Buy Bhushan Steel, target of 
1348: Reliance Money
Bangalore: Reliance Money has recommended a buy rating on Bhushan Steel with a target price of 
1348 in its August 14, 2009 report.
Bhushan Steel is an India-based company that is principally engaged in the steel business. The company provides a variety of products, such as cold rolled closed annealed (CRCA), galvanized and color coated sheets, high-tensile steel trapping, hardened and tempered steel strips (HTSS) and precision tubes.
In its report, Reliance Money stated, "At current market price (CMP), the stock quotes at a PE multiple of 3.3x for financial year (FY) 2011 earnings. We are of the opinion that the company will benefit from its endeavour of back ward integration and going forward it will reflect in the quarterly performance starting third quarter of FY 2010, wherein it would have started partial production from Steel making units."
The company is planning to expand its steel making business by 3.2 million metric tons (mmT) by October 2012 at an expense of 6500 crore. This will take the total capacity of the company to five mmT by financial year 2013. With the increase in steel making capacity, the company is also planning to add the relevant downstream operations in future.
1348 in its August 14, 2009 report.
Bhushan Steel is an India-based company that is principally engaged in the steel business. The company provides a variety of products, such as cold rolled closed annealed (CRCA), galvanized and color coated sheets, high-tensile steel trapping, hardened and tempered steel strips (HTSS) and precision tubes.
In its report, Reliance Money stated, "At current market price (CMP), the stock quotes at a PE multiple of 3.3x for financial year (FY) 2011 earnings. We are of the opinion that the company will benefit from its endeavour of back ward integration and going forward it will reflect in the quarterly performance starting third quarter of FY 2010, wherein it would have started partial production from Steel making units."
The company is planning to expand its steel making business by 3.2 million metric tons (mmT) by October 2012 at an expense of 6500 crore. This will take the total capacity of the company to five mmT by financial year 2013. With the increase in steel making capacity, the company is also planning to add the relevant downstream operations in future.