Monday, September 6, 2010

Value Buy

Cmp Rs.335

FV-10 Book Value Rs.272 TTM (Trailing twelve month) EPS=61 P/E-5.48

TATASPONG-Total production capacity of 390,000 TPA from 3 kilns, self sufficient in power with own captive power plants - producing 26 MW of power from 2 power plants. Power plant, produces electricity from the waste heat of exit gases keeps the environment free of thermal pollution and the company earns carbon credits and company make profit by selling additional power. Company has secure source of raw material with Iron Ore & Dolomite sourced from TATASTEEL mine, quality of iron ore is up to 65% Fe content and Company has been allotted own Coal block making it fully integrated player and operated @ average capacity utilization level of 88%