Enter Jai Balaji Industries at around Rs 190-200: Tater

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Enter Jai Balaji Industries at around Rs 190-200: Tater

Long term investor can enter Jai Balaji Industries at around Rs 190-200, says Ashish Tater, Head of Research, Fort Share Broking.

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Excerpts from Bazaar on CNBC-TV18 Watch the full show » ALSO READ See previous views by Ashish Tater See what other Experts & Brokerages are saying about Jai Balaji Ind See messages about Jai Balaji Ind Jai Balaji Ind BSE | NSE 30/05/12 Are Mutual Funds betting on Jai Balaji Ind?

Long term investor can enter Jai Balaji Industries at around Rs 190-200, says Ashish Tater, Head of Research, Fort Share Broking.

Tater told CNBC-TV18, "Jai Balaji Industries has to hog limelight every time there is some news related to coal because the company sitting on close to 700 million tonne of integrated space into the coal mines of Purulia and 37 million tonne has been allotted to the company by the government in the Dumri coal block region. We have come with a buy report at Rs 180 just on Friday and the stock was logged into upper circuit and we have always been trading this particular stock from a coal perspective as well as the fastest integrated player in the steel space against any other steel company. We always take a hedge position into the stock."

He further added, "If I talk about this particular stock fundamentally, I think the stock has got the potential to test close to Rs 350-400 and we do expect some positive news in the coal mines regarding their environmental clearance in the Andal East block region, Jagannathanpur A and B, which might test the stock even technically close to Rs 255 levels."

"If I look into the peer set recommendations on to the Jai Balaji stock, many of us have come out with a buy report on to the stock for a close target of Rs 350-400 on NAV basis. This is one stock we like to invest into close to Rs 180-200 mark because we feel here is a stock which has a potential to give almost 80-70% return at Rs 200 and very limited downside."

"We feel that again there will be interest into the coal assets that the company is sitting into and the way the company has its expansion plan into the Purulia, I think there will be lot of trading interest into the stock because the company came up and they wanted to sell some part of their Purulia project, which is spread across 1,130 acres and is having 1,215 megawatt of power plant and an integrated cement plant of close to 3 million tonne and 5 million tonne of steel project."

"We feel the stock is a good trading bet again in the midcap space and we feel there is a limited downside into the stock and the stock should test our recommended levels of close to Rs 253 on spread basis with a little bit resistance of close to Rs 235 odd levels. On the longer-term, the investor should be entering into the stock close to Rs 190 to Rs 200 mark."