TAYO ROLLS - LONG TERM BUY

Tayo Rolls is a Tata Group company manufacturing Cast Iron,Steel Rolls, Forged Hardened Rolls and Engineering Forgings and Pig iron.This company is a joint venture between Tata Group and Yodogawa Steels of Japan.Tata Steel holding about 55% stake and the foreign promoter holding about 15%. Company having technical collaboration with Austria based  ESW and Sheffield Forgemasters International Ltd. of UK.About 40 % of company’s turnover is from exports to countries like Australia, Austria, Bangladesh, Belgium, Canada, Egypt, Germany, Indonesia, Kazakhstan, Nepal, Norway, New Zealand, Oman, Quatar, Saudi Arabia, Sweden, Singapore USA..etc. Company went through massive capacity addition in past few years but at the time of the  completion of this projects its user industries including Steel Industry slipped into lower demand mainly due to lower construction activities and general slowness in  many Industries.Lower demand for its products and higher interest outgo due to spending for capacity expansion resulted pathetic performance in past few quarters. To address this problem,recently  company raised about  Rs.85 Cr from its promoters through a preference share issue at lower interest rate. Now company is showing some initial signs of revival.In the latest quarter company increased its turnover from Rs.29 Cr to Rs.49 Cr and reduced loss substantially from Rs.13 Cr to Rs.3.5 Cr .I feel ,the worst time of TAYO will end soon and it will back to black in near future.After touching a high of Rs.465/- in 2008 its share price is now quoting  around Rs.77/-. Recommending a BUY only for those having patience to hold it more than one year @ CMP of Rs.77/-