Tuesday, August 07, 2007

ISMT-BUY

The Indian Seamless Metal Tubes Limited was promoted in 1977 by a group of technocrats to produce specialized seamless tubes in India. Beginning with an installed capacity of 15,000 metric tons per annum, ISMT commenced production in 1980 with the installation and commissioning of an Assel mill in technical collaboration with Mannesman Demag Meer of Germany. Subsequently, in 1990 the production capacity was raised to 50,000 metric tons per annum with the addition of a second Assel Mill. In 1995 The Indian Seamless Metal Tubes Limited promoted another company, Indian Seamless Steels and Alloys Ltd. (ISSAL), to produce alloy steel, the raw material used in the manufacture of seamless tubes, giving ISMT better control over product quality as well as deliveries.In April 2000 The Indian Seamless Metal Tubes Limited acquired Kalyani Seamless Tubes Ltd. (KSTL), the other major Indian manufacturer of seamless tubes. The combined entity which retained the name The Indian Seamless Metal Tubes Ltd emerged as not only the largest producer of seamless tubes in India but also as one of the largest and most diversified producers of specialized seamless tubes worldwide with - an installed capacity of 150,000 metric tons of tubes per annum in the size range of 6mm to 273mm.In 2005 The Indian Seamless Metal Tubes Ltd and Indian Seamless Steels and Alloys Ltd merged to form ISMT Limited. This Company is the largest integrated manufacturer of specialized seamless tubes in the Asia Pacific Region. Currently ISMT Limited has an installed capacity of 155,000 tpa and 250,000 tpa for seamless tubes and alloy steel respectively.Currently all tubes at ISMT Limited, are manufactured through the Assel Mill route. This process yields tubes of very high dimensional accuracy and excellent concentricity thus minimizing the requirements of final machining. As a result, these tubes are ideal for applications such as the manufacture of bearings, automobile parts, drill rods, hydraulic cylinders, gas cylinders, boilers, etc. Apart from tubes, ISMT Limited also manufactures a wide range of value added products for each of these industries. These include items such as bearing rings, gear blanks, shifter sleeves, cages for constant velocity joints, swaged & machined axles, threaded and coupled casings, couplings and a host of similar products.

For the Year 2007 the company has recorded a turnover of Rs.2000 crores and a net profit of Rs.129 crores on a equity of Rs.72 Crores (Rs.5 Paid up).The cash profit is Rs.185 crores.

With all the user industries like bearing manufacturers,Oil and Gas showing excellent growth this company has great growth prospects.

Current market prices is Rs.100 .Buy with a two year outlook and a target price of Rs.300.

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