(BSE CODE: 532717)
CMP 6 Months Target Recommendation
Rs. 388 Rs. 470 Buy
Indo Tech Transformers Ltd. (ITTL) was established in 1976 and has till date supplied over 56,000 transformers of various capacities (upto 100MVA/220KV) to over 3900 customers in India. ITTL has been a regular supplier to southern SEBs (around 75% of ITTL's sales) and has a market share of around 15% in the southern states. The company manufactures distribution transformers and power transformers. ITTL has double its transformers manufacturing capacity to 7,450 MVA with the inauguration of its fifth manufacturing facility, with a capacity of 4,000 MVA. The company already has three manufacturing facilities in Chennai and one at Palakkad in Kerala. Further, the objective of setting up the greenfield facility at Kancheepuram was to focus more on manufacturing power transformers up to 315 MVA capacities in 400 KV class.
The company has supplied transformers all over India. It has exported various transformers to USA, UK, Canada, Nigeria, Germany, Egypt, Singapore, Qatar, Abu Dhabi, Saudi Arabia, Sri Lanka, Japan, Switzerland etc. The company has marketing offices in major cities in India and agents in various important cities world over. IndoTech'slong - term business strategy focuses on the twin objectives of consolidating its market position in Power & Distribution Transformers and to participate in overall growth of theglobal power sector
The company has two Test laboratories. The Medium Test Laboratory is equipped to test upto 20 MVA 33 KV class including the temperature rise test. The larger power laboratory has state - of - the - art equipments to test upto 100 MVA 220 KV class transformers. The major equipments are 300 KV testing transformer, 8000 KVAR capacitor Banks, loading transformer and 125 cycles high frequency generator set. The laboratory also has high precision meters, CT, PTs etc. to carry out routine measurement of all transformers. The lab has a partial discharge meter for measuring partial discharge of high voltage transformer.
Transformer is equipment which enables to step up or down the voltage of the electricity. Electricity has to be at a high voltage in order to transmit it from one place to another. Since electricity is produced at 11KV, in order for transmission to take place, the transformers are used to step up the electricity from 11KV to 440KV. Later on, before the point of use, the electricity is again stepped down using transformers from 440 KV to 11 KV. As shown in the table below, theoretically every single Mega Watt (MW) generated should be supported with 10 MVA. However, that is not the case because there are transformers which can directly step up the voltage from 11 KV to a higher than 33 KV electric current and vice versa. In some cases the electricity need not travel far, as the power generation plants are near to the area of power utilization. Thus the entire step up and step down process need not take place. Due to such reasons, on an average 1 MW is supported by 7 MVA of transformer capacity. We expect the ratio to improve further because the new power generation plants are coming up at places which are near raw material like coal, but far away from actual user states. Thus the need of transmission at high voltage will come into play.
The company has order book of Rs 180crs as on Dec 2007. The expected order inflow to continue on the back of ongoing reforms in T&D sector. The order flow to remain robust, as the demand for transformers is on an upswing on the back of aggressive implementation of XIth (five year) plan by the government. The Indo Tech management expects the ratio between SEBs and Corporate clients to settle down at 75:25.
The company recently commissioned a dedicated manufacturing facility to make ‘open ventilated dry type transformers' in technical collaboration with E I Dupont (subsidiary of EI Dupont De Nemours & Company, USA) for use of the NOMEX and ReliatraN trademarks, with an installed capacity of 100 MVA. The capacity is fully operational.. The order book for Dry Type Transformers stands at Rs 80 lacs.
Indo Tech Transformers Ltd (ITTL) will double its transformers manufacturing capacity to 7,450 MVA soon with the inauguration of its fifth manufacturing facility, with a capacity of 4,000 MVA, during the second week of next month. The company already has three manufacturing facilities in Chennai and one at Palakkad in Kerala. ITTL makes distribution transformers at Palakkad with an installed capacity of 200MVA and Thirumazhisai near Chennai with an installed capacity of 750 MVA. The company also has power transformers manufacturing unit at Thirumazhisai with an installed capacity of 2,400 MVA.
Disclaimer:
This publication has been prepared solely for information purpose and does not constitute a solicitation to any person to buy or sell a security. While the information contained therein has been obtained from sources believed to be reliable, investors are advised to satisfy themselves before making any investments. Kisan Ratilal Choksey Shares & Sec Pvt Ltd., does not bear any responsibility for the authentication of the information contained in the reports and consequently, is not liable for any decisions taken based on the same. Further, KRC Research Reports only provide information updates and analysis. All opinion for buying and selling are available to investors when they are registered clients of KRC Investment Advisory Services. As a matter of practice, KRC refrains from publishing any individual names with its reports. As per SEBI requirements it is stated that,Kisan Ratilal Choksey Shares & Sec Pvt Ltd., and/or individuals thereof may have positions in securities referred herein and may make purchases or sale thereof while this report is in circulation.
Kisan Ratilal Choksey Shares and Securities Pvt. Ltd. 1102, Stock Exchange Tower, Dalal Street, Mumbai 400 001. Phone : 91-22-66535000 Fax : 6633 8060 Members: BSE & NSE
www.krchoksey.com
Jun 19, 2008print
Sunil Hitech Engineers Ltd
Initiating Coverage
Key Data
CMP Rs.221.50
Target (1-year) Rs.273
Date June 19th 2008
Sector Engineering Industry
Face Value Rs.10
BSE Code 532711
52 Week H/L Rs. 415/103
Market Cap Rs. 272 Cr
Investment Rationale
Sunil Hitech Engineers Ltd (SHEL) was incorporated on 29th May 1998. It's a key player engaged in the business of fabrication, erection and commissioning related works required for power plants.. SHEL can be categorized as a sub-contractor for E&C (both for boilers and BOP equipments) as well as for steel fabrication work of bunkers, mills, ESP, TG building, etc. The company is leveraging its engineering capabilities to diversify into other areas such as power transmission and distribution..
Key Developments
Fabrication &Erection of thermal power plants - Core Competence
Looking for backward integration
SHEL ventured into manufacturing of boiler pressure parts (up to 500 MW - constituting 40% of components) with Rs 7 crore capex in FY08 and has orders worth ~Rs25 crore with plans to ramp it up to ~Rs 100 crore by FY11. In coming time, the company has a vision to scale the boiler parts manufacturing to complete boiler manufacturing.
Qualified to cater to 80% of the BOP contract
SHEL currently caters to ~80% requirements in the BOP package for a thermal power plant, including Fans, Mills, Ducting, Coal Handling & Ash Handling Plants, Fabrication & Erection of Steel Chimney Flues, Fuel oil system, HP & LP piping and ESP (if required) for up to 250 MW capacity. It recently forayed into the T&D sector with an order book of Rs 150 crore mainly from Mahagenco and HPSEB, for 132 kV, 220 kV, 400 kV EHV transmission line and substation. The development will pre-qualify SHEL for electrical package in BOP. It has leased 12,000 sq. ft. space in Mumbai to set up the BOP team, inducting the workforce from Mahagenco.
Strong order book position
SHEL has strong order backlog of ~Rs 800 crore that is 2.61x its FY08 net sales. These orders are to be executed in the next 18-24 months. About 78% of its order book consists of power generation related contracts, followed by 11% from transmission, 5% from hydro power, 4% from steel structures and 2% from overhauling and maintenance contracts.
Financial Analysis
In Q4FY08, bottom line rose by 121.88% to Rs 7.30 crore while net sales rose by 142.56% to Rs 112.38 crore. While for the whole year FY08, net profit rose by 175.67% to Rs 21.64 crore and net sales rose by 111.55% to Rs 306.32 crore.
Valuations
At current market price of Rs 221.5, the stock is trading at 12.75x on earnings of Rs 17.37. Further, on back of strong order book, power reforms and engineering capabilities of the company, the stock looks attractive at these levels.
Industry Scenario
Power Sector Scenario
At the time of independence, Indiahad a power generation capacity of only 1,362 MW which has increased to 1,40,301 MW as of December, 2007 and electrification of more than 500,000 villages has taken place. Even with such growth the Power sector has not been able to meet with the growing demand basically due to inadequate investment and the poor financial health of the SEBs. In recent years, in light of persistent power shortages, the Government has taken significant measures to restructure the industry and attract investment. The measures include the following:
· Passing of the Electricity Act, 2003;
· Implementing Programmes such as APDRP / RGGVY;
· Promotion of Power Trading activity;
· Formation of and empowerment of the Electricity Regulatory Commission (ERCs);
· Dismantling of the loss making SEBs;
· Ultra Mega Power Projects;
The programmes of the Government of India are primarily focused on the following:
·
Access to electricity-to be made available for all households in the next 5 years
· Availability of power by demand to be fully met by year 2012
· Per capita consumption of electricity to rise to over 1,000 Kwh in the next 10 years (from the existing level of about 600 Kwh)
The Ultra Mega Power Projects expected to cost around Rs. 16,000 crore each creating capacities more than 20,000 MW. Various Multinational Companies have lined up huge investments not only in the generation but also in distribution. The privatisation of distribution is likely to encourage expenditure on T&D infrastructure. Investments in the inter-regional transmission capacity will help sustain demand for T&D equipment.
Central Electricity Authority in its 17th EPS has projected that in order to completely wipe off the energy deficit; the energy requirement at the power station bus bar would be of the order of 968.659 Billion Units in 2011-12. Presently, the sector is characterized by acute shortages. The peaking shortage as on 31.3.2007 was 13.5% as against the deficit of 9.9% in power supply position during 2006-07. The last five year demand and supply position in the country is indicated as under:
Power Situation in India
Fiscal Year Requirement Availabilty Surplus / (Deficit) In %
2003 545983 497890 -48093 -8.81%
2004 559264 519398 -39866 -7.13%
2005 591373 548115 -43258 -7.31%
2006 631024 578511 -52513 -8.32%
2007 693057 624716 -68341 -9.86%
Note: Figures in MU; Source: CEA
Capacity Addition in XI Plan
Sector Hydro Thermal Nuclear Total
Central 9685 26800 3380 39865
State 3605 24347 0 27952
Private 3263 7497 0 10760
All India 16553 58644 3380 78577
Note: Figures in MW; Source: CEA Power sector to witness 78,577 MW capacity addition: 31st March 2007 was marked as the end of the 10th Five Year Plan with total installed capacity of 132329 MW. About 21,180 MW of capacity got added in the 10th Plan against a target of 41,100 MW - ~52% of target. In comparison, China has installed 1,05,000 MW in 2006.
Total installed capacity as on March 2008 stands at 143061 MW. The Government of India (GoI), in its mission "Power for all by 2012", estimated that Indian installed generation capacity should increase to 200,000 MW by the end of its Eleventh Five Year Plan in 2012. Also based on the demand projections made in the 16th Electric Power Survey, over 100,000 MW additional generation capacity needs to be added by 2012 to bridge the gap between demand and supply of power. Of the proposed capacity addition of 78,577 MW, 2265 MW has already been commissioned (as of 29th August 2007), while another 50,910 MW is under construction. The balance 25,732 MW capacity addition is under different phases of approval. This paves a way to bridging the gap between demand and supply of electricity gradually.
Power Sector Structure: The power sector value chain comprises of three elements - Generation, Transmission & Distribution. Transmission and Distribution (T&D) system comprises of transmission lines, transformers, substations, switching stations and distribution lines. In India, the T&D system is a three-tier structure comprising distribution networks, state grids, and regional grids. In India, SEBs is vertically integrated as intra-state distribution network and the grids are owned and operated by SEBs or state governments through SEBs. The transmission and sub-transmission systems supply power to the distribution system, which in turn supplies power to end-consumers. Distribution of power to end consumers is largely controlled by SEBs and licensees in the private sector. Most of the inter-state transmission links are owned and operated by Power Grid Corporation of India Limited.
Developments and Impact
Impressive Results
In Q4FY08, bottom line rose by 121.88% to Rs 7.30 crore while net sales rose by 142.56% to Rs 112.38 crore. While for the whole year FY08, net profit rose by 175.67% to Rs 21.64 crore and net sales rose by 111.55% to Rs 306.32 crore.
Fabrication &Erection of thermal power plants - Core Competence
It is engaged in fabrication, erection, testing and commissioning of boilers and auxiliaries up to 660 MW, TG structures, bunkers, coal handling plants, and civil works for SG. It also undertakes BOP-EPC work; currently executing for three hydro projects totalling 14 MW capacities. It is currently operating across 30 sites with more than 45 live jobs, with steel fabrication capacity of 125,000 tpa, and an active workforce of ~1,385 people and passive onsite tied-up contractors of ~4,500 people.
Looking for backward integration
SHEL ventured into manufacturing of boiler pressure parts (up to 500 MW - constituting 40% of components) with Rs 7 crore capex in FY08 and has orders worth ~Rs25 crore with plans to ramp it up to ~Rs 100 crore by FY11. In coming time, the company has a vision to scale the boiler parts manufacturing to complete boiler manufacturing.
Qualified to cater to 80% of the BOP contract
SHEL currently caters to ~80% requirements in the BOP package for a thermal power plant, including Fans, Mills, Ducting, Coal Handling & Ash Handling Plants, Fabrication & Erection of Steel Chimney Flues, Fuel oil system, HP & LP piping and ESP (if required) for upto 250 MW capacity. It recently forayed into the T&D sector with an order book of Rs 150 crore mainly from Mahagenco and HPSEB, for 132 kV, 220 kV, 400 kV EHV transmission line and substation. The development will pre-qualify SHEL for electrical package in BOP. It has leased 12,000 sq. ft. space in Mumbai to set up the BOP team, inducting the workforce from Mahagenco.
Strong order book position
SHEL has strong order backlog of ~Rs 800 crore that is 2.61x its FY08 net sales. These orders are to be executed in the next 18-24 months. About 78% of its order book consists of power generation related contracts, followed by 11% from transmission, 5% from hydro power, 4% from steel structures and 2% from overhauling and maintenance contracts.
Financials
(Rs. Crore)
Particulars (Rs in crs) Q4FY07 Q4FY08 % Chg FY07 FY08 % Chg
Gross Sales 46.33 112.38 142..56% 144.8 306.32 111.55%
Excise Duty 0 0 0.00% 0 0 0.00%
Net Sales 46.33 112.38 142.56% 144.8 306.32 111.55%
Other Income 0.47 0.55 17.02% 1..58 2.02 27.85%
Total Income 46.8 112.93 141.30% 146.38 308.34 110.64%
Total Expenditure 39.02 95.26 144.13% 127 258.64 103.65%
PBIDT 7.78 17.67 127.12% 19.38 49.7 156.45%
Interest 1.2 3.58 198.33% 3.3 9.04 173.94%
PBDT 6.58 14.09 114.13% 16.08 40.66 152.86%
Depreciation 1.47 2.92 98.64% 4.41 8.6 95.01%
PBT 6.58 14.09 114.13% 16.08 40.66 152.86%
Tax 1.94 4.07 109.79% 4.18 11.37 172.01%
Effective Tax Rate 29.48% 28.89% 26.00% 27.96%
Tax 1.83 3.95 115.85% 4.1 11.28 175.12%
Fringe Benefit Tax 0.07 0.12 71.43% 0.12 0.32 166.67%
Deferred Tax 0.04 0 -100.00% -0.04 -0.23 475.00%
PAT 3.28 7.22 120.12% 7.57 20.78 174.50%
Extra-ordinary Items -0.01 -0.08 700.00% -0.28 -0.86 207.14%
Adjt PAT 3.29 7.3 121.88% 7.85 21.64 175.67%
Ratios
EPS 2.68 5.95 6.40 17.63
P/E 34.64 12.56
EBITDAM (%) –
Including Other Income 16.79% 15.72% 13.38% 16.22%
EBITDAM (%) –
Excluding Other Income 15.78% 15.23% 12.29% 15.57%
PATM (%) 7.10% 6.50% 5.42% 7.06%
Note: Figures are on Standalone basis; Source: Capitaline , KRC Research
Financial Analysis
Q4FY08:SHEL reported net profit rose by 120.12% to Rs 7.22 crore in Q4FY08 as against Rs 3.28 crore during Q4FY07. While, the sales rose by 142.56% to Rs 112.38 crore in Q4FY08 as against Rs 46.33 crore during Q4FY07..
FY08:SHEL reported net profit rose by 174.50% to Rs 20.78 crore in the year ended March 2008 as against Rs 7.57 crore during the previous year ended March 2007. While, the sales rose 111.55% to Rs 306.32 crore in the year ended March 2008 as against Rs 144.80 crore during the previous year ended March 2007.
Valuations
At current market price of Rs 221.5, the stock is trading at 12.75x on earnings of Rs 17.37. Further, on back of strong order book, power reforms and engineering capabilities of the company, the stock looks attractive at these levels.We put a “Buy” rating on the stock with target price of Rs 273, with 12 month-horizon.
Risk:
Slowdown in power reforms
Any slowdown in power reform may affect the earning visibility of the company which is very unlikely to happen.
Relative Valuation
Particulars Petron Eng Simplex Infra Sunil Hitech
CMP (Rs) 248.00 505.10 221.5
Net Sales (Rs Cr) 267.57 2420.03 306.32
Mcap (Rs Cr) 186..95 2498.85 271.89
PER (x) 21.34 31.79 12.75
EV/Sales (x) 0.70 1.03 0.89
EV/EBITDA (x) 6.41 9.89 5.46
Mcap/Sales (x) 0.70 1.03 0.89
OPM (%) 10.89% 10.44% 16.26%
NPM (%) 3.27% 3.25% 6.96%
Source: KRCResearch; Figures on TTM Basis
Technicals
Last Price
221
13 day EMA
222
50 day EMA
260
200 day EMA
278
The stock is moving sideways. The support for the stock exists at around 214 levels. The MACD indicator for the stock is moving sideways in negative zone. Investors can buy the stock at declines.
Recommendation & Investment View
Recommendation : Market Performer
Investment View : Buy
Disclaimer:
This publication has been prepared solely for information purpose and does not constitute a solicitation to any person to buy or sell a security. While the information contained therein has been obtained from sources believed to be reliable, investors are advised to satisfy themselves before making any investments. Kisan Ratilal Choksey Shares & Sec Pvt Ltd., does not bear any responsibility for the authentication of the information contained in the reports and consequently, is not liable for any decisions taken based on the same. Further, KRC Research Reports only provide information updates and analysis. All opinion for buying and selling are available to investors when they are registered clients of KRC Investment Advisory Services. As a matter of practice, KRC refrains from publishing any individual names with its reports. As per SEBI requirements it is stated that,Kisan Ratilal Choksey Shares & Sec Pvt Ltd., and/or individuals thereof may have positions in securities referred herein and may make purchases or sale thereof while this report is in circulation.
Kisan Ratilal Choksey Shares and Securities Pvt. Ltd. 1102, Stock Exchange Tower, Dalal Street, Mumbai 400 001. Phone : 91-22-66535000 Fax : 6633 8060 Members: BSE & NSE
www.krchoksey.com
Earning Idea
MTNL
Last Price 97.30
13 day EMA 95
50 day EMA 102
200day EMA 139
Support 95
Resistance 99.50
Comment Bullish
[MTNL]
The stock has closed at 97.30 .The support for the stock is at 95 levels. The stock faces resistance at 99.50 levels. Once past this resistance the stock will reach at 103 levels. The MACD indicators for the stock are in the negative zone and moving up. The stock can be bought at current level.
King is King...
Thursday, June 19, 2008
Inflation will be 9.8% tomorrow and there is no dispute that market has corrected for global clues as well as inflation. At the same time the robust advance tax nos as well as TDS collections can't be brushed aside. This proves that the valuations have over reacted and growth will sustain at 25% plus levels whereas Senses has factored in 10% growth in corporate earnings.
To that extent there is a surprise element is market correction and hence the PE of 14 is fully unjustified. Buying will surface on these nos.
In any case the severity with FII were selling papers has stopped and instead value buying has started.
Some feathers like rollover will remain which create huge volatility in the market. In absence of required depth from retail the cost of carrying will remain very high and for that the volatility has to remain high.
We do not expect market to go below 15000 or worst case scenario 14700 and hence for last 300 odd points if you are getting golden opportunity to enter the market you must enter it. For traders this is the best market. Risk of max of 300 odd points which is really nothing given the way market have corrected and on upside you have at least 3000 points to eat if not more.
The risk reward ratio clearly favors bulls at this point in time and therefore traders will do well to take risk at this point in time.
You can catch proper momentum and earn good returns then the profit can help you cushion from further losses which could be a money winning formulae.
My favorite stocks are back to SBI, Century, B Dyeing, RPL, RIL, Reliance Capital, SAIL, J P, MTNL, IFCI, IDBI and R Com. We will focus on these shares for next 3 months to make our fortunes. Please cut and paste today's prices all these scrips as I will need feedback from you in Nov 2008 where I will be proving that all these stocks have delivered 25 to50 % return. Not acceptable yet you preserve this.The current correction is at the behest of BULLS and therefore I have reasons to believe that markets will rise in style. KING is KING.
It is easier to be critical than correct.
Market Action
PATEL ENG (531120)
The stock has closed at Rs 417.The support for the stock is at 412 on the lower levels and first resistance is at 423 levels. Once past this level the stock will reach at 429 on higher levels. The MACD Indicator is in the negative zone and moving upwards. The stock can be bought at current level.
JET AIRWAYS (532617)
The stock has closed at Rs 540. The support for the stock is at 534 on the lower levels and first resistance is at 548 levels. Once past this level the stock will reach at 559 on higher levels. The MACD Indicator is in the positive zone and moving sideways.. The stock can be bought at current level.
Infotrek Syscom-Wildcard
BSE 530643; CMP Rs 43.30
Recycling e-Waste could become a major industry as consciousness about saving the environment increases. Bombay based Infotrek Syscom has made a beginning in the direction, investing close to $ 25 mn in setting up secure e-shredding facilities at 9 locations in India. The company has also successfully roped in a string of investors that include Lotus Global Management and the Magna Umbrella Fund Plc, which alongside another 3-4 investors hold 35 per cent of the Equity from the non-promoter block. The promoters too hold about 35 per cent, leaving a small Equity in public hands. The Infotrek facility located in Bombay has been imported from Germany and has just begun contributing. In some ways the corporate is in the nascent stage and will suit investors who have a Venture Capitalist mentality and are prepared to rough it out over the next few years.
Purely playing with statistics highlights the magnitude of the e-waste problem. The total e-waste in India has been estimated to be 1,46,180 metric tons per year (Source: IRG systems South Asia). Waste is piling up and Mumbai tops the list at present with 11,017 tons followed by Delhi with 9,730 tons and Bangalore with 4,648 tons.
Electronic waste, also known as e-Waste or Waste Electrical and Electronic Equipment (WEEE) is waste consisting of any broken or unwanted electrical or electronic appliance. It is a point of concern considering that many components of such equipment are considered toxic and are not biodegradable. Sources of WEEE include IT & telecom equipment, household appliances—large & small, consumer & lighting equipment, electrical & electronic tools, toys, leisure & sports equipment, medical devices and monitoring & control instruments.
Today there are over 75 million mobile users. That number is expected to increase to 200 million by end 2008. An estimated 30,000 computers become obsolete every year from the IT industry in Bangalore alone. At present, India has about 16 million computers and the base is expected to grow to 75 million computers by 2010. Over 2 million old PCs ready for disposal in India.
e-Waste is a safety issue. Discarded electronics contain hazardous materials. If disposed improperly, they pose a potential threat to human health and the environment. It may contaminate groundwater and e-Waste accounts for 40 percent of the lead and 75 percent of the heavy metals found in landfills. The good news is that silver and gold can be recycled from it.
Legislation exists to tackle e-Waste. The Basel Convention talks about the trans-boundary movement of hazardous substances, a ban on land and water fills as well as environment-friendly disposal. The European Union, Japan and Korea ratified a WEEE Directive with effect from 1st July, 2007. These geographies have extended the producers' responsibility to take back equipment as well as mandated treatment by designated facilities. Products from January, 2007 onwards must be RoHS compliant in these countries. In India the Ministry of Environment and Forests is drafting legislation to hold e-Waste producers accountable for safe disposal.
Reducing e-Waste requires that we reduce, reuse, recycle and recover. The goal is nothing less than zero land fill. (Some forward looking statements on projections, estimates, expectations & outlook are included to enable a better comprehension of the Company prospects. Actual results may, however, differ materially from those stated on account of factors such as changes in government regulations, tax regimes, economic developments within India and the countries within which the Company conducts its business, exchange rate and interest rate movements, impact of competing products and their pricing, product demand and supply constraints.)
Derivative Call
PETRONET
Closing 64.70
Mkt Lot 2200
Margin Rs 32,800
Outlook Bullish
Recommendation Buy June Fut.@ 508 OR above
Stop Loss 62.70
Target 68.70-72.40
Expiry 26/06/2008
UNITED SPIRITS FUTURE (Last close 1363.95)
The UB group flag ship company engaged in brewing business, after making a high of 1684 in the beginning of this month drifted down to a low of 1270 on the 16th June’08. However, the stock thereafter is making new highs and moving with positive bias. Chart patterns for the stock appear positive. BUY the stock above 1368.75 with stop of 1359.25. The stock may flare up to 1382/1405. Strong support exists at 1345.50.
JSW STEEL FUTURE (Last close 997.85)
The stock of Jindal Group after making a high of 1200 recently slid to a low of 945 on 13th June’08 under selling pressure. However, the stock is moving range bound for the past four trading sessions with high volumes. The stock appears attractive on charts. BUY the stock above 1006.75 with stop of 994.25. The stock may flare up to 1021/1030. Strong support exists at 988.50.
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