Sathavahana Ispat Ltd
Iron & Steel/ Interm.Products
FV – Rs 10; 52wks H/L – 10.45/1.3; TTQ – 25 K; CMP (January 6, 2020) – Rs 2.8;
Market Cap – Rs 14.35 Crs
Consolidated Financials and Valuations for FY16 (Amt in Rs Crs unless specified)
| Particulars | Equity Capital | Net worth | Debt | Total Sales |
PAT | BV (Rs) |
EPS (Rs) | P/E | Industry P/E |
P/BV | Promoter’s Stake |
| FY19 | 50.9 | -375 | 816 | 507 | -228 | – | -45 | – | 9.15 | – | 36.63 |
| H1 FY20 | 50.9 | -537 | 828 | 184 | -162 | – | -32 | – | 9.15 | – | 36.63 |
Sathavahana Ispat has entered into an Operation, Maintenance and Management Agreement with Jindal Saw. Under the agreement, Jindal Saw has agreed to operate, maintain and manage the manufacturing facilities of Sathavahana Ispat for a period of 3 years which may be extended for a maximum period of 10 years subject to certain conditions as provided in the Agreement. (https://www.business-standard.com/article/news-cm/sathavahana-ispat-signs-agreement-with-jindal-saw-119080200901_1.html)
Overview:
SIL is primarily engaged in the manufacture and sale of
- Pig Iron with a rated capacity of 210,000 tpa
- Metallurgical Coke with a rated capacity of 450,000 tpa and
- Co-generation cum thermal power of 50 MW.
- Ductile Iron Pipe 210,000tpa
As a backward integration, SIL has set up a 2,98,800 tonns per annum sinter plant and 30Mw captive thermal power plant and as a forward integration has setup a 210000 tonns per annum Ductile Iron making plant.
SIL at present is having two manufacturing units in India at the following locations:
- Pig Iron manufacture with captive Co-generation Power:Haresamudram Village, Bommanahal Mandal,
Anantapur District, Andhra Pradesh, India. - Metallurgical Coke and Co-generation Power:
Kudithini village, Korugodu Road,
Bellary District, Karnataka, India.
Management:
- A. Naresh Kumar – MD
- K Thanu Pillai – Chairman
- VSRK Hanuman – CFO
The Equity Capital is @ Rs 50.9 Crs consisting of 50900000 equity Shares of FV Rs 10 currently held as under
Major Non – Promoter Holdings:
| Non – Promoters | No. of shares held | % of shares held |
| PLUTUS TERRA INDIA FUND | 4954600 | 9.73 |
| Heshika Growth Fund | 4272811 | 8.39 |
Production & Sales: (FY19)
The performance during the year was impacted adversely due to factors beyond the control of the Company. The performance suffered due to working capital constraints and the consequent financial stress which resulted in underutilization of capacities and plant shut downs.
Quarterly Segmented Results:
