INE481K01021
Listing Status: Delisted
Was listed at NSE/BSE
About
Overview
The Global Steel Industry
Like many other industries, the global steel industry witnessed a year of two halves in CY 2020. A sharp decline in both steel demand and production in the first half, and a sharper-than-expected recovery in the second half. The short-term disruptions, however, inflicted significant pain on economies where the manufacturing sector was already under enormous stress. The recovery of steel-consuming industries such as automobiles has been faster than expected, and as a result, CY 2021 started with a firm steel demand and market prices. As economies around the world build back, infrastructure will be a key enabler for growth.
Global steel production in CY 2020 marginally dropped by 0.9% to 1,864 MnT from 1,880 MnT in CY 2019 (Source: World Steel Association). Steel demand fell by 0.2% to 1,771.8 MnT from 1,775 MnT in CY 2019.
Indian Steel Industry
A dynamic external environment, and enabling pricing scenario, and the release of pent-up demand majorly defined FY 2020-21 for the Indian steel industry. While the initial quarter of the fiscal proved to be an unprecedented slowdown with consecutive lockdowns, the rest of the year witnessed a high-powered demand revival in consumption industries such as automobiles. Demand for appliances improved due to the large-scale shift towards work-from-home, and construction activity picked up with government expenditure. This mirrored the global scenario, as demand picked up after liquidity was pumped into the economy together with a flurry of infrastructure project announcements.
Production Facility of ESL Steel Ltd
ESL Steel’s production unit primarily consists of Sinter Plants, Coke Oven, Blast Furnaces, Oxygen Plant, Basic Oxygen Furnaces, Billet Caster, Wire Rod Mill, Bar Mill, Ductile Iron Pipes Plant and a Power Plant with a total production capacity of 2.5 mtpa.
Product Portfolio & Brands ESL Steel Ltd
ESL Steel's product range includes Pig Iron, Billets, TMT Bars, Wire Rods and Ductile Iron Pipes. ESL Steel has recently introduced its rebranded product range in the market under three new brands, V-DUCPIPE for Ductile Iron Pipes, V-XEGA for TMT Bars, and V-WIRRO for Wire Rods.
Insights
Altius Decode's
In FY21, ESL Steel Ltd achieved the lowest ever cost during the year since its acquisition resulting in a higher EBITDA margin.
EBITDA margin of ESL Steel increased 28% y-o-y compared to the INR 5,514 per tonne in FY20 to INR 7,070 per tonne in FY21.
Reasons of increase in EBITDA Margins
Average sales realization improved by 3% y-o-y from INR 35,109 per tonne in FY2019 to INR 36,197 per tonne in FY2021
Cost Reductions by 1.5% from INR 29,563 per tonne to INR 29,127 per tonne.
ESL Steel unlisted share price jumped from Rs 32/sh in April 2021 to Rs 65/sh in July 2021.
Production Capacity & IPO Updates of ESL Steel Limited
ESL Steel’s production capacity also increased to 1.2 mtpa (FY’19) vs. 2.5 mtpa, according to the current design capacity.
In all likelihood, Vedanta Group led by Mr. Anil Agarwal has ESL Steel IPO plans in mind and to get it listed back on the bourses after the turnaround has happened.
Sauvick Mazumdar, CEO, of Vedanta Iron & Steel elaborated on the expansion plan of ESL Steel Limited for the medium term. He went on to disclose that ESL Steel is ready with the blueprint for taking the capacity further to 5 mtpa. Vedanta & ESL’s management believes the further capacity expansion will require another Rs 8,000-9,000 crore.
Peer Comparision Of ESL Steel Limited with major players like JSW Steel Ltd & Tata Steel Ltd
ESL Steel's share price is trading at very attractive valuations, PE at 3.32x, Price to Sales at a meagre 0.18x & Price to Book Value of ESL Steel Ltd stands at jus 1.46x.
Balance Sheet
Profit and Loss
Management
MANISH KUMAR CHAUDHARY - Company Secretary
MAHESH IYER - Chief Financial Officer
POOVANNAN SUMATHI - Director
PANKAJ MALHAN - Wholetime Director
MAHENDRA SINGH MEHTA - Director
PRASUN KUMAR MUKHERJEE - Director
Ancillary
Ratio Analysis
Peers
Industry Benchmarking
Segment Revenue
Subsidaries
Security Allotment
Corporate Governance
Press
Annual Report
Company Information
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Can I buy unlisted shares of ESL Steel Ltd (Electrosteel Steels Ltd.)?
Yes, you can buy ESL Steel Ltd (Electrosteel Steels Ltd.) shares. We at Altius Investech have many actively traded scripts and are market makers of unlisted shares. To check out all the unlisted shares traded. (Click on link). To submit a request to buy share of ESL Steel Ltd (Electrosteel Steels Ltd.) Please click on the “trade” button at the top of this page
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Can I sell unlisted shares of ESL Steel Ltd (Electrosteel Steels Ltd.)?
Yes, you can sell ESL Steel Ltd (Electrosteel Steels Ltd.) shares. We at Altius Investech have many actively traded scripts and are market makers of unlisted shares. To check out all the unlisted shares traded (Click on link). To submit a request to sell shares of ESL Steel Ltd (Electrosteel Steels Ltd.) Please click on the “trade” button at the top of this page
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What is the ESL Steel Ltd (Electrosteel Steels Ltd.) share price today??
We provide a two way quote on all the shares we deal in. Your buy price for ESL Steel Ltd (Electrosteel Steels Ltd.) unlisted share today is ₹45 and your sell price for ESL Steel Ltd (Electrosteel Steels Ltd.) unlisted share today is ₹36. The price is based on our estimates and market conditions.
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How is the price of ESL Steel Ltd (Electrosteel Steels Ltd.) unlisted shares calculated?
Fundamental & Comparative valuation models and the forces of demand and supply in the market for unlisted shares dictate the price. These prices are based on our estimates and transaction history of ESL Steel Ltd (Electrosteel Steels Ltd.) unlisted share.
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What are the lot sizes for ESL Steel Ltd (Electrosteel Steels Ltd.) unlisted shares?
We can generally arrange lot sizes starting with an investment of INR 20,000. To confirm the lot sizes of ESL Steel Ltd (Electrosteel Steels Ltd.) unlisted shares with us kindly click here.
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What are the financials of ESL Steel Ltd (Electrosteel Steels Ltd.)?
The financials of ESL Steel Ltd (Electrosteel Steels Ltd.) which includes the P/L of ESL Steel Ltd (Electrosteel Steels Ltd.) and the Balance Sheet of ESL Steel Ltd (Electrosteel Steels Ltd.) is in the financials section (Click on link).
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Where can I find the ESL Steel Ltd (Electrosteel Steels Ltd.) annual report?
The ESL Steel Ltd (Electrosteel Steels Ltd.) annual report is available in the annual report section (Click on link).
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What is the lock-in period of ESL Steel Ltd (Electrosteel Steels Ltd.) unlisted shares?
If the company has filed for a DRHP before July’2021 then the lock-in period post-IPO is 1 year else the lock-in period post-IPO is 6 months.
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Is buying ESL Steel Ltd (Electrosteel Steels Ltd.) unlisted shares legal in India?
Yes, buying and selling of Unlisted shares is legal in India.
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How much time does it take to credit ESL Steel Ltd (Electrosteel Steels Ltd.) unlisted shares in the Demat account?
Once the transaction for your placed order is completed the shares get credited to your Demat account in the next 24 hours.
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From where does Altius source ESL Steel Ltd (Electrosteel Steels Ltd.) unlisted stocks?
Altius sources shares from the initial investors or employees looking to liquidate their investment in the company.
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Short-term Capital gains tax to be paid on ESL Steel Ltd (Electrosteel Steels Ltd.) unlisted stocks?
If you liquidate your shares in less than 2 years, then these gains are taxed as ordinary income and hence are added to your income. You are taxed as per the tax slab.
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What is the expected IPO date or the listing date of ESL Steel Ltd (Electrosteel Steels Ltd.)?
Some of the companies listed with us today are already in a Pre-IPO phase. And the rest usually have a vision for an IPO in the next 2-3 years.
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Long-term Capital gains tax to be paid on ESL Steel Ltd (Electrosteel Steels Ltd.) unlisted stocks?
If you liquidate your shares after 2 years, these gains are taxed as Long-term Capital gains and are taxed at 20% with indexation benefits.
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Where can I find the ESL Steel Ltd (Electrosteel Steels Ltd.) price chart?
We have made a price chart available for ESL Steel Ltd (Electrosteel Steels Ltd.) based on the historical share prices here.
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