Company Overview
Presently, the Gallantt Ispat Ltd is running an integrated steel plant at GIDA Industrial Area, Gorakhpur, Uttar Pradesh. Its products include Sponge Iron, Mild Steel Billets, Re-Rolled products (TMT bars), and a Modern Roller Flour Mill unit. Currently, about 2,000 persons are employed directly or indirectly. Also, the company is planning for expansion that will employee additional 1,000 persons.
Fundamental Analysis of Gallantt Ispat Ltd
- Over the last 5 years, revenue has grown at a yearly rate of 13.63% with the industry average of 8.79%, increasing the probability of outperforming its peers.
- The market share has increased from 0.17% to 0.22% in the last 5 years.
- Over the last 5 years, the debt to equity ratio has been 27.26% with the industry average of 171.41%.
- Also, the pledged promoter holding is insignificant which reduces the risk of investment.
- PE Ratio of 15.52 and PB Ratio of 1.68 indicate that the stock is currently at a fair valuation.
Quarterly Result of Gallantt Ispat Ltd
- Net Sales at Rs. 374.70 crore in December 2021, which is now 29.37% up from Rs. 289.64 crore in December 2020.
- Quarterly Net Profit at Rs. 19.33 crore in December 2021, which is now 43.66% down from Rs. 34.31 crore in December 2020.
- EBITDA stands at Rs. 42.09 crore in December 2021, which is now 23.08% down from Rs. 54.72 crore in December 2020.
- Gallantt Ispat Ltd EPS has decreased to Rs. 0.68 in December 2021 from Rs. 1.21 in December 2020.
Technical Analysis of Gallantt Ispat Ltd
- Stock is hitting its all-time high level with increased volume.
- Price is forming a cup and handle pattern in the monthly chart. The cup and handle pattern is a bullish chart pattern and it increases the possibility of a breakout.
- In the weekly timeframe, the stock is in an uptrend forming higher highs continuously.
- Near the all-time high resistance, it formed a rounding bottom pattern. The rounding bottom pattern is also a bullish pattern and it increases the probability of breakout of all-time high level.
- During the down move, volumes are dried and higher volume in the up move improves conviction in the trend and increases the probability of breakout.
Conclusion
Fundamental results are improving whereas the company is also planning for expansion. The improvement in fundamentals is also visible on the charts as the stock is bullish on monthly, weekly, and daily charts. The stock has the potential to double the investment from this level. An investor or trader can plan to initiate a new position around the current market price with a stop loss level of Rs. 45.
Subscribe to our trading page on Instagram and Telegram for daily insights about trading moves.