Jai balaji industry:-Paid call to members.

Many of you repeatedly in my mail have asked for paid calls and what they will be and all.Now as an amateur and being a social guy I would always safeguard the vested interest of investors than something else.The open blog is a place for me to give guidance..paid blog is for the one who needs those calls and my bigtime guidance desperately.Anyways here"s an example of a paid member call and the type which I provided just few months back.

Scripscan:Jai Balaji Industries Ltd
Cmp:112
Target:300
Duration:15-20 months
Returns percetage:180%
Traded in:Nse-bse

1)The company is going to be a 25000crs turnover company by 2014-15.It ended fy08 with a sales of around 1400crs.Well its actually hard to digest the humangous guidance given by the management but i have to go by Mr Aditya Jajodia"s word as he has got a habbit of beating his own estimates.

2)The company stunned everyone by recently announcing a mega invstment of 16000crs within the next few years.Aggresiveness at its height isnt it?Its marketcap is a mere 400crs but who dares,wins-Proverb should get vindicated.

3)Over the next 10 months expect the commissioning of power plant,coke oven plant,rolling mills,pallet plant and ductile pipes.The company is doing everything that it can to make itself a company to reckon.A big giant in the making.

4)Jai Balaji, at present is an integrated 1.2 million tpa steel manufacturer.It expects to add 2 million TPA in another 34 months (first phase) and another 5 million TPA in the following 24 months (5 million tonnes steel, 3 million tonnes cement and 1,215 MW power plant in Purulia, for Rs 16,000 crore).So Jai balaji is going to be a 8 million TPA company by 2014.At that time it should be the 4th or 5th largest integrated steel company of india.So folks are you going to opt for the next big thing?

5)Have you glanced through the insider trading statistics given in bse?Well management is aggresevily buying the shares from the open market.Check out the below given link of bse to get aware of the confidence the management is having(http://www.bseindia.com/Insidetrade_ScripWise.asp?scripcd=532976)

Conclusion:The company is in no mood to dilute its equity and assured its shareholders to have a equity cap of not more than 65crs.Now the last point which should tempt anyone to have a pie of the company-It guided an EBITDA margin of 40% by the next 6 years.You can surely calculate 40% of rs 25000crs isnt it?Now do onething more,cut back 20% from the total 40% for taxes,interests,depriciation etc.Its the most conservative estimate-So whats the figure coming like?Dont tell me 5000crs of profit-750rs EPS....or it so?Steel companies trades at an average PE of 2-8.Now make your own target based on the estimates.Go for it guys.

Regards,
ARUN
9804589299
I can be reached at:arunanalyst@rediffmail.com