MARKET REVIEW IN BRIEF
BSE Sensex & CNX Nifty rises slowly and gradually inching up towards 19k and 5800 for the time being. There is a stock specific action.
Those stocks which have already rose substantially under cement, AUTO, FMCG, Pharmacy and Banking have sidelined now.
While other sectoral stocks are being fancied. Tata Global was star performer on 3rd October to hit Rs 154.
On 3rd October I had recommended GULSHN POLYO as Rs 68 which hit Rs 78, yesterday gaining Rs 9 or 15% in a single day which speaks the liking & worthiness in my recommendation being viewed by the view of this site.
Cement stocks rally have slowed down after a good rise, yes India cement and keshoram stock going dirt cheap even at current market price.
STEEL AUTHORTIY OF INDIA LIMITED (S.A.I.L)
SAIL is a world class corporation and a leader of Indian Steel business boil in productivity & quality and inspiring to match in profitability too in year to come.
SAIL is having several steel plants mainly in eastern parts of the country such as bhilai, IISCO, Rourkels, Bokaro, Durgapur and Jamshedpur with backward integration of ore & coal mining power etc. Its product profile is numerous which is used in construction/infrastructure/industry and in every walk of human life.
SAIL hit a life time higher sales target of over Rs.50, 000 Cr followed by with net Profit of Rs 3543 Cr slightly lower than its previous yr due to global and domestic recession in 2011-12.
SAIL has ambitious CAP EX plan of over Rs 40, 000 Cr including Rs 14500 Cr already spent till 2011-12 and rest of which to be spent in next 2 yrs without much borrowing. Most of the funds is targeted to come out of internal accruals & equity route which is quite evident from its comfortable debt/equity ratio.
Imagine what would be the SAIL outlook after 2 yrs once its CAP EX plans will be completed. It would really be mind boggling which is difficult to express in words now.
SAIL stock is currently traded at Rs 87 below its book value and is worth to buy and have this precious jewel in your cap from long term point of view.
When, MRF the largest in tyre segment can hit over Rs 10, 000 Cr & Asian pain can be traded at Rs 4000 why SAIL should not cross 500 in 2 yrs and Rs 1000 in 5 yrs.
Lastly, It may be recalled that SAIL stock had hit Rs 250 mark in 2009-10.