Saturday, August 4, 2012

TAYO ROLLS - LONG TERM BUY






Tayo Rolls is a Tata Group company manufacturing Cast Iron,Steel Rolls, Forged Hardened Rolls and Engineering Forgings and Pig iron.This company is a joint venture between Tata Group and Yodogawa Steels of Japan.Tata Steel holding about 55% stake and the foreign promoter holding about 15%. Company having technical collaboration with Austria based  ESW and Sheffield Forgemasters International Ltd. of UK.About 40 % of company’s turnover is from exports to countries like Australia, Austria, Bangladesh, Belgium, Canada, Egypt, Germany, Indonesia, Kazakhstan, Nepal, Norway, New Zealand, Oman, Quatar, Saudi Arabia, Sweden, Singapore USA..etc. Company went through massive capacity addition in past few years but at the time of the  completion of this projects its user industries including Steel Industry slipped into lower demand mainly due to lower construction activities and general slowness in  many Industries.Lower demand for its products and higher interest outgo due to spending for capacity expansion resulted pathetic performance in past few quarters. To address this problem,recently  company raised about  Rs.85 Cr from its promoters through a preference share issue at lower interest rate. Now company is showing some initial signs of revival.In the latest quarter company increased its turnover from Rs.29 Cr to Rs.49 Cr and reduced loss substantially from Rs.13 Cr to Rs.3.5 Cr .I feel ,the worst time of TAYO will end soon and it will back to black in near future.After touching a high of Rs.465/- in 2008 its share price is now quoting  around Rs.77/-. Recommending a BUY only for those having patience to hold it more than one year @ CMP of Rs.77/-

18 comments :

  1. Sir, whats your view/update on Jayshree Tea and Industries, I have bought this stock at Rs. 101.00 shall I hold this stock or exit immediately ??

    ReplyDelete
    Replies
    1. Jayshree Tea Recommended @ Rs.91 .I don't see any reason to sell a Tea stock now.

      Delete
  2. Hi Sir,

    What is SHP and BSE websites displays NEW under SHP, what does it mean, please clarify.

    Thanks sir,
    Vinod

    ReplyDelete
    Replies
    1. SHP is share holding pattern ,after filing of share holding pattern by a company there will be a 'NEW' icon for few days.

      Delete
  3. Sir,

    Saw that Bharat Gears and Igarashi have poseted subdued results compared to Mar 12 quarter but better than Jun 11 quarter. Going Forward, can we expect both these stocks to keep up the momentum.

    Thank you

    ReplyDelete
  4. Hello, I have only one query! From where do you get all this picks? What are your sources? Please share! angadkat@gmail.com

    ReplyDelete
  5. It is not a great thing, if you are ready for some extra work with dedication.

    ReplyDelete
    Replies
    1. I am ready to do the work! But I dont know where to start? Any tips

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    2. Use just your common sense and look around to find where will be demand in future .start from there...

      Delete
  6. sir,
    This company is dependant on Steel inds and currently steel ind is passing thru tough phase. So do you still expect Tayo to do better and you expect the company to declare better results in coming qtrs?

    ReplyDelete
    Replies
    1. I think ,tough time of an industry (especially a cyclical industry) is the best time to acquire good stocks at cheap rate,if the company have ability to sustain such tough times and the investor have sufficient patience.

      Delete
  7. Dear Vp,

    What is your view on Mayur Uniquotes Ex Bonus.

    Regards

    NR

    ReplyDelete
  8. Dear Sir,
    What's your take on DHFL (Dewan Housing)bought @155 & HSIL (Hindustan Sanitary) bought @131?

    ReplyDelete
  9. Replies
    1. ? , Liberty recommended @ 95 and CMP is Rs.96

      Delete
    2. I bumped into your blog and found it quite informative. I liked your way of analysis.

      How do you rate Relaxo compared to Liberty?

      Thanks

      Delete
    3. Do you still have positive view on Tayo Rolls? In Q2FY13, there losses have increased from 3.5 Cr to 12.66 Cr.

      Delete

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