Castings, Forgings & Fastners Companies

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Today is January 9 and you are going to get share market analysis of Castings, Forging and Fastners companies.

Here is the stats of Castings, Forgings & Fastners companies table with only ROE, ROA, Div. Yld %, Debt/Equity, P/E, EPS, and ROCE:

S.No.	Name	ROE %	ROA %	Div. Yld %	Debt/Eq	P/E	EPS 12M Rs.	ROCE %
1	Bharat Forge	12.69	4.71	0.73	1.06	59.11	20.34	12.90
2	AIA Engineering	18.30	16.02	0.47	0.02	30.60	112.01	22.71
3	PTC Industries	8.89	5.84	0.00	0.08	579.35	31.10	10.61
4	CIE Automotive	20.31	11.44	1.10	0.08	21.19	21.39	18.32
5	Ramkrishna Forg.	17.02	7.54	0.22	0.50	44.34	24.96	18.71
6	Happy Forgings	18.69	15.13	0.40	0.09	36.51	27.49	22.70
7	Balu Forge	24.96	17.29	0.02	0.06	60.17	12.97	29.95
8	Electrost.Cast.	15.89	8.56	1.07	0.35	9.29	14.27	16.22
9	Kennametal India	14.24	11.38	1.00	0.00	60.16	53.92	19.50
10	Sundaram Clayton	-17.33	-4.68	0.18	3.41	—	—	-1.97
11	Rolex Rings	21.80	16.76	0.00	0.02	28.29	58.68	28.05
12	M M Forgings	19.24	7.90	0.91	1.24	14.74	29.23	15.14
13	Sterling Tools	12.89	8.00	0.39	0.28	28.41	18.24	14.69
14	Steelcast	30.75	23.71	0.80	0.00	29.43	30.81	39.95
15	Alicon Cast.	11.77	5.30	0.74	0.60	22.42	45.18	14.52
16	Amic Forging	28.92	15.82	0.00	0.04	53.99	28.07	36.37
17	Gala Precis. Eng	26.04	13.71	0.00	0.05	63.13	21.50	23.00
18	Nelcast	8.05	3.68	0.35	0.57	32.38	5.56	10.06
19	Synergy Green	28.12	6.06	0.00	1.97	49.77	8.36	23.58
20	Tirupati Forge	15.02	10.30	0.00	0.28	66.88	0.90	18.32
21	Captain Techno.	16.86	8.46	0.00	0.27	117.01	5.00	19.44
22	Uni Abex Alloy	36.40	24.54	0.96	0.10	17.38	149.62	42.78
23	Pradeep Metals	21.27	9.88	0.71	0.60	17.19	16.29	19.95
24	Magna Electrocas	14.90	12.19	0.46	0.00	21.88	49.76	20.30
25	Inv. & Prec.Cast.	9.50	3.87	0.11	0.80	77.89	11.62	12.37

Here are more Castings, Forgings & Fastners companies with ROE, ROA, Div. Yld %, Debt/Equity, P/E, EPS, and ROCE :

S.No.	Name	ROE %	ROA %	Div. Yld %	Debt/Eq	P/E	EPS 12M Rs.	ROCE %
26	LGB Forge	-39.33	-12.06	0.00	1.05	—	-0.25	-18.76
27	Kalyani Cast-Tec	29.55	21.48	0.00	0.12	29.20	16.35	35.16
28	Nitin Castings	21.08	13.78	0.47	0.07	21.66	26.20	24.45
29	Kalyani Forge	5.64	2.34	0.37	0.76	45.16	17.84	2.33
30	Pritika Engineer	10.01	3.05	0.00	1.56	61.21	3.10	10.53
31	Hilton Met. Forg.	7.09	3.78	0.00	0.57	64.75	1.80	9.70
32	Simplex Castings	4.62	0.99	0.00	1.51	31.04	10.15	10.48
33	DCM	28.77	4.49	0.00	0.07	27.86	3.70	-6.68
34	Samrat Forgings	9.89	2.14	0.00	2.33	45.91	7.92	11.31
35	GTV Engineering	13.49	6.84	0.00	0.16	25.13	20.97	12.74
36	Simm. Marshall	5.85	1.22	0.00	1.86	30.48	6.19	13.64
37	Gujarat Intrux	12.34	11.10	3.85	0.00	17.19	25.67	16.97
38	Sharp Chucks and	10.77	3.24	0.00	1.51	16.21	7.38	12.71
39	Paramount Speciality	37.70	9.44	0.00	0.53	18.14	4.87	29.15
40	Bhagwati Auto	18.43	10.09	0.44	0.28	21.65	21.14	22.58
41	National Fitting	10.53	6.78	1.13	0.14	27.57	11.99	12.74
42	Universal Auto.	7.45	3.62	0.00	0.58	52.76	1.78	8.55
43	Krishanveer Forging	10.74	8.26	1.90	0.00	20.94	5.02	16.62
44	Creative Casting	13.55	11.42	1.36	0.00	19.72	37.38	17.73
45	Ganga Forging	1.92	1.06	0.00	0.29	121.32	0.06	4.61
46	Forge Auto	33.84	6.87	0.00	1.19	14.53	8.32	23.52
47	Tayo Rolls	—	-7.38	0.00	—	—	-3.10	—
48	Palco Metals Ltd	21.62	6.10	0.00	0.44	16.19	22.60	10.95
49	Porwal Auto Comp	5.41	4.09	0.00	0.07	47.51	1.25	9.41
50	Abha Power	24.15	8.21	0.00	1.35	22.40	2.62	18.24

Here’s data containing ROE, ROA, Div. Yld %, Debt/Equity, P/E, EPS, and ROCE for Castings, Forgings & Fastners companies :

S.No.	Name	ROE %	ROA %	Div. Yld %	Debt/Eq	P/E	EPS 12M Rs.	ROCE %
51	Pattech Fitwell	11.46	4.80	0.00	0.95	41.74	2.54	12.05
52	Smiths & Founder	3.17	2.58	0.00	0.06	71.00	0.10	4.06
53	Deem Roll	11.70	6.86	0.00	0.27	12.18	7.10	14.15
54	EL Forge	—	7.86	0.00	0.00	25.65	35.15	—
55	Shivagrico Impl.	0.95	0.25	0.00	2.34	192.56	0.16	4.92
56	Taparia Tools	32.84	25.41	414.94	0.00	0.12	77.71	43.95
57	Galaxy Agrico	44.75	30.79	0.00	0.37	128.89	0.33	33.54
58	Lak. Prec. Screw	-90.57	-8.39	0.00	11.16	—	-30.30	-16.37

Further Share Market Analysis or Castings, Forgings & Fastners companies :

Here are a few observations and considerations based on the data provided:

1. High ROE (Return on Equity):
   • Uni Abex Alloy (ROE 36.40%) stands out, supported by an attractive P/E of 17.49 and high ROCE (42.78%).
   • Steelcast also has a high ROE of 30.75%, with significant ROCE (39.95%), but profit and sales have declined in the last quarter.
2. Consistent Growth Indicators:
   • Ramkrishna Forgings (Qtr Profit Var: 36.54%, Sales Qtr Var: 17.23%) and Balu Forge (Qtr Profit Var: 106.88%, Sales Qtr Var: 60.09%) have shown strong growth in both profitability and sales.
   • Amic Forging and Tirupati Forge exhibit positive sales and profit variations, suggesting good growth potential.
3. Reasonable Valuations (Low P/E):
   • Companies like Electrosteel Castings (P/E 9.29) and M M Forgings (P/E 14.66) offer relatively low valuations and decent ROE and ROCE.
4. High Dividend Yields:
   • Uni Abex Alloy and Electrosteel Castings provide attractive dividend yields of 0.96% and 1.07%, respectively.
5. Low Debt-to-Equity Ratios:
   • Kennametal India (0.00), Rolex Rings (0.02), and Steelcast (0.00) have low or zero debt, reducing financial risk.
   • Companies like PTC Industries and Nelcast also maintain low leverage ratios.
6. Caution Areas:
   • Companies with negative Qtr Profit Variations (e.g., Steelcast: -28.51%, Nelcast: -48.80%) or poor sales growth may indicate challenges in performance.
   • Tirupati Forge and Captain Technology have extremely high P/E ratios (66.88 and 117.01), potentially signaling overvaluation.

Companies Worth Considering:

• Uni Abex Alloy: Strong ROE and ROCE, reasonable P/E, and attractive dividend yield.
• Balu Forge: Excellent profit and sales growth with strong ROCE and ROA.
• Ramkrishna Forgings: Consistent growth, decent ROCE, and manageable debt.

Key Share Market Analysis & Observations from the 2nd Table :

Key Observations:

1. Companies with Strong Profitability and Growth:

• Kalyani Cast-Tec:
  • ROE: 29.55%, ROCE: 35.16%, and healthy sales growth of 42.62%.
  • The P/E (29.22) is reasonable for such strong financials.
  • A good candidate for further analysis.
• Paramount Speciality:
  • Outstanding ROE (37.70%) and high ROCE (29.15%).
  • Sales growth is declining (-6.57%), but consistent profits may indicate resilience.
• Krishanveer Forgings:
  • Exceptional quarterly profit growth (272.73%) and a reasonable P/E (20.94).
  • ROE: 10.74% and low debt-to-equity suggest a stable structure.

2. Attractive Dividend Yields:

• National Fittings:
  • Dividend yield of 1.13% with a modest P/E (27.57).
  • Reasonable ROCE (12.74%) and manageable debt levels (0.14).
• Creative Castings:
  • High dividend yield (1.36%) and decent profitability metrics (ROE: 13.55%, ROCE: 17.73%).

3. Low P/E and Undervalued Candidates:

• Forge Auto:
  • P/E of 14.53 with strong sales growth (106.13%).
  • ROCE (23.52%) and low debt make it a promising value pick.
• Palco Metals:
  • Low P/E (16.12), with reasonable profitability metrics (ROE: 21.62%, ROCE: 10.95%).
  • Quarterly sales growth is robust (25.83%).

4. High-Growth Small-Caps:

• Simplex Castings:
  • Explosive profit growth (1633.33%) and reasonable P/E (31.04).
  • ROCE (10.48%) is a bit low, but growth is a positive signal.
• Samrat Forgings:
  • Quarterly profit growth of 133.75% and sales growth of 50.47%.
  • ROCE and ROA are moderate; further review of debt (D/E: 2.33) is necessary.

5. Risky or Poor Performers:

• Porwal Auto Components:
  • Weak profitability metrics (ROE: 5.41%, ROCE: 9.41%) and quarterly profit decline (-264.71%).
• LGB Forge:
  • Loss-making company with negative ROE (-39.33%) and declining sales growth.
• Bhagwati Auto:
  • Quarterly profit variation of -160%, signaling instability.

Key Observations from the 3rd Table of Castings, Forging & Fastners companies :

Key Observations:

1. Promising Companies with Strong Metrics:

• Deem Roll:
  • P/E: 12.18, indicating undervaluation.
  • Quarterly profits are healthy (NP: ₹1.88 Cr.) and low debt-to-equity (0.27) with reasonable ROCE (14.15%).
  • Potential for long-term growth due to solid fundamentals.
• Taparia Tools:
  • Exceptionally low P/E of 0.12 suggests it’s significantly undervalued.
  • Robust ROE: 32.84% and ROCE: 43.95%, with no debt.
  • CMP of ₹9.64 could make this an attractive pick for further analysis.

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2. Moderate Performers with Growth Potential:

• Pattech Fitwell:
  • High P/E (41.74) with decent quarterly sales growth (28.88%).
  • ROE (11.46%) and ROCE (12.05%) are moderate but promising.
• Smiths & Founders:
  • Impressive Quarterly Profit Growth (350%), but a high P/E (71.00) might raise concerns about valuation.
  • ROE (3.17%) and ROCE (4.06%) are weak, indicating inefficiency.

• Lak. Prec. Screw:
  • Negative ROE (-90.57%) and ROCE (-16.37%), combined with quarterly profit decline (-₹12.66 Cr.), make this a high-risk option.
• Shivagrico Implements:
  • P/E of 192.56 is extremely high, with weak profitability metrics (ROE: 0.95%).
  • Quarterly profits are stagnant, and sales growth is declining (-5.03%).
• Galaxy Agrico:
  • P/E of 128.89 is high, and profitability metrics are weak (ROE: 44.75%, b

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3. Niche Opportunity in Small-Caps:

• EL Forge:
  • Modest ROA (7.86%) and no debt, but growth is limited (Quarterly profit variation: 4.29%).
  • Reasonable P/E (25.65) and ROCE suggest potential for gradual improvement.

Conclusion :

Investing in casting, forging, and fastener companies can be a good strategy for several reasons, as these sectors are vital components in a wide range of industries. Below are some of the key factors that make these industries attractive for investment:

1. Strong Demand from Multiple Industries:

These industries are integral to a variety of sectors, such as:

• Automotive: Casting and forging companies provide essential parts for cars, trucks, and electric vehicles (EVs). As the automotive industry grows, especially with the rise of EVs, the demand for high-quality, durable parts increases.
• Industrial Machinery & Equipment: Forgings are used in critical machinery and heavy equipment, which are in demand across sectors like construction, mining, agriculture, and manufacturing.
• Infrastructure: Projects in infrastructure, including bridges, roads, and buildings, require high-quality castings and fasteners.
• Aerospace & Defense: These sectors rely on precision parts, making casting and forging companies important suppliers for military and civilian aircraft.

2. Technological Advancements:

• Innovation in materials and manufacturing processes: As industries push for more energy-efficient, durable, and lightweight components (especially in the aerospace and automotive sectors), casting and forging technologies evolve. Companies that adopt advanced processes like 3D printing in casting and heat treatment technologiesin forging can gain a competitive edge.
• Electric Vehicle (EV) Demand: The shift to electric vehicles (EVs) is creating a growing demand for specialized parts, including lightweight castings and high-strength forged components. These industries benefit from the evolving trends toward sustainable transportation.

3. High Entry Barriers:

• Capital-Intensive Nature: Establishing a casting, forging, or fastener company requires significant investment in equipment, facilities, and skilled labor. This creates a barrier to entry, which helps protect established companies from new competitors. As a result, the companies with long track records and expertise have a competitive advantage.
• Skilled Workforce: The specialized skills required for these industries create another entry barrier. Companies that can attract and retain skilled workers can maintain a quality advantage, leading to higher margins.

4. Cost-Effectiveness and Efficiency:

• Mass Production Capabilities: Casting, forging, and fastener manufacturing processes are often optimized for mass production. This allows for economies of scale and more cost-efficient manufacturing, leading to higher profit margins as demand increases.
• Long Product Lifecycles: Products made from castings, forgings, and fasteners have long life cycles, providing stable, repeat business for these companies. This gives the companies consistent revenue streams, which can be a good indicator of long-term stability.

5. Resilience and Stability:

• Cyclicality and Market Recovery: While these industries can be sensitive to economic cycles (like any manufacturing sector), they tend to recover well due to their integral role in essential infrastructure and transportation. The COVID-19 pandemic and supply chain disruptions have affected many sectors, but those in casting, forging, and fasteners still managed to rebound relatively quickly once supply chains were restored.
• Government Initiatives: Infrastructure development projects and defense spending often involve castings and forgings. Governments around the world invest in infrastructure and defense, providing a stable market for companies in these sectors.

6. Investment Potential in Emerging Markets:

• Growing Industrialization: As countries in Asia, Africa, and Latin America industrialize, the demand for durable components such as castings, forgings, and fasteners grows. For example, as India and China continue to build infrastructure and expand manufacturing, demand for components from these industries increases.
• Expanding EV Market: In emerging markets, the EV sector is gaining momentum, and the need for specialized castings and forgings for EV batteries and other critical components is growing.

7. High Margins and Strong Cash Flow:

• Specialization and Pricing Power: Many companies in this sector produce highly specialized components for critical industries. Their products are not easily replaceable, allowing these companies to charge premium prices and maintain strong profit margins.
• Cash Flow Generation: Once the company has established efficient production, these industries often generate stable cash flow due to the long lifespan of their products and repeat orders.

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Risks to Consider:

While the sector has many advantages, some risks include:

• Economic Downturns: A slowdown in construction, automotive, and industrial sectors can reduce demand for these components.
• Fluctuating Raw Material Prices: Casting and forging companies are often impacted by the price volatility of raw materials like steel and aluminum.
• Environmental Regulations: The manufacturing processes in these industries are energy-intensive, which could lead to increased costs due to stricter environmental regulations.

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Final Thoughts :

The casting, forging, and fastener industries are attractive for long-term investments due to their strong demand across multiple sectors, technological advancements, high entry barriers, and resilience in economic cycles. Additionally, as industries such as automotive (especially electric vehicles) and infrastructure continue to grow, companies in these sectors stand to benefit. However, it’s essential to carefully assess the market conditions, company fundamentals, and industry trends to identify the best investment opportunities.

Happy Investing 🙂