Not much downside in JSL Stainless: Tulsian

No much downside in JSL Stainless, says SP Tulsian of sptulsian.com.

Tulsian told CNBC-TV18, "JSL Stainless faced problems because they are setting up a 1.6 million tonne integrated steel plant in Orissa. They have also been foraying into power projects. The last couple of years have been very bad but now they seem to be slowly limping back to normalcy. If you see the results for the first half, they have shown a very good performance with an EPS of about 8.50 with topline of close to Rs 3,500 crore." "This is the only integrated stainless steel maker in the country. We know there has been better realisation of stainless steel prices in the recent past. In FY11, they should have a topline of Rs 6,500 to Rs 7,000 crore with an EPS of close to about 18. If you translate that, it is ruling at a PE multiple of 5.5 to 5.6 times which is very low." "If you take the case of other mild steel makers they have all been ruling at a PE multiple of anywhere between 8 to 10 while we have not seen the PE expansion taking place in case of this stock. Probably, the PE expansion is going to happen in FY12 with better realisation of stainless steel." "Going forward, they should be able to see some improvement. Even on their expansions, they have entered into the power purchase agreement for their 1,320 megawatt project. All this leads to positive indications for the stock going ahead. If you see the price at Rs 100, I don