1. DIYTechnicalAnalysis is a private community of traders and investors interested in building wealth from Indian equity market. You can become a member with a one time registration fee of ₹199. Click here to become a member

Jindal Steel and Power

Discussion in 'Fundamental Analysis' started by tarak_desai, Sep 4, 2012.

Tags:
  1. tarak_desai

    tarak_desai New Member

    Joined:
    Aug 20, 2012
    Messages:
    114
    Likes Received:
    3
    Hi,

    Jindal Steel and Power is at its life-time low, and since last 3-4 days I am seeing good volume.

    Shabbir, what your think? goog time to enter now for long term say 18 months+ ? More down-side is expected ?

    Thanks
     
    tarak_desai, Sep 4, 2012
    Share #1
  2. shabbir

    shabbir Administrator Staff Member

    Joined:
    Apr 30, 2012
    Messages:
    6,703
    Likes Received:
    1,940
    I could not see any reason to enter in the stock but still what targets you have in mind after 18 months in this stock and most importantly why
     
    shabbir, Sep 4, 2012
    Share #2
  3. tarak_desai

    tarak_desai New Member

    Joined:
    Aug 20, 2012
    Messages:
    114
    Likes Received:
    3
    Hi,

    I am having a target of 600 in next 18 months.

    Company is more than doubling its power capacity and is in the process of increasing steel capacity by 50 per cent over the next 12 months, considering the fact that the 45 per cent decline in the share price factors all the negatives in the stock and the massive provisioning has taken a toll on the numbers. (JSPL has provided for a massive provisioning of Rs.814 crore while the cash profits stood in excess of Rs.1300 crore (ex-Bolivian operations, Bolivian govt. turned hostile and they basically had to get out of the country))

    Also company has recorded 23 per cent growth in steel volume but still has seen the inventory go up by more than a lakh tonne. These figures would get reflected in coming results.

    Source: CapitalMarkets Magazine.
     
    tarak_desai, Sep 4, 2012
    Share #3
  4. shabbir

    shabbir Administrator Staff Member

    Joined:
    Apr 30, 2012
    Messages:
    6,703
    Likes Received:
    1,940
    If things are going to be so great then why the slide is not coming to a halt. It should stop falling by all means right.
     
    shabbir, Sep 4, 2012
    Share #4
  5. tarak_desai

    tarak_desai New Member

    Joined:
    Aug 20, 2012
    Messages:
    114
    Likes Received:
    3
    Logically yes, but I believe (maybe i am wrong) the recent coal/CAG things is affecting such companies including JS&P.

    Unless govt. gives some clear indication on new coal blocks we may see further slide, but was just wondering/guessing how far this slide can go on..
     
    tarak_desai, Sep 4, 2012
    Share #5
  6. shabbir

    shabbir Administrator Staff Member

    Joined:
    Apr 30, 2012
    Messages:
    6,703
    Likes Received:
    1,940
    Just avoid the guessing game and let the price tell you that slide has stopped. The price movement will not make a sharp turn and if it does, just satisfy yourself that you missed an opportunity in one stock but there are 1000 others.

    Also on top of that I see that stock sales is same for last 3 years as per MC which is kind of shocking to me.

    Sales should always be increasing no matter what other numbers finally run down to.
     
    shabbir, Sep 4, 2012
    Share #6
  7. tarak_desai

    tarak_desai New Member

    Joined:
    Aug 20, 2012
    Messages:
    114
    Likes Received:
    3
    >>but there are 1000 others.

    Very true!
     
    tarak_desai, Sep 4, 2012
    Share #7