The document analyzes the Indian steel industry. It discusses the current challenges facing steel companies from Chinese exports and increased domestic competition. It provides financial data and metrics like EPS, P/E ratio, ROE, and current ratio for major steel companies like Tata Steel, JSW Steel, and SAIL. The analysis finds the Indian steel industry is under stress from rising imports. While demand may rise in 2016, investors should only invest in steel companies at the right price given some risk.

1. Equity Analysis in Steel Industry
Presented by:
Vibhuti Agarwal

2. About the company
 Financial Service group
 Wealth management firm
 Stock Broking
 Divisions
 Products

3. My Profile
 Advisor in Equity Derivative segment

4. My work
Seeking appointment through Telephonic calls
Questionnaire method

5. Why Steel sector ??

6. Present scenario of Steel Industry
Under pressure from Chinese exports
Increased domestic competitiveness
Problem of sub prime crisis
Gap between demand and supply of Steel in
economy
No innovation in technique

7. Top Companies in Steel sector
Name Last Price Market
Cap
(Rs. Cr.)
Sales
Turnover
Net Profit Total
Assets
Tata Steel 322.65 31,336.27 41,785.00 6,439.12 92,874.14
JSW Steel 1,268.70 30,667.28 46,087.32 2,166.48 51,485.83
SAIL 41.60 17,182.99 45,710.78 2,092.68 71,725.50

8. EPS
EPS = EBIT / no. Of outstanding shares

9. P/E
P/E = Price( per share) / EPS

10. Book value vs. Share price

11. ROE
ROE = PAT / Book value per share

12. Current Ratio
Current Ratio = Current Assets / Current
Liabilities

13. Futuristic Analysis
Exponential Smoothing
3 situations :
Price of stock > Projected price
Price of stock = Projected price
Price of stock < Projected price

14. Findings
Nation passing through stress due to rising
imports.
Non adjustment of production capacity in line
with the fall in demand in China.
Relative analysis by Exponential smoothing.
Tata Steel & SAIL has higher value of Beta.

15. Conclusion
Expectation of positive earning growth, which
though muted 2015 is set to accelerate in 2016.
Government raised import duties and imposed
anti dumping duty to discourage imports.
Investors with some appetite of risk can invest
in these companies but only at the right price.