Financial Weekly

SMART
INVESTMENT
9th Sep. 2018 to 15th Sep. 2018 18
FIFTY – FIFTY
MAYANK SHARMA MUMBAI -Research Analyst

RISHABH DIGHA STEEL (531539) (104.9)

On 25th June 2018, I had recommended this stock here in SMART INVESTMENT at Rs.63.15,
after my recommendation it zoomed to Rs.104.9 and recorded almost 66% appreciation in just two
and half months. Company is posting strong numbers in every quarter so we are still bullish on this
stock.
Incorporated in 1989, Mumbai based Rishabh Digha Steel and Allied Products Limited pro-
vides iron and steel products in India. It is involved in the de-coiling, straightening, sheering, and
cutting of various HR, CR, and MS iron and steel coils and sheets. It is having an industrial unit at
the Taloja MIDC, which is just couple of hours drive from Mumbai. The present 5,430 square metre
(approx. 60,000 sq. feet) of industrial shed with equal amount of built plant has a capacity of pro-
cessing and storage capability of 20,000 metric tonnes per month.
It has an equity base of just Rs.5.49crore. The promoters hold 73.72% while the investing public
holds 26.28% stake in the company.
For FY18, it has reported PAT of Rs.1.44crore against LOSS of Rs.0.15crore on 78% higher
income fetching an EPS of Rs.2.56. It has posted steady numbers in Q1FY19 also.
It is regular dividend paying Company and it’s dividend pay-out ratio is fantastic. It has paid 10%
dividend for FY04, 10% for FY05, 10% for FY06, 10% for FY07, 10% for FY09, 20% for FY10, 25%
for FY11, 15% for FY12, 10% for FY13, 10% for FY14, 10% for FY15, 10% for FY16, 15% for FY17.
Company has declares 20% dividend for FY18 & it has declares book closure for dividend from
14th September 2018. Stock is available cum dividend till 14th September 2018.
One can watch this small-cap stock with a stop loss of Rs.90. On the upper side it may go upto
Rs.125 level in short term while Rs.200 level in long term.