CMP: 123


Bajaj Steel Industries Ltd manufactures a wide range of machinery. The Company's products include cotton ginning automation and cotton pressing machineries, auto feeders and steel bullock carts with breaks and tires.

Bajaj Steel is a 29 Crore penny cap stock. Its currently trading at a P/E of 4 with dividend yields of less than 2% in the last 12 months. It runs at a debt of 53 Crores with cash in hand of 19 Crores. Debt to Profits ratio is above 4 and is at pretty high levels. Revenues have risen from 175 Crores to 204 Crores in the last 5 years. Profits have fluctuated between 2 Crores to 16 Crores in the last 5 years with 2011 being the worst year of all. NPM has fluctuated between 1% to 7% over the last 5 years. Last 2 quarter profits have bounced back strongly which sets positive sentiments. Buy with minimal exposure and book profits when Nifty peaks.