Southern Ispat & Energy Ltd. has declared its results for the quarter ended September 2010. Total income came in at Rs 113.24 crore as compared to Rs 32.3 crore, a 251% jump YoY. It reported an 879% jump in net profit of Rs 7.34 crore versus Rs 75 lakh, YoY. In an interview with CNBC-TV18, Vivek Agarwal, CMD, Southern Ispat & Energy gave his perspective on the quarter gone by and the road ahead. I will encourage you to go here to see/read the full interview with the CMD, and understand its impact :
Founded in 1995 as SOUTHERN ISPAT LIMITED by Agarwal Group. The name of the Company was changed to SOUTHERN ISPAT & ENERGY LIMITED with effect from 18th September 2008. SIEL is engaged in the manufacture of Steel Billets based out of Kerala. From its humble beginning 15 years ago as a steel billets manufacturing company, SIEL is diversifying itself in to a chain of businesses in steel sector and is all set to became the only integrated Company manufacturing from iron ore to machine flanges under one roof. They are looking at an acquisition in Gujarat, a steel plant which is into alloy steel flanges. So that will be another move. To cater to all this they are looking for a mine in Chattarpur district which they will be signing in the next week. So the acquisition of the plant in Gujarat and the iron ore both they will be signing in the next week.
This share has seen highs of 48.60 as recently as Jan, 2010. And currently trading at just 11.50 at a very low single digit PE ratio. It's trading at a massive discount to even its current Book Value. From all parameters, this stock is a SCREAMING BUY right now! I will not be surprised if this stock goes on to be the Multi Multi-Bagger of the year 2011. A potential GOLDMINE for sure!
Company website : http://southernispatltd.com/index.html