Buy Jindal Steel & Power, target of Rs 2600: Hem

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Hem Securities has initiated a buy rating on Jindal Steel & Power with a target price of Rs 2600 in its July 26, 2008 research report. "The company posted excellent financial figures for the quarter ended June 2008. The net sales for the company gone up by 54.96% to Rs 18953.10 million for the Q1FY09 as against the net sales of Rs 12231.30 million for the Q1FY08. The net profit for the company rose to Rs 4023.10 million for the Q1FY09 in comparison to net profit of Rs 2501.10 million for the Q1FY08 with the growth rate of 60.85%."

"The stock at the current market price of Rs 1908 is trading 21.15 times to its earnings of 90.21 Rs (TTM) and 7.24 times to its book value of Rs 263.39. We initiate a 'BUY' signal on the stock at the current levels with a target of Rs 2600 in the medium to long-term investment horizon with an appreciation of 36.27%," says Hem's research report.

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