BEEKAY STEEL INDUSTRIES

BEEKAY STEEL INDUSTRIES
CMP- 490 (AS ON 12 JAN 2018)
LISTED ON BSE

Sector:Metals | Industry: Stainless steel

                                       OVERVIEW OF COMPANY

Beekay Steel Industries Ltd manufactures and sells steel products. The Company's products include Sections, Bright Bars, Structurals, TMT Bars and Coil Springs in a variety of specifications and grades.

· Sections- Flats, Rounds, Squares, RCS, Hexagonals, Octagonals & Trapezium

· Bright Bars- Flats, Rounds, Squares & Hexagonals

· Structurals- Angles, Channels, I-Beams & H-Beams

· TMT Bars

· Coil Springs

     >>>>>>>>>>                      The Beekay mills in Jamshedpur, Vishakhapatnam and Chennai produce a variety of standard sections for automotive, railway and engineering industries in 3-6 meters lengths with 10% shorts down to 1 meter or multiple lengths as specified.

Standard Sections - Round Bars, Square Bars, Hexagons, Flat Bars, Round Corner Squares (RCS).

Special Profiles - Rectangular Bars for Aluminum Industries, Crane Rails for overhead EOT, Gantry Crane and Hoists, Fish Plates, Grooved Flats, Taper Flats, Octagons, Hoe Bars, T-Sections, Window Sections.

Special Conditions - Hot Rolled or Normalized, Saw Cut, Machine Straightened, Peeled & Ground or Drawn.

Section Bars range:

Steel Bars	Min. (mm)	Max. (mm)
Rounds	16 mm	220 mm
Flats     width     thickness	20 mm 5 mm	500 mm 20 mm
Squares	16 mm	150
RCS	40 mm	150
Hexagonal	14 mm	85 mm

                                                        

Bright Bars

Bright Bars are cold drawn/ground/peeled plain bars produced from hot rolled plain bars/wire rods. Bright Bars have a smooth and a bright surface with Accurate Tolerance on the dimensions, they possess improved mechanical properties, greater dimensional accuracy, better surface integrity and higher machineability, and these superior product qualities provide a number of significant design advantages & benefits. 

It manufacture Bright Bars in Vishakhapatnam and Chennai units which find application in areas like Pump Shafts, Machined Components, Valves, Dairy Equipments, Fasteners, Machine Tools, Studs, Bolts, Pins, Hinges, Handles, Surgical & Medical Parts, Threaded Bars and other end usages.

The bright bars also find use in Automobile Industry; this is the major sector which consumes Bright Bar. All engine components, Nuts, Bolts, Shafts are made out of special grades of Bright Bars. 

Bright Bars range:

Drawn Bar	Min. (mm)	Max. (mm)		Drawn Bar	Min. (inch)	Max. (inch)
Rounds	14 mm	76 mm		Rounds	5/8”	3”
Flats    ●width     ●thickness	20 mm 5 mm<	100 mm 40 mm		Flats    ●width     ●thickness	3/4" 1/2"	4” 1-1/2”
Squares	14 mm	65 mm		Squares	1/2"	2-1/2”
Hexagonals	12 mm	60 mm		Hexagonals	5/8”	2”

                                                         

STRUCTURALS

Structurals describe hot rolled steel products such as Angles, Channels and Beams. An integral part of construction activity, they give shape and strength to buildings, bridges, transmission line towers (TLT), industrial sheds and structures.

Beekay produces an array of products to meet structural requirements at Vizag and Chennai. This includes Medium & Heavy Angles, Channels and Beams (I-Beams & H-Beams) for infrastructure building. Apart from standard dimensions, customized products can also be rolled for special applications, economically and quickly.

Our Structural Bars range:

Structurals	Min. (mm)	Max. (mm)
Angles	45 x 45 x 6 mm	200 x 200 x 20 mm
Channels	125 x 65 mm	400 x 100 mm
Beams	100 x 50 mm	500 x 180 mm

                                       

                                                TMT BARS

After gaining several years of experience in contract manufacturing for Tata Steel, Beekay has commenced manufacturing of TMT bars under its own brand name BEEKAY TURBO TMT BARS. It is made by the Tempcore process through TurboQuench technology from Germany, these high quality TMT Bars find use in core infrastructure development like construction of multi storey buildings, bridges, dams, railways, power plants as reinforcement material.

Beekay Turbo TMT bars are rolled from Prime Steel Billets as per IS 2830, which ensures uniform physical and mechanical properties. The range varies from 8mm to 40mm, conforming to BIS 1786 - Fe500 & Fe500D.

Advantages

· Better Fire Resistance · Higher Strength and Ductility · Superior Weldability, Bendability and Bonding · Superior Corrosion Resistance · Correct Weight as per ISI Standards                                    COIL SPRINGS COMPRESSION SPRINGS A compression spring is an open-coil helical spring that offers resistance to a compressive force applied axially. Compression springs are usually coiled as a constant-diameter cylinder.  WHO USES THIS PRODUCTS Coil springs are used in a wide range of industrial and consumer markets, including the agricultural, railway, construction, mining, automotive and marine industries. It manufacture all types of hot coiled helical compression springs in various wire sizes ranging from 10 mm dia to 40 mm dia using a variety of alloys that include Spring Steel [Grade 60 Si7], Chrome Moly Steel [Grade 52Cr4Mo2V], SAE 5160 etc. In hot wound springs, It have the capability to meet or exceed commercial tolerances and our spring designers and staff are always prepared to meet new challenges. PRESTIGIOUS CLIENTS 1) Texmaco Ltd. 2) Titagarh Industries Ltd. 3) BESCO Ltd. 4) Braithwate & Co. Ltd. 5) Indian Zonal Railways. THE BELOW FIGURE SHOWS SECTIONS,BRIGHT BARS,STRUCTURALS ,COIL SPRING                                                            INDUSTRY OVERVIEW India overtook Japan as the second-largest producer in 2016, according to data released by the International Stainless Steel Forum (ISSF) at their annual conference held in tokyo, Japan, ISSDA India's stainless steel production rose to 3.32 million tonne for 2017 showing an impressive growth of about 9 per cent over 3 million tonnes in 2017, National Steel Policy released by the Ministry of Steel will give impetus for long term benefits. Increase in exports of stainless steel from India to the world market especially Europe and Americas has established Indian producers capable of producing quality material from their latest state of the art mills meeting stringent quality parameters The long term perspectives for India remain positive. India has been increasingly shifting focus from volume- to value-based production in the past few years. Stimulated by recent lower nickel prices, the country is producing today more 300 series and less low quality 200 and has an increasing share of high quality production than before The steel sector contributes to nearly 2% of the country’s GDP and employs over 6 lakh people.Indian steel demand is expected to grow at 5.4% going forward.It is also one of the largest steel markets which still showed demand growth. Steel imports grew at around 26% during 2016-17, while steel exports declined by about 27%, leading to a decline in the capacity utilization of steel mills in India and a downward pressure on the prices.                            VARIOUS MANUFACTURING UNITS OF THE COMPANY FINANCIALS OF THE COMPANY- CAGR    9 yrs 5 yrs 3 yrs 1 yr Net Sales  11.5% 5.3% 9.5% 38.9% Adjusted EPS  22.3% 14.6% 24.9% 83.9%      STOCK CHART 52 WEEK HIGH - 555 RS 52 WEEK LOW - 114 RS KEY RATIOS - SHAREHOLDING PATTERN CONCLUSION- YOY SALES GREW BY 38% ‌PROFIT CAGR OF 25% FOR LAST 3 YR ‌DEBT TO EQUITY - 0.80 ‌GOOD OPERATING CASH FLOWS ‌REDUCTION IN INTEREST PAYMENT ‌REDUCING DEBT At a cmp of 490 RS, company can achieve sales of 887cr & expecting an eps of 40 for FY 17-18 which is  discounting the current P/E by 12x in the medium term.   Henceforth expecting an eps of 52 for FY 18-19,discounting the current P/E by 9.42x which is very low for such a growth oriented stock making it as a perfect hidden multibagger in long term.