Today Rohit Ferro Tech Ltd was recommended today at Rs.8.10, based on certain parameters:
Join my service or trade through Any recommended brokerage house/s to get
professional help during the market hours.
In this kind of market, where you
need to compete with CA, ICWAIs, MBA Finances, Harvard and Cambridge (and from
DSE and LSE), apart from Highly Professional Traders and Brokers, the things
are not that easy.
You may succeed once or twice due to
luck or otherwise, but to make money on a consistent basis, one has to be
highly professional, due to reasons mentioned above.
Therefore, if you do not have much time for the research but want to make
money from this raging
Bull Run, you definitely need to take the help of professionals. If you
have lost money earlier, then try in a new way, with small funds.
Today Rohit Ferro Tech Ltd was recommended
today at Rs.8.10, based on certain parameters:
Since the government has taken-up the cudgel to boost
the infrastructure and economy, the demand for building materials like Steel,
Cement, Glass, Ceramics, Wood, Aluminum, Plastics,
etc are set to increase in the coming days.
The company is implementing a CDR package and hence
there is already lot of sops for payment of loans, including waver of interest
rate and easy payment options
The company will allot, subject to the approval of the
shareholders, 7,12,05,000 (Seven Cores Twelve Lacks Five Thousand) Convertible Warrants of nominal value of Rs 10 each at a
price of Rs.20 per Warrant (including a premium of Rs.0 per Warrant) in
accordance with SEBI (ICDR) Regulations, 2009. This is much higher than the
current market price of the scrip which is Rs.8.10 in the NSE and Rs.8.09 in
the BSE.
The NDA government is also revamping the Indian
Railways--this will also push up the demand for steel, especially the
Ferro-alloys in the coming days. Rohit Ferro Tech, you know is a major producer
of Ferro Alloys.
Makers of ferrochrome, a key alloy used in
making stainless steel, are planning expansion of their facilities to gear up
for an expected increase in domestic demand instead of focusing mainly on
exports to China that account for more than half of their annual production. The
Narendra Modi-led NDA government's focus on building infrastructure and
spurring domestic consumption holds promise of increased demand of stainless
steel from consumer durables, auto, transport, water management and solar
energy sectors.
Bulk Ferro Alloys like H.C. Ferro Manganese, Silico
Manganese, High Carbon Ferro Chrome are used for manufacturing different grades
of steel depending on their characteristics and are in great demand. The Ferro
Alloys produced by Rohit Ferro Teh Ltd are as per International / Indian
Standard Specifications for manufacture of mild steel, alloy steel and
stainless steel. About 90% of the High Carbon Ferro Chrome produced is used in
the making of Stainless Steel, where chromium is the unique ingredient.
Unique, because it is
Chromium that makes stainless steel 'stainless'. The additions of Ferro Chrome
in low alloy steels contribute towards a range of improved properties,
especially to achieve a balance of through-section hardness and toughness in
Engineering Steels such as bearing, tool, high strength/low alloy and high
speed steels, pumps, valves, pipes, rolls and wear plates. NC Mathur, president
of Indian Stainless Steel Development Association (ISSDA) told Eonomic Times:
"The steel industry grows at 1.2-1.3 times the GDP. With a strong Prime
Minister and the new government's initiatives, the demand of stainless steel
can be expected to grow around 8%. The industry is focusing on architecture,
shopping complexes, institutional buildings, auto sector and railways for growth,"
It is to be noted that Indian ferrochrome makers
are currently dependent on China, the world's largest maker of stainless steel,
which is also the biggest importer of Indian ferrochrome as it buys over half
of the country's annual output of one million tone. "All this is going to change in the next three-five years
because stainless steel is starting to pick up significantly and in many
commodities there is a lag before demand can be met. In ferrochrome industry,
we are talking about adding capacity. We see production going up to 1.5 million
tonnes in the next three-five years," said Subhrakant Panda, MD of Indian
Metals & Ferro Alloys (IMFA). According to ISSDA president Mathur, the
industry is not only banking on higher economic growth over the next five years
but also on initiatives such as Swachh Bharat, 100 Smart cities and overseas
investment as Modi sells the India growth story to the world.
Meanwhile, the Chinese domestic ferrochrome market is
expected to remain under pressure after the 1% import tax on ferrochrome with
more than 4% carbon was scrapped. Exporters lauded Beijing's decision in
December. The 1% import tax was factored into the selling prices quoted to
Chinese buyers, they said previously. Removal of the 1% import tax will give
sellers higher price realization, they added. This is positive for the domestic
Ferro Chrome sector.
The recent government of India, initiatives, like
bringing in the mining ordinance and trying to zero in on the mine renewal
leases augurs well for the companies like Rohit Ferro Tech Ltd.
With the price of Crude Oil and Coal going down, we
can expect good days ahead for the Ferro Alloys sector. High power costs
and scarcity of raw materials for its ferro-alloys unit had in the past made
operations difficult for this sector as increased
Chinese stainless steel imports lowered capacity utilization
of the sector.
PR News ware writes on Dec. 24,
2014: Growth in construction and automobile
industries is expected to boost the overall demand for steel. This, in turn, is
anticipated to drive the global ferroalloy market between 2014 and 2020.
Ferroalloys are iron alloys that contain chromium, manganese, silicon or other
elements in varying proportions. Ferroalloys are primarily used by the steel
industry.
Since, Ferro Alloys is a power intensive sector and
hence, any effort to increase the captive power capacity would definitely boost
the bottomline of the companies. For ferroalloys plants without captive
power, the electricity bill alone accounts for about 35% of the overall
production cost. The Company is in the process of setting up an
additional Sub Merged Arc Furnace of 33MVA and a Captive Power Plant at its
Jajpur Unit. The same were scheduled to be completed by September 30, 2014. The
completion is delayed for the reason of non delivery of certain equipment from
the vendors in time. The management expects to complete the same by March
31, 2015. Hence, we have around 2-months time. Meanwhile, the company
is also talking of selling
the Jajpur Unit in Orissa (Odisa).
The market for stainless steel in 2013-14 was at 2.5 million tone of
which flat products accounted for approx 2 million tone.
With a low per capita consumption of 2.1 kg (as against the world average of ~5
kgs) there lies a huge potential for future growth but slowdown in sectors such
as infrastructure, railways, seaports, airports, highways, and bridges etc. had
become impediments. We certainly need protection in terms of 'anti dumping
duty'. The difference between raw material and finished products imports
currently stands at 5% in India as against 10% in China. The Chinese
government protects its local industry. However, the Indian companies, cannot
import raw materials from China due to higher duty. So, we have to import
finished products at the expense of the local industry. The government of India
likely come up with similar duty protection to prevent units from closing down
in the Union Budget-2015.
The Book Value of the shares of the company is Rs.50.94 and the market cap
is only Rs.92.04 Cr against FY14 income of Rs.2,494.52 Cr and H1FY15 income of
Rs.963.32 Cr.
During FY14, the coking coal mine in Indonesia owned by M/s. PT Bara Prima
Mandiri through the Subsidiary SKP Overseas Pte. Ltd., Singapore has
started commercial production. The mine located in Central Kalimantan province
of Indonesia has an estimated coking coal reserve of 10 MN Tones. The
Company is also having 60% economic interest in a thermal coal mine in
Indonesia owned by M/s PT Palopo Indah Raya through its aforesaid
Subsidiary. The mine located in Central Kalimantan province of Indonesia has an
estimated thermal coal reserves of 20 MN Tones.
With so many positives at place, you are getting the shares of Rohit Ferro
Tech only at Rs.8.09 in the BSE and Rs.8.10 in the NSE. Just buy as much as you
can and keep holding. I am sure by the end of March, 2015, you would get more
than 40% return on your investments.
Yesterday, the Premium Members were asked to average both Jaiprakash Power
Ltd at around Rs.11.80 and 26.30 respectively.
Today, both the scrips gave a decent return with J P Power Ltd shooting to
Rs.12.48 intra-day and J P Associates Ltd to Rs.27.20. With the direction of
Interest rate now on the donward spiral, most of the companies with high debt,
like Suzlon Energy Ltd (Rs.16.11), Jaiprakash Power Ltd (Rs.12.35), Jaiprakash
Associates Ltd (Rs.26.80), etc are set to do well.
Meanwhile, today another of my earlier recommended counter Jai Balaji
Industries Ltd was asked to be averaged at around Rs.15-15.50 by those who
still did not book profits in the counter, when the scrip to above Rs.30,
during the whirl-wind rally post win of NDA. The scrip today closed at Rs.15.70
and would slowly move towards Rs.31-32 in the coming days.
Today, Anant Raj Ltd touched Rs.47.75 (NSE), intra-day before cooling at
Rs.46.05 in the BSE and Rs.46.15 in the NSE. Today many real estate counters
came down, after shooting up yesterday and post initial rise of today. It is to
be understood that, Anant Raj Ltd is a class apart in the real estate
space, having huge land bank, apart from having an exponential growth in the
lease income. It also has low debt and is speaking of exiting from its non-core
businesses. The scrip should touch Rs.70, in the coming days, as the interest rates
continue in their downward spiral.
Join my service or trade through Any recommended brokerage house/s to get
professional help during the market hours.
In this kind of market, where you
need to compete with CA, ICWAIs, MBA Finances, Harvard and Cambridge (and from
DSE and LSE), apart from Highly Professional Traders and Brokers, the things
are not that easy.
You may succeed once or twice due to
luck or otherwise, but to make money on a consistent basis, one has to be
highly professional, due to reasons mentioned above.
Therefore, if you do not have much time for the research but want to make
money from this raging
Bull Run, you definitely need to take the help of professionals. If you
have lost money earlier, then try in a new way, with small funds.