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ISMT Ltd Stock Analysis

Business Details

The Indian Seamless Metal Tubes Limited is manufacturer of seamless tubes, tube based products and alloy steels. It has three subsidiary companies

The Tubes are used in manufacture of auto-components, bearing races, OCTG products, drill rods, boilers, heat-exchangers.It also has Engineering services division which caters different industries.

It has customers present in 12 countries of the World. It also has presence in IOT division.

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Stock Performance

The Company was trading at level of 94 INR in year 2007. After year 2011 the prices have declined year after year and is now trading near 3 INR. So this is nightmare price chart for any Investor.

It also does not pay any dividend as well. So investors have lost money in this counter for last one decade.

My Opinion

The price chart will switch off most investors from investing in this counter. Some may consider investing in thinking that it may turn around with time. So there will always be some investors in the counter.

But before investing in this counter one should keep an eye on Engineering services division of the Company. Engineering services is new division of the Company.

The future growth of the Company will depend on performance of this division. As of now I would not suggest to invest in this Company. There is no point bottom fishing in this counter.