I was away from Message Board since quite some time.... but your post forced me write a message...

1) Interest Free?? Debt Free??? Have you checked the balance sheet? Highest amongst its peers... Thanks to Corus acquisition at a higher cost (since market conditions were a lot better then)... and Cost of Capital has gone up from then.. SO double bullets.... Only in Indian actor (that too in movies) can survive this...

2) Valuation of 4/5??? From where did you get that? Supply wouldn\\`t take over demand? Reason?

3rd problem... Indian Government\\`s control over prices....

So problems are huge but I agree that the valuations are getting cheaper... discounting its Net Income I guess 450 should be nice price point to enter with a 6 month overview of generating 20-30% profit.550-600 range...

Regards,
DnC...

excellent analysis dash, i also strongly feel this is a good level to invest i have this at 575 but will now average to arnd 500 which i think frm a 2/3 yr timeframe shud give handsome returns...

I feel the present price is tempting as base raw material price are tumbling. The coal price, base metal price like chrome etc. are coming down. Also as said by Mr. Kamalnath, in India we got huge demand for steel for construction and supply is less than demand....

Fool people like steady investor neve able to understand economic cycles only time can answer them...