IIP REPORT On Fundamental Analysis On Indian Steel Industry

INDUSTRIAL INTERNSHIP REPORT
ON
FUNDAMENTAL ANALYSIS OF INDIAN STEEL INDUSTRY
SUBMITTED BY
BHUWAN JOSHI
ROLL NO. 18070
TRIPLE SPECIALIZATION
UNDER THE ESTEEMED GUIDENCE OF

ASSISTANT PROFESSOR
Dr. N C RAJYALAKSHMI
CORPORATE GUIDE
KP SINGH (TERITORY MANAGER)
ACADEMIC YEAR
2009-2011
SIVA SIVANI INSTITUTE OF MANAGEMENT
KOMPALLY, SECUNDERABAD
DECLARATION
I undersigned Mr. BHUWAN JOSHI a student of SIVA SIVANI INSTITUTE OF

MANAGEMENT PGDM (TRIPLE SPECIALIZATION) declares that I have prepared this
Project Report on fundamental Analysis of Indian Steel Industry under the Corporate
Guidance of MR. KP Singh (Territory Manager Sharekhan Pvt. Ltd. Hyderabad) and also
under the Esteemed Guidance of Assistant Professor Dr. N C Rajyalakshmi.
I also declare that this project report is my own preparation and not copied from anywhere else.
Signature
Bhuwan Joshi
TPS (Major- Finance)
Roll No.18070
Acknowledgement
During summer training in Sharekhan Pvt. Ltd at Ameerpet Branch, I got the opportunity to
know what actually happens in the company. I was made aware of the practical implications of
what I have learnt.
I am also very much thankful to Mr. KP Singh Territory Manager Hyderabad Business and other
members of Ameerpet Office who warmly welcomed me and helped me in making my report
successful and in gathering the information regarding the functioning of the share market as well
as the Broking House (Sharekhan Pvt. Ltd.)
In the following pages a sincere efforts has been seen made by me to mention the knowledge I
acquired during my summer training. The matter mentioned is based on company incentives.
Place: - Hyderabad (Ameerpet) (BHUWAN JOSHI)
Date: - PGDM (TPS)

PREFACE
Life is full of effort and struggle, success and failures. But the sincere efforts done in right
direction and at right time will give us fruit and success. As a student of management. I am
excepting with something more organized specific and effective effort with desired results
towards the work.
I had undergone the study at Sharekhan Pvt. Ltd., at Hyderabad (Ameerpet), who gave this
opportunity to know what, is actually happening in the company as well as in the share market.
In the following pages, I have tried my level best to include the maximum information I had
obtained during my project work at Sharekhan Private Limited.
Table Of Contents
Page No.
I Introduction
1. Executive summary …………………………………………………………… 1
2. Company Profile …………………………………………………………… 2
3. Stock analysis …………………………………………………………… 4
4. Objective of the study ………………………………………………………….. 9
5. Overview …………………………………………………………... 10
II Research work
6. Research methodology …………………………………………………… …… 12
7. Limitation of the research………………………………………………. ……… 12
8. Approaches to fundamental Analysis ……………………………………… 13
9. Economic analysis …………………………………………………………….. .. 17
10. Industry analysis ……………………………………………………………... 21
11. Company analysis ……………………………………………………………. 25
III Findings and Suggestions

12. Findings ………………………………………………………………….. 49
13. Suggestions ………………………………………………………………….. 52
Bibliography
PART I
INTRODUCTION
EXECUTIVE SUMMARY
Fundamental analysis is very helpful to the investor, which is reflected in the investment
purpose. Fundamental analysis consist of three parts, they are economic, industry and company.
Any investors who go to systematic investment, he/she would like to know, the complete
scenario of the industry. It is interesting to know how the fundamental analysis helps to forecast
the price of equity.
The fundamental analysis consists of three parts; they are economic, industry and company. All
the factors are involved in this analysis were identified and studied carefully to identify the
factors in the existing environment. The data or information collected was based on the personal
interaction with the guide of the company.
Economic analysis was a task to be studied as it affected the company’s tax, and it will effect on
the revenue of the industry. Also other factors are considered in the economic analysis. And it
will interpret for the fundamental analysis.
Industry analysis was a challenging factor for the research of the fundamental analysis. All the
sub-factors of the industry analysis were taken up from the secondary source to analyses the
each factor with the industry. And was related those factors with the company. It also analyses
the competitiveness of the each company’s strength, like. Quality, services, cost of R/m, etc.
Company analysis is last factors of the fundamental analysis and it is one of the most important
parts of the company. An approach was made to understand the existing company and its impact
on company’s market share and its performance.
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COMPANY PROFILE
Establishment and network:
Share khan is an 80 year old company and has its link to SSKI. Share Khan started as a retail
arm of SSKI and slowly developed into a large organization having 704 share shops in 280 cities
across the country. It has about 31,000 employees with a customer base of more than 5,00,000.
Share khan deals with wide variety of products namely equities, derivatives, commodities, IPO,
mutual fund, research, portfolio management and other structured products. The mission of
Share khan is “… to educate and empower the individual investor to make better investment
decision through Quality Advice, Innovative products and superior service.”
It offers both offline and online services. It had launched its website www. Sharekhan.com in
the year 2000 and now within a timeframe of 8 years almost 50% of the total services are given
online to its customers. It is one of the most preferred website by all the customers as it provides
a whole range of in depth research reports on top companies and commodities. All the
information pertaining to any financial product is easily available on the company’s website.
Operations:
Share Khan offers three modes of trade transaction means. They are –
• Share shops – A customer can directly visit any of the share shop to trade .
• Online trading – A customer can trade on his own by using the online trading mode.
• Dial & trade – A customer can ring up to any dealer or the relationship manager and can
execute his trade.
Thus, based on the convenience of the customer he can choose any of the above modes of
transaction.
Services:
Share Khan also offers different range of services depending on the profile of the customer. All
the services are offered with the help of the exclusive research team consisting of 25 analysts in
fundamental, technical and derivatives research team.
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These services are –
• First step – This service is for those customers who are investing for the first time.
• Classic – This service is for customers who transact occasionally.
• Speed trade – This service is for those customers who are very are day traders and
participate actively in the market.
• Platinum Circle – This service is exclusively for HNI’s who are looking for
personalized and exclusive investment and portfolio management services ( PMS)
It provides continuous educational programs to guide their customers by means of seminars

and workshops or by means of booklets and reports. Customer care is the top priority for
Share Khan.
Awards and recognition for Share khan:

• It is being rated among the top twenty wired companies along with Reliance, HLL,
and Infosys etc by business today.
• It is awarded as one of the most preferred broker in India by the Awaaz Consumer
Awards.
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STOCK ANALYSIS
Indian Securities markets are touching new heights as it has surpassed 18000 marks. More and
more investors are attracting towards equity investment and trading. But this is not always the
case that no one can assure you certain returns there is always essence of uncertainty and risk in
investment and that push investors on back seats. Sometimes it becomes very difficult for
investors to predict the share price of the particular company in this very volatile market. It
raises questions in investor’s mind that
At what price I should buy? When to sell it... hold?
But as trading and investments are increasing on the markets as SEBI had taken stern steps to
disclose important information to its Shareholder and investor. So they can get as possible as
information about the companies of which they are holding the shares or going to buy. And
now-a-days brokers and some analyst providing some future predictions of stocks price
movements. So now investment has become somewhat easy for investors.
How they get it? This is done with a Stock Analysis getting the information about company and
its price movements on stock markets and try to predict how would behave on stock markets.
So, there is great importance of stock analysis among investors done brokers, experts, analyst,
etc.
Types of Stock Analysis

The methods used to analyze securities and make investment decisions fall into two very broad
categories: fundamental analysis and technical analysis
1. TECHNICAL ANALYSIS
2. FUNDAMENTAL ANALYSIS
Here I have selected a Fundamental analysis as a subject of project so it will be done in detail
with practical analysis of companies. And we would get only some flavor of Technical analysis
and then would be understand about Fundamental analysis.
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What Is Technical Analysis?
“Technical analysis is a method of evaluating securities by analyzing the statistics generated by
market activity, such as past prices and volume. Technical analysts do not attempt to measure a
security's intrinsic value, but instead use charts and other tools to identify patterns that can
suggest future activity.”
Just as there are many investment styles on the fundamental side, there are also many different
types of technical traders. Some rely on chart patterns; others use technical indicators and
oscillators, and most use some combination of the two. In any case, technical analysts' exclusive
use of historical price and volume data is what separates them from their fundamental
counterparts. Unlike fundamental analysts, technical analysts don't care whether a stock is
undervalued - the only thing that matters is a security's past trading data and what information
this data can provide about where the security might move in the future.
The field of technical analysis is based on three assumptions:

1. The Market discounts everything.
2. Price moves in trends.
3. History tends to repeat itself.
The Market Discounts Everything:

A major criticism of technical analysis is that it only considers price movement, ignoring the
fundamental factors of the company. However, technical analysis assumes that, at any given
time, a stock's price reflects everything that has or could affect the company - including
fundamental factors. Technical analysts believe that the company's fundamentals, along with
broader economic factors and market psychology, are all priced into the stock, removing the
need to actually consider these factors separately. This only leaves the analysis of price
movement, which technical theory views as a product of the supply and demand for a particular
stock in the market.
Price Moves in Trends:

In technical analysis, price movements are believed to follow trends. This means that after a
trend has been established, the future price movement is more likely to be in the same direction
as the trend than to be against it. Most technical trading strategies are based on this assumption.
History Tends To Repeat:

Itself another important idea in technical analysis is that history tends to repeat itself, mainly in
terms of price movement. The repetitive nature of price movements is attributed to market
psychology; in other words, market participants tend to provide a consistent
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Reaction to similar market stimuli over time. Technical analysis uses chart patterns to analyze
market movements and understand trends. Although many of these charts have been used for
more than 100 years, they are still believed to be relevant because they illustrate patterns in price
movements that often repeat themselves.
Other Usage:
Technical analysis can be used on any security with historical trading data. This includes stocks,
futures and commodities, fixed-income securities, forex, etc. In this tutorial, we'll usually
analyze stocks in our examples, but keep in mind that these concepts can be applied to any type
of security. In fact, technical analysis is more frequently associated with commodities and forex,
where the participants are predominantly traders. Now that you understand the philosophy
behind technical analysis, we'll get into explaining how it really works. One of the best ways to
understand what technical analysis is (and is not) is to compare it to fundamental analysis. We'll
do this in the next section.
Strengths of Technical Analysis

• Focus on Price:
If the objective is to predict the future price, then it makes sense to focus on price movements.
Price movements usually precede fundamental developments. By focusing on price action,
technicians are automatically focusing on the future. The market is thought of as a leading
indicator and generally leads the economy by 6 to 9 months. To keep pace with the market, it
makes sense to look directly at the price movements. More often than not, change is a subtle
beast. Even though the market is prone to sudden kneejerk reactions, hints usually develop
before significant moves. A technician will refer to periods of accumulation as evidence of an
impending advance and periods of distribution as evidence of an impending decline.
• Supply, Demand, and Price Action:

Many technicians use the open, high, low and close when analyzing the price action of a
security. There is information to be gleaned from each bit of information. Separately, these will
not be able to tell much. However, taken together, the open, high, low and close reflect forces of
supply and demand.
The annotated example above shows a stock that opened with a gap up. Before the open, the
number of buy orders exceeded the number of sell orders and the price was raised to attract more
sellers. Demand was brisk from the start. The intraday high reflects the strength of demand
(buyers). The intraday low reflects the availability of supply (sellers). The close represents the
final price agreed upon by the buyers and the sellers. In this case, the close is well below the
high and much closer to the low. This tells us that even though demand (buyers) was strong
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during the day, supply (sellers) ultimately prevailed and forced the price back down. Even after
this selling pressure, the close remained above the open. By looking at price action over an
extended period of time, we can see the battle between supply and demand unfold. In its most
basic form, higher prices reflect increased demand and lower prices reflect increased supply.
• Support/Resistance:
Simple chart analysis can help identify support and resistance levels. These are usually marked
by periods of congestion (trading range) where the prices move within a confined range for an
extended period, telling us that the forces of supply and demand are deadlocked. When prices
move out of the trading range, it signals that either supply or demand has started to get the upper
hand. If prices move above the upper band of the trading range, then demand is winning. If
prices move below the lower band, then supply is winning.
• Pictorial Price History:

Even if you are a tried and true fundamental analyst, a price chart can offer plenty of valuable
information. The price chart is an easy to read historical account of a security's price movement
over a period of time. Charts are much easier to read than a table of numbers. On most stock
charts, volume bars are displayed at the bottom. With this historical picture, it is easy to identify
the following:
· Reactions prior to and after important events.
· Past and present volatility.
· Historical volume or trading levels.
· Relative strength of a stock versus the overall market.
• Assist with Entry Point:

Technical analysis can help with timing a proper entry point. Some analysts use fundamental
analysis to decide what to buy and technical analysis to decide when to buy. It is no secret that
timing can play an important role in performance. Technical analysis can help spot demand
(support) and supply (resistance) levels as well as breakouts. Simply waiting for a breakout
above resistance or buying near support levels can improve returns.
Weaknesses of Technical Analysis
• Analyst Bias:
Just as with fundamental analysis, technical analysis is subjective and our personal biases can be
reflected in the analysis. It is important to be aware of these biases when analyzing a chart. If the
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analyst is a perpetual bull, then a bullish bias will overshadow the analysis.On the other hand, if
the analyst is a disgruntled eternal bear, then the analysis will probably have a bearish tilt.
• Open to Interpretation:
Furthering the bias argument is the fact that technical analysis is open to interpretation. Even
though there are standards, many times two technicians will look at the same chart and paint two
different scenarios or see different patterns. Both will be able to come up with logical support
and resistance levels as well as key breaks to justify their position. While this can be frustrating,
it should be pointed out that technical analysis is more like an art than a science, somewhat like
economics. Is the cup half-empty or half-full? It is in the eye of the beholder.
• Too Late:
Technical analysis has been criticized for being too late. By the time the trend is identified, a
substantial portion of the move has already taken place. After such a large move, the reward to
risk ratio is not great. Lateness is a particular criticism of Dow theory.
• Always Another Level:

Even after a new trend has been identified, there is always another "important" level close at
hand. Technicians have been accused of sitting on the fence and never taking an unqualified
stance. Even if they are bullish, there is always some indicator or some level that will qualify
their opinion.
• Trader's Remorse:
Not all technical signals and patterns work. When you begin to study technical analysis, you will
come across an array of patterns and indicators with rules to match. For instance: A sell signal is
given when the neckline of a head and shoulders pattern is broken. Even though this is a rule, it
is not steadfast and can be subject to other factors such as volume and momentum. In that same
vein, what works for one particular stock may not work for another. A 50-day moving average
may work great to identify support and resistance for IBM, but a 70-day moving average may
work better for Yahoo.
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OVERVIEW
“Fundamental analysis is the study of economic, industry, and company conditions in an effort
to determine the value of a company's stock. Fundamental analysis typically focuses on key
statistics in a company's financial statements to determine if the stock price is correctly valued.”
The main principle of fundamental analysis is to find profitable companies to invest in by

comparing revenues, sales, management, etc. Fundamentals include earnings report, dividends,
sales, inventories, profit margins, P/E ratio, market share etc. Those looking to invest in a
company will be the most likely to use fundamental analysis. This is because the research is
used to not just look at the value of the company, but to look at the company itself. This includes
the results of its finances and its potential to grow. The fundamentals can give a better picture
the entire company, not just a snapshot. This means that analysis is used to look at the long term
of a company not just the short term.
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The basic idea is if you put a rupee into the business (in the form of buying the stock) how much
of a return can you expect. How much yield you will likely see and / or how much growth you
will experience based on the operation, markets, competitors and costs of the business.
Obviously, not all aspects of these fundamentals can be quantified. Fundamentals are associated
with the economic health of a company, measured in terms of revenues, earnings, assets,
liabilities, Return on Equity (ROE), Return on Assets (ROA), Return on Investments (ROI),
growth prospects and cash flows, etc. The fundamentals tell you about a company. You can say
a company is having robust fundamentals if it is growing at a nice pace, generating a profit, has
limited debts and abundant cash.
The analysis of a company's fundamentals involves getting deep into its financials, rather than
day-to-day movement in its share price. Equity researchers normally do fundamental analysis in
order to calculate the intrinsic value of a company's stock. If a company's stock is trading above
the intrinsic value or fair value, then the stock is overvalued. If a company's stock is trading
below the intrinsic value, then the stock is undervalued. However, if you watch the stock
markets very closely, the share price of most companies never matches the fair value. Often, day
traders and investors who would prefer short term investment options invest in those stocks,
regardless of the companies' long term growth prospects. However, long term investors
generally prefer to invest in companies with robust fundamentals and ignore near-term share
price movements.
OBJECTIVES
• Analysis of fundamental to acquire depth knowledge of the Steel Sector which I am
studying.
• To find out how the judgment is taken by the analyst on the basis of fundamental
analysis of the company.
• To establish link between expected share price with the projected company’s financial
performance (2008-2009)
• To study the demand of Steel sector particularly land-building, commercial purposes and
Real Estate.
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• To make projection on its business performance and in the bad condition to improve the
performance of company.
• Investors may use fundamental analysis to determine future growth rates for buying high
priced growth stocks.
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PART II
RESEARCH WORK
RESEARCH METHODOLOGY
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Research methodology is a way to systematically solve the research problem. The research
methodology using for find out the solution of the research problem is analytical research
methodology and some extend descriptive research methodology.
• Primary Data
1) Primary data collect by discussing with my guide and other staff member of the
Company
2) Observation
• Secondary Data
The sources of secondary data for solve the problems are:-
1) Company Annual Report
2) Company Internal Data
3) Internet-Websites
RESEARCH LIMITATION
1. Complete information cannot be analyzed because of time constraint.
2. Data collected is industry/company specific.
3. Results can be biased
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APPROACHES OF FUNDAMENTAL ANALYSIS
I. Top-down approach:
The top-down investor starts his analysis with global economics, including both international
and national economic indicators, such as GDP growth rates, inflation, interest rates, exchange
rates, productivity, and energy prices. He narrows his search down to regional/industry analysis
of total sales, price levels, the effects of competing products, foreign competition, and entry or
exit from the industry. Only then does he narrow his search to the best business in that area.
Figure1. Showing Top-Bottom Approach
II. Bottom-up approach:

The bottom-up investor starts with specific businesses, regardless of their industry/region.
Strengths of Fundamental Analysis

• Long-term Trends:
Fundamental analysis is good for long-term investments based on long-term trends, very long-
term. The ability to identify and predict long-term economic, demographic, technological or
consumer trends can benefit patient investors who pick the right industry groups or companies.
• Value Spotting:
Sound fundamental analysis will help identify companies that represent a good value. Some of
the most legendary investors think long-term and value. Graham and Dodd, Warren Buffett and
John Neff are seen as the champions of value investing. Fundamental analysis can help uncover
companies with valuable assets, a strong balance sheet, stable earnings, and staying power.
• Business Acumen:
One of the most obvious, but less tangible, rewards of fundamental analysis is the development
of a thorough understanding of the business. After such painstaking research and analysis, an
investor will be familiar with the key revenue and profit drivers behind a company. Earnings and
earnings expectations can be potent drivers of equity prices. Even some technicians will agree to
that. A good understanding can help investors avoid companies that are prone to shortfalls and
identify those that continue to deliver. In addition to understanding the business, fundamental
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analysis allows investors to develop an understanding of the key value drivers and companies
within an industry. A stock's price is heavily influenced by its industry group. By studying these
groups, investors can better position themselves to identify opportunities that are high-risk
(tech), low-risk (utilities), growth oriented (computer), value driven (oil), non-cyclical
(consumer
Staples), cyclical (transportation) or income-oriented (high yield).
• Knowing Who's Who:

Stocks move as a group. By understanding a company's business, investors can better position
themselves to categorize stocks within their relevant industry group. Business can change
rapidly and with it the revenue mix of a company. This happened to many of the pure Internet
retailers, which were not really Internet companies, but plain retailers. Knowing a company's
business and being able to place it in a group can make a huge difference in relative valuations.
Weaknesses of Fundamental Analysis

• Time Constraints:
Fundamental analysis may offer excellent insights, but it can be extraordinarily time consuming.
Time-consuming models often produce valuations that are contradictory to the current price
prevailing on Wall Street. When this happens, the analyst basically claims that the whole street
has got it wrong. This is not to say that there are not misunderstood companies out there, but it is
quite brash to imply that the market price, and hence Wall Street, is wrong.
• Industry/Company Specific:
Valuation techniques vary depending on the industry group and specifics of each company. For
this reason, a different technique and model is required for different industries and different
companies. This can get quite time-consuming, which can limit the amount of research that can
be performed. A subscription-based model may work great for an Internet Service Provider
(ISP), but is not likely to be the best model to value an oil company.
• Subjectivity:
Fair value is based on assumptions. Any changes to growth or multiplier assumptions can
greatly alter the ultimate valuation. Fundamental analysts are generally aware of this and use
sensitivity analysis to present a base-case valuation, a best-case valuation and a worst-case
valuation. However, even on a worst-case valuation, most models are almost always bullish, the
only question is how much so. The chart below shows how stubbornly bullish many
fundamental analysts can be.
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• Time Constraints:
Fundamental analysis may offer excellent insights, but it can be extraordinarily time
consuming. Time-consuming models often produce valuations that are contradictory to
the current price prevailing on Wall Street. When this happens, the analyst basically
claims that the whole street has got it wrong. This is not to say that there are not
misunderstood companies out there, but it is quite brash to imply that the market price,
and hence Wall Street, is wrong.
Fundamental vs. Technical Analysis

Technical analysis and fundamental analysis are the two main schools of thought in the financial
markets.
As we've mentioned, technical analysis looks at the price movement of a security and uses this
data to predict its future price movements. Fundamental analysis, on the other hand, looks at
economic factors, known as fundamentals. Let's get into the details of how these two approaches
differ, the criticisms against technical analysis and how technical and fundamental analysis can
be used together to analyze securities.
The Differences
• Charts vs. Financial Statements:
At the most basic level, a technical analyst approaches a security from the charts, while a
fundamental analyst starts with the financial statements.
• Time Horizon:
Fundamental analysis takes a relatively long-term approach to analyzing the market compared to
technical analysis. While technical analysis can be used on a timeframe of weeks, days or even
minutes, fundamental analysis often looks at data over a number of years.
• Trading Versus Investing:

Not only is technical analysis more short term in nature that fundamental analysis, but the goals
of a purchase (or sale) of a stock are usually different for each approach. In general, technical
analysis is used for a trade, whereas fundamental analysis is used to make an investment.
Investors buy assets they believe can increase in value, while traders buy assets they believe
they can sell to somebody else at a greater price. The line between a trade and an investment can
be blurry, but it does characterize a difference between the two schools.
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Steps to fundamental Analysis
The most common way that fundamental analysis is done is in three steps:
1. Economic Analysis:
The first step to this type of analysis includes looking at the macroeconomic situation. This
includes GDP, growth rates, inflation, interest rates, exchange rates, productivity and energy
prices.
2. Industry Analysis:
The next step taken in analysis in this category is looking at the industry as a whole. This
includes total sales, price levels, competition and their effects, foreign competition as well as
any entrances or exits from the industry.
3. Company Analysis:
Last in this process of studying the fundamentals includes looking at the company individually.
This includes looking at unit sales, prices, new products, earnings and any chance of debt or
equity occurring.
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ECONOMIC ANALYSIS
The purpose of analyze economic condition of the country in fundamental analysis to asses the
general economic situation both within the country and inter nationally.
The economy is like the tide and the various industry groups and individual companies are like
boats. When economy expands most industry groups and companies benefits and grows. When
the economy decline, most sectors and companies usually suffer. The stock market does not
operate in a vacuum it is an integral part of ht whole economy of a country, more so in a free
economy that of United States and to some extent in mixed economy like ours.
To gain an insight into the complexities of stock market. One needs to develop a sound
economic understanding and be able to interpret the impact of important economic indicators on
stock markets.
The following are some important factors which should be taken into account while doing
fundamental analysis:
Economic Growth
Per capita income
Industrial Production
Inflation
Interest Rates
Foreign Exchange Reserves
Budgetary Deficit
Domestic Savings and Investment
Tax Rates
Infrastructure
Political Situation
Introduction of Indian Economy

The economic history of India since Indus Valley Civilization to 1700 AD can be categorized
under this phase. During Indus Valley Civilization Indian economy was very well developed. It
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had very good trade relations with other parts of world, which is evident from the coins of
various civilizations found at the site of Indus valley
Before the advent of East India Company, each village in India was a self sufficient entity. Each
village was economically independent as all the economic needs were fulfilled with in the
village. Then came the phase of Colonization. The arrival of East India Company in India ruined
the Indian economy. There was a two-way depletion of resources. British used to buy raw
materials from India at cheaper rates and finished goods were sold at higher than normal price in
Indian markets. During this phase India's share of world income declined from 22.3% in 1700
AD to 3.8% in 1952. After India got independence from this colonial rule in 1947, the process of
rebuilding the economy started. For this various policies and schemes were formulated. First
five year plan for the development of Indian economy came into implementation in 1952. These
Five Year Plans, stared by Indian government, focused on the needs of Indian economy. If on
one hand agriculture received the immediate attention on the other side industrial sector was
developed at a fast pace to provide employment opportunities to the growing population. And to
keep pace with the developments in the world. Since then Indian economy has come a long way.
The Gross Domestic Product (GDP) at factor cost, which was 2.3 % in 1951-52, reached 9.4%
in financial year 2006-07. In 2009 it has come down to 7.8% because of Recession in advance
countries like US, European Union and Japan.
Present scenario
1. GDP:
At present Indian GDP rate is 8.3% (March 2010), which is the second highest in the world.
According to some experts, the share of the US in world GDP is expected to fall (from 21 per
cent to 18 per cent) and that of India GDP to rise (from 6 per cent to 11 per cent in 2025), and
hence the latter will emerge as the third pole in the global economy after the US and China.
India's greater integration with the world economy was reflected by the trade openness indicator,
the trade to GDP ratio, which increased from 22.5 per cent of GDP in 2000-01 to 34.8 per cent
of GDP in 2008-09. The exports and imports grew by 22.6 per cent and 24.5 per cent
respectively in 2008-09, recording the lowest gap between growth rates after 2002-03. In the
first nine months of the current year, exports reached US$111 billion, nearly 70 per cent of the
year's export target. Imports grew by 25.9 per cent during April-December 2007 due to non-POL
imports growth of 31.9 per cent, implying strong industrial demand by the manufacturing sector
and for export activity.
India's greater integration with the world economy was reflected by the trade openness indicator,
the trade to GDP ratio, which increased from 22.5 per cent of GDP in 2000-01 to 34.8 per cent
of GDP in 2006-07. The exports and imports grew by 22.6 per cent and 24.5 per cent
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respectively in 2008-09, recording the lowest gap between growth rates after 2002-03. In the
first nine months of the current year, exports reached US$111 billion, nearly 70 per cent of the
year's export target. Imports grew by 25.9 per cent during April-December 2007 due to non-POL
imports growth of 31.9 per cent, implying strong industrial demand by the manufacturing sector
and for export activity.
Figure2. Showing GDP growth rate
2. Per capita income:

India today is the fourth largest country in terms of per capita income.
The 9.4 per cent GDP growth during 2006-07, fastest since 1988-89 and second-fastest since the
country achieved independence, has translated into a per capita income of Rs 29,382 a year or
Rs 2,448.5 a month. Per capita income at current prices rose by 14.3 per cent in 2006-07 against
Rs 25,716 in the previous fiscal, according to figures released by Central Statistical
Organization. Notwithstanding the rise in per capita income, it still stands much below the
international standards. A person with an annual income of Rs 29,382 ranks 50,411,696th in the
world. On the other hand, India also houses the most number of billionaires in Asia-36, ahead of
economic powerhouse Japan, according to Forbes magazine. These billionaires together control
a wealth of Rs 8, 60,000 crore. Today stands at fourth position in terms of highest per capita
income.
3. Inflation:
India’s 2009-10 Economic Survey Report suggests a high double-digit increase in food inflation,
with signs of inflation spreading to various other sectors as well. The Deputy Governor of the
Reserve Bank of India, however, expressed his optimism in March 2010 about an imminent
easing of Indian wholesale price index-based inflation, on the back of falling oil and food prices.
For 2009, Indian inflation stood at 11.49% Y-o-Y. This rate reflects the general increase in
prices, taking into account the purchasing power of the common man. According to the
economics Survey Report for 2009-10, economic growth decelerated to 6.7% in 2008-09, from
9% in 2007-08 because of recession. The economy is expected to grow by 8.7% in 2010-11,
with a return to a growth rate of 9% in 2011-12.
In times of rising inflation, this also means that the cost of living increases are much higher for
the populace. Cooking gas prices, for example, have increased by around 20% in 2008. With
most of India’s vast population living close to or below the poverty line, inflation acts as a ‘Poor
2
Man’s Tax’. This effect is amplified when food prices rise, since food represents more than half
of the expenditure of this group.
Figure3. Showing inflation rate
Foreign Exchange Ratio:

Foreign exchange reserves (also called Forex reserves or FX reserves) in a strict sense are only
the foreign currency deposits and bonds held by central banks and monetary authorities.
However, the term in popular usage commonly includes foreign exchange and gold, SDRs and
IMF reserve positions. This broader figure is more readily available, but it is more accurately
termed official international reserves or international reserves. These are assets of the central
bank held in different reserve currencies, mostly the US dollar, and to a lesser extent the euro,
the UK pound, and the Japanese yen, and used to back its liabilities, e.g. the local currency
issued, and the various bank reserves deposited with the central bank, by the government or
financial institutions. In 2009 India has the foreign reserves of $ 284.183 bn which the fifth
highest in the world after China, Japan, Euro zone, Russia and Taiwan.
Tax rate:
Corporate tax rate is 30 percent. The corporate tax rate in India is at par with the tax rates of the
other nations worldwide. The corporate tax rate in India depends on the origin of the company.
If the company is domicile to India, the tax rate is flat at 30%. But for a foreign company, the
tax rate depends on a number of factors and considerations. The companies that are domicile to
India are taxed on the global income whereas the foreign companies in India are taxed on their
income within the Indian Territory. The incomes that are taxable in case of foreign companies
are interest gained, royalties, income from the capital assets in India, income from sale of equity
shares of the company, dividends earned, etc.
INDUSTRY ANALYSIS
2
AN OVERVIEW OF STEEL SECTOR
Global Scenario
The steel industry in India has been moving from strength to strength and according to the
Annual Report 2009-10 by the Ministry of Steel, India has emerged as the fifth largest producer
of steel in the world and is likely to become the second largest producer of crude steel by 2015-
16.Recently The Union Minister for Steel, Shri Virbhadra Singh said that India is expected to
become the 2nd largest steel producing nation by 2012 with a targeted production capacity of 120
million tones. Indian Steel Industry contributes to nearly two percent of Gross Domestic
Production and employs over 5 lakh people. It contributes 2% to GDP. in 2009-10, the Steel
Sector was able to make a recovery after the sluggish growth on account of global downturn and
adverse market condition of 2008-09. Steel production rose 4.2% to reach 60 MT in 2009-2010,
according to the steel the resurgence in automotive appliances, capital goods and construction
sectors have directly contributed to this positive performance. During the year, the industry
achieved a total capacity utilization of 88.9% showing increase in production of crude steel (by
10.7%) and finished steel (by 4.4%) as well as consumption (by 7.9%). The year 2010-11 has
begun on a note of optimism for the steel sector and especially for the major PSUs under the
Ministry’s administrative control like SAIL, RINL and NMDC Ltd.
In 2009 World Crude Steel output at 1529.4 million metric tons was 5.9% more than the
previous year. (Source: IISI) “China remained the world's largest Crude Steel producer in 2009
also (369.4 million metric tons) followed by Japan (112.47 million metric tons) and USA (93.89
million metric tons). India occupied the 5th position (55.08 million metric tons). (Source: IISI)
The International Iron & Steel Institute (IISI) in its forecast for 2010 has confirmed the trend of
recent years of an increase in steel use in-line with general economic growth and with the fastest
growth occurring in the countries with the highest GDP growth such as India and China.
Apparent world-wide Steel Demand is forecast to grow to between 1,640 and 1,853 million
tonnes in 2006 from a total of 972 million tonnes in 2004. This is a growth of 4-5% over the two
year period.
However, according to IISI the cost of raw materials and energy would continue to represent a
major challenge for the world steel industry. Below is the Ranking:-
2
Country Rank Production(in MT)
China 1 500.5
Japan 2 118.7
United States 3 91.4
Russia 4 68.5
India 5 64.2
South kores 6 53.6
Germany 7 45.8
Ukraine 8 37.1
Brazil 9 33.7
Italy 10 30.6
Table1. India’s Stand in World Steel market
Market Scenario
After liberalization, there have been no shortages of iron and steel materials in the country.
Apparent consumption of finished (carbon) steel increased from 14.84 Million Tonnes in 1991-
92 to 43.471 million tonnes (Provisional) in 2006-07. Indian ‘s steel consumption rose 8% in the
year ended march 2010 over the same period a year ago on account of improved demand from
sectors like automobile, infrastructure and housing. The country’s steel consumption increased
to 56.3 MT in the previous year.
3
During April-June, 2007, apparent consumption of finished (carbon) steel was 10.103 million
tonnes (Provisionally estimated) · Steel industry that was facing a recession for some time has
staged a turnaround since the beginning of 2002. · Efforts are being made to boost demand. ·
China has been an important export destination for Indian steel. · The steel industry is buoyant
due to strong growth in demand particularly by the demand for steel in China.
Figure4. Showing market share of Indian steel companies

The boom in the steel sector is being driven by growth in its user industries as
Construction and automobiles.
Giving a huge fillip to the infrastructure sector, the Indian government has announced plans to
spend at least US$17 billion to upgrade roads, airports and ports by 2010. The heightened
activity in sectors such as roads, ports and sea-bridges is attracting international attention. It has
drawn at least two dozen foreign giants in civil engineering, construction and infrastructure
consultancy services to the country. During the last six months, around 20 civil engineering and
construction companies have entered India or have stepped up their activity, while some big
names in the infrastructure consultancy sector are ramping up their operations here. These trends
are expected to send annual consumption rocketing from current levels of about 36 million
tonnes per year. Steel producers also hope the steel industry will become another sunshine
industry, fuelled by a rapid rise in the demand for washing machines, fridges, TV sets and other
consumer items using steel as a major ingredient. Similarly, the automobile sector has been
abuzz with activity. The total number of passenger vehicles manufactured during 2004-05 was
1,209,654 units, an increase of 22 per cent over the previous year.
Production
Steel industry was delicensed and decontrolled in 1991 & 1992 respectively. Today, India is the
7th largest crude steel producer of steel in the world. In 2008-09(Apri-June''08), production of
Finished (Carbon) Steel was 12.088 million tonnes. Production of Pig Iron in 2008-09(April-
June'08) was 1.165 Million Tonnes. The share of Main Producers (i.e. SAIL, RINL and TSL)
and secondary producers in the total production of Finished (Carbon) steel was 33% and 67%
respectively during the period 2008-09 (April-June, 2007).
Table2. India’s Steel industry Growth

Year Crude steel production (in million tonnes)
Quantity Growth rate over last year (%)
1
2005-2006 46.46 6.96
2006-2007 50.81 9.38
2007-2008 53.86 5.98
2008-2009 58.44 8.50
SWOT Analysis:
In order to understand the potential of any market and to introduce or to sustain any product, we
do SWOT analysis to identify the strengths, weaknesses, opportunity and threats. Here is the
SWOT analysis of Indian Steel industry.
1
Chinacost
Opportunity
Huge
Unexplored
High Iron
becoming
Weaknesses
Strengths of
orerural
debt.
and exporter.
market.
Coal Threat
Domestic
Low
Protectionism
labour
R &D demand
investment
wage
in the
ratewest
Abundance
Exports
Inadequate
Dumping byof
infrastructure
competitors.
quality manpower.
Low productivity
1
Figure4. SWOT analysis
COMPANY ANALYSIS
The purpose of company analysis to analyze the financial and non-financial aspects of a
company to determine whether to buy, sells, or holds onto the shares of a particular company
After determining the economic and industry conditions, the company itself is analyzed to
determine its financial health. This is usually done by studying the company's financial
statements. From these statements a number of useful ratios can be calculated. The ratios fall
under five main categories: profitability, price, liquidity, leverage, and efficiency. When
performing ratio analysis on a company, the ratios should be compared to other companies
within the same or similar industry to get a feel for what is considered "normal." These are
quantitative factors of company analysis; there are also some qualitative factors which should be
considered also.
• Find out as much as possible about the company and their products.
• Do they have any “core competency” or “fundamental strength” that puts them ahead of
all the other competing firms?
• What advantage do they have over their competing firms?
• Do they have a strong market presence and market share? Or do they constantly have to
employ a large part of their profits and resources in marketing and finding new
customers and fighting for market share?
Following are some more important aspects about company

• Shareholding pattern
• Growth
• Technology
• Expansion Plan
• Profitability
• Capital History
• Marketing Capabilities
• Most important its financial statement
3
So fundamental analysts use different tools and ratios to compare all sorts of companies no
matter what business they are in or what they do.
Steel Authority Of India Ltd.
SAIL's Background and History

The Precursor
SAIL traces its origin to the formative years of an emerging nation - India. After independence
the builders of modern India worked with a vision - to lay the infrastructure for rapid
industrialization of the country. The steel sector was to propel the economic growth. Hindustan
Steel Private Limited was set up on January 19, 1954. The President of India held the shares of
the company on behalf of the people of India.
Expanding Horizon (1959-1973)

Hindustan Steel (HSL) was initially designed to manage only one plant that was coming up at
Rourkela. For Bhilai and Durgapur Steel Plants, the preliminary work was done by the Iron and
Steel Ministry. From April 1957, the supervision and control of these two steel plants were also
transferred to Hindustan Steel. The registered office was originally in New Delhi. It moved to
Calcutta in July 1956, and ultimately to Ranchi in December 1959.
A new steel company, Bokaro Steel Limited, was incorporated in January 1964 to construct and
operate the steel plant at Bokaro. The 1 MT phases of Bhilai and Rourkela Steel Plants were
completed by the end of December 1961. The 1 MT phase of Durgapur Steel Plant was
completed in January 1962 after commissioning of the Wheel and Axle plant. The crude steel
production of HSL went up from .158 MT (1959-60) to 1.6 MT.
1
The second phase of Bhilai Steel Plant was completed in September 1967 after commissioning
of the Wire Rod Mill. The last unit of the 1.8 MT phase of Rourkela – the Tandem Mill - was
commissioned in February 1968, and the 1.6 MT stage of Durgapur Steel Plant was completed
in August 1969 after commissioning of the Furnace in SMS.
Thus, with the completion of the 2.5 MT stage at Bhilai, 1.8 MT at Rourkela and 1.6 MT at
Durgapur, the total crude steel production capacity of HSL was raised to 3.7 MT in 1968-69 and
subsequently to 4MT in 1972-73.
Table4. SAIL’s production from its plant

Plant Production for 2008-2009 Manpower as on 1.4.2009
Bhilai Steel Plant 5109 32563
Durgapur Steel Plant 1966 13581
Rourkela Steel Plant 2128 19455
Bokaro Steel Plant 3596 24165
IISCO Steel Plant 400 11608
Alloy Steels Plant 205 1769
Visveswaraya Iron & Steel Plant 103 1649
Holding Company
The Ministry of Steel and Mines drafted a policy statement to evolve a new model for managing
industry. The policy statement was presented to the Parliament on December 2, 1972. On this
basis the concept of creating a holding company to manage inputs and outputs under one
umbrella was mooted. This led to the formation of Steel Authority of India Ltd. The company,
incorporated on January 24, 1973 with an authorized capital of Rs. 2000 crore, was made
responsible for managing five integrated steel plants at Bhilai, Bokaro, Durgapur, Rourkela and
Burnpur, the Alloy Steel Plant and the Salem Steel Plant. In 1978 SAIL was restructured as an
operating company.
Since its inception, SAIL has been instrumental in laying a sound infrastructure for the industrial
development of the country. Besides, it has immensely contributed to the development of
technical and managerial expertise. It has triggered the secondary and tertiary waves of
economic growth by continuously providing the inputs for the
Consuming industry.
1
Company Profile
Steel Authority of India Limited (SAIL) is the leading steel-making company in India. It is a
fully integrated iron and steel maker, producing both basic and special steels for domestic
construction, engineering, power, railway, automotive and defense industries and for sale in
export markets.
Ranked amongst the top ten public sector companies in India in terms of turnover, SAIL
manufactures and sells a broad range of steel products, including hot and cold rolled sheets and
coils, galvanized sheets, electrical sheets, structural’s, railway products, plates, bars and rods,
stainless steel and other alloy steels. SAIL produces iron and steel at five integrated plants and
three special steel plants, located principally in the eastern and central regions of India and
situated close to domestic sources of raw materials, including the Company's iron ore, limestone
and dolomite mines. The company has the distinction of being India’s largest producer of iron
ore and of having the country’s second largest mines network. This gives SAIL a competitive
edge in terms of captive availability of iron ore, limestone, and dolomite which are inputs for
steel making. SAIL's wide range of long and flat steel products is much in demand in the
domestic as well as the international market. This vital responsibility is carried out by SAIL's
own Central Marketing Organization (CMO) and the International Trade Division. CMO
encompasses a wide network of 34 branch offices and 54 stockyards located in major cities and
towns throughout India.
With technical and managerial expertise and know-how in steel making gained over four
decades, SAIL's Consultancy Division (SAILCON) at New Delhi offers services and
consultancy to clients world-wide.
SAIL has a well-equipped Research and Development Centre for Iron and Steel (RDCIS) at
Ranchi which helps to produce quality steel and develop new technologies for the steel industry.
Besides, SAIL has its own in-house Centre for Engineering and Technology (CET),
Management Training Institute (MTI) and Safety Organization at Ranchi. Our captive mines are
under the control of the Raw Materials Division in Kolkata. The Environment Management
Division and Growth Division of SAIL operate from their headquarters in Kolkata. Almost all
our plants and major units are ISO Certified.
Production Facilities
• 5 Integrated Steel Plants
• 3 Special Steel Plants
• 1 Subsidiary - Ferro Alloy Plant (under merger)
1
Marketing Network:
• 34 Branch Sales office
• 14 Customer Contact Office (CCO)
• 42 Warehouses (Departmental 24 & Consignment Agencies 18
Captive Mines:
• 9 Iron Ore Mines
• 5 limestone mines
• 2 Dolomite Mines
• 3 Collieries
Major Units
Integrated Steel Plants
• Bhilai Steel Plant (BSP) in Chhattisgarh
• Durgapur Steel Plant (DSP) in West Bengal
• Rourkela Steel Plant (RSP) in Orissa
• Bokaro Steel Plant (BSL) in Jharkhand
• IISCO Steel Plant (ISP) in West Bengal
Joint Ventures
SAIL has promoted joint ventures in different areas ranging from power plants to ecommerce.
NTPC SAIL Power Company Pvt. Ltd

A 50:50 joint venture between Steel Authority of India Ltd. (SAIL) and National Thermal Power
Corporation Ltd. (NTPC Ltd.), it manages the captive power plants at Rourkela, Durgapur and
Bhilai with a combined capacity of 314 megawatts (MW)
Bokaro Power Supply Company Pvt. Limited

This 50:50 joint venture between SAIL and the Damodar Valley Corporation formed in January
2002 is managing the 302-MW power generation and 1880 tonnes per hour steam generation
facilities at Bokaro Steel Plant.
Mjunction Service Limited

A joint venture between SAIL and Tata Steel on 50:50 basis, this company promotes ecommerce
activities in steel and related areas.
SAIL-Bansal Service Center Ltd.
1
SAIL has formed a joint venture with BMW industries Ltd. on 40:60 basis to promote a service
centre at Bokaro with the objective of adding value to steel.
Bhilai JP Cement Ltd

SAIL has also incorporated a joint venture company with M/s Jaiprakash Associates Ltd to set
up a 2.2 MT cement plant at Bhilai SAIL has signed an MOU with Manganese Ore India Ltd
(MOIL) to set up a joint venture company to produce Ferro-manganese and silico-manganese at
Bhilai.
Ownership and Management

The Government of India owns about 86% of SAIL's equity and retains voting control of the
Company. However, SAIL, by virtue of its ‘Navratna’ status, enjoys significant operational and
financial autonomy.
SAIL Today
SAIL today is one of the largest industrial entities in India. Its strength has been the diversified
range of quality steel products catering to the domestic, as well as the export markets and a large
pool of technical and professional expertise. Today, the accent in SAIL is to continously adapt to
the competitive business environment and excel as a business organization, both within and
outside India. In December 2010 SAIL is going for FPO to expand the business.
Growth of SAIL
Maintaining thrust on production to meet the growing demand for steel in the domestic market,
Steel Authority of India (SAIL) achieved best-ever February performance by producing 1.1
million tons of saleable steel, a growth of 7% over February `07, with capacity utilization of the
SAIL plants going up to 122%. The companies also recorded best-ever February production of
hot metal at 1.24 million tons and 1.14 million tons of crude steel, both showing 6% growth over
the corresponding period last year (CPLY).
Share Holding Pattern

SAIL is a public sector undertaking of the Government of India which holds 85.82% of equity.
Other major shareholders are Domestic Financial institutions with 4.73% stake and Foreign
Institutional Investor with 5.08 % individuals with 3.16% stake and others 1.21%.
Figure5. Shareholding pattern
1
Figure6. SAIL contribution to government revenues
Recent Development:
SAIL is going for Follow on public Issue (FPO) to dilute 10% stake through 5% selling
government’s stake and issuing fresh equity. This disinvestment will fetch government about
Rs.16000 crore.
3
Table5. Balance Sheet (Rs. In crores)
Particulars March 09 March 08 March 07 March 06 March 05
Share Capital 4130.40 4130.40 4130.40 4130.40 4130.40
Reserves & Surplus 13182.75 8471.01 6176.25 907.27 (16.05.16)
Total Shareholders’ Funds 17313.15 12601.41 10306.65 5037.67 2525.24
Secured Loans 1556.39 1122.16 1603.98 3400.78 5511.59
Unsecured Loans 2624.13 3175.46 4165.81 5289.28 7416.35
Total Debt 21493.71 16899.03 16076.44 8690.06 12927.94
Total Liabilities 21493.67 16899.03 16076.44 13727.73 15453.18
Gross Block 29912.71 29360.46 28043.48 27683.63 27534.61
Less: Accum. Depreciation 18315.00 17198.32 15558.41 14515.73 13498.75
Net Block 11597.71 12162.14 12485.07 13167.90 14035.86
Capital Work in Progress 1236.04 757.94 366.48 382.20 361.25
Investments 513.79 292.00 606.71 543.17 543.17
Inventories 6814.10 6371.66 4220.69 3057.06 3744.37
Sundry Debtors 23214.75 1881.73 1908.45 1549.96 1660.09
Cash and Bank Balance 9609.83 6172.64 6132.12 2035.82 512.91
Loans and Advances 3097.70 2771.47 3260.11 1603.36 1373.33
Current Liabilities 8105.99 8081.23 7812.72 4412.32 4492.71
Provisions 5713.41 5645.14 5385.40 4577.92 2821.40
Net Current Assets 8016.98 3471.13 2323.25 (744.04) (23.41)
Miscellaneous Exp not w/o 129.15 215.82 294.93 378.50 536.31
Total Assets 21493.67 16899.03 16076.44 13727.73 15453.18
Contingent Liabilites 3635.18 3730.45 4056.90 3159.22 2853.25
3
Particular March 09 March 08 March 07 March 06 March 05
Sales Turnover 39481.80 32686.89 32023.87 24137.02 19262.02
Other Income 1708.15 1151.99 1072.69 976.05 795.89
Stock Adjustments 289.15 1131.31 367.72 (485.84) (433.00)
Tota Income 41479.10 34970.19 33464.28 24627.23 19624.91
Raw Materials 13276.20 12391.12 9358.92 6904.25 6234.03
Excise Duty 5393.82 4605.48 3455.12 2881.66 2370.56
Power & Fuel Cost 2613.94 2526.97 2227.62 2187.95 2061.32
Other Manufacturing Exp 3662.77 3268.56 2607.77 2164.42 1965.95
Employee Cost 5086.81 4156.28 3811.91 4757.90 3722.87
Selling & Admt. Exp 1417.61 1467.62 1167.04 1176.07 1176.43
Miscellaneous Expenses 484.80 525.41 613.33 741.80 737.38
Less: Preoperative Exp 1423.08 1352.05 921.71 893.07 856.21
Capitalized
PBIDT 10966.23 7380.80 11144.28 4706.25 2212.58
Interest & Financial Charges 332.13 467.76 651.98 955.45 1381.79
PBDT 10634.10 6913.04 10492.30 3750.80 830.79
Depreciation 1211.48 1207.30 1126.95 1122.59 1146.66
Profit Before Tax 9422.62 5705.74 9365.35 2628.21 (315.87)
Tax 3220.33 1692.77 2548.38 116.13 (11.56)
Profit After Tax 6202.29 4012.97 6816.97 2512.08 (304.31)
Table6. Profit and Loss Account (Rs,
In Crore)
Table7. Growth of the Company

Sales 39481.80 32686.89 32023.87 24137.02 19262.02
Var % 20.78% 2.07% 32.67% 25.30% -
Profit After Tax 6202.29 4012.97 6816.97 2512.08 (304.31)
Var % 54.55% -41.13% 171.37% 925.50% -
1
Figure7. Profit generated over the period of five years
Table8. Share Price movement in 2009

(in Rs)
Current Price 190.40
52 week High 292.50
52 Week Low 106.10
Face Value 10
Table9. Important Ratios

Particulars March 09 March 08 March 07
EPS(Rs) 14.54 9.44 16.06
Book Value(Rs) 41.92 30.51 24.95
NPM (%) 15.71 12.28 21.29
ROCE (%) 51.28 38.03 68.77
ROE (%) 41.47 35.04 88.85
Debt/Equity 0.28 0.44 0.94
P/E Ratio 7.85 8.82 3.92
Here from the above information I found that the Sales, EPS, Book Value, Net Profit Margin are
increased continuously in 2009 as compared to 2008 and 2007 but SAIL should concentrate on
PE Ratio because it has increased in 2009. The Debt/Equity ratio is decreased which is good
sign and under controlled which is good sign. The investor of this company should take hold
position of this company for the long period for good dividends and good market price in future.
Tata Steel Ltd.
1
Background
Tata Steel (earlier known as Tata Iron & Steel Company or Tisco) was established in 1907. It
represents the country's single largest, integrated steel plant in the private sector. The company
has a wide product portfolio, which includes flat and long steel, tubes, bearings, Ferro-alloys and
minerals as well as cargo handling services. While in terms of size, Tata Steel ranks 34th in the
world; it was ranked first (for the second time) among 23 world class steel companies by World
Steel Dynamics in June 2005. With its plant located in Jamshedpur (Jharkhand) and captive iron
ore mines and collieries in the vicinity, Tata Steel enjoys a distinct competitive advantage. The
main plant at Jamshedpur manufactures 5 MTPA of flat and long products, while its recently
acquired Singapore based company, NatSteel Asia, manufactures 2 MTPA of steel across
Singapore, China, Philippines, Malaysia and Vietnam. Apart from the main steel division, Tata
Steel's operations are grouped under strategic profit centres like tubes, growth shop, bearings,
Ferro alloys and minerals, rings, agrico and wires. Today Tata is present in more than 11
countries from five continents. It produces around eight kinds of product like wires, tubes raw
materials etc. Tata has taken several initiatives for the development of its employees like equal
opportunity for all.
Table10. Basic information about Tata Steel Ltd.

Incorporation Year 1907
Registered Office Bombay House, 24 Homi Mody Street Fort, Mumbai-400001,
Maharashtra
Telephone 91-22-66658282
Fax 91-22-66658113/66657725
Industry Steel – Large
House Tata
Chairman Ratan N Tata
Managing Director B Muthuraman
Company Secretary Mr. A. Anjeneyan
Auditor Deloitte Haskins & Sells
Face Value 10
Market Lot 1
1
Listing Kolkata, Luxumberg, Mumbai, NSE
Registrar TSR Darashaw Ltd.
6-10 Haji Moosa, Patrawala Ind Estate, Dr EMoses Road
Mahalaxmi, Mumbai- 4000011
Business Results
The company achieved the best ever sales turnover and profitability during the year under
review. A robust Indian economy, firm steel prices, higher volumes and several improvement
initiatives contributed to the record performance. Finished steel sales were higher by 11.33% at
4.51million tones over the previous year. Export turnover was lower by about 5% due to lower
volumes. Average price realization improved mainly due to higher prices of hot rolled
coils/sheets. Operating profit was higher by over `1,000 crore at `6.973 crores (2008-2009) an
increase of 17% over the previous year Net interest charges were higher at `174 crores.(2008-
2009) .
Figure8.Share holding pattern
Table11. Balance Sheet ( Rs. in

crores)
Share capital 580.67 553.67 553.67 369.18 369.18
Reserves & Surplus 13368.42 9201.63 6506.25 4146.68 2816.84
Total Shareholders Funds 13949.09 9755.30 7059.92 4515.86 3186.84
Secured Loans 3758.92 2191.74 2468.18 3010.16 3667.63
Unsecured loans 5886.41 324.41 271.52 372.05 557.98
Total Debt 9645.33 2516.15 2739.70 3382.21 4225.61
Gross Block 16029.49 15407.17 13179.26 12505.83 12192.71
Less: Depreciation 7486.37 6699.85 5939.68 5411.62 4849.99
Net Block 8543.12 8707.32 7239.58 7094.21 7342.72
1
Investments 6106.18 4069.96 2432.65 2194.12 1194.55
Inventories 2332.98 2174.75 1872.40 1249.08 1152.95
Sundry Debtors 631.68 539.40 581.82 651.30 958.47
Current Liabilties 5389.22 4564.14 4297.24 3900.00 3594.23
Provisions 3037.54 2361.44 2524.42 2068.99 2217.11
Net Current Assets 6245.15 (1916.83) (1960.09) (2309) (1326.72)
Total Assets 23594.42 12271.45 9799.62 7898.07 7411.63
Contigent Liabilities 5072.96 2209.45 1911.12 1508.01 1316.22
Table12. Profit and Loss Account (` in

crores)
Sales Turnover 19757.80 17140.24 15871.08 11920.96 9793.27
Other Income 573.08 356.24 305.19 293.38 134.18
Stock Adjustments 82.47 104.91 289.55 80.31 15.03
Total Income 20413.35 17601.39 16465.82 12294.65 9942.48
Raw Materials 3572.06 3024.38 3020.42 2245.42 1749.97
Excise Duty 2304.18 2004.83 1377.92 1218.57 1071.95
Power & Fuel Cost 1027.84 897.57 778.30 724.62 787.75
Employee Cost 1598.96 1397.39 1403.84 1575.71 1444.96
Selling Administration Exp 1491.57 1373.71 1304.05 1055.47 972.29
Less: Preoperative Exp 236.02 112.62 204.82 151.84 60.79
PBIDT 7332.19 6189.57 6144.86 3518.19 2160.39
Interest& Financial Charges 251.25 174.51 228.80 227.12 342.41
PBDT 7080.94 6015.06 5916.06 3291.07 1818.98
Depreciation 819.29 775.10 618.78 625.11 555.48
Profit Before Tax 6261.65 5239.96 5297.28 2665.96 1262.50
Tax 2039.50 1733.58 1823.12 919.74 250.19
Profit After Tax 4222.15 3506.38 3474.16 1746.22 1012.31
How fast is the company growing?

Companies are judged by their sales and earnings growth rates than on the absolute value of
their sales and earnings. Look for companies that consistently grow then there peers.
1
Table13. Growth factor
Year 2009 2008 2007 2006 2005
Sales 19,757.80 17,140.24 15,871.08 11,920.96 9,793.27
Var % 15.27% 8.00% 33.14% 21.72% -
Profit After Tax 4,222.15 0.93% 98.95% 72.50% -
Var % 20.41% 0.93% 98.95% 72.50% -
Figure9. Profit growth rate
Figure10. Sales Growth
Table14. Share Price movement in 2009 (in Rs)

52 week High 969.80
52 Week Low 399.21
Face Value 10
Figure11. Shareholding Pattern
1
Table15. Important Ratios
EPS (Rs) 69.95 61.51 60.91
Book Value(Rs) 240.22 176.19 127.51
NPM(%) 21.37 20.46 21.89
ROCE(%) 36.79 50.13 63.79
ROE(%) 35.62 41.70 60.02
Debt/Equity 0.51 0.31 0.53
P/E 6.43 8.72 6.58
Here from the above Information I found that the Sales, EPS, Book Value, Net Profit Ratio are
increased continously in 2009 as compared to 2008 and 2007 but Tata should concentrate on PE
Ratio because it has decreased in 2009. The debt-equity ratio is decreased which is good sign
and under controlled which is good sign. The inventor of this company should buy and hold
shares of this company for long period because this company can give good dividend and
investor can get arbitrage profit for short period of time. These shares are for long term
investment purpose.
Jindal steel Ltd.
A company of Jindal group
Jindal Stainless Ltd.:

Jindal Stainless is the largest integrated stainless steel producer in India and the flagship
company of the Jindal Group. It is an ISO: 9001 & ISO: 14001 company. Jindal Stainless ltd.
1
has plants at Hisar and Vizag and is setting up a Greenfield integrated Stainless Steel project in
Orissa with capacity of 1.6 million tons per annum. Jindal plant at Hisar is India's only
composite stainless steel plant for the manufacture of Stainless Steel Slabs, Blooms, Hot rolled
and Cold Rolled Coils, 60% of which are exported worldwide. At Vizag, Jindal has a Ferro
Alloy Plant with an installed capacity of 40,000 metric tons per annum.
Jindal Steel & Power Ltd:

JSPL is one of the leaders in Steel Manufacturing and Power Generation in India. JSPL is the
largest private sector investor in the State of Chhattisgarh with a total investment commitment of
more than Rs. 10,000 crore. It is also setting up a 6 million tonne steel plant in Orissa with an
investment of Rs. 13,500 crore and a 6 million tonne steel plant in Jharkhand with an investment
of Rs. 15,000 crore. Jindal Power Limited, wholly owned subsidiary of JSPL, is setting up a
1000 MW O P Jindal Super Thermal Power Plant at Raigarh, with an investment of over Rs.
4500 crore. JSPL has also ventured into exploration and mining of high value minerals and
metals, like diamond, precious stones, gold, platinum group of minerals, base metals, tar sands
etc.
JSW Steel Limited:

JSW Steel Ltd is a fully integrated steel plant having units across Karnataka and Maharashtra
producing from pellets to colour coated steel. JSW was founded in1982, when the Jindal Group
acquired Piramal Steel Ltd which operated a mini steel mill at Tarapur in Maharashtra. The
Jindal renamed it as Jindal Iron and Steel Co Ltd (JISCO) now known as JSW Steel Limited
(Downstream). In 1994, to achieve the vision of moving up the value chain and building a
strong, resilient company, JISCO promoted Jindal Vijayanagar Steel Ltd (JVSL) now known as
JSW Steel Limited (Upstream).
Jindal Steel
Jindal Steel is amongst the largest corporate groups in India. Jindal Group is presently a US $5
billion conglomerate and ranks fourth amongst the top Indian Business Houses in terms of
assets. Jindal Steel is one of the largest steel producers in India with 12 plants in India and 2 in
USA. O.P. Jindal is the founder of Jindal Group. He started by trading in steel pipes in Nalwa, a
village in the present-day Haryana. In 1952, O.P. Jindal set up the group's first factory at Liluah,
near Calcutta for the manufacturing of steel pipes, bends and sockets. Soon thereafter, he set up
a similar manufacturing unit at Hisar. In the early 1960s Jindal Steel achieved a breakthrough
when it developed India's first 100% indigenous pipe mill at Hisar. In 1970, O.P. Jindal
established Jindal Strips Limited and set up a mini steel plant at Hisar to manufacture coils and
plates through the electric and furnace route. Since then, Jindal Steel has not looked back and
2
has gone from strength to strength. Today, the group has developed into a multi-faceted
organization with revenues in excess of US $5 billion.
Background
Jindal Steel and Power Limited (JSPL), part of the O P Jindal group was formed in April, 1998
by hiving off the Raigarh and Raipur manufacturing facilities of Jindal Strips Limited (JSL) into
a separate company. Currently the company is engaged in manufacture of sponge iron, steel, pig
iron, ferrous-chrome and power. JSPL is largest, and amongst the lowest cost, coal based
producer of sponge iron in India with an installed capacity of 1,370,000 MTPA. JSPL’s
operations are headed by Mr. Naveen Jindal, Executive Vice Chairman and Managing Director
of the company.
Operations of the company

JSPL is engaged in manufacturing of iron & steel products and power. JSPL’s product mix
includes sponge iron, power and value added steel products, such as rounds, billets, beams,
blooms and slabs. During FY’09, JSPL undertook capacity expansions across various divisions
at Raigarh. Post expansions, the installed capacities of various products include 1,370,000 tpa of
sponge iron, 24,00,000 tpa of mild steel, 36,000 tpa of ferrous Alloy, hot metal capacity of
250,000 tpa, power generation of 295 MW, coal washery with capacity of 60 lakh tpa and a Rail
and Universal Beam Mill (RUBM) of 750,000 tpa capacity. The company has mining rights for
coal in Gare area in Raigarh with estimated reserves of 62 mn tonnes and iron ore at Tensa
mines Orissa (estimated reserves 20 mn tonnes). Sales of the company registered an 18% rise to
Rs 2877 cr in FY’09 over previous year. Capacity augmentation coupled with improved
realizations, on account of increase in sales of value added products, helped the company
achieve the growth.
Sponge iron had been the major contributor to the total sales (23%) followed by beams and
columns (22%) and iron ore/fines (18%). Export sales registered 14% rise and stood at Rs 371 cr
in FY’09, mainly made to UAE, China & Korea. JSPL’s coal requirement is met through
company’s own mines. JSPL’s requirement of iron ore is partially sourced from captive iron ore
mine in Tensa and balance through term contract from external source. Currently, company
imports its entire requirement of coke from China and is setting up an in-house coke oven plant
to reduce its costs. Captive power generation plant is based on the utilization of waste heat of the
flue gases from the sponge iron kilns as well as steam from coal fired FBC boilers, which in turn
utilizes the ejects from the coal washer and char generated from the sponge iron plants. The
2
power generation capacity as on December 31, 2009 stood at 315 MW. Apart from captive use,
JSPL sells power to Chhattisgarh State Electricity Board, through a firm PPA, and neighboring
industrial units.
Table16. Major products traded (Rs. In Crores)

Product Name Sales
Sponge Iron 794.54
Other Semi Steel products 685.21
Parallel Flange/Beam/Columns 624,19
Rounds 574.72
Iron Ore-Fines 443.25
Power 285.69
Pig Iron 218.69
Ferro Chrome 123.44
Others 58.48
Other Finished Steel Products 57.08
Machinery 33.95
Figure12. Share Holding Pattern
Table17. Balance Sheet
Share Capital 16.40 16.40 16.40 16.40 25.63

Reserves & Surplus 2,462.01 1,823.26 1302.98 839.80 558.81
1
Total Shareholders Funds 2478.41 1839.66 1319.38 856.20 583.81
Secured Loans 2115.16 1780.77 1159.51 988.53 813.96
Unsecured Loans 1392.11 964.60 336.35 37.43 71.29
Total Debt 3507.72 2745.37 1495.86 1025.96 885.25
Gross Block 4929.03 3243.05 2530.28 1677.94 1011.22
Less: Accum. Depreciation 781.75 542.33 361.76 247.00 179.31
Net Block 4147.28 2700.72 2168.52 1430.94 831.91
Investments 709.82 430.30 33.38 49.66 42.23
Inventories 642.44 568.65 257.55 196.51 101.95
Sundry Debtors 320.31 299.54 172.91 211.16 165.12
Current Liabilities 1261.88 926.67 592.22 448.45 276.88
Provisions 385.48 272.14 180.00 88.56 59.00
Net Current Assets 187.95 307.00 266.62 111.20 100.50
Miscellaneous Exp not w/0 3.24 0.74 1.02 1.33 1.64
Total Assets 5986.13 4585.03 2815.24 1882.16 1469.06
Contigent Liabilities 1578.03 679.59 597.68 273.85 130.85
Table18. Profit and Loss ( Rs. in crore)
Particulars Mar 2009 Mar 2008 Mar 2007 Mar 2006 Mar 2005
Sales Turnover 3,899.81 2877.46 2448.17 1390.20 993.18
Other Income 72.34 37.25 23.10 24.84 13.75
1
Stock Adjustments 56.86 183.98 13.85 42.38 17.92
Total Income 4029.01 3098.69 2485.12 1457.42 1024.85
Raw Materials 783.38 450.35 341.67 233.37 164.47
Excise Duty 396.71 312.91 196.26 131.08 112.58
Power & Fuel Cost 341.27 428.89 429.07 233.00 159.55
Employee Cost 93.70 72.81 48.45 31.04 24.67
Selling & Admt. Exp 378.36 323.99 212.76 99.84 75.67
Miscellaneous Exp. 78.41 66.09 60.99 29.63 61.04
Less: preoperative Exp. Capitlalised 0.00 0.00 0.00 0.00 0.00
Profit before Interest, Dep. & Tax 1454.20 1049.06 915.73 544.34 319.61
Interest & Financial Charges 173.19 102.24 85.63 83.01 82.95
Profit before Depreciation & Tax 1281.01 946.82 830.10 461.33 236.66
Depreciation 336.47 219.17 152.48 106.23 57.64
Profit Before Tax 944.54 727.65 677.62 355.10 179.02
Tax 241.55 154.71 161.91 49.64 33.94
Profit After Tax 702.99 572.94 515.71 305.46 145.08
Table19. Share Price movement in 2009

(Rs. in crores)
52 week High 1389.70
52 Week Low 470.10
Face Value 10
1
Table20. Growth factor of the Company
Year Mar 2009 Mar 2008 Mar 2007 March 2006 March 2005
Sales 3,899.81 2,877.46 2,448.17 1,390.20 993.18
Var% 35.52% 17.53% 76.10% 39.97% -
Profit After Tax 702.99 572.94 515.71 305.46 145.08
Var% 22.68% 11.10% 47.41% 110.55% -
Figure13. sales performance over the period of five years(In crore)
Figure14. Profit movement for five years (In crore)
Table21. Important Ratios:
EPS(in `) 225.36 183.92 165.38
Book value(in ` ) 804.35 596.97 428.05
Net Profit Margin 18.03 19.91 21.07
P/E Ratio 10.55 10.32 6.33
ROCE(%) 21.15 22.43 32.51
ROE(%) 32.58 36.30 47.45
Debt/Equity Ratio 1.45 1.34 1.16
1
Here from the above information I found that the Sales, Book value, PE Ratio are increased continously
in 2009 as compared to 2008 and 2007 but Jindal steel should concentrate on Net Profit margin because
it has decreased in 2009. The debt- equity ratio is increased which is not good sign but in this company is
under controlled which is good sign. The investor of this company should take some preventive step
before invest in this company for longer period of time. Investor can hold this share but should not buy.
3
5
PART III
FINDINGS AND SUGGESTIONS
FINDINGS
Indian steel industry the world’s fifth largest seems to be among the top three in upcoming four
to five years. Most of the steel industry products are used in Automobile, Housing, and
Infrastructure development. During economic slowdown the steel industry was under negative
growth since then it has come out of that.
7
Following table shows the comparative analysis of the three steel companies on the basis of the
performance, finance and liquidity Ratios. By doing this one can reduce the risk and take better
decisions
Table22. COMPARATIVE ANALYSIS FOR THE YEAR ENDED 2009-2010
Companies Tata Steel SAIL Jindal Steel

Performance Ratios
P/E ratio 8.54 12.11 41.02
ROE (%) 22 23.87 24
EPS 69.67 16.35 99.35
Net Profit Growth 13.00 (12.00) (73.45)
Book NAV/Share 337 68 500
Dividend Payout Ratio 23 20.32 10.63
DPS 16 6.02 10
Liquidity Ratios
Current Ratio 1.12 1.82 1.04
Debt-equity Ratio 0.78 0.27 0.97
Activity Ratios
Asset turnover Ratio 1 2 1.04
Debtors Turnover 46 16 39.72
Inventory Turnover 9 6 8.08
Sales (in Cr) 7339.34 13,280.44 5,204.97
Current Market Value(Rs) 474.40 195.60 1.037.50
P/E Ratio of Jindal Steel is highest among the rest two higher P/E Ratio means investors are
anticipating higher growth in future.
1
DPS of Tata steel is 16 for the year2009-20010 it means that company has gone through profits.
There is not much difference in ROE (%) but the Book NAV/Share of Jindal steel is higher than
others therefore the investors may feel that company is making profits out the money invested
by them.
Sales of Jindal Steel are high but the growth in net profit is in negative it means it has sold at
low margin that is because of decline in the prices of Steel . Debt/Equity ratio of Jindal steel
reveals that it has equally dependent on both Equity and Debt. That create an impact that
company is balanced and it is not dependent on either equity only or Debt. Asset turnover of
SAIL is higher than other two which implies that the company is making low profit margins.
Whereas Tata steel has shown around 1 indicating high profit margin. Debtors Turnover of
SAIL is 16 which mean it takes 16days to collect money from the debtors so it creates
impression that company products are reputed in the market. Collection period of 30 days is
treated to good enough to trust the value of the goods and services provided by the company.
Figure22. Comparison of Net Profit margin
Table23. Comparison of Net Profit margin
Year SAIL Tata JSW

Steel Steel
As we can see above graph
2005 23.19 22.78 14.14
of three companies as the
2006 13.79 23.53 14.98
initial stage of the SAIL it
were met the very low 2007 17.38 23.43 14.92
ratio due to losses and the 2008 18.16 21.09 3.23
Jindal Steel was quite in 2009 13.40 19.96 11.09
struggle stage and its gone
towards the down size as year ahead, and the most profitable company as we can say is that the
Tata Steel because of its highly increasing mode of the ratio. And we compare the all three
company the Tata steel company is quite preferable for the selection of the investments.
From the financial statements of Tata steel’s it is calculated the current ratio is 1.12 for the
year 2008 and 2009. However it does not mean that higher current ratio depicts good company
profile. It may signify greater unused cash or inventory carrying cost. If we take Earning per
Share for the year 2008, 2009 which is 60.45 and 66.80 respectively indicates that EPS is
3
increasing. It is good for the company as shareholders would be interesting in investing further
as well for the prospect investors.
JSW Ltd. Financial statement reveals that its investments has gone up from 396.60 crore to
628.20 crore , reserves and surplus has gone up from 7,266.94cr to 8,730.04cr therefore the
investment made could partially on credit as debtors have gone up from 399.05 to 696.39 and it
loans have gone down.
SAIL Financial statement reveals that it current ratio is 1.82 which is less than the standard
current ratio i.e. 2:1 this implies either the company has not sold its stock .
SUGGESTIONS
Table24. Share Price, EPS and PE ratio Movement
Company Share Adjusted EPS PE Ratio Target Decisi

price(NSE) on
FY 07 FY08 FY09 FY 07 FY08 FY09
SAIL 192.54 14.70 17.43 15.12 7.85 8.82 3.92 206.45 BUY
Tata Steel 474.34 60.58 65.63 46.12 6.43 8.72 6.58 686.43 BUY
JSW Steel 1037.50 86.67 55.96 79.46 10.34 10.18 6.26 1389.6 HOLD
1
I initiate coverage on SAIL with a BUY rating and a target price of Rs 206.45. SAIL is one of
my top picks owing to its India focused operations, aggressive capacity expansion,
modernization and strong balance sheet.
Although I expect Tata Steel’s profitability in Q1 of 2010 to be under pressure, we believe that
the worst is behind. We are positive on the stock given 1) highly profitable Indian operation, 2)
volume growth led by 2.9mntpa capacity expected in FY12, 3) Corus turnaround – Improved
capacity utilization and leaner cost structure and 4) Partial resource integration in Corus with
captive coking coal and iron ore expected by FY12. We recommend ‘BUY’ with a target price
of Rs 486.43 per share,” the report said.
JSW Steel operates three domestic facilities with a combined production capacity of 7.8 million
tonnes at Vijayanagar and Salem. This is expected to rise to 10.8 mtpa by the end of the current
fiscal l(2010). The company is the least integrated steel producer among the top three producers,
both Tata Steel and SAIL having their entire iron ore demand met by captive mines.
The company also operates a slab and pipe facility in the US which, due to the struggling US
economy, continued to be a drag on the consolidated profits. Investors should HOLD the shares.
Bibliography
www.moneyrediff.com
www.investopedia.com
www.tatasteel.co.in
www.jindalsteel.com
www.sail.co.in
Reference Books
Security And Portfolio Management by Prasanna Chandra, Published By:-TATA Mcgraw Hill

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INDUSTRIAL INTERNSHIP REPORT

UNDER THE ESTEEMED GUIDENCE OF

I undersigned Mr. BHUWAN JOSHI a student of SIVA SIVANI INSTITUTE OF

Place: - Hyderabad (Ameerpet) (BHUWAN JOSHI)

Date: - PGDM (TPS)

III Findings and Suggestions

• Classic – This service is for customers who transact occasionally.

It provides continuous educational programs to guide their customers by means of seminars

Awards and recognition for Share khan:

Types of Stock Analysis

The field of technical analysis is based on three assumptions:

The Market Discounts Everything:

Price Moves in Trends:

History Tends To Repeat:

Strengths of Technical Analysis

• Supply, Demand, and Price Action:

• Pictorial Price History:

• Assist with Entry Point:

Weaknesses of Technical Analysis

• Always Another Level:

The main principle of fundamental analysis is to find profitable companies to invest in by

Figure1. Showing Top-Bottom Approach

II. Bottom-up approach:

Strengths of Fundamental Analysis

• Knowing Who's Who:

Weaknesses of Fundamental Analysis

Fundamental vs. Technical Analysis

• Trading Versus Investing:

Introduction of Indian Economy

Figure2. Showing GDP growth rate

2. Per capita income:

Figure3. Showing inflation rate

Foreign Exchange Ratio:

Table1. India’s Stand in World Steel market

Figure4. Showing market share of Indian steel companies

Table2. India’s Steel industry Growth

Following are some more important aspects about company

Steel Authority Of India Ltd.

SAIL's Background and History

Expanding Horizon (1959-1973)

Table4. SAIL’s production from its plant

NTPC SAIL Power Company Pvt. Ltd

Bokaro Power Supply Company Pvt. Limited

Mjunction Service Limited

SAIL-Bansal Service Center Ltd.

Bhilai JP Cement Ltd

Ownership and Management

Share Holding Pattern

Figure5. Shareholding pattern

Table7. Growth of the Company

Table8. Share Price movement in 2009

52 Week Low 106.10

Table9. Important Ratios

Tata Steel Ltd.

Table10. Basic information about Tata Steel Ltd.

Figure8.Share holding pattern

Table11. Balance Sheet ( Rs. in

Table12. Profit and Loss Account (` in

How fast is the company growing?

Figure9. Profit growth rate

Figure10. Sales Growth

Table14. Share Price movement in 2009 (in Rs)

52 Week Low 399.21