Business Details
Shree Steel Wire Ropes is in Steel sector. The Company has specialized in various types of Steel ropes having wide range of applications.
- Crane and Industrial Ropes
- Elevator Ropes
- Oil and Gas ropes
- Fishing and Marine ropes
- Traction mast
- Stainless steel wire ropes
The Company also exports the products and has won Export Excellency award four times. The steel wire ropes manufactured by the Company are approved by agencies like Lloyd’s, American Bureau of Shipping, Bureau Veritas, SGS India Ltd.
The Company has marquee client names like Railways, Port Trusts, ONGC, Oil India, Defence, Steel Plants, Dept. of Atomic Energy, Cold Fields.
The Company has current production capacity of 1,000 kgs per day. The ropes are used in Crane, General Engineering, Mining and Drilling machines etc.
Stock Performance
Above is long term price performance chart of the Company. It has given three times return in last two decades. The Company has not performed well over exchanges. The prices kept fluctuating between 5 and 15 price ranges.
One thing is worth mentioning is that Company has not under performed or investors have lost money in it. It is debt free Company but negative point is that it does not pay any dividend.
My Opinion
Shree Steels wire pipes limited is one of the specialized steel Company. The raw material for this industry comes from Steel industry. So the Company performance will be impacted by fluctuations in steel sector a a whole.
Steel pipes and wires have wide range of usage in various industries and machines. The sector is saturated but does have consistent growth over the years.
But Steel is cyclic sector as well. In recent times steel as a sector have not performed well on exchanges. Partly due to the fact that sector is very competitive and is commodity business. It is safe sector but not future growth orientated.
Personally I have not invested in this sector due to growth issues and competitiveness.