Multibagger stock analysis

Free stock tips 8^th feb 2008
Well the Indian stock market (BSE sensex) after a correction of nearly 1400 pts. in the last 2-3 days, as predicted on my 5^th feb 2008 article seems to move sideways. In the coming days we may see some more of sideway movement before the sensex moves upwards or depending on global cues it may slide further. There is more of a downward potential , as the global situation hasn’t still become clear. Perhaps now we can buy some fundamentally good stocks such as Ritesh Prop. Ind., Rohit Ferro , Godawari Power & Ispat Ind. & Spice mobiles in moderation .

Earlier short term recommendations –

Scrip	Recommendations	Target	Remarks
Bajaj Hindustan	Sell @ 228	205	Square up at current rate of 222 as +ve bias is seen
NTPC	Sell @ 223	208	Target achieved
Nagarjuna Fert.	Sell @ 54	48	Target achieved
Deepak	Sell @ 146	134	Target achieved
Infosys	buy @ 1510	1576	Hold , reached a intra day high of 1575

Today’s short term recommendations -

Scrip	Recommendations	Target	Remarks
Nucleus software	Buy @ 270	282	--
Tata power	Buy @1330	1380	--

Short term trading is always risky , it is better to go for long term investment with a perspective of atleast 1 year.

Multibagger stock analysis – Rohit Ferro Tech. – 8^th feb 2008

Rohit ferro tech. is one of the scrip which has churned out stupendous results for the last several quarters. The company manufactures Ferro-Chrome which is consumed by the steel industry. Overall global demand for steel is on the rise and is expected to grow by 6-7% annually. The company which started with annual capacity of 45000 tpa in 2005 , had come out with an IPO in march 2006 at an offer price of Rs.30 to fund its expansion projects which will increase its capacity by more than 3 times to 1,80,000 tpa. The expansion projects were commissioned in phases in the last 6 months . The final phase of expansion was commissioned on 15^th jan 2008 . Further the company is in the process of setting a 110 MW captive power plant in Orissa. The benefits of expansion has been reflected in the dec. quarter result partially, but the full benefits will be reflected in the coming next quarterly results. Ferro Chrome prices have appreciated by 25% in the last 3 months and expected to move up more . The promoters are vastly experienced in the field of metals , the group companies being Impex Ferro Tech., Ankit metals & Vikash metal and power. Buy below 80 and expected price is 200 in one year.

Risk factors : Keep a watch on Ferro Chrome prices & steel demand . Further the group companies are almost in the same field of different metals.

Health tip – It is better to avoid biscuits or other bakery items as they are high in saturated fats. We especially have the habit of munching biscuits or other bakery foods while sipping tea. Most of these items are prepared from refined flour (maida) which along with saturated fats affect our body by increasing cholesterol , blood pressure, acidity etc.