FINANCE & STOCK ADVICE: Advice On Sail & Adhunik Metaliks

Advice On Steel Authority Of India Ltd.

At the current market price (CMP) of Rs 153.65, the stock is trading at a forward P/E of 10.9x and 10.5x the FY10 and FY11 earnings, respectively. Based on our DCF valuation, we have arrived at a target price of Rs 181 (assuming a 15.4% WACC and a 5% terminal growth rate). At the CMP, the stock provides an upside potentional of 18%. Thus, we give a Buy rating to the stock. As the DCF valuation is sensitive to the changes in WACC and terminal growth rate, we have performed a sensitivity analysis of the same.

Advice On Adhunik Metaliks

AML's increased capacity (steel and ferro alloy) will be fully reflected from FY10 onwards. OMML has also started mining from the Q3 FY09. So, there will be a significant contribution (due to high margins) by OMML towards the consolidated net profit of AML, the full effect would be seen in the FY10E. At the current price of Rs 79.55, the stock is trading at a P/E of 6.1x FY10E & 4.2x FY11E, which we feel is quite undervalued looking at the huge earnings potential of the company & the quantum of mineral resources owned by the company. The current price of Rs.79.55 per share discounts our Target price of Rs.98.90 per share by 24.3%. We Recommend a “HOLD” Rating on the Stock with a Revised price target of Rs.98.90 per share.

MULTI BAGGER STOCK GROUP

Some of my group's multi bagger picks during the rally were NMDC , MMTC , STC , Larsen ,Jindal Steel & Power , Unitech , BF Utilities , Jai Corporation , Walchand Nagar Industries, RNRL , Reliance Infra (Reliance Energy) etc.

I had been long associated with a corporate engaged in financial services , where with the assistance of specialized tools along with my special analysis as per some historical accepted theories of stock market like W. D. GANN's Theory , Elliot Wave Theory and others are used with reliable insider information of so called " operators" who play a major role to make a stock ,a Multi Bagger ,I do make my gem picks in this market.

I had been running my group , where the associated people get the reliable and most beneficial to get the unexpected return as seen in the above mentioned tips. Say for example the stock called MMTC had jumped from 2000 level to 56000 per share of historical price where the capital appreciated by 28 times in very short period with 2700% return on capital employed. Likewise in RNRL we started accumulating at RS 25 level from where we saw it moving at 250 level giving 10 times with 900% return.

These sort of return is helpful as ,

1. Handsome gain will make a jack to our capital.

2. Limited stocks trade , as daily trade could be avoided , which is more risky.

3. Long term capital gain , so no tax liability.

4. Whole income in white, which could be further deposited into fixed deposit to get assured monthly income later.

5. Strong income tax file without paying any taxes.

Our role here could be summarized as :

1. Giving tips to all registered member at proper time , when the stock is just about to take off, neither too early not too late.

2. Make sure investor do not gt stuck into it.

3. Recommend to exit when the operator is about to leave it.which is the most important work or else the whole accumulated and deemed profit will be washed away along with part of investment and will remain stuck for long - long period.


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Advice On Sail & Adhunik Metaliks