Investment opportunities in steel & power sector

Cement/Steel/Power

THE INVESTMENT IN INDIAN INFRASTRUCTURE INDUSTRY IS EXPECTED TO GROW AT CAG@ OF APPROX। 20% PA FOR THE NEXT 3-5 YEARS.
ALSO, INDIAN CEMENT , STEEL & POWER CONSUMPTION IS EXPECTED TO GROW @ 9-11 % FOR THE NEXT FEW YEARS.
Few top rated mid cap Indian companies worth investing are listed below. All these companies are much below their real worth at a P/E multiples of 3-6 only andare in the middle of heavy capacity additions. Thus, these stocks are expected to give much faster returns through expansion of earnings and also P/E ratios.
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JK LAKSHMI CEMENT :
100/- as on 19.3.2008.
EPS for F/Y 2007-08 is Rs. 38/- which is expected to move up to Rs.75/- in 2011 after the expansion of its 2.7 MT new cement plant is completed.
Projected price as on 30.06.10 is Rs. 300/- to 400/-.
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JK CEMENT:
130/- as on 12.03.2008.
Financial year 2007-08 EPS is Rs.38/-, which is expected to be Rs. 70/- to 80/- by 2011.
Projected price as on 30.06.10 is 400/- To 500/- .
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Birla Corporation Ltd.:
Rs.175/- as on 19.03.2008.
Current F/Y-2007-08 EPS is Rs. 51/- which is expected to reach Rs. 70/- to 80/- two years hence. The script is quoting at just 4 times its current EPS. The company is raising its production capacity to 10 Million Tonnes in next 2-3 years time when the EPS is expected to reach Rs.100/-. Highly undervalued at current prices.
Projected price as on 30.06.10 is Rs.400/- to 500/-.
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Godawari Power and Ispat Ltd.:

Expected EPS @35-38/-FOR 2007-08.
Creating lot of value through subsidiaries and mineral resources.
Rs. 161- as on 19.03.2008
Projected price as on 30.6.10 is Rs. 500/- to 600/-.
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Monnet Ispat & Energy Ltd.:
Strong promoters group in association with Jindal's.
Has added large mineral resourse recently and also going for planned capacity addition just like M/s Jindal Steel year after year.Very similar business Model. Strategic decision to invest more in power sector in future.Trying to buy mineral resources in Indonesia.

Price as on 12.03.2008 is Rs. 465/-.
Projected price as on 30.6.09 is Rs. 700/- to 800/-.
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TATA METALIKS LTD.:

Largest & lowest cost producer of foundary gradePig Iron in India. Entering into production of value added products like ductile pipes in association with Japan. Has become a subsidiay of Tata Steel recently. Progressively scalling up the production by organic as well as inorganic route. Has recently signed up two MOU's with State Govts. for mineral resources and subsequently to set up production facilites there.
EPS for 2007-08 is Rs. 28/-. Expected EPS for 2008-09 is Rs. 35/- to 40/- Projected price range one year forward is Rs.240/- to Rs. 300/-.
Price as on 25.4.08 is Rs. 155/-.
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