Bhushan Steel reverses direction from 52-week low on bargain hunting

Bhushan Steel was locked at 5% upper circuit at Rs 96.05 at 12:36 IST on BSE, with the stock reversing recent steep slide on bargain hunting.

Meanwhile, the BSE Sensex was up 110.15 points, or 0.41%, to 27,129.54

The stock saw high volume. On BSE, so far 19.73 lakh shares were traded in the counter with pending buy orders of 4.12 lakh shares at upper circuit. The stock has an average volume of 55,607 shares in the past one quarter.

The stock hit a 52-week low of Rs 86.95 in intraday trade today, 3 September 2014. The stock hit a high of Rs 96.05 so far during the day. The stock hit a 52-week high of Rs 504 on 11 November 2013.

The stock had underperformed the market over the past one month till 2 September 2014, falling 76.83% compared with 6.04% rise in the Sensex. The scrip also underperformed the market in past one quarter, sliding 78.01% as against Sensex's 9.46% rise.

The small-cap company has an equity capital of Rs 45.30 crore. Face value per share is Rs 2.

Shares of Bhushan Steel had tumbled 76.83% to Rs 91.50 on 2 September 2014 from Rs 394.85 on 1 August 2014. The steep slide was after the Central Bureau of Investigation (CBI) on 7 August 2014 arrested Bhushan Steel's Vice Chairman and Managing Director Neeraj Singal in the bribery scandal involving Syndicate Bank now suspended chairman S K Jain, who is also in custody. CBI has filed two cases against Jain, accusing him of receiving a bribe of Rs 50 lakh through conduits and abusing his official position to enhance the credit limits of some companies in violation of laid-down procedures.

Meanwhile, a court in New Delhi extended till 11 September 2014 the judicial custody of 11 accused in connection with two separate graft cases. Besides Jain and Singal, alleged middleman Purshottam Totlani, Arun Aggarwal, Ved Prakash Agarwal, Vipul Agarwal and some other accused were arrested by CBI in connection with the case. They have been booked under the provisions of Prevention of Corruption Act and criminal conspiracy under the IPC.

Bhushan Steel reported a net loss of Rs 141.63 crore in Q1 June 2014 compared with net profit of Rs 76.26 crore in Q1 June 2013. Total income rose 12.41% to Rs 2803.72 crore in Q1 June 2014 over Q1 June 2013.

Bhushan Steel is one of the leading prominent player in steel industry. The company is now India's 3rd largest secondary steel producer company with an existing steel production capacity of 2 million tonne per annum (approx).

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