Steel +80%
JSPL +303%
Tata Steel +300%
JSW Steel +334%
SAIL +340%
✔️Strong Chinese demand & focus on reduction in carbon emissions.
✔️Domestic Steel prices still at a 15% discount vs imported
✔️Top 5 Cos increased market share
✔️Cos continue to deleverage their balance sheets
Gold 12%
Muthoot Finance & Manappuram Finance +50%
✔️Increased loan book growth as they lend more & get operating leverage
✔️Reduced auctions of pledged Gold = less NPAs
✔️RBI relaxed LTV for gold financiers to 90% from 75% = level playing field for Banks & NBFCs
Silver & Zinc +50%
Lead +35%
Hindustan Zinc +120% [only silver play in 🇮🇳]
✔️Silver contribution EBITDA likely to hold above 25% vs historic 15% to 20%
✔️Silver gets a higher multiple (10x EV/EBITDA) vs Zinc-Lead (7x EV/EBITDA)
✔️Healthy cash balance & solid dividend paying
Copper +80%
Hindustan Copper +700%
✔️Only direct beneficiary of rising Copper prices
✔️Hindalco & Vedanta exposure is limited to ‘TcRc margins’
👉TcRc: Treatment Charge and Refining Charge
👉Need to note that: GOI + LIC + Institutions hold 90% in co so float is limited
Aluminium +70%
Nalco +159%
✔️Nalco is a pure & direct play on Aluminium & Alumina prices
✔️Though Alumina prices have been range bound & moved just 20%
✔️But its Aluminium business has turned from a loss to a profit
✔️In Q3FY21 contributed near 47% of EBIT
TDI (Toluene diisocyanate) +50%
GNFC +300%
✔️Co is into fertilisers & chemicals, however most of its profits come from chemicals
✔️TDI has cooled off a bit but other chemicals like Methanol, Acetic & Nitric acid made by GNFC are 🚀
✔️TDI is a vital raw material for mattress
ABS (Acrylonitrile Butadiene Styrene) +120%
BEPL +330%
Ineos +130%
✔️In 🇮🇳 ABS is being manufactured by Bhansali Engineering & Ineos
✔️Aided spreads moved to lifetime highs
✔️ABS is used in the automobile & home appliances
✔️Lower imports from Korea aided Indian ABS Producers