SUNFLAG IRON & STEEL CO.LTD. Scrip Code : 500404

Welcome !

Welcome to the world of Sunflag Steel, manufacturers of world class Automobile, Defence & Engineering steel grades.




Sunflag Steel is a state-of the-art special steel plant in India built in technical collaboration with Mannesmann Demag and Krupp Industrietechnik, West Germany.




Sunflag Iron & Steel Co. Ltd. has entered into a technical assistance agreement with Japan based speciality steel producer Daido Steel Co. Ltd


just look at the financials of this co it might be a 10bagger stock in next 1 year.
https://www.screener.in/company/SUNFLAG/

benefited from MAKE IN INDIA,increasing demand of Automobile, scope of Defence demand & increasing Engineering product demand will make new growth driver for company in coming future. the way they are working it might become the next multibagger.

 

Accepting the welcome and a cursory look at Q1 results had my head filled with the following questions
- how would you rate the quality (competence and integrity) of the management
- what explains the reduction in depreciation charge in Q1?
- what explains the substantial reduction in Interest cost (when compared to March qtr as well)
- what explains the reduced tax charge? Just 22% effective tax rate against the usual (and last years too) rate of approx.30%
- what about its financials conveys that this company could be a 10x in 1 year?

 

quality of management is good as they are in business for long time. Sunflag Iron & Steel Co. Ltd. has a collaboration with Daido Steel Co. Ltd., Japan from 2010. it shows manegment growth aspects. the japan co also hold stake in company DAIDO STEEL CO. LTD., JAPAN 1,80,21,945 10.00% stake

reasons for reduction in interest cost
LONG TERM BORROWINGS(sources annual report 2015-16)
a) Long Term Borrowings - Secured Term Loans - From Banks 1,007 7,297 Total Long Term Borrowings - Secured 1,007 7,297
b) Long Term Borrowings - Unsecured From Promoters (Interest Free) @ 1,375 1,375 Other Loans and Advances # _ Interest Free Sales Tax Loan 4,574 5,154 Other Long Term Borrowings - Unsecured 5,949 6,529
Total Long Term Borrowings (a + b) 6,956 13,826
@ The Unsecured loans comprising interest free loans given by Promotors. There is no stipulation as to the repayment hence there is no default in repayment during the period.
# The Unsecured loans comprising interest free Sales Tax Loan. The repayment of the Sales Tax Loan is made as per the schedule and there is no default in repayment during the period.

strong financials are that since 2005 to 2016 the made only profits in only one year the made a loss in 2013

Return on Equity:10 Years:10.12%
constantly growing co.

not find any reasons for tax rate and depreciation at this point of time.

growing demand from GOVERNMENTS MAKE IN INDIA, demand from Automobile, Defence & increasing Engineering product demand will make it to grow in coming time.

 

@ritesh mehta ji

What is your view on Hindustan Tin Works

@others

your views are most welcome too.

 

not track it right now....

 

look at the move in sun flag in last 3 days its gating stronger and stronger......i think this month it will be above 50!!!!!

 

Nice analysis Ritesh..

 

another 10% addd..................in sunflag what a move

 

Sunflag might do well in the near term too cmp 37/-