Prakash Steelage makes seamless and welded stainless steel pipes and tubes for sectors ranging from chemicals and fertilisers to oil and gas and refineries. The company, which listed in August 2010, received a good response from investors initially, but has been steadily declining since. It has a high debt-equity ratio of 3.12, but this is warranted given its expansion plans. The company is expected to sustain the growth momentum in the near term given a firm demand trend from its user segments.
Impact of Demonetization: · Improvement in Government's fiscal position going forward: Ø Higher benefits for the Government if lesser currency notes comes back into the system Ø Increase in Tax Reporting leading to better revenue hence better fiscal · System Liquidity to increase going forward · Inflation expected to fall further · Growth to be positively impacted over medium to long term with near term hiccups Duration Funds: In light of the above facts and expectations investors may consider long duration funds ( Reliance Dynamic Bond Fund, Reliance Income Fund & Reliance Gilt Securities Fund ) as these funds would benefit on further easing of yields over next 12 to 18 months. 'Reliance Dynamic Bond Fund' aims at generating returns even in stable interest rate markets by exploring different trading strategies. The strategy to differentiate Tactical Positions f...
