Dolly Khanna bets on Srikalahasthi Pipes

According to the latest portion belongings pattern, Our Master Portfolio Member Dolly Khanna accumulated 406,369 shares of Srikalahasthi Pipes, Pig Iron manufacturing company. Along alongside Dolly few seasoned players also increased their stakes inwards this less known company. When Dolly's percent belongings comes to 1.02%, Morgan Stanley Asia (Singapore) Pte increased their stake from 1.06% to 1.59%. Anil Kumar Goel, a good known investor inwards the Indian Equity increased his stakes from 1.32% to 1.45%. 


Srikalahasthi Pipes Ltd formerly known equally Lanco Industries Limited. The fellowship was incorporated inwards 1991 past times Lanco Group of Companies to manufacture Pig Iron using Korf (German) engineering together with Cement. The unit of measurement is located at Rachagunneri Village on Tirupathi. The installed capacity of Pig Iron was 90,000 TPA together with alongside like capacity 90,000 TPA for cement. 

The functioning of the cement unit of measurement of the Company was suspended for diverse reasons together with the unit of measurement was reengineered for producing a dissimilar production mix having potential inwards southward India. As a stair out of forrad integration projection for adding value to the Pig Iron manufactured past times the Company, Lanco Industries floated some other fellowship named Lanco Kalahasthi Castings Limited (LKCL) inwards 1997 to manufacture Fe castings together with spun pipes inwards the same campus of the Company alongside an annual capacity of 40,000 TPA together with 35,700 TPA respectively. 

Accordingly, LIL had an organization alongside LKCL for render of molten Fe together with Pig Iron to LKCL, beingness a value added product, equally such Fe pipes manufactured past times LKCL offered ameliorate returns. At a fourth dimension when the Company was exploring fiscal together with technical strategic alliance alongside Indian / Foreign Partner, Electrosteel Castings Limited was also looking for additional capacities for producing spun pipes. Considering the synergies involved, Lanco Industries Limited entered into a strategic alliance partnership during Dec 2002, alongside Electrosteel Castings Limited (ECL), Kolkata a leading manufacturer of CI, Pipes together with DI pipes. This was win-win province of affairs for both LIL together with ECL. After takeover, a fiscal re-engineering together with restructuring of LIL was undertaken past times ECL. 

Products of Srikalahasthi Pipes

• DI Spun Pipes
• Flange Pipes
• Foundry Grade Pig Iron
• Portland Slag Cement
• Ordinary Portland Cement
• Ground Granulated Blast Furnace Slag
• Low Ash Metallurgical Coke 

The Indian steel manufacture has entered a novel evolution phase since 2007–08 together with is riding on the resurgent economic scheme together with the growing need for steel. India’s 33 per cent growth inwards steel production inwards the final 5 years was minute solely to China amid the operate past times 5 steel producing nations, according to information past times World Steel Association.

India is the 4th largest producer of unsmooth steel together with the largest producer of soft Fe inwards the world. Presently, the Indian steel manufacture employs to a greater extent than or less 500,000 people patch the per capita consumption inwards 2013 stood at to a greater extent than or less 57.8 kilograms. However, these figures are expected to ascent alongside increased industrialisation throughout the country. 

The need for steel inwards Bharat is expected to ascent past times 4-5 per cent this twelvemonth together with volition impact a compounded annual growth charge per unit of measurement (CAGR) of xv per cent subsequently FY17. Given the government's high focus on restrain starting stalled projects, followed past times pushing large flagship projects, including the freight together with industrial corridors, it is expected that Bharat volition start out moving dorsum on the path of materials intensive growth past times the cease of this year. 

Taking all these factors into considerations, lets encounter where Srikalahasthi Pipes volition cease upwardly inwards an twelvemonth fourth dimension frame.  CPM of the stock is 311, trading at a reasonable PE of 12.