BEEKAY STEEL INDUSTRIES (539018) - STOCK OF THE WEEK

Dear Investor friends, Today I am expressing my view on One Iron & related product company.

BEEKAY STEEL INDUSTRIES (539018)

Beekay Steel Industries is one of the finest customized steel manufacturing companies in India. Over the 50 years company have been meeting the changing needs of steel customers. Company is ISO 9001:2008, ISO 14001:2004 and 18001:2007 certified company.

Today Company is having its plants in West Bengal, Jharkhand, Andhra Pradesh and Tamil Nadu, to produce the widest range of steel products & its accessories. Company products are used extensively for Automobile Components, Engineering Industries, Infrastructure and Railways. Beekay also produce steel of customized shapes, sizes and characteristics. Company are registered with RDSO, DGS&D and BIS to supply steel throughout India. 

PRODUCTS.

Company manufacturing facilities spread across India produce Sections, Bright Bars, Structurals, TMT Bars & Coil Springs in a variety of specifications and grades. Main important aspect here is any  special requirement from the customer, Beekay also tailor the product as per their requirement  specifications.

Thus, Beekay Group focuses on product development, innovation and customization to stay ahead of the competition. Company vision is  to become a national leader in the automobile and engineering steel sectors, offering world class quality products and services. To this end company is setting up an integrated steel making facility through the EAF-LRF-VD route.

Main products of the company falls under 6 categories.

1. Sections- Flats, Rounds, Squares, RCS, Hexagonals, Octagonals & Trapezium

2.    Bright Bars- Flats, Rounds, Squares & Hexagonals

3.    Structurals- Angles, Channels, I-Beams & H-Beams

4.    TMT Bars

5.    Coil Springs

6.    Crane Rails

 1. Sections:

This products are mainly manufactured in Beekay mills in Jamshedpur, Vishakhapatnam and Chennai produce a variety of standard sections for automotive, railway and engineering industries in 3-6 meters lengths with 10% shorts down to 1 meter or multiple lengths as specified.

Standard Sections - Round Bars, Square Bars, Hexagons, Flat Bars, Round Corner Squares (RCS).

Special Profiles - Rectangular Bars for Aluminum Industries, Crane Rails for overhead EOT, Gantry Crane and Hoists, Fish Plates, Grooved Flats, Taper Flats, Octagons, Hoe Bars, T-Sections, Window Sections.

Special Conditions - Hot Rolled or Normalized, Saw Cut, Machine Straightened, Peeled & Ground or Drawn.

2. Bright bars:

Company manufacture Bright Bars in Visakhapatnam and Chennai units which find application in areas like Pump Shafts, Machined Components, Valves, Dairy Equipment, Fasteners, Machine Tools, Studs, Bolts, Pins, Hinges, Handles, Surgical & Medical Parts, Threaded Bars and other end usages.

Beekay bright bars also find use in Automobile Industry; this is the major sector which consumes Bright Bar. All engine components, Nuts, Bolts, and Shafts are made out of special grades of Bright Bars. 

3. Structural:

Beekay produces an array of products to meet structural requirements at Vizag and Chennai. This includes Medium & Heavy Angles,CHannelsand Beams ( I Beams & H Beams). 

4. TMT Bars:

Beekay is having several years of experience in producing TMT basrs for major clients like Tata Steel, now Beekay has commenced manufacturing of TMT bars under its own brand name BEEKAY TURBO TMT BARS. It is made by the Tempcore process through TurboQuench technology from Germany, these high quality TMT Bars find use in core infrastructure development like construction of multi storey buildings, bridges, dams, railways, power plants as reinforcement material.

 5. Coil springs

Coil springs are one of the emerging business segment of the company, these are used in a wide range of industrial and consumer markets, including the agricultural, railway, construction, mining, automotive and marine industries.

Beekay manufacture all types of hot coiled helical compression springs in various wire sizes ranging from 10 mm dia to 40 mm dia using a variety of alloys that include Spring Steel, Chrome Moly Steel, SAE 5160 etc. In hot wound springs, company have the capability to meet or exceed commercial tolerances.

6. Crane Rails

Crane Rails also known as Hot Rolled and A.S.C.E (American Society of Civil Engineers) rails are tracks upon which a top running crane moves.

Beekay manufacture steel square and rectangular bars for Crane Rails of grade ASTM A36 in both Hot Rolled and Cold Drawn condition. Crane Rail are manufactured using high grade materials and is known for its sturdiness, durability and application specific design. Crane Rails are mainly used in overhead EOT, Gantry Crane and Hoists.

International Business

Beekay has successfully established its brand name over the past 15 years globally by supplying tailor made Hot Rolled and Cold Drawn materials in different shapes and sizes and also Special Profiles across the globe. All products are covered by stringent certifications such as IS, EN, DIN, AISI/SAE, JIS and other international grades required for sophisticated end uses in overseas markets.

Beekay has a dedicated team catering to its export enquiries, who also coordinate the logistics, in house inspection, packaging and container stuffing at our premises. We have a dedicated Quality Control team which practices stringent methods and 100% materials are inspected in-house, as well as by reputed International Agencies on specific requests by the customer.

Beekay’s products have successfully found market in Mexico, New Zealand, Canada, UK, Saudi Arabia, Bahrain, UAE, Qatar, Philippines and many more, as well as in neighbouring countries such as Myanmar, Bangladesh and Sri Lanka. 

CLIENTS

Beekay enjoys strong customer base from many related industries. Few of them are as follows.

Company website: Clickhere

FINANCIALS AND OUTLOOK

Company shares are trading in BSE. Promoter holding in company 69.47%

Company posted 217.3 Cr top line in June Qtr

(25.4 % jump in top line compared to QOQ).

Net profit is 17.35 Cr bottom-line in June Qtr

(88.7 % jump in bottom line compared to QOQ).

Stock is trading low PE 6.94 as compared to industry PE & major peers.

EPS 9.10 in June Qtr

Dividend paying company.

Reduced debt, Debt to equity ratio is 0.84

Stock is trading at Rs 129.

Company posted stellar set of number QOQ basis and grown 88 % on bottom-line numbers as compared to previous qtr numbers. Company products are widely used in all major industries including Railways & infrastructure segment. These segments are in the growing phase is a huge positive for the company. Govt. Infrastructure boost will be a added advantages to the stock.

Considering above and performance of the company stock will rerate and will give Multifold returns to the investors in near future.

NOTE : THE ABOVE IS NOT A RESEARCH REPORT NOR A RECOMMENDATION  BUT INFORMATION AS AVAILABLE ON PUBLIC DOMAIN. 

Registration status with SEBI: I am not registered with SEBI under the (Research Analyst) regulations 2014 and as per clarifications provided by SEBI: “Any person who makes recommendation or offers an opinion concerning securities or public offers only through public media is not required to obtain registration as research analyst under RA Regulations”