Bhushan Steel shines on overseas initiative

Bhushan Steel shines on overseas initiative

Bhushan Steel gained 2.81% to Rs 1035 at 9:55 IST on BSE, after the company said on Monday, 25 February 2008, it has signed two joint ventures with Bowen Energy, Australia regarding exploration and commissioning of coal mines in Australia.

The company made this announcement after market hours on Monday, 25 February 2008.

Meanwhile, BSE Sensex was up 146.68 points or 0.83% to 17,797.25, as Asian stocks were mostly in green following overnight rally in US stocks. US stocks rose sharply on Monday, 25 February 2008, on signs the two largest bond insurers would stabilize, bringing a wave of relief to a market dogged by concerns of further bank write-downs.

On BSE, 28 shares were traded in the counter. The scrip had an average daily volume of 56,787 shares in the past one quarter.

The stock hit a high of Rs 1035 and a low of Rs 1025 so far during the day. The stock had a 52-week high of Rs 1730 on 7 January 2008 and a 52-week low of Rs 392 on 28 February 2007.

The mid-cap scrip had underperformed the market over the past one month till 25 February 2008, declining 23.41% compared to the Sensex’s decline of 3.87%. It had also underperformed the market in the past one quarter, declining 26.42% compared to Sensex’s decline of 7.72%.

The company’s current equity is Rs 42.47 crore. Face value per share is Rs 10.

The current price of Rs 1035 discounts its Q3 December 2007 annualized EPS of Rs 70.23, by a PE multiple of 14.74.

On 20 February 2008, Bhushan Steel signed a memorandum of understanding with Madhya Pradesh Trade and Investment Facilities Corporation for setting up of manufacturing facilities in the state at an investment of Rs 3000 crore.

Bhushan Steel’s net profit rose 4% to Rs 74.57 crore on 1.8% fall in net sales to Rs 982.73 crore in Q3 December 2007 over Q3 December 2006.

Bhushan Steel makes cold rolled, galvanized and special steel and strips. It also produces angles and wire rods. The company's plants are located in Uttar Pradesh, Maharashtra and Orissa.