Stock below Rs 5: This debt free company is planning to emerge as a decisive player in the global steel industry

The stock has shown positive traction in the last 1 month as it has surged more than 38 per cent

Gyscoal Alloys Limited is engaged in the business of manufacturing stainless steel and mild steel long products from scrap. The company started its business with trading of iron and steel scrap. In 2005, the company took over a steel rolling mill business from Shah Alloys Group and started manufacturing rolled products.   

On Tuesday, the company made a general announcement, stating how steel prices could see upward movement due to increased global demand and higher domestic consumption in 2023-2024 as major infrastructure projects are progressing at a rapid pace.   

The company believes, due to the removal of export duty by the Government of India, the company is poised to increase their market reach among customers in India and abroad. The company already modernized its production units and trained the workforce for better productivity and an improved product mix as per the market requirements. As the products are made under strict quality control, Gyscoal enjoys better price for its produce from its customers.  

Gyscoal is a debt free company with an asset base of over 110 crore and is expected to achieve a turnover of over 300 crore and achieve EBITA of 15 – 18 per cent in the full year. The management is planning to further strengthen its marketing and stocking facilities in India, Gulf and MENA region to better serve its customers. Besides, the management proposes to add another 1,00,000 MT capacities in its melting division and similar capacities in its rolling section too along with adding systems and manpower.   

On Tuesday, the scrip closed 4.94 per cent down at Rs 3.08. The stock has shown positive traction in the last 1 month as it has surged more than 38 per cent. Keep a close eye on this steel company.