CMP: 338

Tata Sponge Iron Limited manufactures sponge iron and sponge iron products. Tata Iron & Steel Company (TISCO) is a majority shareholder in the company.

Tata Sponge is a good bet in small-cap space. Its currently trading at a P/E of little less than 5 with good dividend yields of over 2% in the last 12 months. Minimal liabilities. Revenues have grown strongly from 277 Crores to 683 Crores in the last 5 years. Profits have risen from 21 Crores to 101 Crores over the same period. Profits have been pretty static for last 4 years, but low P/E makes it attractive. Buy and book profits at higher levels.