Metal Coatings (India) Ltd. Stock Research

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Metal Coatings (India) Ltd. Detail

Metal Coating India Limited is in portfolio of Subramanian P. He is one of the top investors in India. The company belongs to Steel sector.

As per the Company website it is engaged in Manufacturing of Cold Rolled Steel Strips/coils and HRPO steel strips/coils. These products are used by wide range of user industries such as Auto Component, White Goods and Electrical Equipments etc.

The company supplies the goods to many reputed companies in the domestic industry covering Satyam Auto Components Ltd., Talbros Automotive Components, Maharaja Appliances, Avon Tubetech, R. R. Autotech, Neolite Industries etc.

The products of the Company are used majority in Auto Components, White Goods and Electrical Equipments.

Now lets look at performance of this company over the years.As per Dow theory of technical analysis price performance over a period of time reflects Company state.

Metal Coatings (India) Ltd. Stock Performance

Metal Coatings India Stock performance
Metal Coatings India Stock performance

In above long term chart if you exclude some months in year 2009 and 2 year period between 2016 to 2018 you will see almost straight line with minor fluctuations.

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In past 15 years barring the time period mentioned above the stock traded near 20 INR. So you can take 20 as long term very sound support level. It tells that Company is good bet if it trades near this price point.

Other interesting point is that Company pays 4% or more dividend at current market price which is excellent by any measures. Over the 16 years it has given 5 times return as well. What I liked most is that Company maintained 20 mark as very stable support.

Metal Coatings (India) Ltd. My Opinion

Metal Coatings India limited is in Steel sector. The product of the Company is Business to Business. The end product serves Industries like Automobile and Electrical Equipment (Power).

Company itself states that penetration in Rural India is low for White Goods. The demand of White Goods in Rural sector will drive sales for the Company. Also Auto sector growth will also help the Company.

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I personally do not like Business to Business Companies (B2B) if there is no USP involved. The products created are not unique in nature. The products can be viewed as Steel Products. I do not see major growth demand of these items in future. There are big Steel Companies present which may take advantage in any growth demand.

I will not track the Company as it does not fit my criteria of Company selection.In case you are interested then you can track the company by adding it to your stock watch list. That way you can keep close eye on the Company.


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