Maithan Alloys - Heating to Shape up - Good Investment (2)
Technical: Strong breakout Awaiting
After a breakout from a downward trend line, it strongly went up and then consolidated for a while, now it is showing sign of breaking the strong consolidating, which may take the prices further up to the range of 650-750 levels, with stops at 500.
Fundamental: Undervalued
Market Cap: 1600 Cr.
P/E: 6.2
Debt to Equity: 0.01
Book Value: 285
Price to Book Value: 1.4
1. India's leading manufacturers and exporters of niche valued added Manganese Alloys, Ferro and Silico Manganese, used in manufacturing of stainless steel for enhancement in strength and durability of steel.
2. Provider to prominent domestic clients like Jindal Steel, Tata Steel, SAIL, Arcelor Mittal and to international clients like China Steel, Qatar Steel and more. Exports to 35 countries.
3. Consistent profit and sales growth due product niche in the market with commitment to efficiency and low cost curve.
4. Sales Boost through India's Infrastructure Growth and Housing for 2020 scheme by Govt.
5. Recently, invested 600cr for a new plant setup in Bankura to generate 1,20,000 tone
Overall, a strong management making consistent growth on low debt cost. The company is unvalued as per my analysis and it shall further move up to the price range of 3-4x of book value, which will be around 850-1150 levels.
Any opinions or comments on the same will be appreciated. Regards
After a breakout from a downward trend line, it strongly went up and then consolidated for a while, now it is showing sign of breaking the strong consolidating, which may take the prices further up to the range of 650-750 levels, with stops at 500.
Fundamental: Undervalued
Market Cap: 1600 Cr.
P/E: 6.2
Debt to Equity: 0.01
Book Value: 285
Price to Book Value: 1.4
1. India's leading manufacturers and exporters of niche valued added Manganese Alloys, Ferro and Silico Manganese, used in manufacturing of stainless steel for enhancement in strength and durability of steel.
2. Provider to prominent domestic clients like Jindal Steel, Tata Steel, SAIL, Arcelor Mittal and to international clients like China Steel, Qatar Steel and more. Exports to 35 countries.
3. Consistent profit and sales growth due product niche in the market with commitment to efficiency and low cost curve.
4. Sales Boost through India's Infrastructure Growth and Housing for 2020 scheme by Govt.
5. Recently, invested 600cr for a new plant setup in Bankura to generate 1,20,000 tone
Overall, a strong management making consistent growth on low debt cost. The company is unvalued as per my analysis and it shall further move up to the price range of 3-4x of book value, which will be around 850-1150 levels.
Any opinions or comments on the same will be appreciated. Regards
Trade active:
Breakout Confirmed, price action moving out of consolidation.
Comment:
Reached upto 700 (27%) within two weeks, now it may further rally up to 750-800 after short correction.
