Visa Steel shines on initiating mega project

Visa Steel rose 2.51% to Rs 53 at 14:53 IST on BSE after the company said it signed a preliminary agreement with the Chhattisgarh state government to invest Rs 4750 crore in the state for an integrated steel plant.

The company made the announcement after market hours on Tuesday, 19 August 2008.

On BSE, 1.30 lakh shares were traded in the counter. The scrip had an average daily volume of 1.42 lakh shares in the past one quarter.

The stock hit a high of Rs 55.90 and a low of Rs 52.10 so far during the day. The stock had a 52-week high of Rs 65.65 on 2 January 2008 and a 52-week low of Rs 30.05 on 24 August 2007.

The scrip had outperformed the market over the past one month till 19 August 2008, rising 13.63% compared to the Sensex's 6.66% gain. It had also outperformed the market in the past one quarter, falling 9.62% compared to Sensex's 16.58% fall.

The small-cap pig iron maker has an equity capital of Rs 110.24 crore. Face value per share is Rs 10.

The current price of Rs 53 discounts its Q1 June 2008 annualised EPS of Rs 17.64, by a PE multiple of 3.

The net profit of Visa Steel rose 845.6% to Rs 48.51 crore on a 264.1% rise in sales to Rs 255.73 crore in Q1 June 2008 over Q1 June 2007.

The company manufactures pig iron and chrome concentrates. The group operates in two segments namely manufacturing and trading. The manufacturing facilities are in Kalinganagar and Golagoan in Orissa.