Expansion plan does not stop MSP Steel & Power's slide

MSP Steel & Power dropped 4.41% to Rs 40.10 at 14:48 IST on BSE after the company said on Monday it plans to invest Rs 400 crore in setting up two iron ore beneficiation plants in Madhya Pradesh..

The company made this announcement during trading hours today, 10 March 2008.

On BSE, 45,351 shares were traded in the counter. The scrip had an average daily volume of 52,565 shares in the past one quarter.

The stock hit a high of Rs 41.60 and a low of Rs 37.80 far during the day. The stock had a 52-week high of Rs 88.90 on 4 January 2008 and a 52-week low of Rs 13.30 on 8 March 2007.

The small-cap scrip had underperformed the market over the past one month till 7 March 2008, declining 19.64% compared to the Sensex’s fall of 8.85%. It had also underperformed the market in the past one quarter, declining 37.62% compared to Sensex’s decline of 19.99%.

The company’s current equity is Rs 58.10 crore. Face value per share is Rs 10.

The current price of Rs 40.10 discounts Q3 December 2007 annualized EPS of Rs 6.22 by a PE multiple of 6.45.

MSP Steel & Power’s net profit rose 28.3% to Rs 9.03 crore on 70.6% growth in net sales to Rs 100.18 crore in Q3 December 2007 over Q3 December 2006.

The company is engaged in manufacturing and selling of iron and steel products. The company manufactures sponge iron, billets or ingots, construction bars, ferro alloy. The company has operations in China and India.