Electrosteel Castings Ltd - 500128

Name of Company	Electrosteel Castings Ltd.
BSE Code	500128
NSE Code	ELECTROST
ICICI Code
Established
My Take	Like
Headquarters	Rajgangpur/Kolkata
Promoters	Umang Kejriwal(MD), Uddhav Kejriwal  & Kejriwal family
Story	First manufacturing facility was setup in Khardah, near Kolkata. This manufactures DI(ductile iron) pipes, DI fittings and pig iron. CI spun pipes are manufactured in Elavur (TN) and Low ash metallurgical coke is manufactured in Haldia, WB. In addition to manufacturing, the company provides turnkey solutions for water supply and sewerage systems. Mining coal, steel and manganese. Has worldwide subsidiaries including UK, Spain, USA, Algeria, middle east, etc.
Sector	Castings forgings
Sub-sector	Pipes (DI), alloy steel castings
Website	http://www.electrosteel.com/
Positives	Regular dividend yield, can expect 3% dividend at current process. Umank, Uddhav and Mayank Keriwal seem to have buying from open market in 2011 (from BSE website) – though promoter shareholding has not increased – so it seems like shareholding is being streamlined. 7-10% average NPMs for last 5 years– 4% in FY08 was a difficult year. 48% promoter stake with no pledging.
Negatives	Growth has been moderate for the lat 5 years- revenue grew from 1123 Cr to 1772 Cr from FY07 to FY11. Debt is high at 1652 Cr, but with low interest payments (around 50 Cr for FY10 and FY11).
Peers
News
Price @ blogged	27.25 (17-Jul-11)
Cost of company	890.4 Cr market cap for a 154.64 Cr NP in FY ending Mar ' 11 makes it 5.75 times. This is for a company with 1471.63 Cr debt and 1652.15 Cr reserves
Group
Growth	Slow growth