Uttam Galva Steel

Market Cap : 1000 Cr

2007 Revenue : 2532 Cr
2008 Revenue : 3291 Cr
2009 Q1 Revenue : 1073 Cr

Net profit :

Things to consider : Promoters have pledged more than 3.11 crore shares representing 27.35% of the company's equity capital.

One of the reason UG shares riding high is that company has demerged its power division into a separate company and they alloted more then 50 lakh shares recently.

While Uttam is a big supplier of cold rold steel that is primarily used in white good manufacturing ( refrigerators, washing machines etc. ) and in automobile industry. As automobile industry is reviving demand for cold rolled products is back up and that is reflected in cold rolled prices going up internationally.  That's allo good for company on fundamental side.

Cost wise Uttam is largely dependent on raw steel and power. There has not been much movement in pig iron costs.  That means cold rolling mills like uttam will have higher profitability.

Company is also working on projects in ghana once comes online that should add to topline.

Technically stock is overstretched now. It's a risky bet to put money at these level. I would look for better opportunity .