Buy MSP Steel & Power: Multibagger

PE ratio 6.18 12/01/10
EPS (Rs) 6.87 Mar, 09
Sales (Rs crore) 91.24 Sep, 09
Face Value (Rs) 10
Net profit margin (%) 12.84 Mar, 08
Return on average equity 36.08 Mar, 08

EPS can be expected in 2010-2011 as Rs 12.
PE ratio: 25-30

Price should be in between Rs 250 to 300 in 2 yrs time.


Whole Investment in Pipeline

MSP Steel & Power Ltd to invest Rs 382 Cr on enhancing production capacities
Written by Vijay
Tuesday, 27 October 2009
Mumbai: MSP Steel & Power Ltd is enhancing production capacities at it's Chhattisgarh plant. The company is setting up a 350 MTPA Sponge Iron Plant, 18 MW Power Plant, 383625 MTPA Coal Washery and 186450 Sq Ft MSP Colony at a total project cost of Rs. 233 Crores.

Rs. 155 Crore of the total project cost has been syndicated by a consortium of four banks. The remaining amount of Rs. 78.00 Crore will be brought in by promoters through internal accruals.
State Bank of India, Oriental Bank of Commerce, Allahabad Bank & Indian Overseas Bank have syndicated funds to the extent of Rs. 60.00 Cr., 30.00 Cr, 30.00 Cr & 35.00 Cr respectively. The entire amount of loan has been fully sanctioned and the Company has started taking disbursement of the same to carry on the implementation of the projects.

MSP Steel & Power Ltd is also setting up a 30 MW Power Plant at an investment of Rs. 149.5 Cr. For this project Rs. 50 Cr will be brought in by the promoters & the remaining 99.5 Cr will be funded by the banks. The Company has received sanctions from three banks and details are being worked out.

Past events and happenings:
MSP Signs MOU With Madhya Pradesh Govt. on 16th Feb 2008

MSP Steel & Power Ltd. has signed Memorandum of Understandings (MOU) with M P Trade & Investment Facilitation Corp Ltd, Government of Madhya Pradesh, on February 16, 2008 for setting up two Iron Ore Beneficiation Plants, one in the District of Jabalpur & other in Katni, with the capacities of 5.0 MTPA each, with a proposed Investment of Rs 200.00 crores in each, with a proposed Investment of Rs 200.00 crores in each plant and a Pelletiastation and Steel Plant of appropriate capacities in the above districts provided that the beneficiated ore is suitable for pelletisation.
Government of Madhya Pradesh shall facilities required infrastructure facilities, incentives and will facilitate to obtain the necessary clearness and concessions for the project from single window.


MSP Signs MOU With Madhya Pradesh Govt. on 27th Oct 2007

MSP Steel & Power Ltd. Has signed MOU with Government of Madhya Pradesh on October 27, 2007 for setting up a 2 million tonne Clinker and Cement Plant, the Company has been, granted prospecting licence for captive limestone mines has been allotted over an area of 683.47 hectares, in the rich limestone belt of Katni, M.P.

The Company believes that the area granted contains sufficient deposits to meet its complete requirement of Limestone through Captive Mines for the proposed project.


MSP Signs MOU With Madhya Pradesh Govt.

MSP Steel & power Ltd. Has signed a Memorandum of Understanding (MOU) with M P Trade & Investment Facilitation Corp., Government of Madhya Pradesh, on October 27, 2007 for setting up a 2 million tone, Clinker and Cement Unit in the State of M.P with a proposed Investment of Rs 1000.00 crores.


MSP Metallics started commercial production an has successfully started production of Pig Iron, Sponge Iron, and Billets during 1st Quarter of 2008


MSP is setting up 3,00,000 MTPA Pellet Plant in its Raigarh unit. Iron ore fines which is abundantly available will be used into pellet plant to manufacture pellete and pellets will be used in Sponge Iron Plant. Once the pellet plant will start production the group will save substantial amount in terms of Iron ore prices.


Coal mines has been allotted to Chaman Metallics Ltd. In the state of Maharashtra


Coal mines has been allotted to Howrah Gases Ltd.

MSP Signs MOU With Chhattisgarh Govt.

MSP Steel and Power Ltd. (MSPSPL) has signed the MOU for expansion of its plant with an investment of Rs. 850 crore with the Chhattisgarh Govt. The Managing Director of the company Mr. S K Agrawal signed the MOU.



MSP gets UNFCC approval for Carbon Credits

MSP Steel and Power Ltd. flagship company of the MSP Group, has been registered with UNFCCC. The Captive Power Plant is based on Waste Heat Recovery Module whereby flue gas released the Sponge Iron kiln is used to generate steam in the boiler thereby replacing fossil fuel for generating power. It will involve reduction of 59,000 Metric Tons of CO2 equivalent per annum which lead to substantial revenue inflow by selling CER credits (Certified Energy Reduction) which will accrue to the company for the period of 10 years.

MSP has also successfully commissioned all the facilities envisaged in the project in the 1st and 2nd phase which include Sponge Iron -2.00 lacs TPA. Steel Melting Shop - 1.50 lacs TPA. CPP - 24 MW, TMT Rolling Mill - 0.80 lacs TPA. Coal Washery - 3.00 lacs TPA. Railway Siding- 2.4 km. MSP is marketing its TMT bars under the brand name of MSP Gold Theremax TMT.

MSP has already been accorded Coal Block by the Ministry of Coal to meet its coal requirement for next 30 years and its application for iron ore mines in Chhattisgarh is in advanced stages of consideration.

The Railway Siding and Captive Power Plant has brought substantial savings for the company since their commissioning.

MSP Signs MOU With Madhya Pradesh Govt.

MSP Steel & Power Limited has signed a Memorandum of Understanding (MOU) with M.P Trade & Investment Facilitation Corp., Government of Madhya Pradesh, on 27.10.2007 for setting up a 2 million tons, Clinker and Cement Unit in the State of M.P with a proposed Investment of Rs. 1000.00 crores.

Government of Madhya Pradesh shall facilitate allocation of land and grant of captive limestone mines.

Further it shall facilitate in recommendations being sent by the Government of Madhya Pradesh to Government of India for allocation of coal linkage and allotment of captive coal block for the project.

Buy Gallant Metal with a price target of INR 65 in short term and INR 110 in longterm

Gallantt Metal Ltd has announced the Financial Results for the quarter ended December 31, 2009.

The Net Sales was at Rs.118.81 crores for quarter ending on 31-Dec-2009 as compared to Rs.69.12 crores for quarter ending on 31-Dec-2008. The Net Profit / (Loss) was at Rs.9.98 crores for the quarter ending on 31-Dec-2009 as compared to Rs.0.46 crores for quarter ending on 31-Dec-2008. The EPS was at Rs 1.23 for the quarter ending on 31-Dec-2009 as compared to Rs 0.06 for the quarter ending on 31-Dec-2008.

The Net Sales was at Rs.321.27 crores for 9 months ending on 31-Dec-2009 as compared to Rs.355.40 crores for 9 months ending on 31-Dec-2008. The Net Profit / (Loss) was at Rs.19.58 crores for the 9 months ending on 31-Dec-2009 as compared to Rs.17.22 crores for 9 months ending on 31-Dec-2008. The EPS was at Rs 2.41 for 9 months ending on 31-Dec-2009 as compared to Rs 2.12 for 9 months ending on 31-Dec-2008.