Most stocks of companies manufacturing steel tubes and pipes have been increasing since the beginning of the November. Maharashtra Seamless, which has appreciated by over 11 per cent, ended the day today at Rs 154.35 against its close of Rs 138.45.
PSL Holdings, which ended the day at Rs 42.15 today at the BSE, has appreciated by 30.69 per cent since the 1st of October. Surya Roshni, up over 4 per cent, ended the day at Rs 13. Saw Pipes appreciated by 32.34 per cent and it ended the day at Rs 82.65 against its close of Rs 62.45 at the beginning of October.
Gandhi Sp Tubes up by over a per cent finished today at Rs 15.50, against its close of Rs 15.25 on October 1. One of the few stocks that fell was Choksi Tube, down nearly a per cent since the beginning of October to end the day today at Rs 5.50 against Rs 5.55 from October 3.
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Indian Seam Tubes, down by over 14 per cent, ended the day at Rs 12 against Rs 14 at the beginning of November.
Steel pipes and tube manufacturers have been on an upward swing mainly on expectation of higher top line growth. The sales of eight steel tubes manufacturing companies rose by 22 per cent during the quarter ended December 2002. With the smart improvement in profit margins, the net profit of these companies rose by 39.9 per cent.
The biggest gainers Maharashtra Steel showed aprreciable rise in sales and profits. The sales of the company rose by 36.3 per cent while its net profit moved up by a 51.6 per cent.
Saw Pipes too put an excellent show during the quarter with both sales and net profits registering growth rate of 46 per cent each. Surya Roshni, however, fair badly with sales moved up by 9.26 per cent and net profit decline by 10.34 per cent.
The global steel industry has suffered from substantial excess supply for decades, with average capacity utilisation of around 75%. The key demand drivers are general overall economic growth and the success of major offtake industries, including construction, automotive and consumer durables.
This has been a driving factor in the domestic scenario. Despite the setbacks in FY02, the industry has much to look forward to in the long run. The government