Dear All,
Please find attached details of Debut Stock: Tata Sponge Iron Ltd. (TSIL)
Kindly click on the following link to view the Report.
| BUY | |
| CMP | Rs 334 |
| Target Price | Rs 415 |
| Investment Period 6 Months | |
TSIL, a manufacturer of sponge iron, has an installed capacity of 3,90,000MTPA and a 26MW captive power plant. The company gets 100% supplies of iron ore from Tata Steel at subsidized rates. TSIL is a cash-rich company with ROIC of ~55% for FY2012E. We recommend Buy on TSIL with a target price of `415, based on target P/B of 1.1 and implied P/E of 6.5 for FY2012E. The upside does not include the 45% stake in Talcher coal block in Orissa (estimated reserves of 120mn tonnes for captive consumption), which may lead to further upsides.
If you have any further queries, feel free to call us on 022 39357600, Extn: 6864 / 6865 or mail us at advisory@angelbroking.com
With best regards,
Fundamental Advisory Desk
Angel Broking
Akruti Star,5th Floor, Road No.7,MIDC, Andheri (E),Mumbai – 93.
Call : (91) (022) 39357600, Ext: 6864, 6865
Website : www.angelbroking.com
Disclaimer: Ours is an advisory role. The final decision and consequences based on our information is solely yours. Moreover, in keeping with regulatory guidelines, we do not guarantee any returns on investments. Prospective investors and others are cautioned that any forward-looking statements are not predictions and may be subject to change without notice.
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