(1/16)
About:
SEML manufactures iron pellets, sponge iron, billets, wire rods and wires, along with ferro alloys and eco-friendly fly ash brick. The group has thermal power plants and a waste-heat recovery boiler to generate power that is largely used for captive consumption.
About:
SEML manufactures iron pellets, sponge iron, billets, wire rods and wires, along with ferro alloys and eco-friendly fly ash brick. The group has thermal power plants and a waste-heat recovery boiler to generate power that is largely used for captive consumption.
(2/16)
Key Businesses and respective numbers:
Key Businesses and respective numbers:
(3/16)
Main Raw Material, Intermediates and Finished Products:
Main Raw Material, Intermediates and Finished Products:
(4/16)
Steel Outlook:
Boosted by higher spends on infrastructure & gradual revival of the automotive sector, India’s steel demand growth will be the highest in 2022 at 7.5% among top consuming nations. In 2023, India’s steel demand growth will be the 2nd highest after Germany.
Steel Outlook:
Boosted by higher spends on infrastructure & gradual revival of the automotive sector, India’s steel demand growth will be the highest in 2022 at 7.5% among top consuming nations. In 2023, India’s steel demand growth will be the 2nd highest after Germany.
(5/16)
• Low per capital consumption of steel, coupled with GOI’s target of producing 300 Million tonne of steel by 2030 gives ample scope for iron & steel industry. The industry is witnessing consolidation of players, which has led to investment by entities from other sectors.
• Low per capital consumption of steel, coupled with GOI’s target of producing 300 Million tonne of steel by 2030 gives ample scope for iron & steel industry. The industry is witnessing consolidation of players, which has led to investment by entities from other sectors.
(6/16)
Key Strategic Priorities of SEML:
• Focus on Hydro
• Mining
• Expansion in Ferro Alloys
• Green Power & Sustainability
Key Strategic Priorities of SEML:
• Focus on Hydro
• Mining
• Expansion in Ferro Alloys
• Green Power & Sustainability
(7/16)
Key Strengths:
• Diversification:
The company has focused on diversifying it’s product offering, n the form of steel, ferro alloys, hydro power and coal.
This helps them to mitigate the risk of cyclicality to some extent.
Key Strengths:
• Diversification:
The company has focused on diversifying it’s product offering, n the form of steel, ferro alloys, hydro power and coal.
This helps them to mitigate the risk of cyclicality to some extent.
(8/16)
• Backward Integration:
Their strategic foray into iron ore and coal mining has allowed them to mitigate risk of RM pricing volatility. Thus becoming self-sufficient and also getting an additional revenue stream.
• Backward Integration:
Their strategic foray into iron ore and coal mining has allowed them to mitigate risk of RM pricing volatility. Thus becoming self-sufficient and also getting an additional revenue stream.
(9/16)
• Financials:
Commencement of hydro power plant in Sikkim, coal mining in Raigarh & higher capacity utilization of pellet plant, coupled with improvement in ratings and consistent reduction of debts will help SEML strengthen its financial prowess.
• Financials:
Commencement of hydro power plant in Sikkim, coal mining in Raigarh & higher capacity utilization of pellet plant, coupled with improvement in ratings and consistent reduction of debts will help SEML strengthen its financial prowess.
(10/16)
• Established market position:
SEML is one of the largest manufacturers of manganese-based ferro alloys in India.
It’s portfolio is backed by the ability to manufacture different grades of steel products & niche-grade manganese-based ferro alloy products.
• Established market position:
SEML is one of the largest manufacturers of manganese-based ferro alloys in India.
It’s portfolio is backed by the ability to manufacture different grades of steel products & niche-grade manganese-based ferro alloy products.
(11/16)
Weaknesses:
• Exposure to cyclicality:
SEML’s growth is closely linked to the domestic & global economies as growth depends on the level of construction & infrastructure activities. Any downturn in the economic cycle adversely impacts demand, as was seen in FY16.
Weaknesses:
• Exposure to cyclicality:
SEML’s growth is closely linked to the domestic & global economies as growth depends on the level of construction & infrastructure activities. Any downturn in the economic cycle adversely impacts demand, as was seen in FY16.
(12/16)
• Substantial investment in subsidiaries and group entities:
Investments in group entities were around ₹1,250 crore as on March 31, 2022. These are largely in unrelated businesses (such as hydro power) and in entities with weaker credit risk profiles.
• Substantial investment in subsidiaries and group entities:
Investments in group entities were around ₹1,250 crore as on March 31, 2022. These are largely in unrelated businesses (such as hydro power) and in entities with weaker credit risk profiles.
(13/16)
Key Numbers & Ratios:
• Market Cap: ₹3,544 cr
• Stock P/E: 4.86
• RoCE: 29.5%
• RoE: 30.8%
• PEG: 0.10
• Price to Sales: 0.83
• Sales 3 year CAGR: 19%
• Interest Coverage: 7.54
• Debt: ₹1,379cr
• D/E: 0.44
• OPM: 31%
• NPM: 20.6%
Key Numbers & Ratios:
• Market Cap: ₹3,544 cr
• Stock P/E: 4.86
• RoCE: 29.5%
• RoE: 30.8%
• PEG: 0.10
• Price to Sales: 0.83
• Sales 3 year CAGR: 19%
• Interest Coverage: 7.54
• Debt: ₹1,379cr
• D/E: 0.44
• OPM: 31%
• NPM: 20.6%
(14/16)
Segment Revenue H1FY23:
• Steel: ₹1,100cr
• Ferro Alloys: ₹915cr
• Power: ₹458cr
Segment P/L H1FY23
• Steel: ₹333cr
• Ferro Alloys: ₹171cr
• Power: ₹134cr
Segment Revenue H1FY23:
• Steel: ₹1,100cr
• Ferro Alloys: ₹915cr
• Power: ₹458cr
Segment P/L H1FY23
• Steel: ₹333cr
• Ferro Alloys: ₹171cr
• Power: ₹134cr
(15/16)
Shareholding Pattern Q2 vs Q1 FY23
• Promoters: 72.84% vs 71.01% ⬆️
• FIIs: 1.97% vs 1.83%⬆️
• DIIs: 2.82% vs 2.54%⬆️
• Public: 22.55% vs 24.62%⬇️
Shareholding Pattern Q2 vs Q1 FY23
• Promoters: 72.84% vs 71.01% ⬆️
• FIIs: 1.97% vs 1.83%⬆️
• DIIs: 2.82% vs 2.54%⬆️
• Public: 22.55% vs 24.62%⬇️
(16/16)
Do you think this sector will experience a downturn anytime soon?
@caniravkaria @chartmojo @kuttrapali26
Do you think this sector will experience a downturn anytime soon?
@caniravkaria @chartmojo @kuttrapali26
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