| Express Idea: Jayaswal Neco Industries – BUY CMP Rs38, Target Rs45, Upside 18.3%
Jayaswal Neco (JNE), through the integration of its group companies, is transforming itself from a primary pig iron and steel casting producer to an integrated steel producing company. The company has also been allotted one coking coal, two thermal coal and seven iron ore mines to meet its raw material requirement. Of this, a thermal coal mine is already operational and two iron ore mines are expected to be operational in FY12. Operating margins are set to expand led by sales of finished goods and an increase in raw material integration. Our back of the envelope calculations suggest that the company's bottomline would jump ~3.5x over FY10-12 led by commissioning of the iron ore mine in FY12. We recommend a BUY on the stock for a target of Rs45.
http://content.indiainfoline.com/wc/research/researchreports/Jayaswal_Neco_290910.pdf |
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| Express Idea: Balrampur Chini Mills – BUY CMP Rs93, Target Rs104, Upside 12.7%
± Upswing in international prices on adverse Brazilian weather ± India sugar balance to remain in equilibrium ± Lower cane cost to counteract drop in sugar price ± Stock trades below historic 1-yr fwd EV/E; BUY
http://content.indiainfoline.com/wc/research/researchreports/Balrampur_Chini_29092010.pdf |
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| Trading Idea: GAIL – BUY CMP Rs478, Target Rs545, Upside 14.0%
GAIL has underperformed the Nifty index after it hit an interim peak of Rs517 in June 2010. However, formation of flag pattern above the neckline support levels of inverted H&S indicates that the rally is in the middle phase and provides decent opportunity on the upside. We recommend traders to accumulate GAIL at current levels with stop loss of Rs450, for a target of Rs545 and Rs580.
http://content.indiainfoline.com/wc/research/researchreports/GAIL_Trading_Idead_290910.pdf |
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