Ispat Industries

[dr_udaya]

ISPAT shown good movement from 17.50 to 22.50 even in this bearish trend of market. As Dec 21st is the board meeting.... one can test luck / jackpot as lot of rumours are flooding on Mittal and Stemcor's interest on stake of this scrip. SBI's recent loan of 130 crores is another plus point....

As the scrip is already banned in F&O segment, this scrip may give more surprises in the coming 2 weeks of December.

chances are bright for scrip moving to 25 or even 30. a nice christmas and new year gift....

I booked profit in futures (bought @17.10 and sold @21.25) and 17.5ca call (bought @0.70 & sold @ 2.75) and still holding 25k in equity(average price 20.25) and calls of 22.5ca(bought @0.40) and 25ca(bought @0.15).

Goodluck....
uday

 

[dr_udaya]

Re: Ispat Industries valuations.....

Xmas and new year bells are ringing in this counter.... as Ispat promotors has to come out with stake sale before the deadline of 31.12.2010 given by the lenders (bankers).

It will be great interest for all of us to understand what the correct value of Ispat and till what price this stock can move in short term. i have a resonable belief that the deal if happening could happen anywhere between 27 to 36 and therefore in short term one can look for price appreciation of atleast 25 to 40%.

Once it is in the hands of JSW or any other potential taker, it will be definitely a multibagger can touch 3 digits in the coming 3 to 5 years.

Equity base is 1220 crores and market cap is 2990 crores. can you instal 4.1 million tons steel plant with just 2990 crores. so one has to check the enterprise value of the ISPAT comparing with other steel bigs like SAIL and TISCO. based on the comparision even we assuem that the new promotor brings ISPAT on govt. efficiency (SAIL), the stock price has to be close to Rs. 100.

Thus ISPAT is a good buy from short term as well as long term perspective.

As per sources, JSW is the front runner of ISPAT deal between 30 to 36....

Tomorro is the board meeting of ISPAT... announcement likely today night. Stock set to raise till 36/37 in the short term...

pls remember ISPAT is one of the 4 to 5 good companies in steel making with saizable capacities. (Tata steel, SAIL & JSW ).

Think on your own.... Good luck....

uday

 

[KonalGondal]

Hello Uday ,

How are you ? It has been some time that I got a chance to visit the forum. Nice to know there were informative posts on this topic.

What is your opinion of the counter now ? Even after all the news and mergers etc it has shown little movement ?

What seems to be the reason ? And whats the future that one can predict for this ?

Thanks .

Warm Regards
Kg

 

[dr_udaya]

Open offer by JSW is over on 30/3/2011. speculation on results. that is why good momentum on friday.

the good news are;
JSW wish to restructure the debt burden of 7000 crores. preferably without any payment to lenders for one year. so that turn around can be expected with in one year. and by that time, merger news or some masala news can be expected.

the other news is JSW wish Ispat to take stake in Jindal power, which means Jindal is having some positive plans for this scrip with vested interests.

It seems ideal for investment for 6 months to one year. below 20 levels is remote chance. only upside can be expected.

The other acrip of interest is First source solutions (cmp 18.50). looking positive for this month. with a tgt of 22.50. ICICI's interest in its stake as well as expecting good results, is projecting positive momentum.

Try your luck....

uday