National Steel and Agro Industries Ltd. Stock Research

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National Steel and Agro Industries Ltd. Detail

National Steel and Agro Industries 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 one of India’s Fortune 500 Companies. It manufactures and exports steel from central India. It is known for its flat steel products (Cold Rolled Coil, Galvanised Corrugated Sheets, Colour Coil & Pre-painted Profile sheets, etc.) .

It has installed capacity of around 3, 80,000 TPA galvanised steel.It is STAR trading house due to its contribution in Exports. It holds a leading position in the import and export of commodities like Flat Steel (GC & PPGI), rice, wheat, soybean meal, yellow peas, green peas & lentils, and Burmese origin products like toor whole, green mung, beans—polished & unpolished, black matpe/ urad bean, red kidney beans, black eye beans, yellow maize and sesame seeds.

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NSAIL also deals wholesale in Australian origin products (chick peas & dun peas), Indian origin products, Kabuli chick peas, CTC tea, and engineering goods, besides providing turnkey solutions for EPC projects, especially power projects.

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.

National Steel and Agro Industries Ltd. Stock Performance

National Steel and Agro Industries Stock Performance
National Steel and Agro Industries Stock Performance

The Company traded at level of 5 in year 2002. As of now it is trading at the same level. So in these 16 years period it has not given any positive returns. Steel as in Industry is complicated and cyclic in nature.

Over the years It has zoomed past 40 mark and has traded above 10 most of the time. It also gives decent dividend of 10% at current market price. Note this is all time low price taking 2002 level as reference so you should not take dividend as very good.

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As a trading strategy it is good time to enter the stock to get decent return in one or two years (close to 2 times or more return) based on previous price trends.

National Steel and Agro Industries Ltd. My Opinion

National Steel and Agro Industries Limited is in Steel sector. I personally do not like Steel sector companies for Investment. Most of the stocks in this sector have not given good returns in past decade.

Many of Steel Companies are in Fortune 500 India list but they have not given good returns to Investors. This establishes an excellent rule of Stock market. Company size is not related to returns Investors get but Company performance over the years is.

So you should really look for Company whose performance improves over the years. If the performance remains stagnant or does not grow then Company will not perform on Stock Exchanges. Big Companies often become Stagnant or have period of no growth followed by decent growth.

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As mentioned above I am not interested in Steel sector. There is no stock from it in my portfolio or stock watch list.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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