Bhushan Steel strengthens on diversification

Bhushan Steel was down 0.65% to Rs 1032 at 12:03 IST on BSE, having recovered from session's low of Rs 988, on signing a memorandum of understanding with the Madhya Pradesh state government for investing Rs 4000 crore in the state.

The company made this announcement during market hours today, 15 February 2008.

Meanwhile, BSE Sensex was down 131.36 points or 0.74% to 17,635.27, on weak cues from the global markets. US stocks dropped on Thursday, 14 February 2008, as the credit crunch surfaced unexpectedly in the municipal bond market and after the Federal Reserve Chairman Ben Bernanke said that he sees sluggish economic growth ahead.

On BSE, 16,579 shares were traded in the counter. The scrip had an average daily volume of 53,861 shares in the past one quarter.

The stock hit a high of Rs 1035 so far during the day. The stock had a 52-week high of Rs 1730 on 7 January 2008 and a 52-week low of Rs 383.60 on 14 February 2007.

The mid-cap scrip had underperformed the market over the past one month till 14 February 2008, declining 28.30% compared to the Sensex's decline of 10.58%. It had outperformed the market in the past one quarter, declining 0.14% compared to Sensex's decline of 9.81%.

The company's current equity is Rs 42.47 crore. Face value per share is Rs 10.

The current price of Rs 1032 discounts its Q3 December 2007 annualized EPS of Rs 70.23, by a PE multiple of 14.69.

Bhushan Steel has signed the memorandum of understanding for setting up of manufacturing facilities in Madhya Pradesh with a 1 million metric tonnes per annum coke oven plant and a 5 million metric tonnes per annum cement plant.

Bhushan Steel's net profit rose 4% to Rs 74.57 crore on 1.8% fall in net sales to Rs 982.73 crore in Q3 December 2007 over Q3 December 2006.

Bhushan Steel makes cold rolled, galvanized and special steel and strips. It also produces angles and wire rods. The company's plants are located in Uttar Pradesh, Maharashtra and Orissa.