Fundamental Analysis - Others

NECESSITY OF PRODUCTS :-

The stocks you ought to buy, organizations are producing what type   of products must be monitored. Daily usages such as Milk,    Electricity, Medias, Transport, Roadways, are involved (or) Grandeur           products such as Cars, Electronic goods, must be noticed. Value investing people only consider daily needs purposes stocks. They    may be even safe. Moreover the cash flow of those companies, will      be continuously good. Grandeur products manufacturing companies           sales may be Ups and Downs based on the Economy, and the years respective Budgets.  

TECHNOLOGY :-

India’s economy is undergoing extensive modernization. The country wants to privatize existing state-owned enterprises and the emerging private sector is becoming increasingly competitive in national and international markets. Introducing modern automation and control systems is a key stage in this modernization process, since such systems form the core of any modern industrial plant.

RESULTS ACHIEVED SO FAR

The modernized companies are achieving higher productivity, while workers, students and lecturers alike are acquiring new skills. They are learning to apply modern control and regulation technology. The development partner, Siemens, is also identifying new markets for its automation technology, as an important pre-condition for demand is that the workers in the enterprises in India are able to operate modern plants.

Marketing Capabilities :-

Iron & Steel

Indian Steelmakers Metal Bulletin Research (MBR) has undertaken an in-depth review of the Indian Steel Industry and its outlook over the next six years. The Indian Steel Industry: Market projections and company strategies out to 2015 offers over 300 pages of independent research and analysis including: §                  The independent and unrivalled view of MBR on the demand, supply and pricing prospects of the Indian steel and raw materials industry; §                  Critical raw materials scenario; §                  Detailed strategic recommendations on competitive strategies to be adopted by Indian steelmakers and those looking to invest in India, for sustainable and profitable growth; §                  Unique and in-depth insights into the Indian steel market and company strategies by MBR consultants and experts, in tandem with Satyabir Bhattacharyya, the former Director - Corporate Strategy and Business Excellence in Ispat Industries Limited; §                  The Indian CEO – a simple point plan in re-defining the role and leadership style required to successfully meet the domestic and global challenges ahead. The Indian Steel industry: Market projections and company strategies out to 2015 is the first report of its kind to provide independent and on-the-ground research combined with strategic recommendations. This report comes amid a challenging economic climate directly impacting those looking to invest, or already operating, in steel today. The Indian Steel Industry: Market projections and company strategies out to 2015 further offers: §                  Key long-term supply-demand balances for steel and raw materials by-major product including: iron ore, DRI, pig iron, coking coal and HR coil/sheet; §                  Sales volumes and cost structures for the key steelmakers in India; §                  Key strategic insights in leading steelmakers including Tata Steel Limited, Steel Authority of India Limited (SAIL), Ispat Industries Limited, Essar Steel Limited, JSW Steel Limited among others §                  Consumption drivers of the end-user industry segments including: construction, automotive, roads, ports, airports, railways and power; §                  Government policies on steel and minerals and how these will affect the industry structure and prices over the next decade; §                  Investment strategies needed to ensure growth, profitability and sustainability uniquely for the Indian market including how to build organisational capabilities, select the appropriate steelmaking and casting technology and achieve cost efficiency; §                  How best to understand and take advantage of the Indian steel business culture.

Exports :-

·    Iron & steel are freely exportable.

·    Advance Licensing Scheme allows duty free import of raw materials for exports. Duty Entitlement Pass Book Scheme (DEPB) was introduced to facilitate exports.  Under this scheme exporters on the basis of notified entitlement rates, are granted due credits which would entitle them to import duty free goods.  The DEPB benefit on export of various categories of steel items scheme is currently applicable for steel exports.

·     Last five year’s export  of total finished steel (alloy + non alloy) is given below:-

Indian steel industry : Exports (in million tonnes)
Category	2007-08	2008-09	2009-10	2010-11	2011-12*
Total Finished Steel (alloy + non alloy)	5.08	4.44	3.25	3.64	4.04
Source: Joint Plant Committee; *provisional

Focusing Segment :-

The stocks you ought to buy, companies products are prepared for   which class of people, 

          (a)     Like I.T.C., Britannia           --  which belongs to all people,

          (b)     Or else like Oberoi Hotels  --  which belongs to High class people, 

          (c)     Or else Infosys                     --  for Local / International   Organizations. While the Economy struggles, focusing retail customers may not suffer more. The retail customers will only reduce their usage. But not totally withdraw. But Economy based customer oriented organizations suffer more. Due to these situation they   may even ( to limit the expenses ) stop certain services, totally until the Economy retains its Growth. In turn while the Economy          improves    this may also take a “U” turn.