Business Details
Zenith Birla is in business of Steel pipes. The Company produces two types of Steel pipes
- ERW Pipes
- Black Pipes
- Galvanized pipes
- HSAW Pipes
The HSAW pipes are used in bulk transportation of water.It exports the pipes to foreign countries like US as well. Typically the products of the Company are used for various applications like Fencing, fire fighting system, water transport distribution, sprinklers, scaffolding, energy power etc.
Stock Performance
Investors have lost money in this counter. Over the years it has declined in prices making it tough for investors to come out of the stock or sell in jumps.
As you can see once a above 25 INR price stock is reduced to penny stock. It has trading below 1 INR for quite some time. So it is one of those money destructing stocks listed on exchanges
My Opinion
The Steel pipes sector is long saturated. It is being replaced by other alternatives like plastic pipes. So the sector does not have future growth prospectus.
The Company is also loss making for quite sometime. It is better to save your capital and do not invest in this counter. It becomes very tempting to invest at such low prices thinking of good gains if prices jump but such dreams do not come true.
The prices will move up if Company starts performing that is comes from loss and starts making money.Personally I have not invested in this sector and is planning not to invest in this stock as well.