For this industry leader, rising steel output is good news
With lower share of trading revenues and increasing share of services revenues, VIL’s margins are likely to remain higher and much stable
October 07, 2021 / 10:55 AM IST
PRO Only Highlights
Quarterly performance largely backed by improved realisations
Medium-term triggers China plus and protectionist measures for tyre industry
Valuations not inexpensive; but improved medium-term outlook
The expected increase in steel production is likely to benefit a company such as Vesuvius India (VIL; CMP: Rs 1,190; Market Capitalisation: Rs 2,418 crore), which is a global leader in metal flow engineering, principally serving the steel and foundry industries. The company is promoted by Vesuvius Plc.
As on June 30, 2021, the promoter owns 55.6 per cent and Vesuvius has four manufacturing plants. Higher production, supporting volumes for refractories, strong support from the MNC parent, in terms of...