Karvy Stock Broking Limited has maintained ‘Buy’ rating on Jindal Stainless stock with an intraday target of Rs 134.

According to Karvy, day traders can purchase the stock between Rs 126-128 with a strict stop loss of Rs 125. The stock pricing becomes more attractive, and reach above Rs 135, if the stock market remains on positive track.

Shares of the company, on Wednesday (July 30), closed at Rs 131.70 on the Bombay Stock Exchange (BSE). Current EPS and PE Ratio stood at 10.73 and 12.50 respectively. The share price has seen a 52-week high of Rs 243.80 and a low of Rs 112 on BSE.

The outlook for the stock is very strong, and it will really outperform the stock market today.

The stock will achieve the target price as the company has forceful expansion plans and strong operating capabilities.

For the quarter ended June 2008, Jindal Stainless registered a 65.59% decline in standalone net profit, which stood at Rs 284.20 million, as against Rs 826 million in the same quarter previous year.

The company reported earnings of Rs 1.77 per share during the same period, registering 70.25% decline over last year period.

Net sales for the quarter surged 31.80% to Rs 15,774.30 million, whereas total income for the three months period zoomed 31.67% to Rs 15,820.20 million, when compared with the prior year period.

The company’s board, at its meeting held on July 22, 2008, recommended dividend of 100% or Rs 2.00 a share, of Rs 2 each for the financial year ended March 31, 2008.

Jindal Stainless, India and Antam, Jakarta signed up a joint venture (JV) deal, in May 2008, to Develop Nickel Smelting and Stainless Steel Facility in South East Sulawesi`.

Antam owns 55% interest in the project with Jindal possessing a 45%. Total investment is estimated at about USD 700 million with an optimum mix of debt and equity.

In April, the company allotted 7.55 million equity shares of Rs 2 each, representing 4.66% of the paid up share capital of the company, upon conversion of an equivalent number of convertible warrants to the company promoters.

Other stocks from the same sector that looks good for short-term as well as long-term trading includes Usha Martin, Mukand and Ramsarup Ind.