Emkay bullish on steel pipes sector

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Emkay bullish on steel pipes sector

According to Emkay Research's report on Steel Pipes sector, steel pipes exporting companies have got a sigh of relief as the union government has finally rolled back the 10% export duty on steel pipes and tubes. This is a positive move for the pipe and tubes exporting companies.

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Nifty BSE | NSE 29/05/12 Are Mutual Funds betting on Nifty? Other Stocks in this news Jindal Saw | Man Industries (India) | Ratnamani Metals and Tubes | PSL Limited |

According to Emkay Research's report on Steel Pipes sector, steel pipes exporting companies have got a sigh of relief as the union government has finally rolled back the 10% export duty on steel pipes and tubes. This is a positive move for the pipe and tubes exporting companies such as Welspun Gujarat Stahl Rohren , Jindal Saw , Man Industries (India) , Ratnamani Metals , PSL , etc.

Emkay's report on Steel Pipes sector:

Steel pipes exporting companies have got a sigh of relief as the union government has finally rolled back the 10% export duty on steel pipes and tubes. This is a positive move for the pipe and tubes exporting companies such as Welspun Gujarat Stahl Rohren, Jindal Saw, Man Industries (India), Ratnamani Metals, PSL, etc. Earlier Government of India in its notification on 10th May 2008 levied 10% export duty on steel pipes and tubes which was a negative move and would have resulted into lower competitive advantage to domestic pipes exporting companies against its global peers. Since the move was implemented from the immediate effect, the pipe exporting companies had to pay 10% export cess on existing order also. Line pipe manufacturing business has lower net profit margin of 5-9%, hence the 10% exports cess on existing orders would have negatively affected the bottomline for these players.

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