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.
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”