The Shares In My Portfolio Accounts...

Some of you have been asking me to reveal the names of a few shares, I hold in my portfolio accounts. Well, while I am unable to disclose the full list due to privacy protocols, I am pleased to share a select few with you:

💢NMDC Steel Ltd -- Ultra modern 3 MT steel plant; turnaround in FY25. CMP: Rs.47.90.

💢ZEEL --  Internet Divison has started to perform; huge line up of films. CMP: Rs.121.40.

💢Coal India Ltd -- World's largest coal company with a history of dividend payments; Infra push by government, with an eye on the power sector. CMP: Rs.435.30.

💢Swan Energy Ltd -- BlackRock holds stake; Waiting for mega listing of Reliance Naval. CMP: Rs.492.75.

💢Indowind Energy Ltd -- It has  raised Rs.48.30 crore from its shareholders through a rights issue, which was oversubscribed by 1.59 times. The raised funds will develop a 6 MW Solar Power Project in Tamil Nadu. CMP: Rs.22.19.

💢3i Infotech Ltd -- Focused on high growth areas like Cloud Computing. CMP: Rs.27.86.

💢Rajesh Exports Ltd -- Waiting for start of operation at the Lithium - ion battery plant due in CY24. CMP: Rs.257.40.

💢Debock Industries  Ltd --  Could merge a big company into itself; could start Granite Mining soon. CMP: Rs.6.08.

💢MEP Infrastructure Ltd -- Could come out of IBC through OTS. CMP: Rs.4.33.

💢SAIL -- Government could increase import duty to 12%; huge Capex; large number of mines; Donald Trump win, positive. CMP: Rs. 118.53.

💢MTNL -- Rumoured Rs.30,000 Cr government package on the anvil. CMP: Rs.48.13.

💢Vodafone Idea Ltd -- Debt could be converted to equity. CMP: Rs.8.14. Photo: Saint Investment.

Steeling For Success: Why NMDC Steel Ltd (Rs.47.21) Is a Smart Bet...

I have taken some shares of NMDC Steel Ltd for some of my portfolio clients. 

Introduction: NMDC Steel Ltd (NSL) is setting itself apart as a modern powerhouse in India's steel industry. Positioned as India’s youngest steel unit, the Nagarnar Steel Plant's production momentum underscores its operational strength. Photo: ET Infra.

NMDC Steel Ltd's recent achievements highlight its dedication to excellence and cutting-edge advancements in steel production. Its state-of-the-art 3 Million Tons Per Annum (MTPA) facility, constructed with an investment of Rs.22,900 crore, features one of the broadest Hot Strip Mills in India. This mill is capable of producing hot-rolled coils with widths between 900 mm and 1650 mm and thicknesses ranging from 1 mm to 16 mm

With the recent milestone of producing over 2 (two) million tonnes of hot metal, NSL demonstrates efficiency improvements in reaching production targets faster—a crucial indicator of its readiness to scale. The plant's Ma Danteshwari blast furnace, capable of producing up to 9,500 tonnes of hot metal daily, supports this growth trajectory by facilitating a steady rise in output, particularly of hot rolled coils.

Looking forward, NMDC Steel’s strategy involves ramping up production of essential industrial materials, including critical key steel materials (KSMs), ductile iron (DIs), and APIs by FY25, aligning with national initiatives to boost domestic manufacturing. 

Furthermore, under CMD Amitava Mukherjee’s leadership, the company anticipates achieving operating profitability in the first half of the current fiscal year. This goal reflects a commitment to financial sustainability despite external challenges.

Adding to its list of accolades, NMDC Steel recently became the first integrated steel plant in India to secure 4 (four) Integrated Management System (ISO) licenses simultaneously, a testament to its dedication to quality, safety, and environmental standards. 

Together, these achievements position NMDC Steel Ltd as a promising investment opportunity with a clear path to future profitability and an essential role in supporting India’s growing steel demands.

Here's my Investment rationale:

💢Valuation Opportunity: The market capitalization of NMDC Steel Ltd. (approximately INR 141 billion) is notably below the total cost incurred to construct the Nagarnar steel plant, highlighting a potential undervaluation and a favorable entry point for investors.

💢Ultra-Modern Facility: The Nagarnar steel plant is one of India’s most advanced, designed with state-of-the-art technology and a capacity of 3 million tons per annum, positioning it to meet rising domestic demand for high-grade steel.

💢Expected Financial Turnaround: CMD Amitava Mukherjee has emphasized the company's recent operational milestones, such as achieving early production of 1 million tons of hot rolled coils. This efficiency signals potential for improved financial performance within this fiscal year.

💢Strategic Raw Material Advantage: With direct access to NMDC’s vast iron ore reserves, NMDC Steel enjoys a steady and cost-efficient raw material supply, reducing production costs and enhancing profit margins.

💢Favorable Market Dynamics: India’s infrastructure growth and demand in construction, automotive, and industrial sectors provide a robust market for NMDC Steel's products, supporting long-term growth potential.

💢 Expected Increase of Import Duty: The market thinks that it is high time that government of India increases the import duty on steel to 12% to contain Chinese dumping.

💢Donald Trump Factor: If the Republic nominee, Donald Trump wins then his administration might go hard on shaping Chinese polices, indirectly helping Indian businesses.

These combined factors position NMDC Steel Ltd as a compelling investment in India's growing steel industry. 

Why SAIL’s (Rs.118.40) Stock Looks Attractive Amid Global Shifts...

12 month target: Rs.195 - Rs.210

Introduction: Steel Authority of India Limited (SAIL) is India's largest steel producer and is a Maharatna Public Sector Undertaking of the Government of India:. Th Government of India owns about 75% of SAIL's equity and retains voting control. SAIL is based in New Delhi and has plants in the eastern and central regions of India. Photo: PSU Connect.

Plants: SAIL has five integrated steel plants and three special steel plants: 

Integrated steel plants: Bhilai (Chhattisgarh), Rourkela (Odisha), Durgapur (West Bengal), Bokaro (Jharkhand), and Burnpur (West Bengal) 

Special steel plants: Salem, Durgapur, and Bhadravathi.

Steel Authority of India Limited (SAIL) operates a number of mines, including iron ore mines, coal mines, and flux mines: 

Iron ore mines: SAIL has 15 iron ore mines in Jharkhand, Odisha, and Chhattisgarh. These mines include Kiriburu, Meghahatuburu, Gua, Chiria, Bolani, Barsua, Taldih, and Kalta.

Coal mines: SAIL has four coal mines, including Chasnalla, Jitpur, Tasra, and Ramnagore. Chasnalla and Jitpur are in the Jharia coal field in Jharkhand and produce coking coal, while Ramnagore is in the Raniganj coal field in West Bengal and produces non-coking coal.

Flux mines: SAIL has two flux mines, including Tulsidamar in Jharkhand and Kuteshwar in Madhya Pradesh. 

SAIL also has a Collieries Division that oversees all coal mining operations. The division has a Coal Preparation Plant to prepare coal for use in SAIL's steel plants. 

Discussion: India’s metal sector is currently under the spotlight, especially following China’s recent stimulus measures announced on September 27, 2024. As the world’s largest steel producer, China’s economic decisions reverberate globally. 

With further stimulus expected, Indian steel companies like SAIL (Steel Authority of India Limited) stand to benefit significantly from both global and local factors, making SAIL’s stock an attractive option for investors today.

Impact of China’s Stimulus Package on Global Steel Markets: China’s recent economic stimulus is designed to counteract a slowdown through multiple measures, including cutting borrowing costs, lowering reserve requirements, and offering fiscal aid to low-income groups. These policies are likely to boost demand for infrastructure projects and the materials essential to them—primarily steel. Higher steel demand in China often correlates with global price increases, providing tailwinds for steel producers around the world, including those in India.

Expectations of additional Chinese stimulus strengthen this outlook, as increased spending and steel consumption in China will likely support higher prices across Asia, benefiting Indian steelmakers like SAIL.

India’s Infrastructure Drive and "Make in India" Push: India’s infrastructure sector is expanding rapidly, driven by urbanization and government-led initiatives like "Make in India," which aims to attract foreign investment and promote domestic production. 

Demand for steel and other metals is rising as a result, especially in sectors like automotive, real estate, power, and cement. This national push for growth directly benefits SAIL, as a major player in India’s steel production, and positions the company to capture new demand.

High Barriers to Entry and SAIL’s Competitive Edge: India’s steel industry presents high entry barriers due to the substantial capital required for mining and processing, compliance with stringent regulations, and advanced technological needs. 

These challenges discourage smaller players, allowing established companies like SAIL to maintain a competitive edge. With its robust infrastructure and financial capacity, SAIL is well-positioned to continue leading the market.

Limited Substitution Risk in Key Sectors: While some industries explore alternatives like composites and plastics, steel remains irreplaceable in sectors that require high durability and strength, such as construction and heavy machinery. 

This limits the substitution threat for steel, ensuring steady demand for its unique applications and supporting consistent revenue for SAIL.

The Cyclical Nature of Steel Stocks: Why Now is a Good Time: Steel stocks are inherently cyclical, performing well in economic upswings and often declining during slowdowns. Strategic timing in this sector can yield substantial returns, with the ideal entry point typically at the start of economic recovery. 

Currently, India’s economic outlook is positive, buoyed by the anticipated interest rate cut by the Reserve Bank of India (RBI), which would lower borrowing costs and spur industrial demand. This creates a favorable environment for steel companies, making now an opportune time for investors to consider SAIL.

Analyst Projections for SAIL’s Stock Performance: Brokerage firms are increasingly optimistic about SAIL’s prospects. Mehta Securities has recommended a buy for SAIL with resistance at Rs.140 and target prices of Rs.160 and beyond, while Axis Securities has issued a target of Rs.95. These projections reflect strong confidence in SAIL’s growth potential as global steel demand improves.

DAM Capital has also initiated coverage on key Indian steel stocks, including SAIL, and projects a potential rise of up to 42% over the next 12 months. With spreads in China—the difference between the cost of raw materials and the finished product—at historical lows, DAM Capital’s analysis highlights the opportunity for Indian steel stocks to gain in value as global steel prices rise.

Government’s Expected Import Duty Increase: A Further Boost for Domestic Steel Sector: The Indian government is expected to raise import duties on steel from 7.5% to 12%, a move aimed at protecting the domestic industry from cheap imports. 

Although the duty increase has not yet been implemented or announced, the expectation alone strengthens market sentiment. Once in effect, this policy shift could provide an additional layer of support for domestic producers like SAIL, making their products more competitive and boosting demand.

Conclusion: Why SAIL is a Strong Investment Opportunity: The interplay of China’s stimulus, anticipated government policies in India, and an economic recovery cycle creates a compelling investment case for SAIL. 

Positioned to benefit from both global steel demand and India’s infrastructure boom, SAIL offers promising potential for growth. 

For investors looking to gain exposure to the cyclical upswing in steel, SAIL’s current market conditions suggest a timely and strategic opportunity.

Reliance’s Na-ion Battery Gamble: A Potential Game-Changer?

Reliance Industries Ltd (Rs.1338.65), a behemoth in the Indian business landscape, is making significant strides in the energy storage sector. With its recent investments in sodium-ion (Na-ion) battery technology, the company is poised to disrupt the lithium-ion (Li-ion) battery dominance. Photo: Faradion.

Incidentally, Lithium-ion (Li-ion) batteries currently dominate the global energy storage and electric vehicle (EV) markets, with over 90% of demand stemming from the energy sector, according to the International Energy Agency (IEA). Despite this stronghold, there is an increasing competition from alternative electrochemical storage technologies, particularly sodium-ion (Na-ion) batteries, which are seen as a promising alternative due to the abundance and lower cost of sodium compared to lithium.

Na-ion batteries offer advantages such as safe transport when fully discharged and compatibility with existing manufacturing techniques. However some companies are now reporting advancements in sodium-ion technology and is gearing up for entering into its mass production; even though the challenges remain, including early performance decline in cathodes and lower energy density compared to lithium batteries. 

Notably, UK startup Faradion has developed intellectual property around Na-ion technology and was acquired by Reliance Industries in late 2021 for approximately $135 million. Recently, Reliance announced that it had completed the acquisition, moving to full ownership of Faradion through its subsidiary, Reliance New Energy Limited. The company aims to leverage Faradion's sodium-ion technology for a new battery gigafactory in Jamnagar, India.

Q. Why Na-ion Batteries?

 Ans. Some of the key Points:

💢Abundant and Affordable: Sodium, the key ingredient in Na-ion batteries, is far more abundant and cheaper than lithium. This could lead to significant cost reductions in battery production.

💢Enhanced Safety: Na-ion batteries are inherently safer than Li-ion batteries, reducing the risk of thermal runaway and fire hazards.

💢Faster Charging: Na-ion batteries have the potential for faster charging times, making them a more convenient option for electric vehicles and other applications.

The Challenges Ahead: While Na-ion batteries offer several advantages, they still face some hurdles:

💢Lower Energy Density: Compared to Li-ion batteries, Na-ion batteries have a lower energy density, meaning they can store less energy in a given volume. This could limit their application in devices that require high energy storage, such as long-range electric vehicles.

💢Shorter Cycle Life: Na-ion batteries often have a shorter cycle life than Li-ion batteries, meaning they may need to be replaced more frequently.

💢Technological Hurdles: Developing stable and efficient Na-ion batteries requires significant technological advancements, particularly in materials science and electrochemistry.

Reliance’s Strategic Move

Reliance’s acquisition of Faradion, a UK-based company specializing in Na-ion technology, is a strategic move to address these challenges. By combining its vast resources and expertise with Faradion’s advanced technology, Reliance aims to accelerate the development and commercialization of Na-ion batteries. Photo: Flash Battery.

If successful, Reliance could revolutionize the energy storage industry, reducing dependence on lithium and offering more affordable and sustainable energy solutions. However, the road ahead is fraught with challenges, and it remains to be seen whether Na-ion batteries can truly challenge the dominance of Li-ion technology.

Only time will tell if Reliance's bold bet on Na-ion batteries will pay off.

Q. How TRF Ltd (Rs.446.65) could benefit from Reliance Industries Ltd's acquisition of Faradion, a Na-Ion battery venture ?

Ans. TRF Ltd established in 1962, is part of the Tata Group of Companies which consists of more than 90 enterprises operating in seven business sectors, in over 80 countries. In its quest for rapid growth, TRF has also diversified into automotive applications business. Photo: YouTube.

While TRF Ltd and other material handling companies may not directly benefit from Reliance Industries' acquisition of Faradion, they could experience indirect advantages that make TRF shares attractive for investment:

💢Increased Demand for Raw Materials: If sodium-ion (Na-ion) batteries achieve significant market traction, there could be a surge in demand for raw materials such as sodium and other components. Although TRF may not supply these materials directly, the overall economic growth and heightened industrial activity associated with the battery industry could create a favorable environment for TRF.

💢Infrastructure Development Opportunities: The establishment of Na-ion battery manufacturing facilities and the requisite infrastructure could lead to increased opportunities for construction and engineering firms like TRF. This could result in new contracts and projects that enhance TRF's revenue potential.

💢Exploration of Downstream Applications: As Na-ion battery technology matures, it may unlock new prospects across various sectors, including electric vehicles (EVs), energy storage systems, and renewable energy integration. TRF, as a diversified engineering company, is well-positioned to explore opportunities in these areas:

💢Electric Vehicle (EV) Sector: TRF could provide engineering solutions for EV charging infrastructure and battery management systems, contributing to the growth of the EV market.

💢Renewable Energy Storage: Na-ion batteries are suitable for storing energy generated from renewable sources like solar and wind. TRF could engage in developing energy storage solutions, including battery storage systems and technologies for grid integration.

💢Industrial Applications: Na-ion batteries may find uses in various industrial applications, such as powering electric forklifts and mining equipment. TRF could offer engineering services for integrating these batteries into existing industrial systems.

TRF Ltd. is still engaged in the automotive applications business. The company has been actively working on expanding its presence in this sector. Recently, they have introduced a range of products tailored for automotive applications, such as trailer transport solutions and other specialized equipment designed to meet the needs of the automotive industry.

The expansion into automotive applications is part of TRF's broader strategy to diversify its product offerings and capitalize on emerging market opportunities. This includes not only manufacturing equipment for automotive applications but also exploring new technological advancements and innovations within the sector.

Conclusion: The potential benefits for TRF from Reliance's Na-ion battery initiatives will hinge on factors like the commercial success of Na-ion technology, government policies, and the broader economic climate. 

Given the government of India's increasing focus on sustainable energy solutions and the shift towards alternative battery technologies, TRF Ltd’s diversified portfolio positions it favorably for growth in these emerging sectors.

Flash Focus: Fast Facts For Smart Investors 

🌼I have taken some shares of MSP Steel and Power Ltd (Rs.42) for some of my portfolio clients.

Founded in 1968, MSP Steel & Power Ltd specializes in manufacturing and selling iron and steel products, along with power generation. Its key products include premium and regular TMT bars, which are produced using advanced 3-Stage Turbo Quench Technology for strength and durability, meeting BIS 550D standards. 

The company also manufactures various structural steel components such as H beams, I beams, channels, angles, and round bars, as well as ERW pipes commonly used in industries like chemical, construction, and agriculture. 

MSP operates an ISO 14001:2015 certified integrated steel plant in Raigarh, Chhattisgarh, highlighting its commitment to quality and environmental standards.

Financials:

It came out with impressive June, 2024 quarter results: 

The Net Sales in Q1FY25 came at Rs.772.00 crore in June 2024 up 15.03% from Rs.671.12 crore in June 2023.

Quarterly Net Profit came at Rs.6.78 crore in June 2024 up 474.04% from Rs.1.81 crore in June 2023.

EBITDA stood at Rs. 44.45 crore in June 2024 up 20.07% from Rs. 37.02 crore in June 2023.

MSP Steel EPS has increased to Rs.0.18 in June 2024 from Rs. 0.05 in June 2023.

🌼In another interesting development, as per the report on

the India Times, 29 Oct, 2024, Zee TV’s SaReGaMaPa 2024 is returning with new mentors and a record 23 sponsors, including Birla Opus Paints, Chocolate Horlicks, Cadbury Celebrations, Catch Masale and Dish TV.

This is obviously a good news for the shareholders of ZEEL (Rs.121.70), because the popular show: SaReGaMaPa, on Zee TV is conducted by Zee Entertainment Enterprises Limited (ZEEL) and NOT by Zee Media. 

ZEEL is the entertainment arm responsible for producing and airing TV shows and content on Zee TV, while Zee Media focuses on news and information channels.

Also, ZEEL holds ~15% stake in Zee Learn Ltd (Rs.9.42). This stake is part of the promoter holding within the education-focused company, which operates preschool, K-12, and skill development institutions like Kidzee & Mount Litera Schools.

Flash Focus: Fast Facts For Smart Investors 

The scrip of Zee Enterprises Entertainment Ltd (ZEEL) is looking good for investment at the CMP of Rs.121.80. Targets: Rs.130/Rs.146/Rs.139/Rs 195. 

After Rs.153, the stock will gain momentum. At the moment there is no negative news. The company would continue to get benefits from the cost cutting measures initiated by the current CEO, Puneet Goenka.

#The stock of TRF Ltd (Rs.432) looks good at the CMP. 

TRF Ltd, a Tata Enterprise, was founded in November 1962 in Jamshedpur. Equipped with a state-of-the-art manufacturing facility and a skilled design and engineering team, TRF specializes in executing complex electromechanical projects, industrial structures, and fabrication. The company also offers comprehensive lifecycle and allied services, ensuring end-to-end solutions for its clients. It services sectors like power, steel, mining, and ports. Photo: The Economic Times.

Backed by the strength and support of Tata Steel and ACC Limited, TRF continues to uphold excellence in engineering and innovation.

Some positive points for TRF Ltd.:

🌼Backed by Tata Group: Being part of the Tata Group, TRF Ltd benefits from the group's strong reputation, financial stability, and extensive network, which may help secure large contracts and favorable terms with suppliers and clients.

🌼Infrastructure Push: India's emphasis on infrastructure development, especially in logistics, mining, and power, could benefit TRF Ltd, as demand for material handling equipment is expected to grow.

🌼Potential for Diversification: TRF Ltd. has the opportunity to diversify its offerings by expanding into sectors related to renewable energy or advanced logistics, aligning with global trends towards sustainable infrastructure.

🌼Market Recovery Post-COVID: As industries like steel and mining recover post-pandemic, demand for material handling solutions is expected to rebound, positively impacting TRF Ltd's order book.

These positives, combined with TRF Ltd's alignment with key economic growth areas in India, provide potential avenues for growth. However, challenges in financial performance or competition could also play a role.

The U.S. Elections and India: Potential Impacts on Bilateral Relations and the Stock Market

The upcoming 2024 U.S. Presidential Election is set to influence global relations significantly, particularly with respect to India. Changes in U.S. defense, trade, and strategic policies will have repercussions that extend beyond American borders, shaping India-U.S. bilateral ties amidst evolving geopolitical landscapes.

As the leading global economic and military force, U.S. foreign relations, tariffs, economic strategies, and immigration policies will profoundly affect international markets and diplomacy. The election results could transform the nature of India-U.S. relations, making it crucial for both countries and the stability of global partnerships. Photo: ABC News.

Potential Stock Market Impacts of Donald Trump’s Presidency:

A Trump administration may initially induce market volatility due to uncertainties surrounding his policies, including the possibility of reintroducing tariffs or renegotiating trade agreements that could impact key Indian sectors. However, his pro-business stance, characterized by deregulation and tax cuts, could bolster investor confidence and stimulate stock market performance.

On the trade front, Trump's historically favorable view of India as a strategic partner may lead to stronger trade ties and more favorable export conditions for Indian goods. Increased defense spending and technology collaborations could also enhance prospects for Indian defense and tech stocks, while attracting foreign investments in these sectors.

Moreover, Trump's assertive posture towards China might elevate India's geopolitical standing, potentially boosting defense and manufacturing sectors. Nonetheless, his foreign policy could heighten geopolitical tensions, leading to market fluctuations driven by uncertainty. Stricter immigration policies may pose challenges for the Indian IT sector, which relies heavily on H-1B visas.

Potential Stock Market Impacts of Kamala Harris’s Presidency:

In contrast, if Kamala Harris assumes power, her administration is likely to prioritize social equity and climate change initiatives, resulting in increased government spending in these areas. Such policies could positively affect related sectors in the Indian market, particularly renewable energy, where investments might surge.

Harris's diplomatic approach could stabilize trade relations with India, fostering enhanced trade and investment opportunities. However, her administration may implement increased regulations on large tech firms and financial industries, potentially creating uncertainty for investors and leading to short-term market volatility.

Pro-immigration policies under Harris could benefit Indian IT and tech companies, facilitating easier access for skilled Indian professionals to work in the U.S. Furthermore, her focus on healthcare affordability may bolster Indian pharmaceutical exports to the U.S.

In terms of China, Harris may adopt a balanced approach, which, while lacking immediate geopolitical support, could lead to a more predictable policy landscape for India.

Conclusion:

From an Indian stock market perspective, Donald Trump’s election could provide a more favorable environment, particularly through potential trade policies that favor India and a stronger geopolitical alignment with respect to China. His emphasis on defense and technology partnerships could also spur growth in these critical sectors.

While Kamala Harris's administration may offer benefits—especially in technology and renewable energy sectors—Trump's historical approach suggests a more immediate economic advantage for India. Ultimately, the specifics of each candidate’s post-election policies will determine the true impact on the Indian stock market.

In essence, if the Indian market seeks short-term investor confidence and growth in traditional sectors, Trump’s presidency may be perceived as more beneficial. Conversely, if the focus is on stability, sustainability, and long-term growth, Harris’s election could emerge as advantageous. 

However, the broader economic conditions and global dynamics at the time of their election will ultimately dictate the most favorable scenario for India's markets.

Scarcity and Inflation in India

Scarcity is a fundamental issue that affects every economy, including India. This brings up two essential questions:

💢How can we increase the availability of resources to meet people’s needs?

💢How do we prioritize which needs to satisfy first?

What is Inflation?

Inflation is the rise in the overall price level of goods and services in an economy over time, leading to a decline in purchasing power. In India, inflation can arise from demand-supply mismatches, production constraints, or changes in the money supply.

Scarcity and Inflation

Reducing scarcity by increasing the supply of goods and services helps control inflation by better meeting demand, which stabilizes or reduces prices.

Role of the M3 Money Supply (Broad Money) in Inflation

The M3 component of money supply (or "broad money") in India includes currency, demand deposits, and time deposits. When M3 grows, it increases the amount of money available in the economy, potentially boosting purchasing power. While this may stimulate growth, an excessive rise in M3 can lead to higher inflation if the increase in money supply outpaces the production of goods and services. In such cases, too much money chasing too few goods results in rising prices, contributing to inflationary pressures.

Should the NDA Government Cut Down on M3 or Allow It to Rise to Tackle Inflation?

To tackle inflation, the government and the Reserve Bank of India (RBI) may limit the growth of M3 by using monetary policy tools such as increasing the Repo Rate or tightening lending practices. By raising interest rates, the RBI can make borrowing more expensive, which reduces the money supply and dampens demand. This approach slows down M3 growth, thereby helping to contain inflation.

On the other hand, during times of economic slowdown, the government may allow M3 to rise to stimulate economic activity. However, it carefully monitors this increase to avoid excessive inflation.

Role of Government Intervention and Monetary Policy in Prioritizing Needs

While monetary policy manages demand, government intervention is crucial to address supply-side scarcity. By implementing policies to increase production, reduce bottlenecks, and discourage hoarding, the government can ensure a steady supply of goods.

Through a coordinated approach—balancing supply growth, managing the money supply, and setting priorities—India can tackle scarcity and inflation, supporting sustainable economic growth. Photo: Telegraph Online 

Steel Authority of India Ltd (Rs.119.10): Buy

T: Rs.175

Book Value : ₹131.08

Trailing P/E : ~23.27

Forward P/E : Estimated at 11.96.

P/B : 0.97

EPS: Rs.7.42

Debt to Equity Ratio: 0.89

Price-to-Sales Ratio: 0.51

Enterprise Value/EBITDA: 4.73

Introduction: Steel Authority of India Limited (SAIL) is a government-owned enterprise operating under the administrative control of the Ministry of Steel, Government of India. Established in 1973, SAIL is one of the largest state-owned steel-making companies in India. The Government of India holds approximately 75% of the company’s equity, making it a public sector enterprise (PSU). Photo: SAIL

Products:

SAIL manufactures and sells a wide range of high-quality steel products that cater to various industries, including construction, infrastructure, defense, railways, automotive, and engineering. Key product offerings include:

💢Pig Iron: Used as raw material in the steelmaking process.

💢Cold Rolled Products: Widely used in automotive and construction industries due to their smooth finish and strength.

💢Pipes: Manufactured for use in oil and gas pipelines, water supply, and structural purposes.

💢Semis and Structurals: Essential for construction projects and industrial applications.

💢SAIL TMT Bars: These are high-strength thermo-mechanically treated bars used in reinforced concrete construction, meeting international quality standards. SAIL also produces value-added products like plates, coils, and stainless steel.

Plants:

SAIL operates a network of five integrated steel plants located in:

💢Bhilai (Chhattisgarh): Renowned for producing rails, long products, and plates.

💢Bokaro (Jharkhand): Focuses on flat products like hot-rolled coils and cold-rolled products.

💢Durgapur (West Bengal): Specializes in long products, including structural steel and wire rods.

💢Rourkela (Odisha): Produces plates, hot-rolled and cold-rolled products, and special-grade steels.

💢Burnpur/IISCO (West Bengal): One of India’s oldest steel plants producing both long and flat products.

Additionally, SAIL runs three special steel plants:

Alloy Steels Plant (ASP) in Durgapur: Produces alloy and special steels for defense, power, and automotive sectors.

Salem Steel Plant (SSP) in Tamil Nadu: Focuses on stainless steel production.

Visvesvaraya Iron and Steel Plant (VISP) in Karnataka: Primarily produces alloy and special steels.

Moreover, SAIL operates a Ferro Alloy Plant in Chandrapur (Maharashtra), which manufactures manganese-based alloys, a key input in steelmaking.

Research and Development:

SAIL places strong emphasis on R&D and innovation, with its R&D Centre for Iron & Steel (RDCIS) located in Ranchi, Jharkhand. This center is focused on developing new steel grades, improving process efficiency, and environmental sustainability. SAIL also has a Centre for Engineering in Ranchi, which provides advanced technological support for the design and development of its plants.

RDCIS has been instrumental in advancing SAIL’s technological capabilities, with a focus on reducing costs, enhancing product quality, and adopting environmentally sustainable practices like reducing carbon emissions.

Patents:

SAIL is a leader in intellectual property in India, holding the highest number of patents in the steel industry. Globally, the company has filed 692 patents, of which 343 have been granted. These patents reflect SAIL’s commitment to innovation, particularly in areas like energy conservation, steel quality enhancement, and environmental safety.

Global Presence:

Although SAIL’s primary operations are in India, it has expanded its footprint globally by exporting high-grade steel products to over 50 countries across five continents. Key markets include Europe, Africa, the Middle East, and Southeast Asia, which demand products like hot-rolled coils, billets, and structural steel.

Headquarter:

SAIL is headquartered in New Delhi, India. The company’s presence spans the entire country with regional offices, sales branches, and warehouses to serve both domestic and international customers efficiently.

The SAIL operates 24 mines across India. These mines are primarily spread across Jharkhand, Odisha, Chhattisgarh, and Madhya Pradesh, providing key raw materials like iron ore, limestone, and dolomite to SAIL's steel plants.

P/E Ratio:

The high P/E ratio indicates that SAIL is currently trading at a higher valuation compared to its peers in the steel industry, suggesting strong investor expectations for growth or profitability relative to its earnings.

Some of the key mines include:

💢Chiria Mines (Jharkhand) - One of India's largest iron ore mines.

💢Gua Ore Mines (Jharkhand).

💢Bolani Mines (Odisha).

💢Barsua Mines (Odisha).

💢Tulsidamar Dolomite Mine (Jharkhand).

💢Kuteshwar Limestone Mines (Madhya Pradesh).

These mines are integral to SAIL's raw material division, ensuring a steady supply of materials for steel production.