VN Research & Consulting
 Like us on facebook  Follow us on twitter  Follow us on LinkedIn  IndiaNotes on Google Plus  IndiaNotes on Pinterest  IndiaNotes on Stumbleupon  Subscribe to our feeds

Stocks  A | B | C | D | E | F | G | H | I | J | K | L | M | N | O | P | Q | R | S | T | U | V | W | X | Y | Z
You are here : IndiaNotes >> Research & Analysis >> Companies >> Ferro Alloys Corporation Ltd. >> Research

Ferro Alloys Corp: Accumulate this Dark Horse at CMP for 2-3 years of tenure

  • Rate this article
    (Average Rating 4.5 Based on 2 ratings)


One of the India's largest producers and exporters of Ferro Alloys, an essential ingredient for manufacture of Steel and Stainless Steel. It exports to several countries like Korea, Japan, Italy, Netherlands, USA, Turkey, China and Taiwan.

Setting up of additional 27 MVA Furnace:-

As on 13th May 2017, company have approved the setting up of additional 27 MVA Furnace in its Charge Chrome Plant at D.P. Nagar, Randia, District Bhadrak, Odisha. It is expected that plant shall come its operations by October 2018 . Once the additional furnace is operations, it would enhance the existing production capacity by 50,000 MT per year thus taking the overall production capacity to about 120,000 MT per annum.

The power requirement for operation of the additional Furnace would be met by supply of uninterrupted power from the Captive Power Plant set up by Facor Power (FPL), the Subsidiary of the Company, adjacent to the Charge Chrome Plant, resulting into no transmission loss etc. This will also improve the capacity utilization of the power available from FPL.


GST --> A bigger achievement for sector

Steel industry is likely to benefit from the new GST rate for steel which has been finalized at 18%. With key inputs like coal, iron ore pegged at 5%, which is the lowest slab under GST , could be looking at lower input costs. Together, with a substantial slash in transport costs due to unified and standard tax rate under GST, this is likely to help steel companies reeling under large debt and also keep steel prices stable.

New tax structure will be neutral for the steel sector but there may be collateral gains for the industry, which was under rough weather until recently. With CENVAT rules being replaced by GST, the credit cycle will become smooth, thereby improving the visibility of revenues and increasing liquidity and availability of working capital.

The move will bring down the input cost and would lead to stabilization of prices, and more and more expansion of steel plants would take place, steel sector will be benefited from this move & would indirectly benefit the company in coming years.

National Steel Policy 2017 --> AIDING GROWTH IN THE STEEL SECTOR

With the roll out of the National Steel Policy-2017, it is envisaged that the industry will be steered in creating an environment for promoting domestic steel and thereby ensuring a scenario where production meets the anticipated pace of growth in consumption, through a technologically advanced and globally competitive steel industry.


  Read full report Click here to read the full report

10.14 +0.00
0.00 +0.00
Read More
About Rudra Shares and Stock Brokers

RUDRA is one of the growing & dynamic brokerage houses with a strong presence in the Retail and HNI broking segment. With over 25 years of experience and lead by a team with outstanding managerial acumen, RUDRA is a professionally managed company supported by over 100 professionals, including Chartered Accountants, MBAs and other senior executives. RUDRA can thereby cater to its clients' short-term as well as long-term financial needs through a comprehensive bouquet of investment services. RUDRA offers a diverse range of financial services, including institutional and retail brokerage of Equity, Currency, Commodities, Derivatives, Online Trading, Depository Services, Fixed Deposits, IPOs and Mutual Funds Distribution, and Wealth Advisory & Research. RUDRA is looking to become one of the biggest broking houses. RUDRA Securities Limited, is a member of National Stock Exchange of India Limited, Bombay Stock Exchange Limited, MCX Stock Exchange, and Depository Participant of Central Depository Services (I) Limited. RUDRA can be approached online at


For more information please write in to [email protected]

Disclaimer: The author has taken due care and caution to compile and analyse the data. The opinions expressed above are only the views of the author, and not a recommendation to buy or sell. Neither the author nor accept any liability whatsoever arising from the use of any of the above contents.