Tata Metaliks Stock Research

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Tata Metaliks Detail

Tata Metaliks is in portfolio of Dolly Khanna. He is one of the top investors in India. The company belongs to Steel sector.

As per the Company website it is a subsidiary of Tata Steel which is part of Tata Group of Companies.It has manufacturing plant in Kharagpur West Bengal.It produces pig iron and ductile iron pipes in India.

The plant’s annual hot metal production capacity is 500,000 tonnes out of which 200,000 tonnes is converted into Ductile Iron (DI) pipes and 300,000 tonnes into pig iron.

The Company has below brands

  • Tata Ductura
    • DI pipes brand from Tata Metalliks
  • Tata eFee
    • World’s first branded pig iron

Products from the Company are used in

  • Automobile Casting
  • Agriculture and Tractor casting
  • Engineering and Industrial casting
  • Power generation casting
  • Ductile iron pipes and fittings
  • Sanitary and decorative casting
  • Railways and other casting
  • Aluminium Smelters

The Company has Pan India dealer network and has presence in Middle East and South East Asia (neighboring countries of India). So there is scope of expanding the global foot print in future.

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I have shared long term price performance chart of the Company below.As per Dow theory of technical analysis price performance over a period of time reflects Company state.

Tata Metaliks Stock Performance

The stock had mixed fortunes over the years. It made good wealth for investors till global crisis with occasional correction in between. However the stock had steady run during that period.

Post 2010 it had lean period for around four years making new lows every year. This was bad time for investors and Company both. From year 2002 to 2014 the stock was trading below 200 mark having touched it more than once before.

Majority of price action in stock came in year 2016 which was seen as drastic re-rating of the stock in bull run. Since then it is trading above 500 mark. Note it has been a consistent dividend paying Company which is also helpful.

Tata Metaliks My Opinion

Tata Metaliks is a Steel Company. It is subsidiary of Tata Steel so one can choose to invest in Tata Steel as well. You can view Tata Steel as holding Company having its own business as well.

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Tata Metaliks comes from house of Tata so management is reliable and proven. A good management is first and foremost thing in Fundamental analysis. If you are adding a stock for long term in your portfolio then make sure you have stocks from reliable and good management.

This is business to business Company and products are mainly used by Manufacturing and Construction companies.Fortune of Company is largely related to growth in industries it caters to.

Steel as a sector is cyclic sector.Most of the stocks in this sector undergo cyclic performance in stock prices because industrial demands are cyclic in nature.Cyclic stock should be invested with care as you need to monitor entry and exit points. I have not invested in Steel sector due to this very reason.

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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