Steel pipes industry – big growth expected?

It’s been almost five years since I made this post. Here’s an update of the market cap of the pipe companies since then.

1. RMG Alloy Steel has been renamed as Welspun Specialty Solutions Ltd.

2. Rs.5000 invested in each of these stocks would be an investment of Rs.1,00,000. This would be worth at least Rs.7,50,000. I’ve ignored the merged and de-listed stocks for calculation although the merged stocks would have value. This is an over 40% annualized return pre-tax. The S&P BSE 250 SmallCap Index was 2038.98 on February 22, 2019. It is 5,498.97 today and Rs.100,000 invested in it would have been worth close to Rs.270,000 today. It seems that if one expects an industry to do well, it’s good to buy a basket of stocks from the industry and hold for long term.