Saturday, September 13, 2008

One Mid CAP Stock one can add to the portfolio for long term investment:

Jindal Saw Ltd: The company is in the business of manufacturing Seamless Pipes for oil sector, and has recently entered into business of water,urban,shipping and rail Infrastructure,power generation, fabrication of shipyards,Ships & Railway wagons. Co.'s top line is expected to grow by approx. three to four times to Rs.27,000/- Cr. by 2012 from the current level of Rs. 7000/- Cr. The co. has recently increased its seamless pipes plant capacity to 250,000 tons from 80,000 tons. To feed this plant its plans to put up a steel plant of 300,000 tons capacity by 2009-10.


This is another stock which is likely to give a compounded annual return of over 26% for the next 10 years period. It has already risen from its yearly low of Rs. 450/- to the current level. In the falling market it has risen by about Rs. 100/- in the last 15-20 days. It is presently quoting at Rs. 619/- as on 12.9.08 and is well below its intrinsic worth of Rs. 2000/- to 2500/-.

Likely price range in 2008-09 is between Rs. 500/- to Rs. 1500/-.

Price range expected for 2011-12 is Rs. 2000/- to 3000/-.

Price range expected for 2017-2018 is Rs 5500/- to 8500/-

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