Hira Ferro Alloys Ltd:-Buy/sell:multibagger

Scripscan:Hira Ferro Alloys Ltd

cmp:36

Code:533256

Story:The Company‚Äôs operations are divided into two segments i.e. Ferro alloys & Power Divisions. The Company is engaged in manufacturing ferro alloys consisting mainly of Silico Manganese. The power division of the Company is captive.However the looking the present market scenario, the Company is also selling power in the open market in order to optimize the revenue&profitability.In fiscal 2011, the Company’s revenue increased from Rs. 111 Crores to Rs. 162 Crores,registering a growth of 46.08% as compared to last fiscal.The raise was mainly because the favorable market conditions especially in the first half of the year which led to higher realization. Ferro Alloys production in the year was 23713.205 MTs as compared to 16538.81MTs in last year and the sale of silico manganese increased from 15761.870 MTs to 24034.850 MTs registering a growth of 52.49%.Hira also has sold 57320191KWH of power in the last fiscal.The sale of Bricks increased from 6125200 Units to 11543725 Units, registering a growth of 88.46%.Company generated a Net Profit of Rs. 28.68 Crores, a growth of 63.88 % as compared to Rs.17.50 Crores in the previous year due to favorable market condition and sale of power.Hira should give a 15-18% kinda growth in the present year.The company paid a dividend of 3rs per shares which at present prices gives nearly a 10% dividend yield.Prospects look bright for the company.At present prices downsides seem to be minimal.

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