These 9 steel stocks rallied over 50% in 2017 so far
Tata Steel, Jindal Stainless, Kalyani Steel, Jindal Saw and JSPL have rallied more than 50%
 "These 9 steel stocks rallied over 50% in 2017 so far")
premium
Shares of steel companies are on a roll with nine companies include Tata Steel, Jindal Stainless Hisar, Welspun Corp, Kalyani Steel, Jindal Saw, Maharashtra Seamless and APL Apollo having rallied over 50% so far in the calendar year 2017.
Jindal Steel & Power (JSPL) and Jindal Stainless have seen their market value more than doubled on improved financial performance.
The financial results of eight of the companies that have been announced as of now, have posted a combined net profit of Rs 9 crore in last six months (January-June, 2017). These companies had posted an aggregate net loss of Rs 8,015 crore during the same period last year. APL Apollo yet to announce its April-June quarter results.
As per media reports, flat steel producers increased the prices up to Rs 3, 000 per tonne effective 1st August 2017. The increase in prices can be attributed to two reasons, expected improvement in domestic demand and growth in international steel prices.
"Steel demand is improving with increasing public sector spending, as reflected in increased activity in sectors like roads, power transmission and distribution, solar energy, earthmoving equipment, pre-engineered buildings, water and gas pipelines. Although, sluggish private capital expenditure remains a concern," steel major JSW Steel said in an analyst presentation available on the BSE website.
CARE Ratings believes that if the increase in domestic steel prices is sustained and there is no roll back of this increase in prices in the coming months, it will indicate the revival of domestic steel consumption in the country.
“We expect steel prices in China to remain stable in the near term backed by Chinese government’s aim to reduce over capacity and to protect the air quality in the country. This, in turn, will support the steel prices in India,” the rating agency said in recent report.
Jindal Steel & Power (JSPL) and Jindal Stainless have seen their market value more than doubled on improved financial performance.
The financial results of eight of the companies that have been announced as of now, have posted a combined net profit of Rs 9 crore in last six months (January-June, 2017). These companies had posted an aggregate net loss of Rs 8,015 crore during the same period last year. APL Apollo yet to announce its April-June quarter results.
As per media reports, flat steel producers increased the prices up to Rs 3, 000 per tonne effective 1st August 2017. The increase in prices can be attributed to two reasons, expected improvement in domestic demand and growth in international steel prices.
"Steel demand is improving with increasing public sector spending, as reflected in increased activity in sectors like roads, power transmission and distribution, solar energy, earthmoving equipment, pre-engineered buildings, water and gas pipelines. Although, sluggish private capital expenditure remains a concern," steel major JSW Steel said in an analyst presentation available on the BSE website.
CARE Ratings believes that if the increase in domestic steel prices is sustained and there is no roll back of this increase in prices in the coming months, it will indicate the revival of domestic steel consumption in the country.
“We expect steel prices in China to remain stable in the near term backed by Chinese government’s aim to reduce over capacity and to protect the air quality in the country. This, in turn, will support the steel prices in India,” the rating agency said in recent report.
| Company | 30/12/2016 | LTP | % chg |
| Jindal Stainless | 37.75 | 83.20 | 120.4 |
| Jindal Steel | 69.10 | 139.35 | 101.7 |
| Jindal Stainless Hisar | 89.85 | 172.55 | 92.0 |
| Mah. Seamless | 240.10 | 410.00 | 70.8 |
| Jindal Saw | 55.20 | 93.05 | 68.6 |
| APL Apollo | 913.55 | 1527.30 | 67.2 |
| Welspun Corp | 75.30 | 122.85 | 63.1 |
| Tata Steel | 391.10 | 631.00 | 61.3 |
| Kalyani Steels | 275.55 | 422.10 | 53.2 |
| S&P BSE Sensex | 26626.46 | 31755.27 | 19.3 |
| S&P BSE Metal Index | 10109.34 | 12931.97 | 27.9 |
| LTP : Last traded price on BSE in Rs at 11:41 am | |||
One subscription. Two world-class reads.
Already subscribed? Log in
Subscribe to read the full story →*Subscribe to Business Standard digital and get complimentary access to The New York Times
Smart Quarterly
₹900
3 Months
₹300/Month
SAVE 25%
Smart Essential
₹2,700
1 Year
₹225/Month
SAVE 46%
*Complimentary New York Times access for the 2nd year will be given after 12 months
Super Saver
₹3,900
2 Years
₹162/Month
Subscribe
Renews automatically, cancel anytime
Here’s what’s included in our digital subscription plans
Exclusive premium stories online
Over 30 premium stories daily, handpicked by our editors
Complimentary Access to The New York Times
News, Games, Cooking, Audio, Wirecutter & The Athletic
Business Standard Epaper
Digital replica of our daily newspaper — with options to read, save, and share
Curated Newsletters
Insights on markets, finance, politics, tech, and more delivered to your inbox
Market Analysis & Investment Insights
In-depth market analysis & insights with access to The Smart Investor
Archives
Repository of articles and publications dating back to 1997
Ad-free Reading
Uninterrupted reading experience with no advertisements
Seamless Access Across All Devices
Access Business Standard across devices — mobile, tablet, or PC, via web or app
SAVE 25%