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Company Profile

Good Luck India Limited, a company with an ISO 9001:2008 certification, was founded in 1986 and started its operations in the year 1987. The Company specialises in the manufacturing and exportation of a wide variety of products, including ERW (Electric Resistance Welded) Galvanised Pipes and Tubes, Black and Painted Pipes, Square and Rectangular Hollow Sections, Galvanised Sheets and Coils, Towers, Fabricated Structures, Cold Rolled Coils, Pipes and Tubes, Cold Drawn Welded Pipes and Tubes, Precision Tubes, Hydraulic Cylinder Tubes, Boiler Tubes, Air Pre-Heaters and Fuel. In addition to the following regular range of products, they also manufacture products that are specifically tailored to the needs of their customers. The International Division of the Company exports a variety of engineering goods, building supplies, plants and machinery.

Steel Industry in India

•   Steel has long held the top position among metals. Steel is both a raw material and an intermediary product, therefore its production and consumption are commonly used as an indicators of a Nation’s economic success. Therefore, it would not be overstating the case to say that the steel industry is the backbone of any economy and has always been at the forefront of industrial and infrastructural advancement.
• India was the second-largest producer of crude steel in the world as of December 2022. A total of 133.596 MT of crude steel and 120.01 MT of finished steel were produced in FY22, respectively (approx. fig.). The domestic accessibility of raw materials like iron ore and the affordability of labour have been the main drivers of growth in the Indian steel industry. As a result, the steel industry has been crucial to India’s manufacturing output.
•  In FY23, completed steel exports totalled 5.33 MT, while imports totalled 5 MT (approx. fig.). India’s steel exports increased in FY23 by 36% (approx.fig.) compared to the previous year special after duty removal. 
• It is expected that by 2030–2031, yearly steel production will surpass 300 million tonnes (approx.fig.). Assuming a 10% yield loss or a 90% conversion ratio for the conversion of raw steel to finished steel, it is predicted that by 2030–2031, crude steel output will reach 255 million tonnes at 85% capacity utilisation, producing 230 million tonnes of finished steel. By the years 2030–2031, consumption is anticipated to reach 206 million tonnes with net exports of 24 million tonnes. The Ministry of Steel received a budgetary allocation from the government of 8.6 million for the Union Budget 2023–24 (approx.fig.).
• As India strives to become a manufacturing powerhouse through political programmes like Make in India, the steel industry has emerged as a primary focal area given the importance of a varied range of sectors on its output. India now is on the track to surpass China as the world’s

second-largest consumer of steel, with the sector contributing around 2% of the country’s GDP. India’s export production capability and the sector both have the potential to aid the country in regaining a favourable steel trade balance.

• The National Steel Policy, 2017 envisage 300 million tonnes of production capacity by 2030-31. The per capita consumption of steel has increased from 57.6 kgs to 74.1 kgs during the last five years. The government has a fixed objective of increasing rural consumption of steel from the current 19.6 kg/per capita to 38 kg/per capita by 2030-31. As per Indian Steel Association (ISA), steel demand will grow by 7.5% in the current fiscal (approx. fig.).

Company Perspective and Review

•  The stock returns is greater than Nifty by 65.56 % (approx.) in the last one year. Paid more than 50% of their debt and heading towards being debt free with an improved financial liquidity. 
•    Net Profit Ratio is 32 in FY23 which shows company profitability. Debt to Equity Ratio for FY23 stood at 1 as compared to 1.16 in FY22 signifies reduction in debt.
•  Return on Equity has increased on an average of 13% for the last three years and dividend was declared. Net sales has increased by 9.1% y-o-y. The scrip can be considered for watch list.