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Wednesday, October 31, 2007

JAYASWALS NECO

Any level is a good entry level in Jayaswals Neco. The EPS for FY08 is likely to be in 8-10 range and EPS for FY09 likely to be significantly more. Somebody has asked what is the story in this counter, the story is that the company has turned around and is now going to make very good profits. This is the next Jai Corp or next KEC International in the making. Nagpur-based Jayaswals Neco has set up a commercial power plant at Moitra village in Hazaribagh district of Jharkhand. The 270-mw coal-fired plant will have two units of 135 mw each. The company has coal mines with estimated reserves of 30 million tonnes in Moitra village itself.Jayaswals Neco has planned to sign the power purchase agreement with PTC India. The company already has a 40-mw captive power plant at Siltara in Raigarh district of Chhattisgarh where an integrated steel plant has come up.Incorporated in 1972, Jayaswals Neco essentially produces iron castings and pipes that find applications in railways and construction sectors. In 1992-93, the company diversified into the solvent extraction business. The integrated steel plant in Chhattisgarh signifies an important backward integration move. This move will bring down their costs very significantly and propel their earnings to a new level. Cheers!

12 comments:

jugraj singh said...

A of people are accumulating this stock... looks like a multibaggar to me...

cooknow said...

good recco

john said...

Dear Superstar,

I hope you might have read the press release dated 2nd November, 2007 posted on the NSE website. Mr.P.K.Bhardwaj(President-Finance) had mentioned the following:

'The performance in the 2nd half of the year may be affected due to the continous rise in the input cost for producing Pig Iron and Rolled products. The company is procuring almost its entire requirement of Iron Ore and Met Coke from outside suppliers.

The profit margins in the next 6 months are expected to be under TREMENDOUS PRESSURE in the industry due to the continous increase in the raw material prices'

So I think that EPS for FY 2007-08 will not be more than Rs.5 and an average PE of 7 or 8 as mentioned by Tulsyan will give a price of Rs.35 to Rs.40. I am not considering the value of land bank as I don't find any authentic information about the same and JNIL has not yet revealed any plans about the land. So I think we can re-enter around Rs.35

Let me know your thoughts.

-John

nirmalkumar said...

set to double in avery short time,buy for big profit

deepbez said...

dear superstar
i was quite impressed with your analytical comments on various companies which make us feel confident to go ahead and invest.I would be much obliged if advised me on the prospects of english indian clays which has been receiving rave reviews by various peer groups.would appreciate if you replied at your earliest.

Superstar said...

Hi Deepbez,

English Indian Clays is another stock in the Mining and Minerals sector which is doing well. I am quite bullish on this sector as a whole and my favorites in this sector, as you know, are Jayaswal Neco and GPIL. English Indian is currently trading at an annualized PE of 46, where as Godawari Power and Jayaswals Neco are still in single digit PEs. You can well imagine the scope of appreciation in these two stocks as compared to English Indian. However, the Promoters' holding in English Indian is a very high percentage of 84%, which means there is very less floating stock available for trading in the market. That is why it is trading at such a high price.

Cheers!

deepbez said...

dear superstar,
thanks for throwing some light on english indian clays.this time i would like to ask you whether it would be prudent to invest in freshtrop fruits,apollo tyres and guj.alkalis.?would appreciate your expert comments.
deepbez

Akky said...

Hi Mr. Bajaj

I feel privileged to have ur address.

Should I go for Jayaswals at tomorrow's circuit?

Plz guide. I have few cash (25000)left.

regards

deepbez said...

dear superstar,
i would be much obliged if you could tell me the targets for gufic bio and jayaswal neco
with warm regards

deepbez

Superstar said...

Hi Akky,

Welcome to the site. You actually had an opportunity to buy JAYASWAL NECO at lower levels today also. I wonder why you missed it.

In a related query by Deepbez, the next milestones to be crossed in Jayaswal Neco's upward journey are levels of 80, 100 and 120 in the medium term. In the long term it can go much higher, provided the company keeps posting good earnings figures as is expected. There are two ways to play this stock.....one is to keep booking profit at every 20-30% rise and re-enter on technical corrections. AND the second way to play it is to just buy and forget for at least one year. Now it is upto you whether you are a trader or a long term investor. I have already spoken about Gufic Bio in the concerned topic.

Cheers!

Superstar said...

Hi friends,
Today Jayaswal Neco has achieved its first target of 80. Today's high on NSE is 82.20 and on BSE is 82.85.
While I feel that Jayaswal Neco is headed towards three figures next, it would be prudent for investors, specially short term ones, to keep a PROFIT LOCK of 80 rupees on this stock.

Cheers!

vipin garg said...

Hi, now the price is near Rs. 10. It may be due to the overall market situation. Can we enter for a long term buy at this rate say 1 - 2 year. OR the overall figures have went wrong somewhere.