' o:/,%(o"' %,/ g,o:/- "-/, ',%/g(!

    :,o+( !/",/ &(5/ 7/' g,o9 'o: +o, (' '//& :&%" %"- %/,(%& %"-&("g

    /

  • 8/13/2019 Fundamental Analysis of Iron and Steel Industry and Tata Steel (Indiabulls) ...

    38/77

    3"!(o" '/,8(!/'

    TRF

    %'/-:, U(&($ %"- S/,8(!/ Co:%"$ USCO

    T/ I"-(%" S//& %"- W(,/ P,o-!'ISWP

    L%"5% S:/!(%& S//&

    S(&% E%'/," Co:%"$

    En*ironment mn$ement

    %'/-:, 9%' I"-(%' +(,' :&%""/- ("-',(%& o9"'(:. I" o,/ ,/!/" (/' T%%

    S//& %' ,/!/(8/- ISO 14000 !/,(+(!%(o" +o, /"8(,o"/" %"%g//" +o, o' o+ ('

    9o,5' :&%"' ("/' %"- !o&&(/,(/'.

    Corporte 'oci& re'pon'i!i&it#

    T%% S//& (' o"/ o+ / +/9 I"-(%" !o:%"(/' o 7/ ("8(/- o 3o(" / UN?':o"'o,/-

    G&o7%& Co:%!. I %' %&'o 7//" !o"+/,,/- / :,/'(g(o' G&o7%& @'("/'' Co%&((o"

    A9%,- G@C +o, @'("/'' E;!/&&/"!/ (" / Co"($ (" 8(/9 o+ (' o'%"-("g

    9o,5 (" / +(/&- o+ HIV AIDS %9%,/"/''.

    Mn$ement

    T/ Co:%"$ %' % No"?E;/!(8/ C%(,%" %"- / "7/, o+ I"-/:/"-/" D(,/!o,'

    (' o,/ %" o"/?(,- o+ / o%& "7/, o+ D(,/!o,'. T/ "7/, o+ No"?E;/!(8/

    D(,/!o,' NED' (' o,/ %" >0 o+ / o%& "7/, o+ D(,/!o,'. No"/ o+ /

    D(,/!o,' o" / @o%,- (' % M/7/, o" o,/ %" 10 Co(//' %"- C%(,%" o+ o,/

    %" > Co(//' %' ':/!(+(/- (" C&%'/ 42 %!,o'' %&& / !o:%"(/' (" 9(! / (' %

    D(,/!o,. T/ "/!/''%,$ -('!&o',/' ,/g%,-("g Co(// :o'((o"' %8/ 7//" %-/ 7$

    / D(,/!o,'.

  • 8/13/2019 Fundamental Analysis of Iron and Steel Industry and Tata Steel (Indiabulls) ...

    39/77

    Seven @o%,- M//("g' 9/,/ /&- -,("g / $/%, *00>?06 %"- / g%: 7/9//" 9o

    //("g' -(- "o /;!//- +o, o"'. O o+ / 1 D(,/!o,' > %/"-/- %&& /

    //("g' %"- > o/,' %/"-/- o,/ %" > //("g'. T(' 'o9' % -(,/!o,' %/"-

    / //("g' %"- %,/ ("8o&8/- (" / (:o,%" %++%(,' o+ / !o:%"$.

    S"re "o&din$ pttern

    %' o" 1?D/!?*006 S%,/'

    Fo,/(g"

    10>1>20

    22 1.1*

    I"'((o"'

    1*4)2

    1 *1.4*

    Go8 Ho&-("g

    1*1)

    6) 0.0*No" P,oo/, Co,:. Ho&-. *6120>12 4.>1P,oo/,' 1)>6>**16 0.*6P7&(! B O/,' 142011) *>.6To%&' >04)*>6 100

    S'AE 'OLDING (ATTEN

    fore)*n

    )nst)t+t)ons

    *o,t hol-)n*

    non $ro.oter *ro+$

    $ro.oters

    $+bl)c an- other

    T(' 'o9' % / %3o, '%,/ o&-("g o+ / !o:%"$ (' 9( / :,oo/, g,o: %"-

    / :7&(!.

    2

  • 8/13/2019 Fundamental Analysis of Iron and Steel Industry and Tata Steel (Indiabulls) ...

    40/77

    PART /1 DETAILED ANALYSIS OF T.E ANNUAL REPORT

    T/ A""%& R/:o, (' 7,o5/" -o9" ("o / +o&&o9("g ':/!(+(! :%,'

    A. T/ D(,/!o,' R/:o,

    @. T/ A-(o,' R/:o,

    C. T/ F("%"!(%& S%//"' %"-

    D. T/ S!/-&/' %"- No/' o / A!!o"'.

    T"e Director' Report

    T/ D(,/!o,' R/:o, (' % ,/:o, '7(/- 7$ / -(,/!o,' o+ % !o:%"$ o ('

    '%,/o&-/,' %-8('("g / o+ / :/,+o,%"!/ o+ / !o:%"$ "-/, /(, '/9%,-'(:.

    T/ D(,/!o,' R/:o, :,o8(-/' %" ("8/'o, 8%&%7&/ ("+o,%(o". I '%/' / +o&&o9("g

    (:o,%" +%!'?

    40

  • 8/13/2019 Fundamental Analysis of Iron and Steel Industry and Tata Steel (Indiabulls) ...

    41/77

    T/ !o:%"$ !%"g/- (' "%/ +,o TISCO o TATA STEEL LTD. 9./.+.

    1* %g' *00>

    E!o"o(! !o"-((o"' %,o"- / 9o,&- %8/ 7//" /"!o,%g("g. T/ US '%9

    ''%("/- GDP g,o9 o+ o8/, * ,ogo / $/%, 9(&/ %:%" o8/-

    o o+ -/+&%(o"%,$ !o"-((o"' %"- /8/" E,o:/ %' 'o9/- '(g"' o+ ("-',(%&

    g,o9 %"- !o"':(o" 7$ / /"- o+ / &%' +("%"!(%& $/%,.

    C("% %&o"g 9( o/, -/8/&o:("g /!o"o(/' &(5/ I"-(% %,/ &(5/&$ o !o"("/

    o -,(8/ -/%"- g,o9 (" '//& 9(&/ E,o:/ %"- US -/%"- (' %&'o &(5/&$

    o ,/%(" ,o7'.

    T/ o&oo5 +o, / ("-',$ ,/%("' :o'((8/ og ,('("g !o'' o" %!!o"

    o+ ,%9 %/,(%&' +,/(g %"- /"/,g$ 9(&& 5//: / %,g("' "-/, :,/'',/.

    T/ I"-(%" /!o"o$ g,/9 % %" /'(%/- .1 (" FY 06. T(' ("!&-/' %

    ',o"g :/,+o,%"!/ (" '//& !o"'("g '/!o,' &(5/ %oo7(&/' /"g("//,("g

    !o"',!(o"' %"- 9(/ goo-'.

    T/ Go8/,"/" %' '7'%"(%&&$ ("!,/%'/- / %&&o!%(o" +o, 8%,(o'

    ("+,%',!,/ :,o3/!' "-/, / @%,% N(,%" :,og,% 9(! (' /;:/!/- o

    7/ (:&//"/- o8/, / "/; !o:&/ o+ $/%,'.

    E;:o,' !,o''/- US1007". %,5 (" *00>?06. Fo, !o"'/!(8/ $/%, o+

    o,/ %" *0 /;:o,' g,o9

    Mo-/,%/ ("+&%(o" ,%/ ? 9((" 4?>

    S%7&/ R:// %g%("' US -o&&%,

    G,o9("g Fo,/; ,/'/,8/' ? US 160 7".

    @'("/'' Co"+(-/"!/ % %&& (/ (g

    T/'/ +%!o,' ("-(!%/ % I"-(% (' % / ("+&/;(o" :o(" o+ -/8/&o:/" 9(! 7o-/

    9/&& +o, / -o/'(! '//& ("-',$ (" / +,/. T/ :%!/ o+ I"-(%' -/8/&o:/" 9o&-

    -/:/"- o" / /;/!(o" o+ / 8%,(o' ("+,%',!,/ :,o3/!' %""o"!/- 7$ /

    Go8/,"/" -,("g / $/%,. TATA STEEL oo %' -/8/&o:/- % &o"g /, ',%/g$ o+

    -/8/&o:("g % ',o"g 7%'/ (" I"-(% :,'("g / -/?("/g,%/- :,o-!(o" !%:%7(&($ o+

    %5("g ("/,/-(%/ '//& (" &o9 !o' g/og,%:(/' %"- +("('("g (" g,o9("g %"-

    41

  • 8/13/2019 Fundamental Analysis of Iron and Steel Industry and Tata Steel (Indiabulls) ...

    42/77

    -/8/&o:/- %,5/'. I" :,'("g (' ',%/g$ / !o:%"$ (' :&%""("g o 7(&- G,//"+(/&-

    P,o3/!' (" O,(''% C%('g%, %"- %,5%"- (" / "/; -/!%-/. I (' %&'o 9o,5("g

    o9%,-' o9"/,'(: %"- -/8/&o:/" o+ %--((o"%& ,%9 %/,(%& 'o,!/' (" I"-(% %"-

    o8/,'/%' +o, (' /"%"!/- o:/,%(o"'. A' :%, o+ / -/?("/g,%/- ',%/g$ ( %' '(g"/-

    / -/+("((8/ %,,%"g//"' 9( 8%,(o' !o:%"(/' %7,o%-. T' (" /'/ /,' /

    !o:%"$ %' '!!//-/- (" +&+(&&("g (' o73/!(8/'.

    T/ N/ P,o+( %+/, %;/' % R' >06. !,o,/' 9%' %,g("%&&$ (g/, ("

    !o:%,('o" o :,/8(o' $/%,. O:/,%("g :,o+( 9%' %,g("%&&$ &o9/, % R'.

    >21.>1 !,o,/' %' %g%("' R'.6 04>.6 !,o,/' (" / :,/8(o' $/%,.

    Yo, Co:%"$ %' +o,%$/- ("o o,g%"(=/- '//& ,/%(&("g 7$ o:/"("g '//&

    3"!(o" % Ko&5%% % o"/?'o: 'o: +o, '//& :,o-!' &(5/ :(:/ 7/ 9(,/

    '// 7(&-/,' %,-9%,/ %,!(/!,%& (/' &(+/'$&/ :,o-!' 5(!/"

    :,o-!' /!. T(' 9(&& /"%7&/ %,!(/!' ("/,(o, -/!o,%o,' %"- 7(&-/,' ("

    %"- %,o"- Ko&5%% o /%'(&$ %!!/'' '//& :,o-!' +o, /(, '/.

    T/ @o%,- +o, / $/%, /"-/- 1' M%,! *006 %' ,/!o/"-/- %

    -(8(-/"- 10 R'. 1? :/, '%,/ '73/! o / %::,o8%& o+ /

    '%,/o&-/,' % / A""%& G/"/,%& M//("g.

    I"/,"%(o"%& C,/-( ,%("g Ag/"!$ S%"-%,- B Poo,' S B P :g,%-/-

    +o,/(g" !,,/"!$ ,%("g o+ / Co:%"$ o @@@ 9( '%7&/ o&oo5 9(!

    (' 9o "o!/' %7o8/ I"-(%' 'o8/,/(g" ,%("g. W( (' ,%("g TATA

    STEEL (' (" / ("8/'/" g,%-/ +o, %"$ +o,/(g" !,,/"!$ -/7 (''%"!/.

    A!!o,-("g o S B P / Co:%"$ (' !o"'(-/,/- 9/&& ("'&%/- +,o -(,/!

    %"- ("-(,/! 'o8/,/(g" ,('5' '("!/ ( -/o"',%/' o-/,%/ &/8/,%g/ ',o"g

    +,// !%' +&o9 g/"/,%(o" %"- % !o:/((8/ 7'("/'' :,o+(&/.

    I" / ,/!/" :%' / Co:%"$ %' 7//" ',/"g/"("g (' 7%&%"!/ '// 7$

    ("!,/%'("g !%' +&o9' ,/-!("g ("/,/' !o' %"- (:,o8("g 9o,5("g !%:(%&

    %"%g//". W( (' /++o, / Co:%"$ (' (" % :o'((o" o %5/ %-8%"%g/

    o+ g,o9 o::o,"((/' (" / g&o7%& '//& %,5/. T/ ',:&' +"- o+ /

    Co:%"$ "o ,/

  • 8/13/2019 Fundamental Analysis of Iron and Steel Industry and Tata Steel (Indiabulls) ...

    43/77

    !,o,/'. S! %" ("8/'/" (' 9('/ %"- :,-/" o" / :%, o+ / !o:%"$ ("

    o,-/, o ,/%: %--((o"%& 7/"/+('.

    A&& / %7o8/ :o("' %5/ / /;:%"'(o" :,og,%/ "-/,%5/" 7$ / !o:%"$ 8/,$

    &!,%(8/ +o, ( (" / &o"g ,". I %' / !%:(8/ ,/'o,!/' % (' -(':o'%& &(5/ "o7o-$ /&'/

    (" / ("-',$. T/ ("-(!%(o"' %,/ %&& :o'((8/ +o, / ("-',$ %"- / !o:%"$ %5("g

    / %7o8/ /"(o"/- :,o3/!' "-/,%5/" 7$ / !o:%"$ 7/"/+(!(%& o 7/ :,'/- (" /

    &o"g ,".

    T"e Auditor' Report

    T/ %-(o, ,/:,/'/"' / '%,/o&-/,' %"- ( (' (' -$ o ,/:o, o / '%,/o&-/,'

    %"- / g/"/,%& :7&(! o" / '/9%,-'(: o+ / !o:%"$ 7$ (' -(,/!o,'. A-(o,' %,/

    ,/

  • 8/13/2019 Fundamental Analysis of Iron and Steel Industry and Tata Steel (Indiabulls) ...

    44/77

    / "%,/ o+ (' %''/'. A!!o,-("g o / ("+o,%(o" %"- /;:&%"%(o"' g(8/" "o %/,(%&

    -('!,/:%"!(/' 9/,/ "o(!/- o" '! 8/,(+(!%(o".

    In*entorie'-

    A!!o,-("g o / ("+o,%(o" %"- /;:&%"%(o"' g(8/" / :,o!/-,/' o+ :$'(!%&

    8/,(+(!%(o" o+ ("8/"o,(/' +o&&o9/- 7$ / %"%g//" %,/ ,/%'o"%7&/ %"- %-/. T/ Co:%"$ %' "o %5/" %"$ &o%" +,o %"$ :%,$ !o8/,/- (" / ,/g('/,

    %("%("/- "-/, S/!(o" 01 o+ / Co:%"(/' A! 12>6.

    Intern& contro& '#'tem-

    T/,/ (' %-/

  • 8/13/2019 Fundamental Analysis of Iron and Steel Industry and Tata Steel (Indiabulls) ...

    45/77

    1. T/ Co:%"$ %' 7//" g/"/,%&&$ ,/g&%, (" -/:o'(("g "-(':/- '%o,$ -/'

    ("!&-("g :,o8(-/" +"- ("8/'o, /-!%(o" %"- :,o/!(o" +"- ("!o/ %; '%&/' %;

    9/%& %; '/,8(!/ %; !'o' -$ /;!('/ -$ !/'' %"- o/, %/,(%& '%o,$ -/'

    %::&(!%7&/ o ( 9( / %::,o:,(%/ %o,((/' -,("g / $/%,.

    *. No "-(':/- %o"' :%$%7&/ (" ,/':/! o+ ("!o/ %; 9/%& %; '%&/' %;

    !'o' -$ /;!('/ -$ !/'' %"- o/, %/,(%& '%o,$ -/' %::&(!%7&/ o ( 9/,/ ("

    %,,/%,' %' % 1' M%,! *006 +o, % :/,(o- o+ o,/ %" '(; o"' +,o / -%/ /$

    7/!%/ :%$%7&/ /;!/: +o, '%&/' %; !o&&/!(o" 9(! %,/ ,/+"-%7&/ o !'o/,'

    7/!%'/ /$ %8/ 7//" !o&&/!/- (" /;!/'' o, 9(! %8/ 7//" !o&&/!/- :/"-("g ,/!/(:

    o+ / ,/&/8%" !/,(+(!%/' +,o / !'o/,'

  • 8/13/2019 Fundamental Analysis of Iron and Steel Industry and Tata Steel (Indiabulls) ...

    46/77

    T.E FINANCIAL STATEMENTS

    Pro%it nd Lo'' An'i'

    Income

    1 N/ ("!o/ +,o o:/,%(o"' ("!,/%'/- 7$ 4 :o R'. 1>12.2 !, %" %7'o&/

    !%"g/ o+ R'. 640.44 !, 9(&/ '%&/' o+ !o,/ :,o-!' /;!&-("g '%&/ o+ :o9/,

    %"- 9%/, ,o'/ 7$ +,o R'. 1>*>0.62 !, o R'. 16>*1.44 !, ,/%'o"' 7/("g

    S//& -(8('(o"? -o/'(! '%&/' ("!,/%'/- 7$ 1) :o R'. 22>.4 !,.

    T7/' -(8('(o"?'%&/' ("!,/%'/- 7$ 1> :o R'. 1006 .12 !,

    F/,,o %&&o$' -(8('(o" %"- 7/%,("g' -(8('(o"?'%&/' ,/-!/- %"- ("!,/%'/- 7$

    1 %"- 2 ,/':/!(8/&$.

    T(' 'o9 % o8/,%&& /,/ (' %" ("!,/%'/ (" / o:/,%("g /++(!(/"!$ %"-

    !%:%7(&($ o+ / !o:%"$.

    * O/, ("!o/ %' ("!,/%'/- +,o R'. 14. 0 !, o R'. *>4.)6 !,. I !o:,('/'%("&$ o+ I"!o/ +,o ("8/'/"' ("!,/%'/ o+ >0 %"- :,o+( o" '%&/ o+

    !%:(%& %''/'. @ o/, ("!o/ +o,' %" ("'(g"(+(!%" :o,(o" o+ / o%& "/

    ("!o/ %&o' 1.). T(' '(g"(+(/' % / !o:%"$ (' -/,(8("g (' ("!o/

    %("&$ +,o !o,/ ,/!,,("g %"- :,o-!(8/ o:/,%("g %!(8((/'.

    46

  • 8/13/2019 Fundamental Analysis of Iron and Steel Industry and Tata Steel (Indiabulls) ...

    47/77

    E3penditure

    1 To%& /;:/"-(,/ %' ,('/" 7$ 2 %7'o&/ !%"g/ 7/("g 4*.*> !, %("&$ -/ o

    ("!,/%'/ (" %"+%!,("g %"- o/, /;:/"'/' 7$ ).6. T(' ("-(!%/' % /

    !o:%"$ (' ':/"-("g o,/ o" (' !o,/ %!(8($ %"- /:%'(=/' o" /;:%"-("g ('

    7'("/'' ,og (' !o,/ 9o,5("g o"&$. No9 / ,/%'o"' +o, /'/ %,/ %' +o&&o9'

    I !o:,('/' o+ P,!%'/ o+ +("('/- %"- '/(? +("('/- '//& R%9 %/,(%&

    !o"'/- :%$/"' o /:&o$//' o:/,%(o"%& %"- o/, /;:/"'/' +,/(g

    %"- %"-&("g !%,g/' %"- :,o8('(o" +o, -o7+& -/7'.

    R%9 %/,(%&' !o"'/- %8/ ("!,/%'/- 7$ -/ o ("!,/%'/ (" !o' o+

    (:o,/- !o%& +/,,o %&&o$' %"- =("!. R%9 %/,(%& :,!%'/- +,o o'(-/ ('

    ! o,/ %" ,%9 %/,(%& :,o-!/- 9((" / !o:%"$. R%9 %/,(%&

    /;:/"'/' +o, % '(g"(+(!%" :o,(o" o+ o%& /;:/"'/'.

    P,!%'/ o+ '/(? +("('/- +("('/- '//& %"- o/, :,o-!' %' -/!,/%'/- 7$

    >0.

    O:/,%(o"%& /;:/"'/' %8/ ("!,/%'/- 7$ 10 9(! +o, %&o' 4 o+ /

    o%& /;:/"-(,/. T(' (' %("&$ -/ o ("!,/%'/ (" 'o,/' !o"'/- 12

    !o"8/,'(o" !%,g/' * %"- o/, /;:/"'/' 11.

    P%$/"' o %"- :,o8('(o" +o, /:&o$//' %"- F,/(g %"- %"-&("g !%,g/'

    ("!,/%'/- 7$ > %"- ) ("!,/%'/ (" 8o&/ o+ '%&/' ,/':/!(8/&$.

    * D/:,/!(%(o" %' ("!,/%'/- 7$ *6 %("&$ -/ o ("!,/%'/ (" g,o'' 7&o!5 %"- ('

    (' 6 o+ "/ '%&/'.

    I"/,/' %' -/!,/%'/- 7$ ) -/ o -/!,/%'/ (" 7o,,o9("g' o+ o8/,%&& &o%"' 7$

    '/!,/- &o%"' -/!,/%'/ 7$ 11.

    EMPLOYEE SEPERATION COMPENATION

    I %' -/!,/%'/- 7$ >6 -/ o ,/8('(o" (" AS?1> %"- '/:%,%(o" o+ 1141 /:&o$//'

    -,("g / $/%,.

    P@T

    4)

  • 8/13/2019 Fundamental Analysis of Iron and Steel Industry and Tata Steel (Indiabulls) ...

    48/77

    I %' -/!,/%'/- 7$ 1 %("&$ -/ o ("!,/%'/ (" %"+%!,("g /;:/"'/' %7'o&/

    %o" 7/("g R'. >*2.26 !, > o+ "/ '%&/'.

    PAT

    I %' ("!,/%'/- 7$ 1 %7'o&/ !%"g/ 7/("g *.** !, %("&$ -/ o ,/-!(o" (" %;

    &(%7(&($ 7$ >!,,/" %; ,/-!/- 7$ 14.

    I (' *4 o+ "/ '%&/'.

    PROFIT FOR APPROPRIATION

    I %' ("!,/%'/- 7$ *2 %"- (' % R' >*26.>2 !, %("&$ -/ o 7%&%"!/ 7+ +,o &%' $/%,

    (./. 1)20.*1 !,. I %' 7//" -(8(-/- %' +o&&o9' P,o:o'/- D(8(-/"-? R'. )12.>1 !, T%; o"

    D(8(-/"-? R'. 100.2* !, %"- G/"/,%& ,/'/,8/? R'.1>00 !,. Ao" ,%"'+/,,/- o g/"/,%&

    ,/'/,8/ (' 2.2 o+ "/ '%&/'.

    (&nce S"eet An'i'

    Fund' Emp&o#ed-

    Source' o% Fund'

    1 SHARE CAPITAL

    T%% S//& %' 3' 9o !&%''/' o+ '%,/'. I' %o,(=/- '%,/ !%:(%& ('

    -(8(-/- ("o 60 !,o,/ o,-("%,$ '%,/' o+ R'. 10 /%! %"- *.> !,o,/ !&%(8/

    ,/-//%7&/ :,/+/,/"!/ '%,/' o+ R'. 100 /%!. O o+ (' 5540)42*

    O,-("%,$ S%,/' %8/ 7//" (''/- %"- >>4)*>6 O,-("%,$ S%,/' %8/

    7//" +&&$ '7'!,(7/- %"- :%(- +o,. T/ !%:(%& /(/, %o,(=/- o, :%(- :%' "o !%"g/- o8/, / :,/8(o' $/%,.

    F,/, -/%(&' :,o8(-/- -('!&o'/ % / %7o8/ !%:(%& !o"'('' o+ %

    9oo:("g *>) 20 22* '%,/' (''/- %' 7o"' '%,/'. T/'/ '%,/' %8/

    7//" (''/- 7$ (&(=("g +"-' /(/, +,o / S/!,((/' P,/( %!!o" o,

    / G/"/,%& R/'/,8/.

    4

  • 8/13/2019 Fundamental Analysis of Iron and Steel Industry and Tata Steel (Indiabulls) ...

    49/77

    )*1 >0 '%,/' %8/ 7//" (''/- %' +&&$ :%(- : o / S%,/o&-/,' o+ /

    /,'9(&/ I"-(%" T7/ Co:%"$ L((/- o" (' %%&g%%(o" 9( /

    Co:%"$ +o, !o"'(-/,%(o" o/, %" !%'.

    1*1000 '%,/' o+ / +%!/ 8%&/ o+ R'. 10 :/, '%,/ 9/,/ (''/- %' +&&$

    :%(- : o / '%,/o&-/,' o+ / /,'9(&/ T%% SSL L-. o" ('

    %%&g%%(o" 9( / Co:%"$ +o, !o"'(-/,%(o" o/, %" !%'.

    A--("g %&& / '%,/' (''/- %' 7o"' '%,/' %"- o'/ (''/- o '%,/ o&-/,'

    "-/, '!//' o+ %%&g%%(o" 9/ +("- o % o o+ / o%& '7'!,(7/-

    !%:(%& *>2 6* >*> '%,/' %8/ 7//" (''/- +o, !o"'(-/,%(o" o/, %"

    !%'. T' / / o+ / /?06 -/ o E;!%"g/F&!%(o" o" &o"g /, &o%"' (" ,/&%(o" o "o"?("/g,%& +o,/(g" o:/,%(o".

    T/ ',:&' ,%"'+/,,/- +,o / :& %!!o" o / ,/'/,8/ %' ("!,/%'/- +,o

    R'. 1)20.*1 !,o,/' o R'. *2)6.16 !,o,/'. T(' ("-(!%/' o / +%! % /

    !o:%"$ %' ,/%("/- o,/ /%,"("g' %' !o:%,/- o :,/8(o' $/%,. T(' /&&'

    % !o:%"$ -o/' "o %8/ % &o o+ goo- ("8/'/" o::o,"((/' %"-

    42

  • 8/13/2019 Fundamental Analysis of Iron and Steel Industry and Tata Steel (Indiabulls) ...

    50/77

    /"!/ :,/+/,' ,/%("("g :,o+('. T(' 9(&& &/%- o &/'' -(',(7(o" o+ :,o+( o

    / '%,/o&-/,' 7 9(&& ("!,/%'/ +,/ /%,"("g' o+ / !o:%"$.

    T' / ("!,/%'/ o+ %::,o;(%/&$ 4* (' %("&$ -/ o ("!,/%'/ (" g/"/,%&

    ,/'/,8/ 42 %"- ("!,/%'/ (" 7%&%"!/ !+ +,o :,o+( %"- &o'' %! 66.

    TOTAL SHAREHOLDERS FUND

    I %' ("!,/%'/- 7$ R'. *62>. !,o,/' %("&$ -/ o '7'%"(%& ("!,/%'/ ("

    R/'/,8/' %"- S,:&'.

    4 LOANS

    SECURED LOANS

    T%% S//& %' 'e*en -(++/,/" !&%''/' o+ No" J Co"8/,(7&/

    D/7/",/' :,(8%/&$ :&%!/- 9( %"$ -(++/,/" 7%"5' %"- :%,(/'.

    T/'/ ("!&-/ D/7/",/' !%,,$("g ("/,/' ,%/' o+ 14 14.*>

    10.>0 1*.60 2.20 2.>0 %"- 2.4>. T/'/ %,/ '/!,/- 7$

    o,g%g/' o" %&& :,/'/" %"- +,/ +(;/- %''/' /;!&-("g &%"- %"-

    7(&-("g' o,g%g/- (" +%8o, o+ Go8/,"/" o+ I"-(% &%"- %"-

    7(&-("g' :&%" %"- %!("/,$ %"- o8%7&/' o+ / T7/' D(8('(o"

    %"- / @/%,("g' D(8('(o" o,g%g/- (" +%8o, o+ / +("%"!(%&("'((o"' %"- 7%"5' %''/' o+ / F/,,o A&&o$' P&%" % @%"(:%&

    o,g%g/- (" +%8o, o+ S%/ @%"5 o+ I"-(% %"- %''/' o+ Co&- Ro&&("g

    Co:&/; W/' % T%,%:, %"- % +&o%("g !%,g/ o" o/, :,o:/,(/'

    %"- %''/' /;!&-("g ("8/'/"' o+ / Co:%"$.

    T/ !o:%"$ %' S$"-(!%/- &o%"' +,o 8%,(o' 7%"5' &(5/ AN

    ("8/'/" 7%"5 S@I @%"5 o+ A/,(!% 9(! %8/ 7//" '/!,/- 7$

    %''/' %' /"(o"/- (" / %7o8/ :o(" +o, /%! 7%"5.

    T/ !o:%"$ %' %&'o %5/" &o%"' +,o ID@I %"- o(" P&%"

    Co(//?S//& D/8/&o:/" F"-.

    T/ '$"-(!%/- &o%"' %8/ 7//" ,/:%(- 7$ T%% S//& %' 9/&& %' /

    14 "o" !o"8/,(7&/ -/7/",/'.

    >0

  • 8/13/2019 Fundamental Analysis of Iron and Steel Industry and Tata Steel (Indiabulls) ...

    51/77

    1*.60 "o" !o"8/,(7&/ -/7/",/' %8/ 7//" ,/-///- o+ / 8%&/

    o+ R'. ).> !,o,/' %"- %&'o % :%, o+ / &o%" +,o ID@I %' 7//" :%(-

    7%!5.

    S/!,/- &o%"' !o"'('' o+ '$"-(!%/- &o%"' +,o 8%,(o' 7%"5' "o"

    !o"8/,(7&/ -/7/",/ :,(8%/&$ :&%!/- !%' !,/-(' +,o 7%"5' %"-

    &o%"' +,o PC?SDF.

    C,,/" &/8/& o+ '/!,/- &o%"' '%"- % R'. *121.)4 !,o,/' o o+

    9(! R'. 46*.> !,o,/' %,/ (" +o, o+ "o" !o"8/,(7&/ -/7/",/' R'.

    1602.*> !,o,/' o+ &o%" +,o o(" P&%" Co(// S//&

    D/8/&o:/" F"- R'. 6.4) !,o,/' +,o ID@I %"- R'. >6.42 !,o,/'

    %' !%' !,/-( +,o 8%,(o' 7%"5'.

    S/!,/- Lo%"' %8/ -/!,/%'/- 7$ *)6.44 !,o,/' %("&$ -/ o

    -/!,/%'/ (" '$"-(!%/- &o%"' +,o 8%,(o' 7%"5'.

    UNSECURED LOANS

    T(' ("!&-/' +(;/- D/:o'( Lo%" +,o HDFC Lo%"' +,o F("%"!(%&

    I"'((o"' &(5/ %:%" @%"5 +o, ("/,"%(o"%& !oo:/,%(o" %"- o/,

    ("'((o"' @$/,' !,/-( ,/:%$%7&/ "-/, +o,/(g" !,,/"!$ %"-

    I"/,/' F,// &o%"' S%&/' %; D/+/,,%& S!//.

    T/,/ %' 7//" % -/!,/%'/ (" /8/,$ o/, &o%" /;!/: ("!,/%'/ ("

    @$/,' !,/-( ,/:%$%7&/ "-/, +o,/(g" !,,/"!$

    T/,/ %' 7//" %" o8/,%&& ("!,/%'/ (" U"'/!,/- Lo%"' 7$ R'. >

    !,o,/' %" ("!,/%'/ o+ 12 -/ o '7'%"(%& ("!,/%'/ (" 7$/,' !,/-((" +o,/(g" !,,/"!$ 7$ **0.

    To%& Lo%"' %8/ -/!,/%'/- 7$ R'. ** !,o,/' % -/!,/%'/ o+ .

    7: DEFFERED TAX LIA(ILITY 9NET:

    >1

  • 8/13/2019 Fundamental Analysis of Iron and Steel Industry and Tata Steel (Indiabulls) ...

    52/77

    I %' ("!,/%'/- 7$ R'.1*).> !,o,/' -/ o ("!,/%'/ (" -(++/,/"!/ 7/9//" 7oo5 %"-

    %; -/:,/!(%(o" %"- % '%&& -/!,/%'/ (" /:&o$// '/:%,%(o" '!//.

    Tot& Fund' Emp&o#ed

    D/ o %&& / %7o8/ '%/- !%"g/' To%& F"-' E:&o$/- %' ("!,/%'/- 7$ R'. *4).>

    !o,/' %" ("!,/%'/ o+ *0. T/ %::&(!%(o" o+ /'/ +"-' %' 7//" /;:&%("/- 7/&o9.

    App&iction o% Fund'

    1 FIXED ASSETS

    GROSS @LOCK

    T%% S//& o9"' L%"- B 7(&-("g' ,%(&9%$ '(-("g' &/%'/o&-' :&%" B

    %!("/,$ +,"(,/ B +(;,/' &(8/'o!5 B 8/(!&/' %"- ("%"g(7&/' o%&("g

    R'. 26>.0> !,o,/' % -/:,/!(%/- 8%&/. @(&-("g' ("!&-/ +%!o,$ 7(&-("g'

    go-o9"' %-("(',%(8/ 7(&-("g' %"- ,/'(-/"(%& 7(&-("g'. R%(&9%$ '(-("g'

    /&: (" ,%"':o,("g +("('/- :,o-!' %"- ,%9 %/,(%&' o %"- +,o /

    "/%,/' ,%(&9%$ '%(o". I"%"g(7&/' ,/:,/'/" !o:/, 'o+9%,/ ,/g,o:/-+,o P&%" B M%!("/,$ %"- F,"(,/' F(;,/'. I (' %o,('/- % / ,%/ o+

    16.*1 :/, %"". W((" / +(;/- %''/' :&%" %"- %!("/,$ % (' / %''/' -(,/!&$

    "//-/- +o, :,o-!(o" %,/ % R'. 1 >1.26 !,o,/' o, * o+ +(;/- %''/'.

    N/; (' / %o" ("8/'/- (" 7(&-("g' % (' R'. *00).*4 !,o,/'.

    T/ '!/-&/ g(8/" (" %""/;,/ :,o8(-/' -/%(& ("+o,%(o" %7o G,o''

    7&o!5 %"- -/:,/!(%(o" +o, 8%,(o' +(;/- %''/' %&o"g 9( o8//"' %7o

    %--((o"' %"- -/&/(o"' (:%(,/" %"- N/ 7&o!5. To%& g,o'' 7&o!5 o+

    F(;/- %''/' (' R'. 16>64.20 !,o,/' 9/,/%' / N/ @&o!5 %o"' o

    R'.26>.0> !,o,/'.

    T/,/ %' 7//" %" ("!,/%'/ (" %&& / +(;/- %''/' o+ / !o:%"$.

    I"!,/%'/- 7$ R'. 1>02.6> !,o,/' (./. o8/, 10 -/ o g/ ("!,/%'/ (" :&%"

    %"- %!("/,$ ("!,/%'/- 7$ o8/, 100 !,o,/'.

    I:%(,/" -,("g / !,,/" :/,(o- (' "(&.

    >*

  • 8/13/2019 Fundamental Analysis of Iron and Steel Industry and Tata Steel (Indiabulls) ...

    53/77

    D/:,/!(%(o" o+ / !,,/" :/,(o- (' R'. ))>.10 !,o,/'

    To%& -/:,/!(%(o" %' ("!,/%'/- 7$ R'. )60 !,o,/' %"- ( '%"-' % R'. 660>

    !,o,/'.

    NET @LOCK ? ("!,/%'/- 7$ R'. )> !,o,/' o, .*.

    * INVESTMENTS

    I"8/'/"' %,/ -(8(-/- ("o Lo"g T/, %"- C,,/". Lo"g T/,

    I"8/'/"' %,/ -(8(-/- ("o T,%-/ I"8/'/"' %"- ("8/'/" ("

    S7'(-(%,(/'. Lo"g /, ("8/'/"' %,/ !%,,(/- % !o' &/'' :,o8('(o" +o,

    -("((o" (" 8%&/

    T,%-/ ("8/'/"' %,/ -(8(-/- ("o ("8/'/"' (" S%,/' %"- D/7/",/' o+

    8%,(o' !o:%"(/'

  • 8/13/2019 Fundamental Analysis of Iron and Steel Industry and Tata Steel (Indiabulls) ...

    54/77

    So!5 (" ,%-/ %' ("!,/%'/- 7$ R'. 11.40 !,o,/' %("&$ -/ o %" ("!,/%'/ ("

    +("('/- '/( +("('/- %"- ,%9 %/,(%&' :,!%'/. Wo,5?("? :,og,/'' %'

    -/!,/%'/- ("-(!%("g /++(!(/"!$ (" o:/,%(o".

    S"-,$ -/7o,' %8/ -/!,/%'/- 7$ R'. 4* !,o,/' 7 -/7o,' o8/, '(; o"'

    %8/ ("!,/%'/- 7$ R'. !,o,/'. D/!,/%'/ (" '"-,$ -/7o,' ("-(!%/' +%'/,

    ,/!o8/,$ o+ -/' %"- 7//, ,"o8/,. T(' ("-(!%/' (:,o8/- /++(!(/"!$ o+

    o:/,%(o"' %"- 7//, %"%g//" o+ -/7o,'.

    C%' %"- 7%"5 7%&%"!/' ("!&-/ !%' !,,/" %!!o"' 9( 8%,(o' 7%"5'

    %"- -/:o'( %!!o"' 9( '!/-&/- 7%"5'. I %' ("!,/%'/- 7$ R'. 4* !,o,/'

    -/ o %" ("!,/%'/ (" !,,/" %!!o"' 9( '!/-&/- 7%"5'. A" ("!,/%'/

    ("-(!%/' 7//, &(0 !,o,/' -/ o '7'%"(%& ,/-!(o" (" &o%"' %"-

    %-8%"!/' o '7'(-(%,$ !o:%"(/'.

    Lo%"' ("!&-/ "'/!,/- goo- &o%"' %"- !o"'(-/,/- -o7+& &o%"'.

    GROSS CURRENT ASSETS? I"!,/%'/- 7$ %::,o; R'. 1>4 !,o,/' ("-(!%("g 7//,

    &(

  • 8/13/2019 Fundamental Analysis of Iron and Steel Industry and Tata Steel (Indiabulls) ...

    55/77

    S"-,$ C,/-(o,' %8/ ("!,/%'/- 7$ R'. *14 !,o,/' %"- (' R' *>4.0 !,o,/'.

    T(' 9(&& %8/ %" %-8/,'/ (:%! o" / &(4.0 !,o,/' ("-(!%("g % /

    !o:%"$ /"3o$' +%, (g/, !,/-( :/,(o- %" ( %&&o9' o (' !'o/,'. A&'o

    C,/-(o,' +o, %&o' 2 o+ / o%& !,,/" &(%7(&((/'.

    T/,/ %8/ "o 7//" %"$ %7"o,%& !%"g/' (" o/, !,,/" &(%7(&((/' /;!/:

    I"/,/' %!!,/- 7 "o -/ 9(! -/!,/%'/- 7$ R'. 60.6 !,o,/'.

    C,,/" L(%7(&((/' ("!,/%'/- R'. 146 !,o,/' %("&$ -/ o ("!,/%'/ (" '"-,$

    !,/-(o,' %' /$ %8/ ("!,/%'/- 7$ o,/ %" *00 !,o,/'. I"!,/%'/ (" !,,/"

    &(%7(&((/' (' "o +%8o,%7&/ +o, -%$ o -%$ 9o,5("g o+ / !o:%"$.

    8: PROVISIONS

    T/ :,o8('(o"' ("!&-/ P,o8('(o"' +o, R/(,("g g,%((/' P,o8('(o" +o, %;

    P,o8('(o" +o, F@T %"- P,o:o'/- -(8(-/"-. T/ :,o8('(o" +o, ,/(,("g

    g,%((/' %' -/!,/%'/- 7 +&&$ !o8/,' / &(%7(&($ +o, / '%/.

    D/!,/%'/- ("'(g"(+(!%"&$ 7$ R'. ) !,o,/' o, .). M%3o, !"5 o+

    :,o8('(o"' %,/ +o,/- 7$ :,o:o'/- -(8(-/"- %"- :,o8('(o" +o, %;/'.

    T/ o%& o+ !,,/" &(%7(&((/' %"- :,o8('(o"' (' R' 0.)* !,o,/' 9(! ('

    '&(g&$ &/'' %" / o%& o+ !,,/" %''/' %"- &o%"' %"- %-8%"!/' 9(! ('

    R'. 4*).60 !,o,/'.

    H/"!/ / N/ C,,/" A''/' %,/ :o'((8/ %"- '%"- % R'. 4*. !,o,/'. T(' /%"'

    /,/ %,/ "o '++(!(/" +"-' 9( / !o:%"$ o +("%"!/ / -%(&$ 7'("/'' o, /

    !,,/" %''/'. T(' ("-(!%/' % / !o:%"$ 'o&- (:,o8/ (' 9o,5("g !%:(%&

    %"%g//" %"- !,/-( :o&(!$ (" o,-/, o (:,o8/ (' +("%"!("g :o'((o".

    >>

  • 8/13/2019 Fundamental Analysis of Iron and Steel Industry and Tata Steel (Indiabulls) ...

    56/77

    C'" F&o Sttement

    T/,/ (' % "/ !%' ("+&o9 o+ R'. 41.6) !,o,/' (' $/%, ,/'&("g (" / !%' 7%&%"!/ %

    / /"- o+ / $/%, o 7/ R'. *.2 !,o,/'. N/ !%' ("+&o9 %' ("!,/%'/- ,//"-o'&$

    ("-(!%("g (:,o8//" (" / &(

  • 8/13/2019 Fundamental Analysis of Iron and Steel Industry and Tata Steel (Indiabulls) ...

    57/77

    (" E:&o$// S/:%,%(o" Co:/"'%(o" %"- ("!,/%'/ (" O:/,%("g :,o+(

    7/+o,/ 9o,5("g !%:(%& !%"g/'.

    T/,/ (' % "/ !%' ("+&o9 o+ R'. 62 !, ("-(!%("g /++(!(/" 9o,5("g !%:(%&

    %"%g//".

    R'. 1)4) !, %' 7//" ':/"- o" %!!o" o+ -(,/! %;.

    C%' +&o9 +,o o:/,%("g %!(8((/' %' -/!,/%'/- (" !o:%,('o" o &%' $/%,.

    @ '(&& (' 2 !,. I ("-(!%/' % +%8o,%7&/ !%'

    :o'((o".

    M%3o, %!(8((/' %8/ 7//" (" ("8/'/"'. T/,/ %' 7//" % "/ :,!%'/ o+

    R'.1**>.*1 !, (" ("8/'/"'. T(' 'o9' % /,/ %' 7//" % %3o, !%'

    o+&o9.

    T%% S//& %- % o%& "/ !%' o+&o9 +o, +(;/- %''/' 9(! ("-(!%/' %

    7'("/'' (' /;:%"-("g. H(g ("8/'/" (" +(;/- %''/' 9(&& &/%- o (g/,

    ("!o/ +,o o:/,%("g %!(8((/' (" +,/.

    T/,/ (' % /%8$ '%&/ o+ ("8/'/".

    Finncin$ cti*itie'

    N/ !%' o+&o9 +,o +("%"!("g %!(8((/' (' R'.11*>.1 !,.

    T/,/ (' % (g o+&o9 o" %!!o" o+ -(8(-/"- %"- -(8(-/"- %; :%(-.

    I '//' % 'o, /, 7o,,o9("g' +,o 7%"5' %8/ 7//" '/- +o, -(8(-/"-

    :%$/".

    T/,/ %' 7//" "o !%:(%& !o",(7(o".

    I %' ,%('/- &o%"' /8/" og ( %' &o o+ ',:&' !%'.

    >)

  • 8/13/2019 Fundamental Analysis of Iron and Steel Industry and Tata Steel (Indiabulls) ...

    58/77

    Rtio An'i'

    e# Rtio'

    RATIOS COMPANY CALCULATED

    RON+ 9B:

    0

  • 8/13/2019 Fundamental Analysis of Iron and Steel Industry and Tata Steel (Indiabulls) ...

    59/77

    Intere't Co*er Rtio =4

  • 8/13/2019 Fundamental Analysis of Iron and Steel Industry and Tata Steel (Indiabulls) ...

    60/77

    mr$in

    466-67 4=

  • 8/13/2019 Fundamental Analysis of Iron and Steel Industry and Tata Steel (Indiabulls) ...

    61/77

    T/ PE R%(o +o, T%% S//& +o, *00>?06 9%' .)* %' !o:%,/- o 6.> (" / :,/8(o'

    $/%,. T/ EPS 9%' 61.>1 %"- / %,5/ :,(!/ %,o"- >6.) (" *00>?06. T(' ("!,/%'/

    (" PE 'o9' % / %,5/ /;:/!' / /%,"("g' o ,('/. I" *00>?06 g,o9 ,%/

    %!!o,-("g o "/ 9o, 9%' .1 %' !o:%,/- o >6.4 (" *004?0>. E8/" 9/" /

    g,o9 ,%/ %' !o/ -o9" / PE R%(o %' go"/ : ("-(!%("g % %,5/ %' +%( ("

    / g,o9 :o/"(%& o+ / !o:%"$. T(' PE R%(o (' "o '++(!(/"&$ (g ("-(!%("g

    % %,5/ -o/' "o /;:/! / /%,"("g' o+ / !o:%"$ o ,('/ :/"o/"%&&$. A 7(g

    ,/%'o" 7/("- (' (g 7/ % / g,o9 ,%/ o+ / !o:%"$ %' 7//" '%7(&(=("g ("

    / &%' 9o $/%,'. T/ !o:%"(/' % %8/ 7//" %,o"- +o, % 9(&/ %"- -o" %8/

    ! ,oo +o, /;:o"/"(%& g,o9 &(5/ T%% S//& 9(&& 7/ ',/ o -(',(7/ /(,

    /%,"("g' o ("8/'o,'. T/$ -o "o %8/ / '%/ "//- +o, ,/("8/'("g %' $o"g/,

    !o:%"(/'. A"- 7/!%'/ o+ (' /(, PE R%(o' %$ /"- o 7/ &o9/,.

    T/ PE R%(o +o, SAIL9%' 1.)2 (" / $/%, *00>?06. I" / :,/8(o' $/%,' / ,%(o

    9%' %,o"- %"- / !o:%"$ /;:/!' (' ,%(o o '%7(&(=/ 'o/9/,/ %,o"- o"&$ ("

    $/%,' o !o/. T(' ("-(!%/' % / ("-',$ %3o,' %8/ %&o' '((&%, 5("- o+ PE

    ("-(!%("g % / ("-',$ (' o" / '%7(&(=("g o-/ (./. ,/%!("g / %,($ '%g/.

    Di*idend P#out

    T/ D(8(-/"- P%$o :/,!/"%g/ +o, *00>?06 9%' *1.1. I" *004?0> / '%/ 9%' *1.4

    %"- (" *00?04 ( 9%' *1.)*. Fo, / &%' ,// $/%,' / P%$o %' 7//" %&o'

    !o"'('/" 'o9("g / ',o"g +"-%/"%&' o+ / !o:%"$. T' / !o:%"$ (' goo-

    +o, ("8/'/".

    Ernin$' Per S"re

    E%,"("g' :/, S%,/ %,/ !%&!&%/- 7$ -(8(-("g % !o:%"$' "/ ,/8/"/' 7$ /

    o'%"-("g '%,/'. T(' g(8/' $o % "7/, $o !%" '/ o !o:%,/ / /%,"("g' o+

    !o:%"(/' '("!/ ( (' "&(5/&$ %"$ 9o !o:%"(/' 9(&& %8/ / '%/ "7/, o+ '%,/'

    o'%"-("g.

    61

  • 8/13/2019 Fundamental Analysis of Iron and Steel Industry and Tata Steel (Indiabulls) ...

    62/77

    T/ EPS +o, T%% S//& 9%' R'. 61.>1 +o, *00>?06 %' !o:%,/- o R'. 60.21 +o, /

    :,/8(o' $/%,. T(' ("!,/%'/ (' -/ o / '&(g ("!,/%'/ (" / N/ P,o+( o+ / !o:%"$

    %' / "7/, o+ o'%"-("g '%,/' %' 7//" / '%/ +o, / 9o $/%,'.

    T/ EPS +o, SAIL 9%' 2.)* +o, *00>?06 %"- 16.>0 +o, *004?0>. T/ "/ /%,"("g' o+ /

    !o:%"$ %- !o/ -o9" (" *00>?06 %' !o:%,/- o :,/8(o' $/%, +,o R'. 61) !,o,/'

    o R'. 401 !,o,/'. A&og / :,o+( o+ / !o:%"$ (' o,/ %" % o+ TATA 7

    /(, EPS (' ! 7/&o9 % o+ TATA. T/ ,/%'o" (' % / 8%&/ o+ o'%"-("g

    '%,/' o+ TATA (' o"&$ R'.>>!,o,/' 9/,/%' +o, SAIL ( (' R'. 410 !,o,/'. T('

    /;:&%("' / g/ -(++/,/"!/ (" / EPS o+ / 9o !o:%"(/'.

    (oo, V&ue

    So 9$ '/ @VPS %' %" %"%&$(!%& oo& (+ ( -o/'" +&&$ /%',/ / :o/"(%& o+ /

    'o!5 T/,/ %,/ % +/9 goo- ,/%'o"'

    @VPS (' % goo- 7%'/&("/ 8%&/ +o, % 'o!5. W(&/ (' "o /!"(!%&&$ / '%/

    ("g %' / &(

  • 8/13/2019 Fundamental Analysis of Iron and Steel Industry and Tata Steel (Indiabulls) ...

    63/77

    P(IDT

    Fo, % !o:%"$ o 7/ 'o"- (' /%,"("g' 7/+o,/ ("/,/' %; %"- -/:,/!(%(o" 'o&- "o

    7/ &/'' %" 1> o+ '%&/'. Fo, TATA (' :/,!/"%g/ (' 6.06. T/(, P@IDT 9%' R'.

    61.> !,o,/' %"- N/ S%&/' 9/,/ R'. 1)144.** !,o,/'. O" (' %':/! %' 9/&& /

    !o:%"$ (' goo- +o, ("8/'/" :,:o'/'.

    RON+

    T/ ,%(o /%',/' / "/ :,o+( /%,"/- o" / /0.)> +o, *004?0>. T/,/ %' 7//" %"

    ("!,/%'/ (" "/ :,o+( 7 -/ o % g/ ("!,/%'/ (" / ,/'/,8/' %' !o:%,/- o /

    :,/8(o' $/%, / ,%(o %' !o/ -o9". T(' ("-(!%/' % / !o:%"$ %' ,/%("/- %

    %3o, :o,(o" o+ (' /%,"("g' 9(! (' 7/"/+(!(%& +o, / !o:%"$ %' 9/&& %' '%5/o&-/,'

    (" / &o"g ,".

    ROCE

    T/ ,/," o" !%:(%& /:&o$/- +o, TATA %' -/!,/%'/- +,o 6.)2 o >0.0)

    %&og /,/ %' 7//" %" ("!,/%'/ (" N/ P,o+( R'.4)4!,o,/' o R'. >06!,o,/' %'

    9/&& %' / C%:(%& E:&o$/- R'. 2)22!,o,/' o 1**)1!,o,/'. T(' (g %8/ 7//"

    7/!%'/ o+ / ,/%'o" % / !%:(%& 9%' ("8/'/- (" %''/' o, :,o3/!' 9(! %8/ %&o"g

    g/'%(o" :/,(o- %"- !%" o"&$ $(/&- ,/,"' %+/, %"$ $/%,' o+ 7/("g '%,/-. T' /

    ,/'&' 9(&& 7/!o/ /8(-/" o"&$ %+/, +/9 $/%,'.

    De!t- E2uit# Rtio

    I (' 0.4 +o, (' $/%,. T(' %' 7//" !o"'('/"&$ +%&&("g +o, / :%' +/9 $/%,' ("-(!%("g

    % / -/7 !o:o"/" (" +("%"!("g / !o:%"$ %' 7//" !o"("o'&$ -/!,/%'("g 7

    6

  • 8/13/2019 Fundamental Analysis of Iron and Steel Industry and Tata Steel (Indiabulls) ...

    64/77

    ( %' go"/

  • 8/13/2019 Fundamental Analysis of Iron and Steel Industry and Tata Steel (Indiabulls) ...

    65/77

    Ro7' -/%"- (" !o"',!(o" %"- ,/%(& ("-',$

    Lo9 :/, !%:(% '//& !o"':(o" o++/,' % (g/, g,o9

    R(! G/o&og(!%& R/'o,!/ 7%'/

    L%,g/ !o"'/, 7%'/

    Lo9 &%7o, !o' %"- (g :,o-!(8($

    G,o9("g S5(&&/- %"- T/!"(!%& H%" C%:(%&

    THREATS

    S//& :,(!/' %$ ,/%(" ':$ o" %!!o" o+ o8/,'::&$ +,o C("%

    @,/%!,%(! "%,/ o+ Go8/,"/" ? So!(o? Po&((!%& ("/,8/"(o"' (" &/%'("g

    ("/'

    R('("g ("/,/' ,%/' !o&- %++/! /;:%"'(o" :,og,%/' H(g !o' o+F("%"!/

    H(g !o' o+ E"/,g$

    @(g (!5/ ("8/'/" 7$ POSCO %"- M(%& !o&- '9%&&o9 / %,5/

    ':/!(+(!%&&$ /;:o,

    D/+(!( ("+,%',!,/.

    Compri'on o% Compn# nd Indu'tr# Finnci&'

    Key FinancialsComparatives

    for:Tata Steel

    Ltd.

    Units :Crores

    Company name Year Equity eserves

    Total

    !ncome Fin E"p

    #epreci-

    ation Ta" $.%.

    Steel

    Essar Steel Ltd. &'&(-)* +,).) )*/'.), '*0).,' //&.&) /,*.) )'+.0/ +(&.),

    1S2 Steel Ltd &'&(-)* *),.&( (,+0.)' '+*'.&* ('+.&) /&+.,* /(.' ,'/.*03S% Steel 4

    %o5er Ltd. &'&(-)* +,.) /.0* ,+./) (./ /.(/ ).+ ).)as6triya !spat

    $i7am Ltd. &'&(-)* ,*.(* (/'.(, ').+0 ().&' /)+.+ '(.)/ )*+*.(S6ri amrupai &'&(-)* '' +.) /+ )).&( +.,+ 0.+* ),.&0

    6>

  • 8/13/2019 Fundamental Analysis of Iron and Steel Industry and Tata Steel (Indiabulls) ...

    66/77

    8ala9i Steels Ltd.Steel ut6ority of

    !ndia ;S!L< Ltd. &'&(-)* /)(&./& ,/).&) *0*&0.+ /'.' )*&.( )'0/.( /&)*.0

    Tata Steel Ltd. &'&(-)* ++(.' 0*&).'( )+/(*.) )',.// +.) )(/.( (+&'.(,

    =isa Steel Ltd. &'&(-)* ))& ),'.) (,'.(( )/.,( /.0' .+( )*./,

    Total : -n>a- )/('.0, **,+,.' '0)). )+),.0/ ((((.* /'0/.( )&*(0.0

    An'i'

    T%% '//& (' %o"g' / o: o' :,o+( /%,"/,' o+ / I,o" %"- S//& I"-',$.

    I +o,' %&o' 4 o+ / o%& ("-',$ "/ :,o+(.

    O"&$ o"/ !o:%"$ % (' SAIL (' %7o8/ T%% S//& (" /,' o+ N/ P,o+(.

    Indu'tr# Rtio'

    atiosComparitives for:Tata Steel

    Ltd.

    Company name Year

    ep. E%S

    ;s USD .62 :/, Co,' '%,/ (" !%'

    E ,%"5 9( :o/"(%& o !o"'o&(-%/ +,/,

    Wo,&- C&%'' O:/,%("g :&%+o,

    Lo9/' !o' :o'((o" (" 9o !o"("/"' J W/'/," E,o:/ %"- A'(%

    M%,5/ :,/'/"!/ (" %oo(8/ !o"',!(o" %"- :%!5%g("g

    T/!"o&og$ %"- (""o8%(o"

    Co"("o' (:,o8//" !&,/

    T/ TATA? CORUS -/%& 9(&& :,o8(-/ TATA % M&(? &o!%(o" S,o"g R/g(o"%&

    P,/'/"!/ S,o"g @,%"- N%/ G,/%/, %" >0:% !%:%!($ -/?("/g,%/- :,o-!(o"

    7$ *01>. I 9(&& /"%7&/ TATA STEEL o "-/,%5/ O8/,'/%' A!

  • 8/13/2019 Fundamental Analysis of Iron and Steel Industry and Tata Steel (Indiabulls) ...

    68/77

    T/ Co:%"$ %' ("((%/- % :,og,% +o, /;:%"'(o" o+ !,-/ '//& %5("g

    !%:%!($ % %'/-:, 7$ 1. :%. T/ /;:%"'(o" :,o3/! (' /;:/!/- o 7/

    !o:&//- 7$ *00.

    T/ ("!,/%'/- ,/

  • 8/13/2019 Fundamental Analysis of Iron and Steel Industry and Tata Steel (Indiabulls) ...

    69/77

    F("('("g %"- 8%&/ %--((o" (" -/8/&o:/- %"- g,o9("g %,5/' '! %' I"-(%

    C("% E,o:/ US %"- SE A'(%.

    Co",o& o8/, &og('(!' !o' %"- /++(!(/"!$

    FINDIN)S AND RECOMMENDATIONS

    Econom#

    T/ Go8/,"/" '!/"%,(o (' 7/!o("g '%7&/ %"- :o'((8/ +o, -/8/&o:/" o+

    / !o",$.

    I"-(% %' % "7/, o+ ,/',(!(o"' o" 9% %$ 7/ (:o,/- %"- % 9% ,%/

    o+ -$. D,("g / &%' 9o $/%,' I"-(%" !'o' -(/' %8/ 7//" ,/-!/-

    -,%'(!%&&$. I:o,' %,/ !o"'/

  • 8/13/2019 Fundamental Analysis of Iron and Steel Industry and Tata Steel (Indiabulls) ...

    70/77

    T/ Go8/,"/" Po&(!$ %' 7//" :o'((8/ o9%,-' / I,o" %"- S//&

    ("-',$. I %' ,(/- o /%'/ / ,/g&%(o"' go8/,"("g / ("-',$ /&:/- ("

    ("+,%',!,/ 7(&-("g.

    C,,/"&$ I"-(% (' / &%,g/' :,o-!/, o+ '//& (" / 9o,&- %"- %' g/

    (,o" o,/ ,/'/,8/'. I"-(%" !o:%"(/' %,/ %5("g o8/, % &o o+ !o:%"(/'

    %7,o%-. T(' 'o9' % / +,/ +o, / ("-',$ ('

  • 8/13/2019 Fundamental Analysis of Iron and Steel Industry and Tata Steel (Indiabulls) ...

    71/77

    T/ %3o, '%,/ o&-("g o+ / !o:%"$ (' 9( / :,oo/, g,o: %"- /

    :7&(!.

    Annu& Report

    Director' Report

    I /&&' % / /!o"o$ %' 7//" g,o9("g !o"("o'&$ o&oo5 +o, / ("-',$

    ,/%("' :o'((8/ og ,('("g !o'' o" %!!o" o+ ,%9 %/,(%&' +,/(g %"- /"/,g$ 9(&&

    5//: / %,g("' "-/, :,/'',/ /;:o,' %,/ g,o9("g ,%:(-&$ ("+&%(o" %' 7//" 7,og

    "-/, !o",o& Fo,/; ,/'/,8/' %8/ g,o9" %"- 7'("/'' !o"+(-/"!/ (' :o'((8/.

    T/'/ +%!o,' ("-(!%/ % I"-(% (' % / ("+&/;(o" :o(" o+ -/8/&o:/" 9(! 7o-/

    9/&& +o, / -o/'(! '//& ("-',$ (" / +,/. T/ :%!/ o+ I"-(%' -/8/&o:/" 9o&-

    -/:/"- o" / /;/!(o" o+ / 8%,(o' ("+,%',!,/ :,o3/!' %""o"!/- 7$ /

    Go8/,"/" -,("g / $/%,. I" /,' o+ / %7o8/ %':/!' / !o:%"$ %' :/,+o,/-

    8/,$ 9/&& (" / :%' $/%,.

    Auditor' Report

    T/ A-(o,' ,/:o, o+ T%% S//& (' "o !, %("&$ -/ o

    ("!,/%'/ (" %"+%!,("g %"- o/, /;:/"'/' 7$ ).6. T(' ("-(!%/' % / !o:%"$

    )1

  • 8/13/2019 Fundamental Analysis of Iron and Steel Industry and Tata Steel (Indiabulls) ...

    72/77

    (' ':/"-("g o,/ o" (' !o,/ %!(8($ %"- /:%'(=/' o" /;:%"-("g (' 7'("/'' ,og

    (' !o,/ 9o,5("g o"&$.

    I %' ("!,/%'/- 7$ *2 %"- (' % R' >*26.>2 !, %("&$ -/ o 7%&%"!/ 7+ +,o &%' $/%,

    (./. 1)20.*1 !,. I %' 7//" -(8(-/- %' +o&&o9' P,o:o'/- D(8(-/"-? R'. )12.>1 !, T%; o"

    D(8(-/"-? R'. 100.2* !, %"- G/"/,%& ,/'/,8/? R'.1>00 !,. Ao" ,%"'+/,,/- o g/"/,%&

    ,/'/,8/ (' 2.2 o+ "/ '%&/'.

    (&nce S"eet An'i'

    So,!/' o+ +"-'

    A--("g %&& / '%,/' (''/- %' 7o"' '%,/' %"- o'/ (''/- o '%,/ o&-/,'

    "-/, '!//' o+ %%&g%%(o" 9/ +("- o % o o+ / o%& '7'!,(7/-

    !%:(%& *>2 6* >*> '%,/' %8/ 7//" (''/- +o, !o"'(-/,%(o" o/, %"

    !%'. T' / / o+ / /

  • 8/13/2019 Fundamental Analysis of Iron and Steel Industry and Tata Steel (Indiabulls) ...

    73/77

    T/,/ %' 7//" %" o8/,%&& ("!,/%'/ (" U"'/!,/- Lo%"' 7$ R'. > !,o,/' %"

    ("!,/%'/ o+ 12 -/ o '7'%"(%& ("!,/%'/ (" 7$/,' !,/-( (" +o,/(g"

    !,,/"!$ 7$ **0.

    A::&(!%(o" o+ F"-'

    T/,/ %' 7//" %" ("!,/%'/ (" %&& / +(;/- %''/' o+ / !o:%"$. I"!,/%'/-

    7$ R'. 1>02.6> !,o,/' (./. o8/, 10 -/ o % g/ ("!,/%'/ (" :&%" %"-

    %!("/,$ ("!,/%'/- 7$ o8/, 100 !,o,/'.

    T/ ("8/'/"' '%"- % R'. 4062. 26 !,o,/' o o+ 9(! &o"g /, %"-

    !,,/" ("8/'/"' %,/ %&o' /?06 9%' .)* %' !o:%,/- o 6.> (" /

    :,/8(o' $/%,. T/ EPS 9%' 61.>1 %"- / %,5/ :,(!/ %,o"- >6.) ("

    *00>?06. T(' ("!,/%'/ (" PE 'o9' % / %,5/ /;:/!' / /%,"("g' o

    ,('/.

    )

  • 8/13/2019 Fundamental Analysis of Iron and Steel Industry and Tata Steel (Indiabulls) ...

    74/77

    T/ EPS +o, T%% S//& 9%' R'. 61.>1 +o, *00>?06 %' !o:%,/- o R'. 60.21

    +o, / :,/8(o' $/%,. T(' ("!,/%'/ (' -/ o / '&(g ("!,/%'/ (" / N/

    P,o+( o+ / !o:%"$ %' / "7/, o+ o'%"-("g '%,/' %' 7//" / '%/

    +o, / 9o $/%,'.

    P@IDT +o, TATA (' 6.06. T/(, P@IDT 9%' R'. 61.> !,o,/' %"- N/

    S%&/' 9/,/ R'. 1)144.** !,o,/'. O" (' %':/! %' 9/&& / !o:%"$ (' goo-

    +o, ("8/'/" :,:o'/'.

    RONW 9%' 6.21 +o, *00>?06 %"- 9%' >0.)> +o, *004?0>. T/,/ %'

    7//" %" ("!,/%'/ (" "/ :,o+( 7 -/ o % g/ ("!,/%'/ (" / ,/'/,8/' %'

    !o:%,/- o / :,/8(o' $/%, / ,%(o %' !o/ -o9". T(' ("-(!%/' %

    / !o:%"$ %' ,/%("/- % %3o, :o,(o" o+ (' /%,"("g' 9(! (' 7/"/+(!(%&

    +o, / !o:%"$ %' 9/&& %' '%5/o&-/,' (" / &o"g ,".

    T%% '//& (' %o"g' / o: o' :,o+( /%,"/,' o+ / I,o" %"- S//& I"-',$. I +o,'

    %&o' 4 o+ / o%& ("-',$ "/ :,o+(.O"&$ o"/ !o:%"$ % (' SAIL (' %7o8/

    T%% S//& (" /,' o+ N/ P,o+(. T/ EPS +o, T%% S//& (' / (g/' (" / ("-',$

    ("-(!%("g % ( (' g(8/" / (g/' /%,"("g' o (' '%,/o&-/,' o" o"/ '%,/. T' ( ('

    7/"/+(!(%& o ("8/' (" / !o:%"$ %"- (' :o&(!(/' %,/ 'o"- +,o '%,/o&-/, :o(" o+

    8(/9. I' RONW (' %&'o (g/' (" / ("-',$ ("-(!%("g % ( (' (&(=("g / +"-' %

    (' -(':o'%& (" % %""/, % (' 7//, %" %&& o/, :&%$/,' (" / ("-',$. T(' 'o9'

    % / !o:%"$ (' 7/' (" / '/g/" +,o / :o(" o+ 8(/9 ("8/'/". T/

    '%,/o&-/,' !%" g/ % goo- ,/," o" /(, ("8/'/"'.

    Recommendtion'

    D/8/&o: ,%9 %/,(%& ,/'o,!/' o /"',/ %-/

  • 8/13/2019 Fundamental Analysis of Iron and Steel Industry and Tata Steel (Indiabulls) ...

    75/77

    M%("%(" !,,/" /;!('/ -$ o" '//& o %5/ ( %++o,-%7&/ o /"- '/,'.

    D('!o,%g/ / (:o,' o+ -/+/!(8/' 9(! %,/ %++/!("g /

  • 8/13/2019 Fundamental Analysis of Iron and Steel Industry and Tata Steel (Indiabulls) ...

    76/77

    T(' (' ,/ o %" /;/" 7 / ',/"g o+ +"-%/"%& %"%&$'(' (' % %" ("8/'/"

    -/!('(o" (' %,,(8/- % %+/, %"%&$=("g ("+o,%(o" %"- %5("g &og(!%& %'':(o"' %"-

    -/-!(o"'. F,/,o,/ +"-%/"%& %"%&$'(' /"',/' % o"/ -o/' "o ,/!5&/''&$ 7$

    o, '/&& '%,/' J /':/!(%&&$ 7$. H/"!/ +"-%/"%& %"%&$'(' '::o,' %"- /"!o,%g/' '%+/

    ("8/'("g.

    No '$'/ (' +oo& :,oo+. No '$'/ %' !o"'('/"&$ o:/,+o,/- / %,5/. T/,/ ('

    "o '$'/ % -o/' "o !%&& +o, %" 3-g/" %"- (":. A&& '$'/' ,/?06("-/;.&

    C%:(%& &("/ D%%7%'/

    )6

  • 8/13/2019 Fundamental Analysis of Iron and Steel Industry and Tata Steel (Indiabulls) ...

    77/77

    I"-(%7&&' (",%"/

    KPMG (",%"/

    E!o"o(! (/'

    H("- @'("/'' L("/

    W(! !o:%"$ %" %,(!&/ o" o9 o '/ +"-%/"%& %"%&$'(' o (-/"(+$ %

    9(""("g 'o!5