Buy JSL Stainless, says Rajesh Agarwal

Buy JSL Stainless, says Rajesh Agarwal of Eastern Financers.

Agarwal told CNBC-TV18, "JSL Stainless is the largest stainless steel manufacturer in terms of production and installed capacity. Even in net sales, this is the largest company having manufacturing facilities at three locations. It has got around 40% market share in stainless steel, 70% in organised sector, 40% as a whole." He further added, "It manufactures different ranges of flat steel products and caters not only to domestic market but also International market. Q1 numbers were pretty good with around 20% jump in top-line, although the bottom-line was down by about 12%. That was because of interest costs which were on a higher side because of ramp up of capacities being done in Orissa." "We expect the company to report an EPS of around 18 for FY12 considering that the stock is trading at a PE of around 5 which we think is quite reasonable. One can buy this stock for an intraday target of Rs 100 and stop loss of Rs 85." Click HERE to know the rules and follow the score card