Saturday, May 28, 2016

Balasore Alloys Ltd @ 19.00

1. Balasore Alloys Ltd is a 5.00 rupee face value iron ore company.

Short Brief about company:-
Balasore Alloys, formerly known as Ispat Alloys Limited, which is part of the renowned Ispat group of Companies. This company is a Mittal group company. The Mittal groups companies are spread across several countries besides India.
Balasore Alloys was incorporated in the year 1984 at Balasore, Orissa and at present it has five furnaces with a total capacity of 57 MVA to produce 95,000 MT Bulk Ferro Alloys per annum. With multiple heaters of different sizes, the company has the flexibility to produce various types of Ferro Alloys as per market dynamics. This variety adds to the competitive advantage of the organization as different product mix can be maintained at the same time even with low quantity. The company has captive mines in various locations like Chromite ore mines in Sukinda Valley at Jajpur Road (Orissa).The mines take care of the Chrome ore requirement of the company. BAL is one of the very few Ferro Alloys manufacturing enterprises in the country having captive mines, and this is a significant competitive advantage since the availability of Chrome ore is very uncertain, and the price is also exorbitant. Other raw materials are sourced from both Domestic and International Markets. The products of the company enjoy the international reputation.
The company has QMS(9001:2008), EMS(14001:2004) and OHSAS(18001:2007) certificated for Plant site at Balasore and its Mines at Sukinda Jajpur, Orissa. Various modern management initiatives like Six Sigma, TPM, Supply Chain Management and Performance Management Systems are in place to promote excellence in all areas and improve the overall efficiency of the company, 
Source: - Website).
2. Year high of Balasore Alloys Ltd is 25.00 year low was 14.00 and the stock traded at 19.05, Year high/ year low ratio is stable below two.
If you are new reader of my blog and not familiar with my research terms for short term trading stocks, then please refer this link to knew my research terms to choose a trading stock 
3. Promoters of Balasore Alloys Ltd hold 56.45%  stocks.
Positive point:- Promoters increase his holding from 51.54%, so promoters are not foolish they knew their company very well.
Negative point:-Promoters pledged 32.79% stake and if you read above research terms carefully then you knew that here in sharegenius blog we buy a stock till 33% promoters pledged stake
See the full list of public shareholding including FII and DII here:-
FII & DII Holding Details in Balasore Alloys
4.Balasore Alloys Ltd is a good dividend paying technically sound stock which promoters increase his holdings from 51.54% to 56.45%.
5. The base price of Balasore Alloys Ltd is 16.19, So Balasore Alloys is traded 15% above from his base price,.
Click here to download last 3 years closing price with graph 
I think this stock is now ready for a rally. (for long term investment purpose we buy a stock 15% below from base price but for short term trading purpose it is ok to buy  till 15% up from base price (refer my book or above research terms given in point 2 )
6. No any bonus issue right issue and bulk deals are recorded in last two year.
7. Balasore Alloys Ltd net sale per share of FY 14-15 is 107.47.
8. Net sale per share 107.47 also suggests that this stock is a value buy
9. Book value of Balasore Alloys Ltd is 49.84 So in book value term this stock is a value buy at CMP.
8. Balasore Alloys Ltd is a good dividend paying company. Past dividend history of Balasore Alloys:-

EX DatePurpose
21/09/2015Dividend 0.60
17/09/2014Dividend 0.60
12/09/2013Dividend 0.50
20/09/2012Dividend 0.50
22/09/2011Dividend 0.50
9. 200 DMA of Balasore Alloys Ltd is 17.50 So at CMP 19.05 Balasore Alloys Ltd traded over his 30, 50,150,200 DMA see these DMA of balasor alloys:-
( This stock is not traded on NSE)
10. Targets of Balasore Alloys:-
Short Term 3 Months Target:- 22.90 (20% up from here)
Stop Loss:- 17.15 (10% below from here)
(I use target 20% up and stop-loss 10% below this will make your risk reward ratio 1:2.
After 2-3 months I publish a detail report about performance of my trading recommendations then you understand how this risk-reward ratio 1:2 is useful in trading)
Fundamental target of Balasore Alloys:- Personally I never use stop loss and never sell a good stock in loss so I hold my stocks untill they reach my fundamental targets so here fundamental target  of balasore alloys is 52.05 read my book to knew how to calculate fundamental target or read this chandu story to knew how fundamental target work :-
11. Disclaimer:- This is not an advisory service to buy or sell. The contents of “this research report” are only for educational purposes. No liability is accepted for any content in “this research report”. The author is neither a registered stockbroker nor a registered advisor and does not give investment advice. His comments are an expression of opinion only and should not be construed in any manner whatsoever as recommendations to buy or sell a stock, option, future, bond, commodity, index or any other financial instrument at any time.The author recommends that you consult with a qualified investment advisor, one licensed by appropriate regulatory agencies in your legal jurisdiction, before making any investment decisions. Please read full disclaimer at the bottom of my blog.
12.Discloser: - I Mahesh Chander Kaushik author of this research report is an existing research analyst and passed NISM certification for research analysts. I am also registered  under SEBI(RESEARCH ANALYSTS) REGULATIONS, 2014 ( SEBI Registration Number INH 100000908 ) hereby disclose about my financial interest in the subject company and the nature of such financial interest:- 1 Me and my associates or relatives not hold any share of Balasore Alloys Ltd, so my personal interest is not included in this stock. 2. Me and my associates or relatives have not any actual/beneficial ownership of one percent or more securities of the subject company ( Balasore Alloys Ltd). 3. Me and my associates or relatives have not any other material conflict of interest at the time of publication of the research report. 4. Me and my associates or relatives have not received any type of compensation from the subject company(Balasore Alloys Ltd) in the past twelve months. 5. I am not served as an officer, director or employee of the subject company ( Balasore Alloys Ltd). 6. I have been not engaged in market making activity for the subject company (Balasore Alloys Ltd).

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