Business Details
National Steel and Agro Industries limited is mainly in business of Steel Manufacturing. Though Company has presence in other business areas which we will discuss later in the article.
The Company manufactures and exports Steel. Major steel products created by this Company are
- Cold Rolled Coils
- Galvanised Corrugated Sheets
- Colour Coils
- Pre painted profile sheets
It has installed capacity of around 3, 80,000 TPA galvanised steel. The Company has also earned Star trading house in exports.
It also 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.
It has also expanded its foot print in new countries like Thailand and Myanmar.
Stock Performance
Above is long term price performance chart of the Company. As of now it is trading at all time low. The interesting part of Company giving more than 30% dividend to share holders.
If we leave the current downfall it has traded between 10 and 40 range over the years. Company has bounced back from 10 levels in past but this time it has breached all the previous levels. It is not a buy and hold type of stock
My Opinion
National Steel and Agro limited has diversified operations. Main business of the Company is Steel Manufacturing and Steel Export. It has not performed well over the years and the same is reflected in share prices.
Note Steel sector is not performing for quite sometimes. Steel is also cyclic sector and should be played similarly. You can not buy and hold steel companies and make wealth. It is better to invest them in cycles like you need to buy and sell them at lows and highs.
This is perfected by top investors and retailers should not try to time the high and lows. Personally I have not invested in this sector.