Fundamental Analysis

KALYANI STEELS LIMITED 

Ticker : 500235 
BUY : Rs 356.40 
Target : Rs 400

Kalyani Steels is into the business of iron and steel products, such as bars & rods alloy rolled as well as bars and rods iron or non-alloy rolled. On the consolidated quarterly front, the company recorded net sales of Rs 367.72 crore for Q3FY21, which is an increase of 31.08 per cent from its net sales of Rs 280.53 crore reported for Q3FY20. The operating profit jumped by 62.56 per cent to Rs 93.11 crore in Q3FY21 from Rs 57.28 crore posted in Q3FY20. The net profit was reported at Rs 60.41 crore in Q3FY21 from Rs 32.09 crore in Q3FY21, clocking a handsome gain of 88.27 per cent. The company has chalked out a roadmap for approvals and new product development with major original equipment manufacturers (OEMs) in domestic as well as international spaces. The company aims to concentrate on product range which is less susceptible to global market fluctuations. Hence, we recommend BUY.