Motilal Oswal has recommended a buy rating on Jai Balaji Industries, in its report dated November 6, 2009. The stock closed at Rs 224 on November 9, 2009.

"We believe that Jai Balaji is on a strong growth path. The DI pipe mill will help to increase the share of value-added products, Dumri coal mine and the expansion of captive power capacity will expand margins in FY11. JBI has rich coal resources, which will drive strong earnings growth over the next 5-10 years. We expect FY10 EPS of Rs 16.3 and FY11 EPS of Rs 35 (+115% YoY). The stock trades at 6.5x FY11E PE, 6.6x EV/EBITDA and 1.2x P/B. Reiterate Buy," says Motilal Oswal report.

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