Nirmal Bang equity research & broking house has recommended to investors to buy stocks of 'ISPAT Industries' from short-term investment perspective.
Stock Trading Idea is:
CMP: Rs. 22
Strict stop loss: Rs 21.45
Short term target: Rs. 26
Medium term target: Rs. 30 (Above 30)
The report further stated that, if the counter is successful to breach 27, then it will hit a medium term target of Rs 30.
Today (Sept 01), the shares of the company opened at Rs 23.60 on BSE. The share price has seen a 52-week high of Rs 28.60 and a low of Rs 9 on BSE.
For the three month period ended June 2009, Ispat Industries, an integrated steel maker posted loss owing to decline in sales and increase in input costs.
During the period, the company recorded loss of Rs 2,149.20 million as against a profit of Rs 287.30 million during the same quarter previous year.
Net sales fell 49.79% to Rs 13,997 million, whereas total income during the period declined 51.25% to Rs 14,018.50 million.
It posted a loss of Rs 1.91 per share in the quarter as against with earnings of Rs 0.08 per share in the corresponding period of the last year.
During the quarter, the company's operating margin fell by 1,228.23 basis points to 7.42% compared with the previous year period. Interest cost during the three month period dropped 37.88% to Rs 2,675.80 million whereas depreciation cost surged 1.81% to Rs 1,635.70 million.