The co. is the largest producer of foundry grade pig iron in india.It has recently entered into branded automotive castigs business and also into ductile pipe manufacturing in colleboration eith the japanese co.It expects a turn over of over Rs.2000 Cr. by 2010. The company's long term strategy is to be a complete solution provider in this business and produce more and more branded products.We hve been discussing about the co.in our earlier articles.
It is currently quoting at around Rs.125/-to 130/- and very much below its intrinsic worth of Rs.320/- to 380/- and a very close to its yearly low of Rs.108/-.
From the current levels the stock is likely to give compounded annual returns of over 30-40% for the next three years.In addition, it has an annual dividend yield of over 5.5%.
Our expected price range for 2008-09 is Rs.115/- to 190/- to 260/- and for 2010-2011 is Rs.250/- to 380/-.
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