Buy Bhushan Steel For Target Rs 1350

Bhushan SteelStock market analysts are of the view that investors can buy Bhushan Steel Ltd stock to achieve an intraday target of Rs 1350.

According to them, investors can buy the stock with a strict stop loss of Rs 1315.

If the stock markets remain on the positive path then the stock price will hit a target above Rs 1352.

Shares of the company, on Monday (Dec 11), closed at Rs 1337 on the Bombay Stock Exchange (BSE). The share price has seen a 52-week high of Rs 1448.70 and a low of Rs 260.05 on BSE.

Current EPS & P/E ratio of the stock stood at 117.31 & 11.70 respectively.

During the last month, a source said that Bhushan Steel is eyeing to sell a 5% equity stake to strategic investors for approx Rs 400 crore.

The funds lifted via through fresh issue of shares will be utilized to finance its continuing capacity growth plans.

The company is looking to sell fresh equity shares at a high premium.

The projected deal could cost the mid-sized company engaged in cold-rolled or secondary steel constructing at Rs 8,000 crore.

In its standalone net profit for the three month period ended Sep. 2009, Bhushan Steel posted a growth of 32.31% to Rs 1,891.60 million as against Rs 1,429.70 million during the corresponding quarter of 2008

Net sales dropped 14.32% to Rs 12,984.8 million, whereas total income for the quarter declined 14.1% to Rs 13,048.20 million for the quarter under review.

It posted an EPS of Rs 44.54 during the period, recording 32.32% growth over last year period.