Short Term Buy Call For Ispat Industries

Stock market analyst Ashwani Gujral has suggested investors to purchase Ispat Industries stock to achieve a short-term target of Rs 72.

According to him, Tata Steel stock can be purchased on declines with a stop loss of Rs 38.

Mr. Ashwani also said that the investors can achieve the target within a period of 4-5 weeks. The stock has been recommended after analyzing its last performances.

Shares of Ispat Industries, opened (today) Rs 48.25, as against its last closure at Rs 45.90 on BSE. The stock has seen a 52-week high of Rs 87.4 and a low of Rs 12.6 on BSE. Current P/E and EPS stood at 84.44 and 0.56. Presently (11:15 am), the company’s shares are trading at Rs 46.95, up 2.29%.

Ispat Industries Limited, on Feb 1, has informed that the company’s directors at its meeting held on January 31, 2008, considered and approved, in principle, hiving-off of the Company's Jetty facilities/ operations to an independent entity, subject to all requisite consents/ approvals and valuation reports to be received from valuers appointed/ to be appointed for the purpose.

The Global Steel Holdings, the holding company that controls steel and associated businesses of the Ispat Group has adopted two coal mining blocks in Mozambique.

The total investment in the two blocks would be valued at Rs 4,600 million. The blocks cover a license area of around 30,000 hectares and have proven resources of around 70 million tonnes of coking coal with low to medium ash content, sources said.

The coal mining blocks are in the Tete region and close to the license regions of ArcelorMittal, Tata Steel and Vale`s coal asset areas.

Other stocks from the steel sector that looks good for short-term trading includes Jai Corporation, National Steel and Vardhman Ind.

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