Businesses
Goodluck Steel tubes is engaged in manufacture of Steel pipes and sheets diversifying into more valued added products like forged components for auto & railway industry and structures for power, telecom and solar industry.
Expansion
GoodLuck Steel Tubes has lined up following expansion over next one to three years.
- 30 crore expansion of new Structures unit. Should start production by March 2016. This expansion will expand companies margin.
- Setting-up a new Auto Tubes, Heavy Support Structures & Forging plant in Gujarat at cost of 260cr.The project will implemented in two stages first will be Auto Tubes & Heavy Support Structures and second stage will forging.
Financials
Q2FY16
Long term Debt = 76 cr
Short term Debt = 220 cr
Cash = 8.4 cr
Current Assets = 382 cr
Current Liability = 307 cr
Key Concerns
- Future profitability depends up on the managements ability to successfully diversify into more value added products.
- Implementation of expansion projects in-time will be critical for growth of the company.
Key Positive
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Investment at current market price provide good margin of safety. TTM PE = 5.95
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Company is showing improvement is OPM over several quarter from 5.x% to 9.x%
Disclosure
Invested with tracking position
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