Stock Analysis- JSL Stainless Ltd.

Presented By: Ashok Kumar Sandeep Gunjan Khayati Bhola

Company Profile

JSL Stainless LtdBSE :-532508 Current price:- Rs.92.10Plant:-

Attribute Value Date

PE ratio 5.42 04/11/11

EPS (Rs) 17.00 Mar, 11

Sales (Rs crore) 1,837.64 Sep, 11

Face Value (Rs) 2

Net profit margin (%) 4.62 Mar, 11

Last dividend

(%) 100 24/07/08

Return on average equity 14.28 Mar, 11

Report Card

5- Years Stock Price History

What is Stainless SteelStainless Steel:

Developed BY: Hans Goldschmidt in late 1890

Contains: 10-11 % chromium

Types/Grades of Stainless Steel• Austenitic• Ferritic• Martensitic

Stainless Steel Production

World Wide (1,000 metric tonnes) (2001 – 2010)

Asia

35,000

30,000

25,000

20,000

15,000

10,000

5,000

0

2001-1.0%

19,167mmt

W. Europe/Africa Americas Central + Eastern Europe

2002+7.8%

20,663mmt

2003+10.6%

22,861mmt

2004+7.5%

24,583mmt

2005-1.0%

24,320mmt

2006+16.9%

28,400mmt

2007-2.0%

27,836mmt

2008-6.8%

25,930mmt

2009-5.3%

24,562mmt

2010(p)+25.0%

30,690(p)mmt

1913-First commercial production of stainless –steel .

• Reason:- Percapita consumption has increased

Apparent consumption growth rate of Stainless- Steel

Annual growth rate

in Asia –12.6% as

against 6% global

growth

Gro

wth

rate

200

5-20

11 in

% P

.A%

Indian Production Trend

India’s end-use break-up

others3%

ProcessIndustry

10%

Engineering5%

Electromechanical/Electronics

2%

Construction5%

Metal Products70%

Transport5%

• Metal products including kitchenware is the largest consumptionsegment in India at present accounting for 70% share of 1.7 milltonnes

• Construction and transport sector is now picking up

India stainless- Steel export

•India exported about 170,000 tonnes of stainless steel production in 2000-01. Of these, low nickel high manganese grade HR and CR products were 20,000 tonnes. In the 300 series, HR and CR products were about 20,000 tonnes, CF Bars 33,600 tonnes, wire and cables about 12,000 tonnes. The export of 400 series was 9,800 tonnes of which CF Bars were 7,200 tonnes and wire and coils about 2,400 tonnes.

Stock Price History

A

B

C

Analysis

• Peak A- In 2008 stainless steel industry was looking up, piggybacking on the increased demand from the railways. The railways has placed order for 1,500stainless steel wagons and coaches besides steel peripherals, which can be extensively used inside the compartments.• Peak B- In 2009, it was the time of global economic recession and

JSL used to export a huge quantity of its total production. So JSL stainless faced a reduction in demand from Europe & USA.• Peak C- JSL Stainless was installing a 5000 crores of SS producing

plant at Jajpur, Odisha. In the end of 2010 news came about successfully commissioning & running of this Project.

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