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Facor Alloys
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Tracked by: 0 Boarder
Now it is time to buy at every deep to sell at Rs 6/= at time of q2 results.
Bull operator kekenje start accumulating.
Big fool Rakesh junjunwala cheated investors by making wrong statement about LONG BULL RUN ON CNBC.
...
In reply to:
No News from Ephianny
Posted by :
gunnerbapna
Since the stock has got beaten down so much in the last week, whats your take ephiany on picking up/averaging
Regards
gunner 
Tracked by: 0 Boarder
Since the stock has got beaten down so much in the last week, whats your take ephiany on picking up/averaging
Regards
gunner...
Tracked by: 0 Boarder
Liquidity in market has improved.Purchase of blue chips in large and medium caps has started.It is good period to start investing in good small cap like FA....
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The reduction in crr and easing of p-note curbs should bring liquidity to yhe market and share prices are expected to bebound today....
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And wat makes you think that it will go down to that level...
In reply to:
Cheapest stock
Posted by :
shoa2546
Should go down further, till 4.2 or 3.8 too.. Rgds
Tracked by: 0 Boarder
Should go down further, till 4.2 or 3.8 too.. Rgds ...
In reply to:
Cheapest stock
Posted by :
Guest
Now the stock is available at cheapest valuation.Stock may be nearing bottom.Long term holders can start accumulating.
Tracked by: 0 Boarder
Now the stock is available at cheapest valuation.Stock may be nearing bottom.Long term holders can start accumulating....
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Aah.. not again. How many times one has to hear/read these so called growth STORIES.
-Q-
technically 50% of chrome ore mines also should have been transferred to facor alloy. however, such a move involved huge technical/legal issues which would have taken years to sort out.
-UQ-
-Q-
Facor is likely to acquire stake in some chrome ore mines abroad in near term.
-UQ-
Utter nonsense. If transfer with-in parent company takes years... then how can they manage acquisition from 3rd party..?....
In reply to:
Buyyyyyyyyyyyy!!!!!!!!!!!!!!!!!!!
Posted by :
dpshewale
Stock is trading at just 1.6x FY09E EPS which is ridiculously low by any standards. Share price has been lying low due to lack of full knowledge about company’s actual intrinsic strength amongst investing community and low profile of the promoters.Share price has bottomed out and may only go up in stable market conditions. If, overseas mining acquisition is finalized, 09-10 can again have huge rise in profits.Altogether a great buy at 6rs
CA DPS
Commodity of the month: Ferrochrome
Posted by : shoa2546Tracked by: 0 Boarder
All this story is very old, bottomline is that sentiments are negative, managment is not upright with investors infact very poor public relation, no doubt the stock is hammered way below the expectation and good time to take position. Technically stock still showing weakness and if market will not stablise we may see range of 4.2 to 5.0 too. Best of luck. Still its look like there is 15/20 % sludge remaining in market, specially in large cap. Rgds...
In reply to:
Commodity of the month: Ferrochrome
Posted by : dpshewale
Thursday, 2nd October 2008 Ferrochrome is an alloy of chrome and iron containing 50-70 per cent chrome.
Ferrochrome is an alloy of chrome and iron containing 50-70 per cent chrome. Around 65 per cent of all ferrochrome is consumed by stainless steel production. Demand for ferrochrome is dependent on stainless steel demand -- and this in turn is linked to GDP growth because of its applications in the production of white goods, in the automotive industry and in heavy industry.
The economic downturn has reduced demand for stainless steel, but analysts believe supply constraints will push the price up in the longer term. South Africa is the world’s biggest ferrochrome producer. Its state-controlled energy giant Eskom has problems generating enough electricity for both domestic and industrial use, so energy-intensive industry has had its power supplies cut. Ferrochrome companies have had to cut capacity and delay or cancel new projects, which could increase prices.
In early 2008, the price of the two standard grades of ferrochrome -- high carbon and charge chrome -- was around .20, but between April and September, the price range shot up to between .05 and .20 per pound.
Metal expert Markus Moll from the Austrian research consultancy SMR is confident of the long-term investment potential for ferrochrome on the grounds that the stainless industry will most likely return to growth in 2009. In addition to stainless demand boosting ferrochrome prices, Moll also suggests the substitution of expensive high nickel grades of stainless for lower nickel grades will boost ferrochrome demand. ‘In the long term, ferrochrome producers are a solid investment,’ he says.
One way of investing in ferrochrome is to buy shares in companies trading high carbon grades. This activity forms the spot market. Producers are mainly based in Kazakhstan and include the world’s biggest producer (on a chrome content basis) Eurasian Natural Resources Corporation (ENRC), which is traded on the London Stock Exchange.
Head of sales and marketing Jim Cochrane believes the continuing driving force behind demand growth will be Chinese consumer power. ‘If you consider that there are 1.4 billion people and currently there are only 20 cars per 1,000 people, compared to 700 in the United States, then there is significant potential for future growth. We’re very bullish on the long-term potential for stainless steel,’ he says
CA DPS
Commodity of the month: Ferrochrome
Posted by : dpshewaleTracked by: 0 Boarder
Thursday, 2nd October 2008 Ferrochrome is an alloy of chrome and iron containing 50-70 per cent chrome.
Ferrochrome is an alloy of chrome and iron containing 50-70 per cent chrome. Around 65 per cent of all ferrochrome is consumed by stainless steel production. Demand for ferrochrome is dependent on stainless steel demand -- and this in turn is linked to GDP growth because of its applications in the production of white goods, in the automotive industry and in heavy industry.
The economic downturn has reduced demand for stainless steel, but analysts believe supply constraints will push the price up in the longer term. South Africa is the world’s biggest ferrochrome producer. Its state-controlled energy giant Eskom has problems generating enough electricity for both domestic and industrial use, so energy-intensive industry has had its power supplies cut. Ferrochrome companies have had to cut capacity and delay or cancel new projects, which could increase prices.
In early 2008, the price of the two standard grades of ferrochrome -- high carbon and charge chrome -- was around .20, but between April and September, the price range shot up to between .05 and .20 per pound.
Metal expert Markus Moll from the Austrian research consultancy SMR is confident of the long-term investment potential for ferrochrome on the grounds that the stainless industry will most likely return to growth in 2009. In addition to stainless demand boosting ferrochrome prices, Moll also suggests the substitution of expensive high nickel grades of stainless for lower nickel grades will boost ferrochrome demand. ‘In the long term, ferrochrome producers are a solid investment,’ he says.
One way of investing in ferrochrome is to buy shares in companies trading high carbon grades. This activity forms the spot market. Producers are mainly based in Kazakhstan and include the world’s biggest producer (on a chrome content basis) Eurasian Natural Resources Corporation (ENRC), which is traded on the London Stock Exchange.
Head of sales and marketing Jim Cochrane believes the continuing driving force behind demand growth will be Chinese consumer power. ‘If you consider that there are 1.4 billion people and currently there are only 20 cars per 1,000 people, compared to 700 in the United States, then there is significant potential for future growth. We’re very bullish on the long-term potential for stainless steel,’ he says
CA DPS
...
Tracked by: 0 Boarder
Stock is trading at just 1.6x FY09E EPS which is ridiculously low by any standards. Share price has been lying low due to lack of full knowledge about company’s actual intrinsic strength amongst investing community and low profile of the promoters.Share price has bottomed out and may only go up in stable market conditions. If, overseas mining acquisition is finalized, 09-10 can again have huge rise in profits.Altogether a great buy at 6rs
CA DPS...
In reply to:
Buyyyyyyyyyyyy!!!!!!!!!!!!!!!!!!!
Posted by : dpshewale
Scripscan:Facor Alloys Ltd
cmp:6
Target:20
Code:532656
Duration:9-12 months
Story:Belonging to Saraf Group, Facor was created in 2005 upon de-merger from Ferro Alloys.Company is engaged in the production of Ferro Chrome with installed capacity of 73,000 TPA which is one of the main R/M in Stainless Steel Production. World demand for same is around 6.50 mn tons, major portion being made by South Africa. Ferro Chrome prices are determined on quarterly basis by South African Chrome Producers. World demand for Stainless Steel is expected to grow at 4% which means demand for Ferro Chrome will also remain robust. Before markets crashed, share price had gone upto Rs. 21.75 and since then, has reacted 60% which makes it an excellent buy at CMP.In 2005, scrip was listed at Rs. 25-27. However, share price came down heavily due to following:1) Performance of the company that time was not very good.2)At that time, promoters were holding more than 90% Equity. And, under CDR scheme, promoters had been allotted these shares at par (Re. 1/-). Hence, promoters started selling heavily to realize big gains which increased the floating stock.
Financial Performance:For 07-08,company has put up fabulous show.Although turnover has gone up by 40%, PAT has zoomed by 444% to 70.77 crs.EPS stands at Rs. 3.62 as against 0.67 in previous year. Main reason for such improvement is higher production, increase in conversion charges from TISCO and higher realisation in own sales. Total production stood at around 67,000 tons.An unknown Treasure:Despite such splendid show, its share price is ruling very low and it has not caught fancy of big investors,brokers, analysts etc. as they have presumed that Facor’s splendid show will not be possible in future.They presume that its profit margins are very high as company must be producing Facor Chrome from old contract of Chrome Ore at lower prices and in future, company will have to pay much much higher price for Chrome Ore which will bring down its profitability.however, this is not correct as no one knows the real facts/business model of facoralloy.
Facor group has 2 plants for production of ferro chrome of which,one is now under facor alloy and other is under ferro alloy. when govt. had allotted chrome ore mines (before de-merger), there was a condition in the mining agreement that these mines will be used by both plants of ferro chrome.when,one factory of ferro chrome went to facor alloy, technically 50% of chrome ore mines also should have been transferred to facor alloy. however, such a move involved huge technical/legal issues which would have taken years to sort out. hence, an understanding was reached between ferro alloy and facor alloy that facor will get chrome ore at a significant discounted price and not at market price. thus, facor alloy gets approx. 30% discount vis a vis prevailing chrome ore prices. due to rise in chrome ore prices, ferro chrome prices have risen sharply. thus, facor alloy is sort of owning (indirectly) chrome ore mines without actually owning the same and hence, it will continue to report kind of bumper profits which mining companies achieve.
Future Prospects:-
Y E A R
31. 03. 09E
Rs/cr.
Net Sales: 295.00
PBDT:119.60
Depreciation 1.60
PBT 118.00
PAT 105.00
Equity 19.56
EPS (Rs.) 5.37
P.E. Ratio 1.6
Outlook:In recent past, Ferro Chrome prices have shot up USD 1.30 to USD 2.00. Such price rise has been possible mainly due to higher demand and lower exports from South Africa (caused by big power cuts resulting in lower production).Facor will benefit immensely from this price rise because TISCO conversion charges are decided at parity with global prices.For Example, TISCO was paying Rs. 16,000/- as conversion charges in Q4 07-08 which was raised to Rs. 20,000/- in Q1 current year. Now, company is getting Rs. 25,000/- in Q2.In Q1, company is likely to report PAT of 26.50 crs. as against 9.92 crs. in Q1 last year. This is despite the fact that company sold 4000 tons less. This 4000 tons will be sold in Q2 which means, Q2 PAT can be more than 35 crs.
Big Triggers:Now, carry forward losses will stand wiped out.Facor is likely to acquire stake in some chrome ore mines abroad in near term. With this, company will have access to additional quantity of chrome ore. Hence,company may plan to expand its Ferro Chrome production capacity.Once, announcement about overseas mines acquisition is made, Facor will also be a Direct Mining Company and scrip will be re-rated.Thereafter, company will have big growth potential.
Valuations:Not only in metal/mining sector, Facor Alloys appears one of the cheapest scrips at BSE, considering strong earnings in the recent past, future bright prospects and mining triggers.Even if, this scrip deserves a reasonable P.E. Ratio of 8, share price should be more than Rs. 40/- (based upon 09E EPS).
Cont.....
Tracked by: 0 Boarder
Scripscan:Facor Alloys Ltd
cmp:6
Target:20
Code:532656
Duration:9-12 months
Story:Belonging to Saraf Group, Facor was created in 2005 upon de-merger from Ferro Alloys.Company is engaged in the production of Ferro Chrome with installed capacity of 73,000 TPA which is one of the main R/M in Stainless Steel Production. World demand for same is around 6.50 mn tons, major portion being made by South Africa. Ferro Chrome prices are determined on quarterly basis by South African Chrome Producers. World demand for Stainless Steel is expected to grow at 4% which means demand for Ferro Chrome will also remain robust. Before markets crashed, share price had gone upto Rs. 21.75 and since then, has reacted 60% which makes it an excellent buy at CMP.In 2005, scrip was listed at Rs. 25-27. However, share price came down heavily due to following:1) Performance of the company that time was not very good.2)At that time, promoters were holding more than 90% Equity. And, under CDR scheme, promoters had been allotted these shares at par (Re. 1/-). Hence, promoters started selling heavily to realize big gains which increased the floating stock.
Financial Performance:For 07-08,company has put up fabulous show.Although turnover has gone up by 40%, PAT has zoomed by 444% to 70.77 crs.EPS stands at Rs. 3.62 as against 0.67 in previous year. Main reason for such improvement is higher production, increase in conversion charges from TISCO and higher realisation in own sales. Total production stood at around 67,000 tons.An unknown Treasure:Despite such splendid show, its share price is ruling very low and it has not caught fancy of big investors,brokers, analysts etc. as they have presumed that Facor’s splendid show will not be possible in future.They presume that its profit margins are very high as company must be producing Facor Chrome from old contract of Chrome Ore at lower prices and in future, company will have to pay much much higher price for Chrome Ore which will bring down its profitability.however, this is not correct as no one knows the real facts/business model of facoralloy.
Facor group has 2 plants for production of ferro chrome of which,one is now under facor alloy and other is under ferro alloy. when govt. had allotted chrome ore mines (before de-merger), there was a condition in the mining agreement that these mines will be used by both plants of ferro chrome.when,one factory of ferro chrome went to facor alloy, technically 50% of chrome ore mines also should have been transferred to facor alloy. however, such a move involved huge technical/legal issues which would have taken years to sort out. hence, an understanding was reached between ferro alloy and facor alloy that facor will get chrome ore at a significant discounted price and not at market price. thus, facor alloy gets approx. 30% discount vis a vis prevailing chrome ore prices. due to rise in chrome ore prices, ferro chrome prices have risen sharply. thus, facor alloy is sort of owning (indirectly) chrome ore mines without actually owning the same and hence, it will continue to report kind of bumper profits which mining companies achieve.
Future Prospects:-
Y E A R
31. 03. 09E
Rs/cr.
Net Sales: 295.00
PBDT:119.60
Depreciation 1.60
PBT 118.00
PAT 105.00
Equity 19.56
EPS (Rs.) 5.37
P.E. Ratio 1.6
Outlook:In recent past, Ferro Chrome prices have shot up USD 1.30 to USD 2.00. Such price rise has been possible mainly due to higher demand and lower exports from South Africa (caused by big power cuts resulting in lower production).Facor will benefit immensely from this price rise because TISCO conversion charges are decided at parity with global prices.For Example, TISCO was paying Rs. 16,000/- as conversion charges in Q4 07-08 which was raised to Rs. 20,000/- in Q1 current year. Now, company is getting Rs. 25,000/- in Q2.In Q1, company is likely to report PAT of 26.50 crs. as against 9.92 crs. in Q1 last year. This is despite the fact that company sold 4000 tons less. This 4000 tons will be sold in Q2 which means, Q2 PAT can be more than 35 crs.
Big Triggers:Now, carry forward losses will stand wiped out.Facor is likely to acquire stake in some chrome ore mines abroad in near term. With this, company will have access to additional quantity of chrome ore. Hence,company may plan to expand its Ferro Chrome production capacity.Once, announcement about overseas mines acquisition is made, Facor will also be a Direct Mining Company and scrip will be re-rated.Thereafter, company will have big growth potential.
Valuations:Not only in metal/mining sector, Facor Alloys appears one of the cheapest scrips at BSE, considering strong earnings in the recent past, future bright prospects and mining triggers.Even if, this scrip deserves a reasonable P.E. Ratio of 8, share price should be more than Rs. 40/- (based upon 09E EPS).
Cont........
Tracked by: 0 Boarder
Quarterly results which is due will make the share move up as the reults are expected to be good.Share is available at cheap rate and investors should hold on or even buy in small lots....
Tracked by: 0 Boarder
Hi KK,
All the shares are in DP account only. But not sure weather AR is received or not... as DMAT account is in the name of my father (to avail tax benifits for senior citizens) and we stay in different cities.
Briefly checked sabero. Didn't appeal to me. May I know why are you interested on this..!
Regards,
Sri...
In reply to:
Commodity Meltdown
Posted by : kdeep_kotak
Dear Sriman..
well yaar... mujhe toh annual report jiyada samjh nahi ayi.. kafi complicated and technical English use ki lagti hai..
waise.. agar apke DP account mae shares hain, toh apke pass bhi aya gyi hoggi, agar pool account mae hain toh apke trader kae pass chali gyi hoggi..
waise boys.. see a website w w w. sabero. com and say something about that panny stock..
KK
Punjab
Tracked by: 0 Boarder
Saurabh bhai
tamasha hi teh dekh rahe haan..
waise.. wats ur views on this
KK...
In reply to:
Commodity Meltdown
Posted by : Saurabh_m
Kdeep,
Thodi thand rakho bhaaji... maade din ae ne stock market de..
Rab da na lao, teh dekhi jao tamasha..
Regards,
Saurabh
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