Stock manipulation: Best Steel Logistics
Moneylife Digital Team 22 November 2017

Best Steel Logistics Limited (BSLL) claims to provide warehousing solutions for steel industry and is also engaged in trading of steel and related products. It controls four warehouses with a total area of 373,000 square feet, located in Bengaluru, Hyderabad, Faridabad and Ghaziabad. While the company says it is also looking to set up additional facilities in Rajasthan, Gujarat and Uttar Pradesh, revenue has been erratic in the past five years, from no revenue in FY12-13 to Rs61 crore for FY16-17; trailing 12-month (TTM) revenue is at Rs210 crore.

BSLL reported net sales of Rs99.6 crore in September 2017 compared to Rs1.34 crore in September 2016. While the reported profit after tax was Rs2.91 crore for September 2017 compared to Rs0.34 crore in September 2016. Until FY15-16, the net worth of company was also negative with a negative reserve & surplus of Rs0.54 crore. BSLL is growing by borrowing funds; as of FY16-17 borrowing stands at Rs33 crore. The cash flow from operations is negative; this is due to high receivables and low payables, i.e., sales are not being converted to cash. This trend can be seen in its cash flow statement for the past three years. For FY16-17, the increase in debtors was Rs9 crore while decrease in payables was Rs1.8 crore in the cash flow statement. The promoter shareholding has reduced from 39.04% in June 2017 quarter to 38.75% in the September 2017 quarter. Meanwhile, the stock has rocketed—from around Rs9 in November 2015 to over Rs102 now, a rise of 1033%. The regulators? As usual. 

4 years ago
well .. Now that Moneylife have themselves given a favourable report to Apollo tri coat - Maybe this article should be taken down or an editorial clarification added. (Disc : Holding apollo tri coat since 2018)
Nivesh Jain
6 years ago

hope now you change your stand on apollo tricoat
6 years ago
1. APL Apollo has denied having to do anything with this company. It has clearly stated it is the chairman’s son who has teamed up with others in his personal capacity to make an open offer.
2. Where is the tunaround? Its turnover has shrunk 90% and it made an operating loss in June quarter.
3. In any case what does any of this got to do with an article we wrote in November 2017 when the stock had shot up without any fundamentals from 2015? What was happening in the company between 2015-17? Nothing. Only manipulation.
Harshit Solanki
6 years ago
Why is moneylife not replying to below comments... or they should agree in open that there thesis is completely false
sakthi vel
6 years ago
Now APL Apollo group has invested here. what is your opinion now? please update.
Nivesh Jain
7 years ago
moneylife should do their research properly , analysis should not be done simply relying on past data future prospects should be done accurately

Have you visited the company ?
Atleast you had a concall with management regarding future prospects?

time will say whether best steel logistics is manipulative story or multibagger story
7 years ago
Shocking. What are regulators for? However, investors, stock players and commentators should also report to you SEBI etc.

7 years ago
It is turnaround story
asm aircon
7 years ago
the company came out with open offer in 2016 the management has changed
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