Get started

Steelsector

Multiyear breakout- going steel strong !!BSE:RUDRA Research Report: Rudra Global Infra Products Ltd. 1. Company Overview Rudra Global Infra Products Ltd. (RGIPL) is a significant player in the Indian steel manufacturing sector, specifically focusing on TMT Bars production. Incorporated in Bhavnagar, Gujarat, RGIPL began as M.D. Inducto Cast Pvt. Ltd. in 2013, initially producing MS billets. By 2014, the company expanded into TMT Bars manufacturing, leveraging the rising demand for steel products in Gujarat. Rebranded in 2016, RGIPL has consistently grown, both in scale and scope, enhancing its capacity from 1.2 lakh tons to 2.4 lakh tons annually in its Steel Melting Shop (SMS) and Rolling Mill (RM) divisions. Strategic Expansion: Backward Integration: RGIPL has successfully implemented backward integration by using scrap from its ship recycling business to produce steel billets, minimizing environmental impact and reducing costs. This vertical integration provides RGIPL with a competitive edge, ensuring a steady supply of high-quality raw materials at lower costs. Forward Integration: The company has also engaged in forward integration, expanding its product offerings and enhancing its market reach. The launch of the "Rudra TMX" brand in 2014 marked a significant milestone, positioning the company as a premium TMT Bars manufacturer. Recent Developments: RGIPL has diversified into aerospace and defense sectors through its subsidiary, Rudra Aerospace and Defence Pvt. Ltd., which focuses on precision and investment casting solutions. The company has also been actively involved in sustainable practices, integrating renewable energy sources into its operations and adopting a circular economy model in its scrap processing activities. 2. Industry Outlook Global and Indian Steel Industry: The global steel industry is poised for moderate growth, driven by infrastructure development, urbanization, and government initiatives in emerging economies. According to the World Steel Association, the demand for steel is expected to grow steadily, with non-flat products like Bars & Rods, particularly in high demand. India, being one of the largest steel producers globally, has seen significant growth in crude steel production, with an increase of 13.6% in 2023-24. The Indian government’s infrastructure projects, such as the National Infrastructure Pipeline (NIP) and PM Gati Shakti, are set to fuel the demand for steel products in the coming years. Gujarat Steel Industry: Gujarat, one of India’s most industrially developed states, contributes significantly to the country’s steel output. The state’s robust infrastructure, policy support, and strong industrial base make it a favorable location for steel manufacturing. 3. Technical Analysis The monthly chart for Rudra Global Infra Products Ltd. (NSE: RUDRA) indicates a strong bullish breakout from a multi-year resistance level around ₹64.25, with the current price surging to ₹69.00. This breakout is accompanied by a substantial increase in trading volume, suggesting strong buying interest and potential for further upside. Key Technical Indicators: Moving Averages: The stock price is trading well above the 20-month and 50-month moving averages, indicating a sustained bullish trend. Volume Analysis: The surge in volume during the breakout reinforces the strength of the move, suggesting that the stock is under accumulation by institutional investors. Resistance and Support: Having broken through the previous resistance level, the next potential target could be ₹100, with strong support at ₹64.25. 4. Financial Highlights Revenue Growth: RGIPL has seen consistent revenue growth, with a sales figure of ₹557.03 crores in FY 2024, up from ₹452.51 crores in FY 2023. Profitability: The company has maintained a healthy EBITDA margin, reflecting efficient cost management and operational efficiency. Leverage: With a debt-to-equity ratio that has decreased over the years, RGIPL is well-positioned to manage its financial obligations and fund future expansions. 5. Strategic Growth and Sustainability RGIPL is focused on sustainable growth, integrating renewable energy sources such as wind and solar power into its operations. The company’s commitment to a zero-liquid discharge policy and efficient scrap processing highlights its dedication to environmental stewardship. These initiatives not only reduce operational costs but also enhance the company’s reputation as a socially responsible entity. Key Milestones: 2019: Installation of a 20 MT induction furnace, doubling billet production capacity. 2023: Commencement of a continuous stand rolling mill, further increasing TMT Bar production capacity. Future Plans: The company aims to become entirely energy self-sufficient by 2029, relying solely on renewable energy sources. 6. Conclusion Rudra Global Infra Products Ltd. is strategically positioned to capitalize on the growing demand for steel in India, particularly in Gujarat. With its integrated operations, focus on sustainability, and recent technical breakout, RGIPL presents a compelling investment opportunity. The company’s strong financials, continuous capacity expansion, and diversification into new sectors like aerospace and defense further bolster its growth prospects. Investment Thesis: Bullish Outlook: The recent technical breakout and volume surge suggest a strong bullish outlook, with potential targets in the ₹100 range. Long-Term Growth: RGIPL’s focus on backward and forward integration, along with its sustainable practices, positions it well for long-term growth in the Indian steel industry. Recommendation: Buy: Given the technical setup and strong fundamentals, RGIPL is a recommended buy for long-term investors looking to capitalize on growth in the Indian steel sector. Disc: no investment as of now , however may add position if breakout sustain , if closes below previous month - exit sign No recommendation Source: Investor's presentation
BSE:RUDRALong
by Peaceful-Weekend-Investing
Venus Pipes Breaking outVenus Pipes & Tubes Limited is a manufacturer and exporter of stainless steel pipes and tubes. Fundamentals are good. Rising OPM, Net profit, EPS with consistent tax rate. Good 3Y ROE, sales and profit growth. Reducing debtor days. Stakes increased by Promoters, DII, FII in last 2Q. No:of Shareholders jumped in recent quarter expecting good result. And company didn't fail that. Double digit growth in Q3. Chart with targets displayed YOY QOQ Sales 52% 8.4% EBIDT 123% 12.39% Net Profit 106% 14.77% EPS 106% 14.93%
NSE:VENUSPIPESLong
by naraykln
Steel Dynamics ($STLD) Stock Hits a Record HighSteel Dynamics ( NASDAQ:STLD ) reports current quarter guidance that was above estimates as it sees profitability potentially stronger than the previous quarter. The steelmaker said the gains were driven by its flat-rolled steel operations. Steel Dynamics added that because of its confidence in the business, the company repurchased 1.4% of its stock so far in the quarter. Steel Dynamics ( NASDAQ:STLD ) shares soared to a record high after the steel maker reported much better-than-expected guidance on booming demand. The company predicts current quarter earnings per share (EPS) of $3.51 to $3.55, while analysts were looking for $3.32. Steel Dynamics said it anticipates profitability from its steel operations to be "meaningfully stronger" than fourth-quarter results. While the company will give more details in its first quarter financial report on April 23, it pointed to increased shipments and earnings driven by the company's flat-rolled steel operations as fueling growth. Steel Dynamics ( NASDAQ:STLD ) also said earnings from its metals recycling business will be higher, and that its automotive, non-residential construction, energy, and industrial sectors “continue to lead demand,” Based on its “continued confidence in its earnings outlook and cash flow generation,” it had repurchased $279 million, or 1.4%, of its stock in the first quarter through March 11, the company said.
NASDAQ:STLDLong
by DEXWireNews
Nippon Steel's Acquisition Sends U.S. Steel Stock PlummetingPresident Joe Biden's expressed concerns over Nippon Steel's proposed acquisition of U.S. Steel ( NYSE:X ) have ignited a flurry of political speculation and market volatility. With Biden's impending statement raising questions about national security implications and regulatory scrutiny, investors brace for potential obstacles to the $14.9 billion deal. Political Opposition and National Security Concerns: Biden's plan to voice apprehension over Nippon Steel's acquisition of the iconic U.S. Steel underscores mounting bipartisan scrutiny and national security apprehensions surrounding the deal. Democratic and Republican senators have voiced reservations, citing concerns over the lack of consultation with U.S. Steel's main union and the strategic importance of the steel industry to national defense. Market Reaction and Investor Sentiment: News of Biden's intervention sent shockwaves through the financial markets, with U.S. Steel's stock plummeting by 12% amid heightened uncertainty and speculation. Investors react swiftly to political developments, recalibrating their positions amidst the prospect of increased regulatory hurdles and potential delays in the acquisition process. Nippon Steel's Strategic Maneuver and U.S. Steel's Response: Nippon Steel's ambitious bid to acquire U.S. Steel was driven by optimism surrounding Biden's infrastructure bill and expectations of favorable spending and tax incentives. However, Biden's intervention injects a new layer of complexity into the deal, raising questions about its viability and regulatory approval. U.S. Steel, founded over a century ago and deeply entrenched in American industrial history, faces mounting pressure amid declining revenue and profit margins. Implications for the Steel Industry and Global Trade: Biden's stance on the Nippon Steel acquisition underscores broader implications for the steel industry and global trade dynamics. The intersection of economic policy, national security considerations, and international relations shapes the regulatory landscape, impacting the strategic direction of major corporations and influencing market sentiment.
NYSE:XShort
by DEXWireNews
TATASTEEL - DAILY TIME FRAMEThe Structure looks good to us, waiting for this instrument to correct and then give us these opportunities as shown on this instrument (Price Chart). Note: Its my view only and its for educational purpose only. Only who has got knowledge about this strategy, will understand what to be done on this setup. its purely based on my technical analysis only (strategies). we don't focus on the short term moves, we look for only for Bullish or Bearish Impulsive moves on the setups after a good price action is formed as per the strategy. we never get into corrective moves. because it will test our patience and also it will be a bullish or a bearish trap. and try trade the big moves. we do not get into bullish or bearish traps. We anticipate and get into only big bullish or bearish moves (Impulsive Moves). Just ride the Bullish or Bearish Impulsive Move. Learn & Know the Complete Market Cycle. Buy Low and Sell High Concept. Buy at Cheaper Price and Sell at Expensive Price. Keep it simple, keep it Unique. please keep your comments useful & respectful. Thanks for your support.... Tradelikemee Academy
NSE:TATASTEELLong
by Tradelikemee
JSW STEEL - Butterfly PattenJsw Steel looks good on all time frames, the weekly and daily charts are in sync helping prices to move swiftly. There is a probability of the Butterfly pattern, which is a five-legged harmonic pattern, which if unfolds can take the stock to 725 to 755 levels in the coming weeks. I would wait for a Dip to enter the stock, however, there are chances that we might not get a dip, as price action looks quite strong. So I will take FOMO trade right now, despite strong price action, because it is better to wait for a halt than jump on the fast-running train. Hence if the dip comes, there is a trade on the table. otherwise, move on to the next bet. Support at 670-680
NSE:JSWSTEELLong
by manuagarwal21
$X : Is Steel Ready For a Fall or Breakup?It appears Steel has reached an area of overhead resistance and at a quick glance one may assume it's ready for a break after temporary sector distortions due to covid and supply issues that plagued many sectors. We also know there are pressures from "cost inflation" as well that plague mines, as well as builders but it seems too early to tell if price will turn around and head down, fairly, quickly, or will these pressures in supply force prices upward. It's also been suggested there is enough supply overhead despite, "sheet mills in North America relying heavily on the low phosphorus pig iron from Ukraine and Russia", according to industry publication the Steel Market Update. Russia and Ukraine’s pig iron supplies account for 60% of US imports. Prices for steel have been falling since the fourth quarter of last year as supply exceeded demand, according to Axel Eggert from the European Steel Association. If supply exceeds demand, it's a no-brainer, however, there's this below: “Ongoing supply chain disruptions, skyrocketing energy and carbon prices, as well as persisting inflation are putting the recovery of the steel sector at risk. Combined with the current EU climate and energy policies, these are the ingredients of a dangerous cocktail that may drive Europe into a structural crisis and industry out of Europe." There's a push and pull of we have enough vs we won't have enough because of a, b and c. It's too early to tell. Need to just watch price as that will be the canary in the coal mine. :)
NYSE:X
by fortunaequitis
TATASTEELHello and welcome to this analysis on Tata Steel After a long correction which lasted more than 7 months, in FEB the stock gave a vertical recovery rally. The rally ended with a diagonal indicating signs of short term exhaustion. Earlier this month we saw the diagonal breakdown and today we are witnessing more selling pressure in it. It could continue this decline till 1250 as long as it fails to move above 1320. Medium to long term stock remains bullish. Short term weakness might continue
NSE:TATASTEELShort
by Dinesh_C_Nagpal
SAIL Trend AnalysisExpecting strong momentum due to strong bullish divergence in RSI on weekly TF. Price bounced nicely from support and broke out of the bull flag with increasing volume. It can retest 100-105 levels during this correction phase before blasting off higher. I believe infra and realty sectors are going to boom this year, it will positively impact steel and cement stocks as well. Buy around 100-110 levels Target 1: 185 (75% ROI) Short Term as per bull flag Target 2: 280 (165% ROI) Medium Term as per cup with handle. Both the targets seems achievable by year end. My studies are purely based on TA, Do Your Own Research before trading or investing. Peace !!
NSE:SAILLong
by Swastik24