ESL Steel Ltd
Vedanta's 1.5 MTPA Bokaro steel plant, bought out of insolvency in 2018, still loss-making as it works towards a 3 MTPA expansion.
Market cap
₹6,475 Cr
185.00 Cr shares
P/E ratio
Loss making
Sector average 18
Book value
₹22.16
P/B 1.58
1-year return
-11.73%
52w ₹30 – ₹40
Currently 50% of the way through its 52-week range.
Indicative price history
1Y change
-11.73% ₹40 → ₹35
52-week band in this window: ₹34.03 – ₹39.65. Weekly indicative marks, not exchange-traded prices.
Key highlights
- 1.5 MTPA integrated plant at Bokaro with expansion planned to 3 MTPA.
- Acquired by Vedanta in June 2018 under the IBC; ~95% held by Vedanta.
- Dealer data show P/B ~1.6 and ROE ~-21%; quotes ₹30-40.
About ESL Steel
ESL Steel Ltd, formerly Electrosteel Steels, runs a 1.5 million-tonne integrated steel plant at Siyaljori near Bokaro, Jharkhand, making wire rods, TMT bars, ductile-iron pipes, pig iron and billets. Vedanta acquired about 90% of the company in June 2018 under the Insolvency and Bankruptcy Code after the original promoters defaulted on more than ₹10,000 Cr of debt; the shares were delisted and the residual public holding now trades through unlisted-share dealers at ₹30-40 in lots of 1,000.
Vedanta has cleared environmental and forest-land issues (a Supreme Court judgment of December 2021 upheld ex-post-facto forest clearance) and is investing to lift capacity towards 3 MTPA. Dealer valuation data imply roughly 185 Cr shares, a net worth in the ₹4,000-4,600 Cr range and a sizeable net loss - around ₹950 Cr in the worst recent year - with return on equity of about -21%. Revenue is in the ₹7,000-7,800 Cr range, driven by long products sold in eastern India.
The investment case rests on Vedanta eventually merging ESL into the parent or buying out minorities, and on the expansion turning the plant profitable. Against that, the company carries group loans, interest costs and a history of environmental disputes, and Vedanta's own restructuring means minority holders have little visibility.
Revenue, loss and balance-sheet lines are estimates built from Vedanta disclosures and dealer ratios. Line items are reconstructed around reported totals; treat them as approximate.
Where the revenue comes from
- Long products (TMT, wire rods, billets)60%
Construction and infrastructure steel
- Ductile-iron pipes20%
Water infrastructure
- Pig iron and by-products20%
Merchant pig iron, slag and coke by-products
Products & services
TMT bars and wire rods
Long products for construction.
Ductile-iron pipes
Pipes for water and sewerage networks.
Pig iron and billets
Merchant sales to foundries and re-rollers.
What works
- • Owned and operated by Vedanta, which has resolved legacy legal issues and is funding expansion to 3 MTPA.
- • Integrated plant with captive coke ovens, sinter and power in the mineral-rich Jharkhand belt.
- • Minority holders could benefit from a group merger or buyout at a premium to dealer quotes.
What to watch
- • Persistent losses and high leverage; net loss of several hundred crore in recent years.
- • Steel prices and Chinese exports drive earnings; long products are the most competitive segment.
- • Vedanta controls all decisions and the timing of any exit for minorities is unknown.