TATA SPONGE
Technical Chart
Technical Levels of Stock
Tata Sponge has support at 535 levels and resistance is at 680 levels.
It will be positionally weak only on close below 535 levels.
Once we get a daily close above the levels of 680 we can expect it test its next hurdle of 740--760 levels in days to come.
Once we get a daily close above the levels of 680 we can expect it test its next hurdle of 740--760 levels in days to come.
Fundamentals of Company
1) The company has won a coal linkage of 24,000 tonnes per annum for the next five years, from one of the coal mines in Eastern Coalfields Ltd (ECL). The subsidiary of Tata Steel is now operating near full capacity.
The government’s coal linkage auction has been received well by India Inc. Tata Sponge Iron, which imports a bulk of its coal, participated in the recent auction to secure a domestic supply source.
2) Q 1 Profit Tata Sponge Iron Q1 profit surges 48% on power business growth.
Power business in Q1 reported a solid 24.8 percent growth at Rs 15.26 crore and its EBIT surged 26.3 percent to Rs 10.31 crore compared with corresponding period of last fiscal.
Pros
- Company has been maintaining a healthy dividend payout of 20.63%.
- Company is virtually debt free.
- Stock is trading at 1.20 times its book value
- Company has been maintaining a healthy dividend payout of 20.63%
Credit Ratings from different agencies.
- [ICRA]AA(stable) for Bank Loan Rating-Long Term from icra
- [ICRA]A1+ for Bank Loan Rating-Short Term from icra
- [ICRA]AA(stable) for Corporate Debt Rating-Long Term fromicra
- [ICRA]A1+ for Corporate Debt Rating-Short Term from icra
Return on Equity
10 Years: 16.15 %
5 Years : 11.50 %
3 Years: 10.01 %
TTM : 3.88 %
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