tHis wILL bE a moNeY SpiNNer !!

Jai balaji industry:

Target:340
Duration:12-15months
Traded in:Nse-bse

The company is going to be a 25000crs turnover company by 2014-15. It ended fy08 with a sales of around 1400crs. The company stunned everyone by recently announcing a mega invstment of 16000crs within the next few years. Over the next 10 months expect the commissioning of power plant, coke oven plant, rolling mills, pallet plant and ductile pipes. The company is doing everything that it can to make itself a company to reckon.A big giant in the making. Jai Balaji, at present is an integrated 1.2 million tpa steel manufacturer. It expects to add 2 million TPA in another 34 months (first phase) and another 5 million TPA in the following 24 months (5 million tonnes steel, 3 million tonnes cement and 1,215 MW power plant in Purulia, for Rs 16,000 crore). So Jai balaji is going to be a 8 million TPA company by 2014.At that time it should be the 4th or 5th largest integrated steel company of india.

Management is aggresevily buying the shares from the open market. Check out the below given link of bse to get aware of the confidence the management is having(http://www.bseindia.com/Insidetrade_ScripWise.asp?scripcd=532976)

Conclusion:The company is in no mood to dilute its equity and assured its shareholders to have a equity cap of not more than 65crs. Now the last point which should tempt anyone to have a pie of the company-It guided an EBITDA margin of 40% by the next 6 years. You can surely calculate 40% of rs 25000crs isnt it? Now do onething more, cut back 20% from the total 40% for taxes,interests,depriciation etc. Its the most conservative estimate-So whats the figure coming like? Dont tell me 5000crs of profit-750rs EPS....or it so? Steel companies trades at an average PE of 2-8.Now make your own target based on the estimates. Go for it guys.