Skip to main content

Tata Steel reverses course as Corus plans price hike

Tata Steel rose 1.93% to Rs 794 at 15:24 IST on BSE after Anglo-Dutch steelmaker Corus, owned by Tata Steel, announced price increases for reversing mill plate and structural sections.

On BSE, 14.93 lakh shares were traded in the counter. The scrip had an average daily volume of 8.95 lakh shares in the past one quarter.

The stock hit a high of Rs 804 and a low of Rs 757 so far during the day. The stock had a 52-week high of Rs 969.80 on 29 October 2007 and a 52-week low of Rs 469.66 on 30 April 2007.

The world's sixth largest steel maker had outperformed the market over the past one month till 22 April 2008, rising 31.81% compared to the Sensex's return of 9.77%. It had also outperformed the market in the past one quarter, rising 12.07% compared to Sensex's decline of 4.60%.

The company's current equity is Rs 730.58 crore. Face value per share is Rs 10.

The current price of Rs 794 discounts its Q3 December 2007 EPS of Rs 70.17, by a PE multiple of 11.31.

The announcement is a stark contrast to Tata Steel's earlier announcement of holding the domestic steel prices. Reportedly, Corus will be increasing basis prices for reversing mill plate by £60 per tonne effective to all dispatches from 1 June 2008. It will also be raising basis prices for structural sections by £80 per tonne, which will apply to all structural sections despatched from 29 June 2008. It also added global demand for reversing mill plate and structural sections continues to be strong.

Corus also asid steel manufacturers continue to incur significantly higher costs for raw materials and energy. It further added that the price increases are a direct consequence of high global demand for steel driving dramatic increases in the cost of raw materials.

Earlier in the day, shares of Tata Steel and other steel makers had declined on reports of Steel Authority India and Tata Steel deciding to hold domestic steel prices for at least a few months. Tata Steel and Steel Authority of India (SAIL) announced their plans not to increase domestic steel prices for next two-three months shortly after prime minister Manmohan Singh visited their plants and advised them to hold prices. Earlier, finance minister P Chidambaram had charged the steel producers with 'cartel-like behaviour' in the Parliament.

Tata Steel's net profit rose 0.5% to Rs 1068.58 crore on 11.3% growth in net sales to Rs 4973.92 crore in Q3 December 2007 over Q3 December 2006.

Tata Steel is engaged in manufacture and distribution of steel, welded steel tubes, cold rolled strips, bearings and other related products and services.

Popular posts from this blog

Bio-fuel has top investors powered up

23RD ,JUNE India's fortune-hunters believe their new-found love for biofuel will pay off. India's well-known investors who are known for their Midas touch have spotted an opportunity in bio-fuel, betting big on ethanol, bio-mass and even bio-fuel equipment makers in India and other parts of the globe. Billionaires Rakesh Jhunjhunwala, C Sivasankaran, Vinod Khosla, founder of Sun Microsystems, and Nemish Shah, the media-shy joint partner of Enam Financial Services, are investing in bio-fuel makers quietly, expecting that bio-fuel will have a big play in the coming years as the world looks for a viable alternative to the fast depleting oil reserves. Jhunjhunwala, who is known for his ability to spot a multi-bagger at a very early stage, recently invested in Hyderabad-based bio-fuel firm Nandan Biometrics.He is also a 10 per cent stakeholder in Praj Industries, which is a bio-fuel technology provider…

up to 8,500% return in 5 years! Investors made a killing in these 30 smallcap stocks

U By Rahul Oberoi, ETMarkets.com | Updated: Dec 01, 2017, 04.06 PM IST Post a Comment
Efficiency pays in the long run. Among the top smallcap plays on Dalal Street, 30 companies with stable return on equity (RoE) and return on capital employed (RoCE) have surged up to 8,500 per cent over the past five years.

All these companies had a debt-to-equity ratio of less than 1 and have been maintaining RoE and RoCE of over 20 per cent since 2012-13.

Avanti Feeds emerged the chart topper, with an 8,527 per cent gain to Rs 2,596.60 as of November 28 from Rs 30.10 ..


ovember 28 from Rs 30.10 on November 27, 2012. The company’s return on equity for FY17, FY16, FY15, FY14 and FY13 stood at 42.65 per cent, 46.21 per cent, 52.41 per cent, 45.79 per cent and 27.60 per cent, respectively. Avanti also managed to achieve a return on capital employed of over 50 per cent in last four years. Its RoCE stood at 28.59 per cent inRoE measures net income earned for every rupee of shareholder funds, while…

5 dark-horse picks

Kwadrat/shutterstock.com Kwadrat/shutterstock.com
If you are a conservative investor, using the mutual fund route is the best way to invest in stocks. But if you are game for some excitement, you might want to dabble directly in stocks, especially small-cap stocks. Stocks that are smaller in size, in terms of market capitalisation, carry higher risk. The reasons are — one, lower traded volume increases price volatility, two, information is usually scarce on these companies, three, business risk is higher since many of these companies are dependent on a single product and four, governance risk is also higher in these stocks. That said, small-cap stocks have the capacity to deliver far greater returns when compared to large-cap stocks. Sample this: there were 16 stocks with market cap more than ₹50,000 crore in January 2009. These stocks delivered an average return of 138 per cent in the last eight years but 4 out of every 10 stocks in this group delivered negative returns. On the ot…