National Steel and Agro Industries Ltd (BUY) CMP 26.85 (SL) 22 exit (TARGET) 28 / 30 / 32
National Steel & Agro is a company from the Ruchi Soya Group that had incurred huge losses in 2008-09 on account of the global recession, thereafter, the company has made fast recovery and its Q4 earnings may well be beyond the expectations of the analysts.
(1) Turnover may exceed Rs.2500 cr.
(2) PBIDT till Q3 end is in the black as against losses in the previous corresponding period.
(3) Against its equity of Rs.32.6 cr., it has reserves of Rs.84.97 cr. after adjusting the losses of the previous year.
(4) It has a share book value of Rs.36 as on 31 March 2009 that will go up with the earnings of FY10, which is quite encouraging.
(5) Its share price of Rs.25 may almost amount to half its expected book value as on 31 March 2010.
As such investors who buy this stock at the current price can hope to gain 50% in the short-term and much more in the long-term as the demand for steel appears quite robust till the end of 2010-11.
FOR MORE SIMPLE & SWEET CALLS. Rush ur mails to sokhitrading@gmail.com
No comments:
Post a Comment