Bhuwalka Steel strengthens on property development plan

Bhuwalka Steel Industries gained 2.22% to Rs 83 at 13:16 IST on BSE after the company said it expects revenue of Rs 125 crore and rental income of Rs 12 crore a year, from redevelopment of a mill property in Bangalore.

The stock hit a high of Rs 86.50 and a low of Rs 80 so far during the day. The stock had a 52-week high of Rs 131.80 on 18 January 2008 and the stock hit a 52-week low of Rs 32.60 on 31 May 2007.

The company’s current equity is Rs 5.19 crore. Face value per share is Rs 10.

The current price of Rs 83 discounts its Q3 December 2007 annualised EPS of Rs 13.64, by a PE multiple of 6.09.

The Bangalore property, which will yield 13 lakh square feet of commercial and retail space, is being jointly developed with a unit of construction firm BL Kashyap, Bhuwalka said.

In April 2008, Bhuwalka Steel Industries acquired 2.99 lakh shares of Benaka Sponge Iron, based in Karnataka for Rs 10.02 crore.

Bhuwalka Steel Industries’ net profit rose 227.8% to Rs 1.77 crore on 31.6% growth in net sales to Rs 126.71 crore in Q3 December 2007 over Q3 December 2006.

The company manufactures steel billets and ingots. The group's steel rolled products primarily cater to the demand of construction and engineering industries.