i Develop Stocks Advisory

Bajaj Steel update... Steel sector has seen huge consolidation. Mergers and acquisitions is the buzzword in Steel sector. We certainly believe that Steel sector has fantastic upside left for next 2 to 3 years. All small steel sector companies such as Bihar, Anil etc were found new partners. Alternatively promoters too have raised their stake in such companies. Bajaj Steel with a equity of just Rs 2 crs with smart top line and EPS of Rs 50 around is a strongest case of re rating. Souces says that apart from steel co has diverse interest in land and mining which will be coming to fore only when the market cap becomes Rs 100 crs plus which gives comfort of at least 200 % rise in this case. We had identified Ratnamani Metals at Rs 90 where nobody believed forward going story. At Rs 1400 all our counterparts are issuing buy reports. We suggest aggressive buy in BAJAJ Steel for short term and long term basis. All FII’s will flock this counter in due course of time.