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RATING

RECOMMENDATION

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Business Type

Emerging Leader

  • Anugraha Valve Castings Limited Unlisted Shares Essentials

ISIN

INE629Z01015

Face Value

₹10.00

Total Share

35,26,504

Total Income

₹25,256.78 L

Profit After Tax

₹1,143.31 L

EPS

₹32.42

Sector

Materials

Sub-sector

Iron & Steel

Cashflow - Operations

₹3,281.08 L

Cashflow - Financing

₹70.22 L

Anugraha Valve Castings Limited Growth

Compounded Sales Growth

  • 8.47%

    1 Year

  • 13.18%

    2 Year

Pro Only

Compounded Profit Growth

  • -13.69%

    1 Year

  • 12.52%

    2 Year

Pro Only

Return On Equity

  • 6.12%

    1 Year

  • 7.55%

    2 Year

Pro Only

About Anugraha Valve Castings Limited

Overview : 

  • Anugraha Valve Castings Limited is one of the leading steel foundry situated in the steel hub South India, Coimbatore and has four foundries and one machine Shop. 
  • Anugraha exports over 6,000 Metric tons of Steel, Stainless Steel, Alloy Steel, Nickel based alloy, Duplex and Super Duplex steel castings per annum in raw and fully machined conditions.
  • Speaking of competence, Anugraha is second to none in equipping with state-of-the-art technologies in an expansive plinth area and has a dedicated band of trained personnel who work with the most recent quality-testing equipment.

      Key facts:

  • Revenue from operations has been increased from INR 22,674 lakhs in 2019 to INR 24,345 lakhs in 2020, showcased a growth rate of 7.4%.
  • Anugraha exports over INR 269 Cr. of steel castings per annum. As Anugraha follows consistent quality as per international standards, decorated with quality certifications like ISO 9001:2015, ISO 14001:2015, ISO 45001:2018, etc.
Key Clients:
  • For the last two decades Anugraha has been serving to the major valve manufacturers who cater engineering, petroleum, chemical and gas Industries globally. Their reputation is built on providing timely delivery and superior quality.

  • Anugraha Valve Castings Limited Product & Services

Anugraha’s main focus is on the production of Industrial Valve Castings with size ranging from 0.5” to 32” according to ASTM and EN Specifications in raw and fully machined condition.

  • Anugraha Valve Castings Limited Industry Overview

Industry Statistics

    Introduction: 

  • India was the world’s second-largest steel producer with production standing at 111.2 MT in 2019. The growth in the Indian steel sector has been driven by domestic availability of raw materials such as iron ore and cost-effective labour. Consequently, the steel sector has been a major contributor to India’s manufacturing output.
  • The Indian steel industry is modern with state-of-the-art steel mills. It has always strived for continuous modernization of older plants and up-gradation to higher energy efficiency levels.
  • Indian steel industry is classified into three categories - major producers, main producers and secondary producers.


       Market Size:

  • India’s finished steel consumption grew at a CAGR of 5.2% during FY16-FY20 to reach 100 MT. India’s crude steel and finished steel production increased to 108.5 MT and 101.03 MT in FY20, respectively.
  • Between April 2020 and February 2021, India’s cumulative production of finished steel at 85.60 MT.
  • For the period April 2020 and February 2021, India’s cumulative production of crude steel stood at 92.78 MT. 
  • Export and import of finished steel stood at 8.24 MT and 6.69 MT, respectively, in FY20P.
  • Export and import of finished steel stood at 9.49 MT and 4.25 MT, respectively, between April 2020 and February 2021.

Future Prospects

Investments:

  • Steel industry and its associated mining and metallurgy sectors have seen major investments and developments in the recent past.
  • According to the data released by Department for Promotion of Industry and Internal Trade (DPIIT), the Indian metallurgical industries attracted Foreign Direct Investment (FDI) to the tune of INR 1,06,258 Cr. in the period April 2000-September 2020.
  • Ministry of Steel plans to invest INR 522 Cr.  in the eastern region of the country through accelerated development of the sector.
  • The production capacity of SAIL is expected to increase from 13 MTPA to 50 MTPA in 2025 with total investment of INR 1,85,686 Cr.
  • Tata Steel has decided to increase the capacity of its Kalinganagar integrated steel plant from 3 MT to 8 MT at an investment of INR 27,167 Cr.
  • JSW Steel has planned a INR 30,894 Cr. capital expenditure programme to increase its overall steel output capacity from 18 MT to 23 MT by 2020.
  • In February 2020, GFG Alliance acquired Adhunik Metaliks and its arm Zion Steel for INR 425 Cr., marking its entry into the Indian steel market
Road Ahead:
  • The National Steel Policy, 2017 envisage 300 MT of production capacity by 2030-31. The per capita consumption of steel has increased from 57.6 kgs to 74.1 kgs during the last five years. The government has a fixed objective of increasing rural consumption of steel from the current 19.6 kg/per capita to 38 kg/per capita by 2030-31.
  • As per Indian Steel Association (ISA), steel demand will grow by 7.2% in 2019-20 and 2020-21.

Government Initiatives

  • Under the Union Budget 2020-21, the government allocated INR 39.25 Cr. to the Ministry of Steel.
  • In January 2021, the Ministry of Steel, Government of India, signed a Memorandum of Cooperation (MoC) with the Ministry of Economy, Trade and Industry, Government of Japan, to boost the steel sector through joint activities under the framework of India–Japan Steel Dialogue.
  • In September 2020, the Ministry of Steel prepared a draft framework policy for development of steel clusters in the country.
  • Government introduced Steel Scrap Recycling Policy to reduce import.
  • An export duty of 30% has been levied on iron ore (lumps and fines) to ensure supply to domestic steel industry.
  • The Union Cabinet, Government of India approved the National Steel Policy (NSP) 2017, as it intends to create a globally competitive steel industry in India. NSP 2017 envisages 300 MT steel-making capacity and 160 kgs per capita steel consumption by 2030-31.
  • The Ministry of Steel is facilitating setting up of an industry driven Steel Research and Technology Mission of India (SRTMI) in association with the public and private sector steel companies to spearhead research and development activities in the iron and steel industry at an initial corpus of INR 200 Cr.

Anugraha Valve Castings Limited Strengths

  • Revenue from operations has been increased from INR 22,674 lakhs in 2019 to INR 24,345 lakhs in 2020, showcased a growth of 7.4%. 
  • Cash from operations has been increased from INR 1,374 lakhs in 2019 to INR 3,281 lakhs in 2020. 
  • There is a gradual increase in EBIT,EBITDA and PBT margin% from 2019 to 2020.
  • Company is in a good solvency position with minimum debt.

Anugraha Valve Castings Limited Shortcomings

  • Profit for the year has been reduced from INR 1,325  lakhs in 2019 to INR 1,143 lakhs in 2020.

Anugraha Valve Castings Limited Opportunities

  • Government of India’s focus on infrastructure and restarting road projects is aiding the demand for steel. Also, further likely acceleration in rural economy and infrastructure is expected to lead to growth in demand for steel.
  • Huge scope for growth is offered by India’s comparatively low per capita steel consumption and the expected rise in consumption due to increased infrastructure construction and the thriving automobile and railways sectors.

Anugraha Valve Castings Limited Threats

  • The Government of India raised import duty on most steel items twice, each time by 2.5% and imposed measures including anti-dumping and safeguard duties on iron and steel items.
  • Most of the public sector units are plagued by inefficiency caused by heavy investment on social overheads, poor labour relations, inefficient management, underutilization of capacity, etc. This hinders proper functioning of the steel plants.

Anugraha Valve Castings Limited Rating

  • RECOMMENDATION

    Buy

  • Anugraha Valve Castings Limited Detail Info

Registered In

India

Registered Date

27/08/1992

Stock Exchange Ticker

AVC

Reg Office: 391/2, Sengoda Gounden Pudur, Arasur village, Coimbatore – 641407, Tamilnadu, India

Website: http://www.anugrahavalvecastings.com/